Don't be surpised if down the road one of the big three carmakers is a Chinese company.
It may be a long way off, but the Chinese have shown a knack for learning about a market, participating in production for this market and eventually leapfrogging to become a major player. A perfect example that comes to mind is Chinese computer maker Lenovo Group, which in 2005 purchased the personal computer unit from the godfather of the computer industry, IBM Corp.
When it comes to the automobile industry, the Chinese one day might be able to do the same. Thanks to German-American car company DaimlerChrysler AG, the reality may be closer than most realize because the automaker signed a historic deal with China's Chery Automobile Co. to produce a new small car that would be made in China and marketed around the world, DaimlerChrysler said on Friday, Dec. 29. DaimlerChrysler and Chery are targeting the subcompact auto sector, which traditionally involves lower-priced cars that render lower profit margins.
The deal still needs approval from DaimlerChrysler's supervisory board, but if it goes through it would be a steppingstone toward Chinese entry into the lucrative U.S. market. —Gerald Magpily
See Reuters story via CNNMoney
See earlier post
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