New York,NY,USA -FORBES,by Robyn Meredith -06.01.05: -- Just a few years ago, Chinese auto companies didn't know how to make a modern car. Now, thanks to the shared know-how of the world's best-known automakers, China's auto industry has moved into a new phase.
The car market--like maturing Chinese markets for other goods--has come to this: lower profit margins for everyone and exports within sight for Chinese car companies... A worker, struggling with English, tried to explain, "They are our cooperator".
Indeed. Not quite competitors, not quite partners, as the world's automakers rush into the Chinese market... GM counts 150 million Chinese with incomes of at least $3,000 a year--a car-affordability threshold. Sales are zooming, but minicars carry "margins that are closer to wood shavings than anything you can put in your pocket,"