World Automobile Giants' China Strategies in 21st Century (Part Three)Part OnePart TwoPart ThreeJapan Auto Groups: Latecomers Ahead of OthersCards in hand Japan's biggest auto corporation Toyota finally, in the first half of last year, hammered out its vehicle production plan--to roll off automobiles in Tianjin, 2002, a schedule lagging far behind their European and American counterparts. However, its Xiali, co-produced by Daihatsu under Toyota group and Tianjin Auto Group, has long been dominating China's taxi market. Presently Toyota's joint venture in Sichuan has formally put medium-sized buses into production and Toyota now boasts 21 joint or cooperative ventures in China. Scheme for the game Before vehicle production in 2002, Toyota must provide its partner Tianjin Auto with technological support in the form of two super models--Xiali 2000, rolled off the production line on December 14, 2000, and VITZ, to be turned out at opportune time in the second half of 2001. Cards in hand Honda apparently heads the list of foreign firms in car-making cooperation with China. Its world-renowned motorcycle engine technology has earned it an important position on China's motorbike market. Its another success is the Guangzhou Honda it co-funded with Guangzhou Automobile Group for its establishment on July 1, 1998.. Scheme for the game Guangzhou Honda will evolve a new model each year and, when time is ripe, march toward the mini car market. It will also raise its annual production of Accord from 30,000 to 50,000 units by 2002. Cards in hand As Japan's second biggest auto group, Nissan is quite slow in market expansion in China. It joined hands with Zhengzhou Light Vehicle Factory in 1994 to make Pickup, but output remained low. Recently it cooperated with Yulon Motor (Taiwan) and Dongfeng to produce Fengshen Bluebird in Shenzhen, which enjoys a ready market. Scheme for the game Nissan has entered into partnership with Renault to map out a "revival plan", in which investment in China for sedan manufacture is a key link, with specific models and investment partners under consideration. Besides, Suzuki, Isuzu, Mitsubishi, Fujiheavy, Mazda, Hino and other Japanese auto companies also have joint or cooperative ventures in China. Comment Japanese household sedans should have been the most competitive models in China if not hindered by a long-term slow market exploration. Standing at the threshold of the new century and seeing European and American car makers rushing into the Chinese market and turning China into their production base, Japanese corporations have to consider the importance of China's market from the angle of global competition. ROK Auto groups: bulge call to charge forwards Cards in hand Early in 2000, Hyundai Corporation signed with Jiangsu Yueda Group a letter of intent on larger cooperation in the Great Hall of the People in Beijing, and on September 2000, formally signed an agreement on transferring stock rights and making additional investment, to set up a joint venture with equal share by both sides. In order to attain the qualification for sedan manufacture, Daewoo established two large ventures in China's mainland in the mid 90s, namely, Faw-Daewoo Automotive Engines Ltd and Shandong-Daewoo Auto Parts & Components Co. Ltd, by far the biggest ever founded at a cost of RMB7.8bn. in China, while Daewoo's bankruptcy in 2000 has, to different degrees, adversely affected the two projects, as well as the bus project in Guilin. Scheme for the game Stabilize and inject more funds into Yueda project. Comment The formal operation of HKYMC, a joint venture between Hyundai Corporation and Jiangsu Yueda Group, indicates that the involvement of S Korean auto companies represented by Hyundai in China's auto industry, has entered a substantive stage. (The End) By PD Online staff member Li Heng |
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