Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

9/18/2012 (1 year ago)

Catholic Online (www.catholic.org)

Once rejected as poorly made imitations, Chinese cars now service chunk of population

While leading the world in electronics, China has never really been noted for its automotive industry. Many Chinese drivers would refuse to buy cars made within the country, due to their being poorly made and unsafe. Now - after cutting some corners and some mechanical improvement, Chinese cars such as the Panda, which sell for less than $7,000, are being snatched up and bought by consumers.

Chinese car makers also outsource most of their design and engineering. Cheap and cheerful small cars - termed 'good enough' to drive, sell for as low as $6,350, less than half the price of a plain Toyota.

Chinese car makers also outsource most of their design and engineering. Cheap and cheerful small cars - termed "good enough" to drive, sell for as low as $6,350, less than half the price of a plain Toyota.

Article Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

9/18/2012 (1 year ago)

Published in Business & Economics

Keywords: China, Chinese cars, Panda, quality, design, outsourcing


LOS ANGELES, CA (Catholic Online) - Chinese car makers are thrifty to a fault. For example: the Zhejiang Geely Holding Group Co. conducts 20 to 25 crash tests when it developed its Panda model. Other car makers typically conduct 125 to 150 crash tests for each new model.

Chinese car makers also outsource most of their design and engineering. Cheap and cheerful small cars - termed "good enough" to drive, sell for as low as $6,350, less than half the price of a plain Toyota.

Despite their plain and frumpy looks, some indigenous models are striking a balance between no-frills affordability and acceptable quality. This development has potentially significant implications for the world auto industry.

Such cars as the Panda and the Great Wall Haval H3 are becoming popular not only in China but increasingly so in emerging markets. Indonesia, Egypt and Ukraine are all nations that are happy to welcome these new vehicles. These very economical autos are sending the Chinese automotive industry to record levels, even as growth in China's auto market slows down. Some automotive analysts are predicting a 50 percent increase to 1.25 million vehicles.

These "good-enough" cars pose a serious challenge to the way the international industry operates.

"This is a warning shot to the established engineers who have told their management time and time and again that this is the minimum cost they can achieve with their existing design and production methodology," Shiro Nakamura, a top Nissan Motor Co. executive and the company's chief designer says. "Now the Chinese are saying they can cut another 30, 40 percent of the cost."

While it usually takes four to five years for established players like General Motors Co and Toyota Motor Corp to come up with a new car from scratch, Chinese manufacturers can now do so in just two and half years.

"Perhaps the Chinese achieve their low cost by sacrificing quality standards," Nakamura says. "But in many ways their way also points to 'over quality' or 'waste' we have built into our conventional design process over the years."

Global automakers continue to sell their pricey cars to rich Chinese, but local Chinese automakers had to come up with cheap cars for the masses.

Their solution in coming up with affordable cars was to simply copy the designs of foreign auto makers.

"Around 2000, China began embracing an approach it described as 'reverse-engineering.' It was essentially a fancy word for copying," Dai Ming, a senior engineer at CH-Auto Technology Corp. says. "The problem with those copied cars was that the Chinese were able to emulate the shape of a foreign car, but not its soul."

.

---


Pope Francis calls for your 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2014
Respect for Women:
That all cultures may respect the rights and dignity of women.
Vocations: That many young people may accept the Lordís invitation to consecrate their lives to proclaiming the Gospel.



Comments


More Business & Economics

Is the 'Mark of the Beast' the future of money? Watch

Image of Theoretically, a unique identifier is attached to your digital wallet, could transmits payment for the groceries directly to the store.

By Catholic Online (NEWS CONSORTIUM)

Some futuristic thinkers say that in the next 20 years or so, when people go to the market, they will pick up the items they need and leave - without the benefit of paying a cashier. Sensors will identify a consumer by a mark, their way of walking or facial ... continue reading


Credit card wars: Wal-Mart sues Visa over transaction 'conspiracy' Watch

Image of Wal-Mart objects to the requirement that retailers who want to accept any payments via Visa honor all issuers' Visa-branded cards.

