Have Short Sighted Automakers Placed The Keys To OUR Future In Chinese Hands?

While the auto industry in western countries is still struggling from the effects of the global downturn, Chinese companies are on a buying spree. Items on their shopping list include parts suppliers and famous international brands such as Volvo and Hummer.

Some commentators would say the best thing about the big slump has been to give China the opportunity to acquire prestigious foreign marques, along with the technology they owned. But in my opinion, the biggest benefit to China's auto industry has been something less tangible; knowhow.

Since western economies turned sour, hundreds of Chinese auto industry professionals have returned to their motherland. With them, they have brought knowledge and experience gained from many years of studying and working in the United States and Europe.

Many are now working for major state-owned automakers such as Beijing Automotive Industry Holding Corp. (BAIC) and Shanghai Automotive Industry Corp. (SAIC).

BAIC has hired more than 100 "sea turtles" – a phrase used in China to mean Chinese returned from overseas. One of them is BAIC's general manager Wang Dazong. After graduating from Cornell University with a Ph.D. degree in 1985, he worked his way up to engineering manager and technical fellow in GM.

MSP6 - 1/6/2010 12:35:18 PM

+3 Boost

Selling Volvo is a huge mistake.
For a mere 1.8G (they paid 6.4G 10 years ago, they are giving out a lot of technology the chineses plus a up to date lineup (XC60, new S60, V70, XC70 and S80)and a well established dealer network.

They only had to axe the america-only Lincoln brand and keep Volvo has their global Luxury brand.

Lamborghini_vs_Ferrari_Racer - 1/6/2010 1:43:35 PM

+2 Boost

I cannot agree with you more...

Yonder7 - 1/6/2010 3:07:32 PM

+2 Boost

Forseen....But if they'll have that technology , the price should be at least 10G.

dlin - 1/6/2010 4:17:08 PM

+1 Boost

What a stupid post....

If Volvo and Hummer cannot work in American hand, what's wrong selling them to Chinese? Are you saying they should die like SAAB?

And how do those 2 brands constitute "The Keys To OUR Future"? All they care is the branding, not even the technology(like what?), since China learns way more stuff from Japan.

DinamoR - 1/6/2010 4:48:48 PM

+2 Boost

we've handed helluva lot more than our car keys to the chinese. China will be the dominant economic power of the 21st century

Yonder7 - 1/6/2010 5:43:22 PM

-1 Boost

DinamoR: I gave them 20 years from now and they will be the Superpower that We will have fo fight...but there is something that I like from them. There is no chinese soldiers out of China, a mean in any war, So I hope, If we do not mess with them, they won't mess with us.

XYZZ - 1/8/2010 6:08:45 AM

+1 Boost

yes, good points.

i don't think much of the mentality that ASSUMES we will have a shooting war with the chinese in the future. they're TOO SMART for that. NOBODY has come out ahead as a nation, from a war of conquest since the 1930s. from ww2 on, even the winners were LOSERS, economically. (with the exception of stockholders in armaments industries.)

since there's no nation now worth our pillaging, our warmongers instead have focused on LOOTING the AMERICAN TAXPAYERS. and they even get our ordinary folks (modern day peasants) to do all the fighting and dying, while they just collect FAT PROFITS from no bid contracts.

indifferent - 1/6/2010 8:03:10 PM

+1 Boost

I believe there is a cultural shift occuring in the US (and Japan). Due to regulations, you are no longer allowed to "fix up" your car. Also, gas and insurance is extreamly expensive. As a result, kids do not want cars like they did in the past. Also, the "cool" thing to do is use public transportation and be green.

I see demand continuing to decline in the Western world while the Eastern world sees an increase.

dlin - 1/6/2010 10:59:25 PM

+3 Boost

I'd think a Japanese-american will be first.

Joe_Limon - 1/7/2010 12:27:44 AM

0 Boost

LOL badgewhore, Obama won because he was black. It is scary how many people voted for him simply because he was black.

Joe_Limon - 1/7/2010 12:17:02 PM

+1 Boost

Voting for or against him due to his colour is equally racist.

nguyenvuminh - 1/7/2010 2:03:15 AM

+2 Boost

Wow huu, that's a lot of spite and hatred there. "...riding the sails of media..." I suppose that's a comfort that will over compensate the knowledge that you and your family will be targeted for assassination huh? Let's face it, any and all Presidential candidate will be targeted add no one has it easy. As for short sighted CEOs, what would you do if your US shareholders, your board and Wall Street are all holding a gun to your head demanding profit for the next quarter while i) knowing the Chinese market likes your product and/or ii) your US supplier's Chinese operation/partner can held reduce your cost by 5% to help you compete against your competitors in your own country? Don't know the answers myself but I wouldn't condemn those that I cannot relate to. Lastly, tell me huu, which country did you save this week with your wisdom and insight? Let's keep the political comment to a minimum shall we?

bfghemicuda - 1/7/2010 12:10:41 PM

+1 Boost

Badgewhore, your comment is confusing. You cheer for the president and then in your closing comment you are against him for rewarding CEOs. Are you saying that our president should be executing CEOs? I don't think you are but it sure sounds that way.

