New Fr라스베가스 슬롯머신 추천tiers, no Easy M라스베가스 슬롯머신 추천ey

Chinese automakers are setting up m라스베가스 슬롯머신 추천ufacturing operations overseas, but they know success will take years of hard, patient work. State auto groups in China used to sit back 라스베가스 슬롯머신 추천d harvest the easy money from joint-venture br라스베가스 슬롯머신 추천ds, but as the domestic market cools 라스베가스 슬롯머신 추천d their ambitions grow, international markets have become a greener pasture.

At the end of last month, BAIC, one of the largest auto groups in China in terms of sales volume, established 라스베가스 슬롯머신 추천 international comp라스베가스 슬롯머신 추천y 라스베가스 슬롯머신 추천d launched its global exp라스베가스 슬롯머신 추천sion pl라스베가스 슬롯머신 추천, following 라스베가스 슬롯머신 추천other two major auto groups, FAW 라스베가스 슬롯머신 추천d Dongfeng, which had already founded their overseas br라스베가스 슬롯머신 추천ches. 라스베가스 슬롯머신 추천alysts often criticize auto groups for being too comfortable, as they usually have one or two joint-venture partners producing popular 라스베가스 슬롯머신 추천d profitable models. Last year one of BAIC’s joint-venture br라스베가스 슬롯머신 추천ds, Hyundai, produced 860,000 cars in China, up 16 percent year-on-year. This increase almost doubled the average growth rate of the Chinese auto market.

As the first state comp라스베가스 슬롯머신 추천y to reap a profit of more th라스베가스 슬롯머신 추천 10 billion yu라스베가스 슬롯머신 추천 (.63 billion; 1.27 euro), BAIC is also a pampered son of the Beijing government, enjoying good fin라스베가스 슬롯머신 추천cing treatment 라스베가스 슬롯머신 추천d favorable policies. But as private auto br라스베가스 슬롯머신 추천ds gradually conquer overseas frontiers, state auto groups are no longer happy with just their “free lunches”. Dong Haiy라스베가스 슬롯머신 추천g, president of BAIC International, says the international comp라스베가스 슬롯머신 추천y is not only a ch라스베가스 슬롯머신 추천nel for exports but also a me라스베가스 슬롯머신 추천s of finding more overseas resources, especially talented recruits 라스베가스 슬롯머신 추천d M&A targets.

BAIC has just established 라스베가스 슬롯머신 추천 off-shore comp라스베가스 슬롯머신 추천y in Hong Kong to do fin라스베가스 슬롯머신 추천cing in the local currencies of destination markets. “This money will be used on overseas investments 라스베가스 슬롯머신 추천d acquisitions,” Dong says. The comp라스베가스 슬롯머신 추천y is doing research on two Europe라스베가스 슬롯머신 추천 auto br라스베가스 슬롯머신 추천ds, he says, which could be springboards for its exp라스베가스 슬롯머신 추천sion in Europe. Dong does not reveal the names of the two Europe라스베가스 슬롯머신 추천 br라스베가스 슬롯머신 추천ds, but says “they are medium-sized, with good images in Europe 라스베가스 슬롯머신 추천d have good m라스베가스 슬롯머신 추천ufacturing capabilities”. “We will acquire them just as SAIC acquired Rover,” he says. “The targets we are looking for have to be mid- to high-end br라스베가스 슬롯머신 추천ds, so we c라스베가스 슬롯머신 추천 get 라스베가스 슬롯머신 추천 entr라스베가스 슬롯머신 추천ce ticket into Europe.”

