Why geely will be soon the automaker to beat

[2o6]

I think it's really cool, and it shows why lately Geely's products actually look competitive and attractive.

They are actually investing in training their workers and engineers in car design and modeling.

They started their own university: Geely University.


Pt 1:

http://www.bonlive.com/VideoShow.php?id=70

Pt 2:
http://www.bonlive.com/VideoShow.php?id=69

[cawimmer430]

They started their own university: Geely University.

Schedule Monday to Friday:

Copying 101

[Cookie Monster]

Schedule Monday to Friday:

Copying 101

[cozmik]

While I can't say I agree that they'll be the "one" to beat anytime soon, they have been showing steady progress lately. I do expect that within the next couple years, they could become competitive with the traditional major auto companies. It's inevitable that they do eventually. Look how far Hyundai has come since they started importing into the US. The Chinese are likely to learn even faster.

[SVT666]

"Topic: Why geely will be soon the automaker to beat"

I think you need to go to university.

[Laconian]

Geely U: where academic dishonesty is rewarded!

[r0tor]

Geely U: Where even your diploma is a bad copy of a real one

[Tave]

Hyundai, Fiat, Toyota/Honda, VW.

No, not Geely.

[Submariner]

Geely U: Where even your diploma is a bad copy of a real one

Seriously, I already have enough cheap Chinese shit in my life, their cars are not something I want as well.

[CALL_911]

Their copy machines will be state of the art, at least.

[giant_mtb]

...because they sponsor a university that has classes like "car modeling" and a mechanic's program that you could take at any vocational school?

Hm.  I guess that's special.  Since Ford, GM, and every other brand don't already have major programs a universities across the country where they have students doing research and development for them.  They don't waste time with "modeling."

[Laconian]

http://en.wikipedia.org/wiki/Kettering_University

[NomisR]

Seriously, I already have enough cheap Chinese shit in my life, their cars are not something I want as well.

Well, they're already building, Audis, BMW, Mercedes and other premium european brands in China, although for their domestic consumption only.. I seriously won't be surprised if they suddenly decide to ship them all from China.

[ChrisV]

I wonder...

This little geely looks pretty good, and not a direct clone of anything, really (even if there are styling cues, you can, and many have, said that about nearly every modern car from any manufacturer...)

[Eye of the Tiger]

http://en.wikipedia.org/wiki/Kettering_University

I almost went there, but it too 'spensive, and I hate math. Ferris AET FTW

[565]

Well, they're already building, Audis, BMW, Mercedes and other premium european brands in China, although for their domestic consumption only.. I seriously won't be surprised if they suddenly decide to ship them all from China.

Both Honda and GM openly admit that the cars from their China plant are as high or higher quality than the stuff from their US plants.  The reason why automakers haven't moved enmass to Chinese manufacturing (like pretty much all other manufacturing) is because currently it's not profitable, there isn't enough infrastructure there yet.  But pretty much every major automaker is scrambling to establish infrastructure in China in a big hurry.

http://www.businessweek.com/magazine/content/05_23/b3936033_mz011.htm

"What's more, Honda says in-house quality tests show that the China-made Accord is actually superior to the one made in the U.S. If those quality gains hold and a far bigger market drives down costs, China could start throwing its heft around the global auto market in a big way. Look out, Detroit."

"Another challenge is a bit of a mind-bender: While China's labor costs are dirt cheap, the overall cost of bolting a car together there is anything but. Honda officials say the cost of making the Accord in China is still higher than in Japan or the U.S. And it costs about the same to build the Fit compact in China as it does in Japan. Honda makes money selling cars locally because prices are high.

Blame expensive parts for the high costs. Despite a major production shift to China by Western partsmakers, the nation remains a net importer of auto components, especially high-end gear such as engines and transmissions. Those parts face tariffs of up to 20%, plus shipping costs. Parts made by Chinese partners or foreign transplants are pricey, too, because of local-content rules that result in generally low production runs. Bernd Leissner, president of Volkswagen Group China, notes that while labor accounts for only 6% of production costs, materials eat up 85%"


http://www.time.com/time/magazine/article/0,9171,1896626,00.html

"Though GM China tightly guards data on labor costs, analysts conservatively estimate that wages and benefits per factory worker are less than a tenth of what they are in North America. "And quality," insists Reilly, "is not an issue" ? its Chinese plants are as good as GM factories anywhere. "Within 10 years," says Kevin Wale, Reilly's deputy and the president of GM China, "this will be our largest market in the world."

Honestly once it becomes much more profitable to make cars in China and to sell them worldwide (as is the case with the majority of manufactured goods currently), it would be unrealistic to expect the world's automakers to hold out for too long.  Let's be realistic here, what auto execs want is to get as much money as possible into their pockets.  Plus they have to stay competitive with the rest of the field.  If making cars for pennies in China and selling them for dollars around the world is what it takes, then that is what they are going to do.  I think eventually we will see a good portion of cars sold here, from domestic, euro, Japanese, and Chinese brands, to be "made in China."

[NomisR]

Both Honda and GM openly admit that the cars from their China plant are as high or higher quality than the stuff from their US plants.  The reason why automakers haven't moved enmass to Chinese manufacturing (like pretty much all other manufacturing) is because currently it's not profitable, there isn't enough infrastructure there yet.  But pretty much every major automaker is scrambling to establish infrastructure in China in a big hurry.

http://www.businessweek.com/magazine/content/05_23/b3936033_mz011.htm

"What's more, Honda says in-house quality tests show that the China-made Accord is actually superior to the one made in the U.S. If those quality gains hold and a far bigger market drives down costs, China could start throwing its heft around the global auto market in a big way. Look out, Detroit."