XYZZ - 1/8/2010 7:24:46 AM

+1 Boost

huu you need to understand, knucklehead americans practically WORSHIP returned 'war heroes.' even when they were LOUSY, INCOMPETENT, if not downright STUPID warriors:

jfk got his PT boat sliced in two by a japanese destroyer.

bush the elder got shot out of the sky, and bailed out before his crew did, saving his own neck while they burned and/or drowned.

mcpain was also blown out of the sky. his greatest feat of heroism was being a POW resident at the hanoi hilton.

bush the younger DID NOT EVEN face any enemies more dangerous than a beer keg. he actually DESERTED his posting, but was never busted.

when the american populace "honors" such brave, 'highly competent' "heroes," is it any wonder our country today is such a trainwreck?

XYZZ - 1/9/2010 5:56:02 AM

+1 Boost

from your list, i think Eisenhower was the SMARTEST, both as a general, president, and patriotic economist.

his handling of logistics counted for as much as any field general's actions in winning in europe. even patton wouldn't have gotten very far, without the GASOLINE delivered by gen'l Ike's logistics planning.

he was able to not only take the measure of Khruschev and plant seeds for a detente with him (sabotaged by the CIA's spy plane flights), but gave us (the mostly unheeded) WARNINGS ABOUT the u.s. military-industrial complex.

unlike in the good/bad old days when war actually PROFITED winners, todays wars make EVERYBODY LOSERS! both in lives destroyed, and TAX BURDENS later.

the ONLY people to profit is, yup, the military-industrial complex.

rather than conquer rich foreign lands, they now plan --and succeed-- in conquering THE AMERICAN SHEEPLE themselves. raking in obscene profits from arms deals, no bid contracts, white elephant projects like Star Wars, etc. etc.

nguyenvuminh - 1/7/2010 10:33:35 PM

+1 Boost

huu, you seem to think you're so smart, so tell me what have you done for your community, city, country? what is being vietnamese got anything to do with my political/social leaning? atleast i don't hind behind nickname. ross perot, give me a break, theories and ideologies always sound so good from a non decision maker such as yourself. i'd love to turn back the clock, get ross perot his presidency and see how his gun blazing ways work with these agenda-ridden congress. running a company with full decision making authority is very much different from running a country, any country let along a country such as the u.s.. let me know when you run for office and let's see how well you turn out based on ideologies and theories. in the mean time, save the political and social comment and stick to auto topics if you can discipline yourself to do that simple task you fucking know-it-all.

XYZZ - 1/8/2010 7:00:58 AM

+1 Boost

huu76:

"Its hard to buy a car working for minimum wage."


the solution is simple.

once the chinese take over 55% of the GLOBAL auto industry, they'll undercut Tata's $2500 car with one selling for $1995. then they'll export these to sell to unemployed americans.

then EVERYBODY will be HAPPY! ;)

fatandsassy - 1/8/2010 10:44:37 AM

+1 Boost

What we need a Full blooded American that is not a lawyer but a economist business leader instead to stand up take pride of the county he is from no matter what color, race, religion he is and go back to the way our original colonist did it. It's time for Americans to take responsibility for the crappy country we have now and fix it. We still control the world economy we just let everybody in. If we close our trades and push for Americans to buy local we can do this. The country need a rally like in WWII when everyone took pride in thier land

XYZZ - 1/9/2010 6:08:15 AM

+1 Boost

i spoke too hastily. china will make a $1995 car ON THE WAY TO capturing a 55+% global share. well, maybe a $2495 or $2395 stripper, just to undercut Tata's $2500 Nano. with decently eqpt'd models of course costing more, and 'lux' models doubling the price. (aren't chinese as sharp businessmen as the japanese?)

don't be so hard on china, huu. they'll have THEIR Century (or at least 1/2 of one), before the Indians catch up.

nguyenvuminh - 1/10/2010 9:14:45 PM

+1 Boost

huu, "...When I become a millionaire..." ??? With all of your so-called intelligence, wisdom and insight and you still haven't gotten to the millionaire level yet? Lame, very lame.

XYZZ - 1/12/2010 9:17:43 AM

+1 Boost

give 'im a break. huu's a 2d or 3d generation asian-canadian. he does NOT HAVE the "immigrant drive" of FOBs.

XYZZ - 1/12/2010 9:23:16 AM

+1 Boost

for that matter, i suspect even a lot of TODAY'S FOBs do not have that 'immigrant drive' either!

are YOU a millionaire, minh?