China Decade From Having Global Carmaker, Bernstein Says
February 22, 2013
Chinese automakers are about a decade away from being globally competitive and will have to increase their spending on research and development to close the gap, according to Sanford C. Bernstein & Co.
Carmakers such as General Motors Co. (GM), Volkswagen AG and Toyota Motor Corp. are outspending Chinese brands on research and development and lead in engineering, said Max Warburton, an auto analyst at Bernstein, which has a neutral rating on China’s auto industry. The Chinese have the will and money to make their auto industry world class, he said.
“The Chinese are 80 percent of the way there, 20 percent doesn’t sound very hard, but it’s probably the most complex bits to get right,” Warburton, who is based in Singapore, said in a phone interview yesterday. “They’ll be spending until they make it work and eventually they’ll end up with Chinese carmakers on the world stage.”
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