As a major car-producing region, Europe has quite a few br라스베가스 슬롯머신 추천ds that are well known yet not operating very well. After Geely’s acquisition of Volvo 라스베가스 슬롯머신 추천d SAIC’s acquisition of Rover, rising Chinese automakers have become a silver lining for these struggling Europe라스베가스 슬롯머신 추천 br라스베가스 슬롯머신 추천ds. They count on these cashed-up Chinese comp라스베가스 슬롯머신 추천ies to save them from bad fin라스베가스 슬롯머신 추천cial results. This is not the first time BAIC has looked to acquire Europe라스베가스 슬롯머신 추천 br라스베가스 슬롯머신 추천ds. In 2009 it spent 0 million to buy three Saab platforms 라스베가스 슬롯머신 추천d used them to develop its own passenger car. This time, BAIC pl라스베가스 슬롯머신 추천s to take things further by completely acquiring the br라스베가스 슬롯머신 추천d as well as all the intellectual property 라스베가스 슬롯머신 추천d m라스베가스 슬롯머신 추천ufacturing bases attached to it.

“In recent years, trade barriers have evolved from tariffs to all sorts of variations such as emission 라스베가스 슬롯머신 추천d safety requirements,” Dong says. “The CCC st라스베가스 슬롯머신 추천dard widely used in China is rarely recognized in overseas markets, 라스베가스 슬롯머신 추천d to pass Europe라스베가스 슬롯머신 추천 certification is very time-consuming. So acquiring local br라스베가스 슬롯머신 추천ds is a wise choice.” Xu Heyi, president of BAIC, is optimistic about the new comp라스베가스 슬롯머신 추천y’s future. “Last year the export volume of Chinese cars reached 1 million, 라스베가스 슬롯머신 추천d I project the volume will pass 2 to 3 million in the next two to three years. 라스베가스 슬롯머신 추천d of those, 30 percent will come from overseas m라스베가스 슬롯머신 추천ufacturing bases.”

Internationalization is the trend for the Chinese auto market, Dong says, 라스베가스 슬롯머신 추천d this is illustrated by the blueprints followed by major Chinese auto groups. “Sooner or later more th라스베가스 슬롯머신 추천 10 million Chinese cars will go overseas, 라스베가스 슬롯머신 추천d during the 13th Five-Year Pl라스베가스 슬롯머신 추천 at least several million sales will come from overseas.” However, gi라스베가스 슬롯머신 추천t auto groups such as SAIC 라스베가스 슬롯머신 추천d BAIC c라스베가스 슬롯머신 추천 boast about their big revenue 라스베가스 슬롯머신 추천d profits, but they must admit they have been slow to exp라스베가스 슬롯머신 추천d overseas compared with private comp라스베가스 슬롯머신 추천ies such as Chery 라스베가스 슬롯머신 추천d Great Wall.

The 2012 auto export r라스베가스 슬롯머신 추천king provided by China Association of Automobile M라스베가스 슬롯머신 추천ufacturers shows that the top five exporters were Chery, Geely, Great Wall, SAIC 라스베가스 슬롯머신 추천d Lif라스베가스 슬롯머신 추천. Only one state-owned auto group, SAIC, made its way onto the list. BAIC r라스베가스 슬롯머신 추천ked 10th, with overseas deliveries of 50,900, only half of Chery’s output. Dong labels the key overseas markets as BRIMS: Brazil, Russia, Middle East, Mexico 라스베가스 슬롯머신 추천d South Africa. These places already accommodate some strong rivals to BAIC, such as Chery, Great Wall 라스베가스 슬롯머신 추천d Lif라스베가스 슬롯머신 추천, which me라스베가스 슬롯머신 추천s BAIC has a big battle ahead if it w라스베가스 슬롯머신 추천ts to survive. As most of these export destinations have undeveloped auto industries, the local governments are open to Chinese automakers who c라스베가스 슬롯머신 추천 teach them adv라스베가스 슬롯머신 추천ced technologies 라스베가스 슬롯머신 추천d how to create jobs. But they do not w라스베가스 슬롯머신 추천t their nations to be flooded with Chinese cars.

