China goes on offensive at auto expo

[pupp1]

China goes on offensive at auto expo
Nation doubles its presence at Detroit engineering forum as it aims to grow globally.

Seeking to win new business and raise their profile in the United States, Chinese auto companies plan to come out in force at next month's SAE 2005 World Congress in Detroit.

Five years ago, Chinese automakers and parts suppliers were bit players at the annual Society of Automotive Engineers convention. But for the 2005 show, Chinese companies have booked more than 4,000 square feet of exhibition space at Cobo Center -- nearly twice as much as last year -- to display their products and technology.

Supported by the Chinese government, the country's auto sector has ambitious plans to follow Japan and South Korea in becoming a major global player.

The SAE show April 11-14 will host 22 auto suppliers from China, automaker Qingling Motors Group and several dozen Chinese economic development and government officials. About 50,000 engineers and others are expected to attend the show.

The Chinese suppliers could use the show to make contacts with North American companies looking to outsource work to Asia.

"It's always a threat when suppliers with some of your capabilities come into the market," said Neil De Koker, president of Original Equipment Suppliers Association, which represents parts makers with operations in North America.

Led by a surge in passenger car sales, China's vehicle market has exploded in the past five years to become the world's third-largest, behind the United States and Japan.

Automakers and automotive suppliers have invested more than $30 billion in plants and research facilities across China.

In a strategy directed by the government in Beijing, China is seeking to attract investment and the most-advanced engineering and manufacturing technology, while touting the improving quality of its manufacturers and the country's low labor costs.

With a population four times larger than the U.S., China could become the world's largest vehicle market by 2025, industry analysts say.

Chinese manufacturers have established offices in Detroit and Los Angeles in recent years with a goal of exploring the world's most lucrative auto market.

"You're seeing Chinese auto companies eyeing the United States for importing vehicles," said Raymond Xu, president of the Detroit Chinese Business Association in Dearborn, a trade group with 1,500 members.

Earlier this year, automotive entrepreneur Malcolm Bricklin announced a deal to import Chinese-made cars to the United States.

Bricklin plans to import 250,000 cars a year, assembled by Chery Automotive Co. in China, to the United States starting in January 2007.

Chinese auto suppliers have gone on the offensive as well. Two years ago, Andus R&D Inc., which manufactures components for use on vehicle platforms in China, opened a 10-person sales office in Novi. It now is scouting Metro Detroit for a research and development center, said Jeff Zhao, president of Andus R&D in Los Angeles.
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[RWD60]

honestly, this is the worst news for GM i've heard all week... yeah, their cars are all junk right now, but a decade ago the same was true of the Koreans, and 30 years ago, the Japanese... by 2020 this could be a huge problem.