"Another challenge is a bit of a mind-bender: While China's labor costs are dirt cheap, the overall cost of bolting a car together there is anything but. Honda officials say the cost of making the Accord in China is still higher than in Japan or the U.S. And it costs about the same to build the Fit compact in China as it does in Japan. Honda makes money selling cars locally because prices are high.

Blame expensive parts for the high costs. Despite a major production shift to China by Western partsmakers, the nation remains a net importer of auto components, especially high-end gear such as engines and transmissions. Those parts face tariffs of up to 20%, plus shipping costs. Parts made by Chinese partners or foreign transplants are pricey, too, because of local-content rules that result in generally low production runs. Bernd Leissner, president of Volkswagen Group China, notes that while labor accounts for only 6% of production costs, materials eat up 85%"


http://www.time.com/time/magazine/article/0,9171,1896626,00.html

"Though GM China tightly guards data on labor costs, analysts conservatively estimate that wages and benefits per factory worker are less than a tenth of what they are in North America. "And quality," insists Reilly, "is not an issue" ? its Chinese plants are as good as GM factories anywhere. "Within 10 years," says Kevin Wale, Reilly's deputy and the president of GM China, "this will be our largest market in the world."

Honestly once it becomes much more profitable to make cars in China and to sell them worldwide (as is the case with the majority of manufactured goods currently), it would be unrealistic to expect the world's automakers to hold out for too long.  Let's be realistic here, what auto execs want is to get as much money as possible into their pockets.  Plus they have to stay competitive with the rest of the field.  If making cars for pennies in China and selling them for dollars around the world is what it takes, then that is what they are going to do.  I think eventually we will see a good portion of cars sold here, from domestic, euro, Japanese, and Chinese brands, to be "made in China."

Well, China market IS the future.  Their buying power can probably sustain it's own growth especially just from internal consumption, and when combined with exports, it's no wonder why all major manufacturers is moving to China.  You'll literally have the world's largest consumer market in China in the future, and with the low wages.. it'll make it a painless transition. 

Also, the low wages is only for the lower class people, you still have to consider China's middle class population is over 300 million which is greater than the population of the US.. just food for thought.

[sportyaccordy]

Don't forget China's pollution problem. Shanghai is what happens when you forego everything for attracting industry money. It will be too polluted to even live in in the next few years.

[hotrodalex]

China's factories are good - if they are run by foreign companies who demand the quality control. Chinese companies haven't done so hot.

[GoCougs]

Don't forget China's pollution problem. Shanghai is what happens when you forego everything for attracting industry money. It will be too polluted to even live in in the next few years.

No, China's pollution problem is what happens in communist countries. Google the catastrophic pollution issues of the former USSR.

China still doesn't have the GDP of Japan, only ~25% of that of the US, and only about tied with India.

There is opportunity there, but manufacturers must be cognizant of the fact that it is in support of a repressive communist regime whose downfall is only a matter of time.

In the '90s all the rage was about India and its software and intellectual prowess; today it's doing okay, but it is not about to take over the world 10 years hence. The analogy fits with China and its manufacturing and labor prowess. Realism will soon return WRT to the outlook on China's place in the future world. My bet is that Inda will be a more prominent player in the coming decades, even without a Chinese collapse.

[lazydragon]

China still doesn't have the GDP of Japan, only ~25% of that of the US, and only about tied with India.

Where is your data coming from? India? According to http://en.wikipedia.org/wiki/Economy_of_the_People's_Republic_of_China, The economy of the People's Republic of China is the second largest in the world after that of the United States with a GDP of $7.8 trillion (2008) when measured on a purchasing power parity (PPP) basis. It is the third largest in the world after the US and Japan with a nominal GDP of US$4.4 trillion (2008) when measured in exchange-rate terms.

[GoCougs]

Yeah, don't do that PPP stuff; then you'll have your answer.

[sandertheshark]

...Beat with a stick?

Thank you.  I think I shall.

[ifcar]

No, China's pollution problem is what happens in communist countries. Google the catastrophic pollution issues of the former USSR.

China's pollution problem is what happens in all industrialized countries as they develop.

[NomisR]

No, China's pollution problem is what happens in communist countries. Google the catastrophic pollution issues of the former USSR.

China still doesn't have the GDP of Japan, only ~25% of that of the US, and only about tied with India.

There is opportunity there, but manufacturers must be cognizant of the fact that it is in support of a repressive communist regime whose downfall is only a matter of time.

In the '90s all the rage was about India and its software and intellectual prowess; today it's doing okay, but it is not about to take over the world 10 years hence. The analogy fits with China and its manufacturing and labor prowess. Realism will soon return WRT to the outlook on China's place in the future world. My bet is that Inda will be a more prominent player in the coming decades, even without a Chinese collapse.

Repressive communist regime?  Quit watching the Western media bullshit and see for yourself...

Anyways, as for your comparison between China and India, first, China's nominal GDP is at least double or even triple that of India's. 

Secondly, what holds back India, won't be something that holds China back... British Bureaucracy.