China says auto overcapacity getting more serious

[Hurricane]

China says auto overcapacity getting more serious
Sun Sep 9, 2007 5:19AM EDT
BEIJING, Sept 9 (Reuters) - Overcapacity in China's automobile industry is getting more serious and investment is growing excessively, state media reported on Sunday.

China's auto parts industry was a laggard, however, and unable to compete in the global supply chain due to its small scale, Xinhua News Agency said, quoting Zhang Guobao, vice chairman of the National Development & Reform Commission.

China, the world's second-largest vehicle market, now has capacity to produce more than 10 million units a year and the overcapacity problem has been accumulating, Zhang said.

In 2007, China's vehicle sales and output were expected to surpass nine million, up a quarter from 2006, Chinese media reported on Saturday, reaching a goal originally set by the government for 2010.

China's vehicle output jumped an average of 26 percent each year from 2001 and 2006, official data showed.

Global giants including General Motors Corp (GM.N: Quote, Profile, Research) and Toyota Motor Corp (7203.T: Quote, Profile, Research) are among the main investors in the industry boom.

More here: http://www.reuters.com/article/marke...0070909?rpc=44

[montrealvue]

Can't say that I care, I buy what is built on North American soil as much as possible. With companies like Mattel having recalls on MILLIONS of Chinese made toys, I can't imagine what the recalls for Chinese made cars would be

[espo19047]

Originally Posted by montrealvue

Can't say that I care, I buy what is built on North American soil as much as possible. With companies like Mattel having recalls on MILLIONS of Chinese made toys, I can't imagine what the recalls for Chinese made cars would be

I agree. Why should I care?

[hunchman]

China was never gonna have as many cars on the road as the US. The intentions of the auto industry in china was to produce cheap cars globally. One day you'll go to walmart and buy a car for a few grand. People will be lined up for them and won't give a **** about GM or any of the other big players for that matter. This is the real reason why the big guys rushed over to china so they won't miss out. Forget all the touchy feelings about this it's a done deal....the rich get richer and the por get ****ed

[chrisbenz]

China was thinking to sell cars to west. However, after all the recalls the govt of China is seeing it will be a hard sell for now. see this too. They know that people will buy low end stuff of poor quality but to spend it on a big tickit item like a car that will be a hard sell.

[HoeyHimself]

Anything outta China's mouth needs to be taken with a grain of salt. They tried to kill our dogs..they put drywall dust in our med inhalers..they do all sortsa crap that just makes me wonder why we even still associate with them.

4,000 BTW WoHoo!

[LAMRONH1]

Originally Posted by montrealvue

Can't say that I care, I buy what is built on North American soil as much as possible. With companies like Mattel having recalls on MILLIONS of Chinese made toys, I can't imagine what the recalls for Chinese made cars would be

Unleaded gas, heavy lead paint.

Always seeking balance, grasshoppah.

[MOGI]

Originally Posted by HoeyHimself

Anything outta China's mouth needs to be taken with a grain of salt. They tried to kill our dogs..they put drywall dust in our med inhalers..they do all sortsa crap that just makes me wonder why we even still associate with them.

4,000 BTW WoHoo!

China is so hungry to be the U.S. equivalent in the world on every level, and no one sees it really. They turn out shoddy, and dare I say Hazardous materials/products, yet we still buy them. We need to quit giving away the farm as a nation, and start making these people pay...

Make every chinese company pair with a U.S. Company here, and oh yeah, if they have an original idea, patent it under an American liscense...Know what I mean? Put these people under till they learn to play fair.

Let the Chinese deal with their own problems...we have enough of our own that are going unsolved...

My ideas will never fly with the vote hungry politicians running this country...but Hey, I got my thoughts out there...

"my thoughts were not meant to be a political rant, but I do thing they are releant to the long term viability of this countries manufacturing base"

[montrealvue]

Originally Posted by MOGI

They turn out shoddy, and dare I say Hazardous materials/products, yet we still buy them. We need to quit giving away the farm as a nation, and start making these people pay...

Good point. Who is the idiot? The person making the shoddy products or the person buying them? If demand doesn't exist, then there will never be a problem.

[2012Aveo]

GM derives a growing portion of their profit from the China auto market. If this market has overcapacity it may mean GM sales in China may decline. That is why anyone who is concerned with GM's wellbeing should be concerned if the auto market in China has overcapacity.

As far as why we should buy products made in China. They are cheaper for the American consumer and keeps inflation and the cost of living lower. Less money spent on small ticket items means more money available to purchase large pickup trucks and SUV's. Again, good for GM.

[TORRED1]

Originally Posted by montrealvue

Good point. Who is the idiot? The person making the shoddy products or the person buying them? If demand doesn't exist, then there will never be a problem.

As far as im concerned its the person buying them, , that is one reason why my brother who was looking at a Equinox passed on it, the motor was made in china, if we buy it they will continue to make it there, if we dont they will stop. It is that simple. The consumer decides what is made overseas not the company, we have the power we are just to stupid to realize it. JMO

[slowinthefastlane]

Originally Posted by espo19047

I agree. Why should I care?

If they can't sell them in China, it's likely they'll start dumping them in other countries for next to nothing. Although Chinese cars probably won't be dumped in the US anytime soon, they could be sold in other markets that GM competes in (Eastern Europe, Central/South America, etc).

[TORRED1]

I hope they choke on them, with a population of over 1.5 billion they could make those cars for thier own market, 10 million is less than 1% of their market. that should be an easy sell

[LAMRONH1]

Originally Posted by TORRED1

I hope they choke on them, with a population of over 1.5 billion they could make those cars for thier own market, 10 million is less than 1% of their market. that should be an easy sell

Sell them for $5, since that's about all slave-wages indentured servants can pay.

[hunchman]

Originally Posted by TORRED1

I hope they choke on them, with a population of over 1.5 billion they could make those cars for thier own market, 10 million is less than 1% of their market. that should be an easy sell

no because they are not as rich as you are led to believe. Some are emerging under the communist rule yes but not in numbers that you think.