China automotive sector has been a source of great frustration. Too many corners cut, too many models from single brands and economics that make no sense. Hence the poor success in major export markets.
The first issue – quality- has been mostly solved, which finally puts the sector into the position they should have been in since 2000. Just 21 years late.
The second – too many manufacturers and models- needs to be addressed. Running loss leaders for so long is silly. Some plants and indeed manufacturers need to close.
The third issue – technology transfer – has effectively taken place with most OEMs moving more and more of their engineering as well as manufacturing operations from abroad to China. This – too late – has caused concern in other major economies.
The stage is set.
Now we await the first signs of genuine product innovation from China. Let’s hope it’s not another 21 year wait.
