Getting involved in European companies is likely to bring a complexity of personnel management that will blow their minds.
European auto analyst Graeme Maxton in an Automotive News [sub] report on potential issues with Chinese buyouts of western auto brands. “I’m not sure they can handle a brand like Volvo and turn it around,” adds an anonymous “senior executive working in China with a major U.S. automaker.” To be fair, Maxton concedes that auto-sector mergers are difficult under any circumstances, but that doesn’t stop AN [sub] from trotting out an ominous quote from BAIC chairman Xu Hey, who blames “western discrimination” for China’s trouble wooing established brands.
If we were unable to sail through choppy waters on our own, we still have a chance to get to the other side of the ocean by taking other people’s boats.
Saab’s boat, in this case. Xu’s firm recently bought a minority holding in Koenigsegg Group, which is taking Saab off of GM’s hands. And actually, this approach shows that the Chinese are approaching their brand acquisitions with a little more finesse than the stereotypes (and AN‘s breathless coverage) suggest.
Though bad experiences with Hummer, Ssangyong and (until recently) Roewe point to possible issues, it’s way too early to write off Chinese stewardship of western auto brands wholesale. American and European OEMs can wail to the heavens about Chinese incompetence, but at least China’s market is growing. Like crazy. If Chinese firms want the brands and they’re paying cash, why refuse to sell them for the patronizing reasons that litter AN‘s analysis?
Meanwhile, where were these people when the Daimler-Chrysler deal was going down?
I didn’t know Starfleet was in the car business!
I didn’t know Adidas was in the car business!!
But can The West as casually buy into Chinese automobiles as we did Japanese? The answer is: All it takes is one great car.
But can The West as casually buy into Chinese automobiles as we did Japanese?
If they’re Volvos owned by Chinese? It won’t be an issue. How many people know Land Rover is technically an “Indian car”?
Chinese-made autos imported here? They’ll make the Hyundai Excel look like a Bentley.
I’m sure the Chinese can send their “Torch Minders” and “control” anything they buy. They’re China after-all and must be respected unquestioningly …..
I’m sure the Chinese can send their “Torch Minders” and “control” anything they buy. They’re China after-all and must be respected unquestioningly
Channeling Thomas Friedman, huh?
@ Akitadog – That Starfleet logo is used by ChangAn Automobile Group on their Tiger Truck line. Tiger Trucks have been on sale in the U.S. since 1999. They recently opened a U.S. manufacturing plant in Oklahoma. Here is a link to the U.S. distributor’s web-site.
http://www.tigertruck.com/
In those logos alone I see blatant rip offs of Scion, Citroen, Eagle, Star Trek, Viacom, Toyota trucks, and Opel.
That swiss cheese pyramid inside an oval is cool though, although I’m not sure a Chinese car company would want their logo to imply anything about holes…
Chinese cars are all rip-offs, so why not their logos too?
akitadog wrote: “I didn’t know Starfleet was in the car business!”
They’d better be, it appears the Klingon Empire is. ( center of second row from the bottom,)
We’ve almost got the Prudential Rock in there, too…
Changfeng uses the Liebao (Leopard) brand name, and in front of their factories and offices they have a statue of a leaping leopard. Any similarity to Jaguar’s leaper is, I’m sure, cough, cough, completely coincidental.
I don’t know if it’s cluelessness or arrogance on the part of Chinese companies. If Warren Buffett is investing in them I’m sure BYD has good prospects, but their cutaway car revealed castings that looked pretty crude, with obvious grinder marks, body sealant that wouldn’t have passed muster in a 1970s era Detroit plant.
I’m not sure if they don’t notice or don’t care. Americans keeping buying their dreck no matter what.
The Chinese will have to get used to European labor regulations (it’s a full-time job, as they change continuously) but they have some experience.
The Chinese labor laws changed considerably on Jan 08 (throw out your old cliches and weep) raising personnel costs by some 30 % and causing a huge administrative burden.
I remember sitting at our lawyer with my (Chinese) VP in December 07, getting briefed on the fresh law.
After each section explained, I said: “Hm, just like in Germany.”
I did this a few times, then the lawyer turned to my VP and said: “I’ve got to go now. Ms. Zhang, if you have any questions about the new regulations, Bertel will be able to answer them.”
the bottom right one is the citroen logo, perhaps from a xsara.
“I’m not sure they can handle a brand like Volvo and turn it around,”
Oh, yah. No where near as good as Ford….
Ronnie Schreiber :
September 15th, 2009 at 12:00 am
Changfeng uses the Liebao (Leopard) brand name, and in front of their factories and offices they have a statue of a leaping leopard. Any similarity to Jaguar’s leaper is, I’m sure, cough, cough, completely coincidental.
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As coincidental as both Porsche and Ferrari use a prancing horse and the two factories are within 1000 miles of each other.
BTW, “Liebao” is not Leopard. It’s Cheetah. Very different animal, even though they do have some resemblance.