By Catholic Online (NEWS CONSORTIUM)

In an ongoing war over credit cards in the modern retail environment, Wal-Mart Stores Inc. is suing Visa Inc. for allegedly conspiring with banks to fix transaction fees. It's just the latest in a long, ongoing legal fight between retailers and card issuers. ... continue reading


In spite of tax revenue all-time highs - government still running in the deficit Watch

Image of Congress passed and President Obama signed

By Catholic Online (NEWS CONSORTIUM)

According to the Monthly Treasury Statement for February, inflation-adjusted federal tax revenues hit a record $1,104,947,000,000 in the first five months of fiscal 2014. It would stand to reason that the government would have partially dug itself out of its ... continue reading


'Regulated' Bitcoin exchanges planned in New York Watch

Image of Singapore has imposed a tax on Bitcoin trading and using it to pay for services, after classifying it as goods, rather than a currency.

By Catholic Online (NEWS CONSORTIUM)

In a sign that the digital form of exchange in popularity - and by extension, legitimacy, New York's financial regulator has called on firms to submit proposals to set up "regulated" exchanges for currency such as the Bitcoin. LOS ANGELES, CA (Catholic Online) ... continue reading


One, fell swoop: Italy's biggest bank to cut 8,500 jobs Watch

Image of The company is to create an internal

By Catholic Online (NEWS CONSORTIUM)

"I believe the group has turned the page," Italy's largest bank, UniCredit's chief executive, Federico Ghizzoni said. "We could have staggered the losses over several years. We decided to take them all in one year." It wasn't good news for many - Unicredit has ... continue reading


$30 trillion increase from $70 trillion between mid-2007 and mid-2013 sends global debt over $100 trillion Watch

Image of The bank is owned by 60 central banks and hosts the Basel Committee on Banking Supervision, a group of regulators and central bankers that sets global capital standards.

By Catholic Online (NEWS CONSORTIUM)

Everyone at some point seems to 'rob Peter to pay Paul' - especially international governments. During the European debt crisis, many nations borrowed money to keep their governments solvent. As a result, global debt increased by $30 trillion from the original ... continue reading


Wowza! Restaurant starts charging diners for Obamacare Watch

Image of Obamacare sounds nice, but somebody has to pay. At least Gator's Dockside is up front about it.

By Catholic Online (NEWS CONSORTIUM)

Going out to dinner? You'd better be prepared to pay a little bit extra thanks to Obamacare. A chain of Florida restaurants is tacking a surcharge onto diner's bills to help keep expenses at bay and workers on the payroll. LOS ANGELES, CA (Catholic Online) - A small ... continue reading


Time banking - where time is BETTER than MONEY Watch

Image of In a time bank, time is the money.

By Catholic Online (NEWS CONSORTIUM)

Alternative currencies such as Bitcoin and BerkShares are gaining popularity as people look for ways to escape what they see as a rigged and flawed system of monetary exchange in government currencies. However, the idea of banking time as opposed to money is also ... continue reading


Google tops Exxon as world's second-most valuable company - for a day Watch

Image of The one day-surge demonstrated the growing role of technology in the economy.

By Catholic Online (NEWS CONSORTIUM)

It was quite a day on Wall Street. Google, the world's largest online advertiser through its dominant search engine, had a higher market capitalization before falling back at the close in New York to a value of $395.4 billion compared to Exxon's $395.7 billion. ... continue reading


Bill Gates thinks poverty will be eliminated by 2035... But he's missing this one thing! Watch

Image of Bill Gates thinks the world will be more prosperous with absolute poverty for nations eliminated by 2035, mostly as a result of advances in medicine and technology.

By Catholic Online (NEWS CONSORTIUM)

Bill Gates has said that he does not expect to see anymore "poor countries" left in the world by 2035. In his third ,claiming that the world of today was better off than at any time in history and that in 20 years, it will be even more so. LOS ANGELES, CA (Catholic ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Isaiah 61:1-3, 6, 8-9
1 The spirit of Lord Yahweh is on me for Yahweh has ... Read More

Psalm, Psalms 89:21-22, 25, 27
21 My hand will always be with him, my arm will make ... Read More

Gospel, Luke 4:16-21
16 He came to Nazara, where he had been brought up, ... Read More

Reading 2, Revelation 1:5-8
5 and from Jesus Christ, the faithful witness, the ... Read More

Saint of the Day

Saint of the Day for April 17th, 2014 Image

St. Anicetus
April 17: Anicetus was a Syrian from Emesa. He became pope about 155 and ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter