European automakers cash in on China car boom

Updated: 2011-01-14 10:37

By Patrick Whiteley and Xiao Xiangyi (China Daily European Weekly)

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"They need an array of products at different price points which targets the more affluent and sophisticated buyers as well as the no frill budget products which can compete on price with Chinese brands in the price sensitive segments."

In the next decade, he sees the development of Chinese brands and intense pressure from Japanese and South Korean plus Ford/GM as bumps ahead for European carmakers.

"They have to know how to manage risks of technology pilferage to their JV partner and still maintain good relations with them," he says.

"And also how to manage the expansion process to take fulladvantage of growth without over-extending themselves and be ready for a possible slowdown."

 European automakers cash in on China car boom

Left: 1994 onwards-Former army divisions, Chang'an Motors, Changhe, Hafei Motors focus on car-making. Old State-owned companies such as Brilliance China Auto, Chery Automobile and Changfeng Automobile join the industry.

Right:2001: Geely becomes first private car company.

1990s: Three smaller joint ventures begin.

1990s: Honda replaces Peugeot as the partner of Guangzhou Auto, and produces the Accord and the Fit with success.

1992: China produces 1 million cars.

2001: China produces 2 million cars.

2002-2007: National auto market grows 20 percent each year or 1 million new cars.

2003: Daimler Chrysler renews partnership with Beijing Automotive.

 European automakers cash in on China car boom

Left: 2003-Brilliance Automotive forms joint venture with BMW to make 3 and 5-series cars.

Right: 2010-Geely buys Volvo cars.

2005: Nanjing Fiat Company acquires remaining assets of MG Rover Group.

2005: Top five foreign producers are Volkswagen (430,592 units per year), General Motors (308,290), Honda (254,820), Nissan (166,938) and Toyota (146,943).

2010: China overtakes the United States as world's biggest carmaker with more than 13.6 million cars produced in 2009.

2010: PSA Peugeot/Citroen forms its second joint venture with Chang'an Motors in Sichuan.

2010: China produces 18.06 million cars.

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