How Long Until China Forces Automakers Keep Profits In Their Country?

German automaker Volkswagen AG gained nearly half of its pretax profit from the Chinese market in the first quarter of this year; while Japan's Honda Motor Co. reported net profit of more than $2.86 billion in FY 2009, up about 90%, compared with $3.18 billion it obtained in the global auto market.

China overtook the United States to become the world's largest car and van market in 2009, with a total of 13.6 million vehicles sold in the domestic market. Such a good opportunity lying ahead, international auto giants, including Toyota, Volkswagen, General Motors, Nissan, Honda, Hyundai-Kia all shifted sales and headed for China. That same year, these automakers witnessed a growth of over 20% in sales in the country.


 

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Agent009 - 9/28/2010 10:20:21 AM

0 Boost

They are already looking seriously into if you want to play in this market you need to give up technology. right now they are appalled that foreign investors take up to 70% of profit out of the country. What a better way to ensure that the money makes it back into their economy?

WorldofLuxury - 9/27/2010 5:47:08 PM

+1 Boost

Looks like China is learning from our mistakes.

I wouldn't be surprised if its future ecological footprint makes our environmental efforts seem ungainly. If it finds itself in an immediate energy crisis, the government would have the power to enforce a quick buffer in the same way that they were able to mandate less driving to clean the air and enforce the 1-child policy.

I know there are obvious, social effects of the 1-child policy, and I'm not trying to engage some political-social flamewar. I'm just saying that China will be getting things done.

If it were possible for me to be less selfish and less distrusting, I'd ask the US government to do what it feels is necessary - make the process quick and make it work!

LexSucks - 9/27/2010 6:19:02 PM

+2 Boost

"It is undeniable that China is now the leader in the global automotive industry,"

- Yeah... I see Chinese cars in every country in the World. Not!

China isn't the leader of the Global Automotive industry. Just because they but the most cars (and I'm not even sure of that one) doesn't make them the leader of the industry. When Chinese cars are sold world-wide, more than any other country, then you can say something.

Whats funny is that less than a year ago Autospies was saying that Japan is the leader.

LexSucks - 9/27/2010 6:25:50 PM

+1 Boost

I meant to say "buy" the most cars.

acronis - 9/28/2010 9:51:47 AM

-4 Boost

Autospies wasn't just "saying it", it was the world's media based on hard facts:

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aE.x_r_l9NZE

http://www.cnbc.com/id/36817544/China_s_Auto_Market_Is_Now_the_Big_Long

acronis - 9/28/2010 12:11:18 PM

-3 Boost

Did you even bother reading any of the links from the news sources provided before firing off your post?

thstone - 9/28/2010 4:37:29 PM

+1 Boost

Let me explain for those of you who are globally challenged:

China can dictate terms and conditions to all auto manufacturers as part of allowing them access to what is now the largest market for autos in the world.

And don't forget that China is not capitalist nor democratic. They could care less about our ideals of free-markets and open global trade.

And the auto companies, just like clothing companies and WalMart before them, will bow to the Chinese and sell our their companies and countries in order to make this Quarters profits.

The slaves will ultimately become the masters as a result of economics, not culture or politics.