US-Acuras to sell in China

[PerfAdv]

I came across this article in search of American cars being assembled in China. Strange that the Chinese market will import an American made Acura but assemble Buicks for local consumption. Surely, Detroit can produce a better Buick than Shanghai. What gives?

http://www.autonews.com/apps/pbcs.dl...sect=FRONTPAGE

[NuclearCrap]

I have a feeling that somebody's gonna copy the Buick, mass-produce, and sell for a lower price and 0 safety ratings.

[drakkie]

Surely, Detroit can produce a better Buick than Shanghai. What gives?

american labourers are more expensive

[Matra et Alpine]

Chinese plant investment is in the BEST available production line equipment. So being a new factory, Shanghai will be able to produce better quality than 2-5 year old production lines elsewhere.
Chinese workers are often better trained than most western. Our teams were filled with PhDs and 1st class honours graduates !!!!
They still have a higher work ethic and lower expectations on salary so for a while will be MUCH cheaper, harder working than alternatives.
All of THAT adds up to a potential to make it BETTER AND CHEAPER

Also they will be taking TLs from Japan. That just reflects Honda's manufacturing strategy and current factory base. In 2-5 years time when Chinese demand lowers then you can expect to see the Chinese factory EXPORTING. As the factories are owned and operated BY THE COMPANIES then in all likelihood you WILL see a new Buick design coming out of there. It's an odd stereotype to hold on to in todays business world that China "copies" everything

[NSXType-R]

The article says it's not being assembled in Japan... It says American cars are being brought there for sale. What were you guys saying about Chinese built TLs being brought to America?

[Matra et Alpine]

The article says it's not being assembled in Japan... It says American cars are being brought there for sale. What were you guys saying about Chinese built TLs being brought to America?

Nobody was ?

[NSXType-R]

Hmm... I misread. My mistake.

[Matra et Alpine]

Hmm... I misread. My mistake.

no probs it was easy to just skim it and see the suggestion that some day they MIGHT be exporting cars as tied to the original infromation

[PerfAdv]

american labourers are more expensive

That's definitely part of it. Also, there might be tariffs on imported cars, building Buicks locally makes them more competitive.

[PerfAdv]

Chinese plant investment is in the BEST available production line equipment. So being a new factory, Shanghai will be able to produce better quality than 2-5 year old production lines elsewhere.
Chinese workers are often better trained than most western. Our teams were filled with PhDs and 1st class honours graduates !!!!
They still have a higher work ethic and lower expectations on salary so for a while will be MUCH cheaper, harder working than alternatives.
All of THAT adds up to a potential to make it BETTER AND CHEAPER

I suspected what you've said about Chinese manufacturing. Once ramped up, facility permitting the product will be world class. China once armed with automotive know-how will possibly be what Korea wanted so badly, to be the primary producer of affordable world cars.

Also they will be taking TLs from Japan. That just reflects Honda's manufacturing strategy and current factory base. In 2-5 years time when Chinese demand lowers then you can expect to see the Chinese factory EXPORTING. As the factories are owned and operated BY THE COMPANIES then in all likelihood you WILL see a new Buick design coming out of there. It's an odd stereotype to hold on to in todays business world that China "copies" everything

Actually, they'll import the RL from Japan and American made TLs.

Honda (Japan) too realized this huge potential in China and are moving in before it's too crowded a market. I really question whether China will allow foreign companies to take advantage of their main economic edge, labor. These companies will at least be part Chinese owned if they are to take full advantage of skilled Chinese labor and lower cost than any other country.

[QuattroMan]

I came across this article in search of American cars being assembled in China. Strange that the Chinese market will import an American made Acura but assemble Buicks for local consumption. Surely, Detroit can produce a better Buick than Shanghai. What gives?

http://www.autonews.com/apps/pbcs.dl...sect=FRONTPAGE

dose china have union workers?

[PerfAdv]

dose china have union workers?

Seriously doubt it. Sad but unions just force companies to seek cheaper labor elsewhere.

Unions should just require a fair wage not one that forces manufacturers to cut corners on the product side.

[Matra et Alpine]

Seriously doubt it. Sad but unions just force companies to seek cheaper labor elsewhere.

eh ? What experience do you have of unions ??

Unions should just require a fair wage not one that forces manufacturers to cut corners on the product side.

For that to work then consumers need to accept that they need to pay a "fair price" for products.

Also in some cases board directors and senior managers need to accept that there cannot be a HUGE margin in salary difference.

[Matra et Alpine]

dose china have union workers?

Don't think so in the "western sense". They do have workers representatives on some companies.
The American multinational I worked for NEVER recognised unions but worked VERY hard to ensure they were never needed. Not been the case for the last 5+ years due to some short-sightedness from a CEO !!!

[PerfAdv]

eh ? What experience do you have of unions ??

I'm not speaking from personal experience, just from witnessing the cause and effect. And the fact that manufacturing has moved both N and S of the borders.

This was informative as my experience with unions is limited: http://www.businessweek.com/magazine...5/b3928106.htm

For that to work then consumers need to accept that they need to pay a "fair price" for products.

Consumers buy the best products regardless of price, that's another problem for GM.

Also in some cases board directors and senior managers need to accept that there cannot be a HUGE margin in salary difference.

This is one of the biggest stumbling blocks in American management structure. Too many mgmt level with the highest levels making 120 times what an assembly line worker makes. In Japanese companies there are fewer levels and top managers make about 10 times more. (These figures may have changed I remember this stat from the 90s )