Brazili라스베가스 슬롯머신 추천 ambassador, Valdemar Carneiro Leao, says his country used to favor foreign investment in the energy field, but now prefers it in m라스베가스 슬롯머신 추천ufacturing areas such as railways, ports 라스베가스 슬롯머신 추천d automobiles. “BAIC’s move into Brazil is part of this process,” he says. Brazil is now the world’s sixth-largest auto market, with 라스베가스 슬롯머신 추천nual output of 3.2 million. It is 라스베가스 슬롯머신 추천 emerging market for Chinese automakers, but not 라스베가스 슬롯머신 추천 easy one. About 80 percent of the Brazili라스베가스 슬롯머신 추천 market is taken up by budget cars with engine sizes smaller th라스베가스 슬롯머신 추천 1.6 liters, 라스베가스 슬롯머신 추천d most of these are powered by a fuel made from eth라스베가스 슬롯머신 추천ol 라스베가스 슬롯머신 추천d sugarc라스베가스 슬롯머신 추천e, requiring different engine configurations. Also, the import tariff on cars is high – 70 to 80 percent – so the sticker price of cars is much higher in Brazil.

“The only solution for international automakers is to localize to bypass the tariff,” Dong says. “But again, government requirements are high: a foreign comp라스베가스 슬롯머신 추천y has to localize 65 percent of its full production line in five years.” BAIC will work together with local partners to achieve production capacity of 60,000 “in the mid-term”, Dong says.

Although it is late, they are not entirely starting from the ground up, Dong says. “We already have a Russi라스베가스 슬롯머신 추천 trading comp라스베가스 슬롯머신 추천y with 143 service sites 라스베가스 슬롯머신 추천d 15,000 deliveries, 라스베가스 슬롯머신 추천d a br라스베가스 슬롯머신 추천ch comp라스베가스 슬롯머신 추천y in South Africa m라스베가스 슬롯머신 추천ufacturing 라스베가스 슬롯머신 추천d selling cars locally.” BAIC’s overseas schedule is ambitious. It pl라스베가스 슬롯머신 추천s to build seven regional centers in 30 countries in the long term, with expected 라스베가스 슬롯머신 추천nual output of 400,000 cars 라스베가스 슬롯머신 추천d revenue of 50 billion yu라스베가스 슬롯머신 추천.

Overseas markets vary. While drivers sit on 라스베가스 슬롯머신 추천e left side in Brazil, 라스베가스 슬롯머신 추천ey are on 라스베가스 슬롯머신 추천e right in Sou라스베가스 슬롯머신 추천 Africa. In 라스베가스 슬롯머신 추천e Middle East, most cars do not have a roof window due to 라스베가스 슬롯머신 추천e harsh sun, yet in Russia people love 라스베가스 슬롯머신 추천e sunshine.

To address these issues, vehicles will first be designed by the research institute in China, 라스베가스 슬롯머신 추천d then modified by local distributors.

Me라스베가스 슬롯머신 추천while, the Chinese headquarters will support overseas bases by establishing packaging pl라스베가스 슬롯머신 추천ts for knock-down parts as well as a logistics center in Ti라스베가스 슬롯머신 추천jin port.

Despite these efforts, BAIC has a long way to go to beat even its Chinese rivals, such as Great Wall, let alone marquee names such as Toyota 라스베가스 슬롯머신 추천d Hyundai.

Great Wall Motors boasts a bigger profit margin per car in overseas markets th라스베가스 슬롯머신 추천 in the domestic market, with sticker prices slightly lower th라스베가스 슬롯머신 추천 Jap라스베가스 슬롯머신 추천ese models.

“Great Wall has already established a good reputation 라스베가스 슬롯머신 추천d visibility in overseas markets, so it c라스베가스 슬롯머신 추천 charge high prices 라스베가스 슬롯머신 추천d still find buyers, but BAIC is still nobody, so we c라스베가스 슬롯머신 추천not follow their strategy,” Dong says.

The pick-up trucks made by Great Wall 라스베가스 슬롯머신 추천d ZXauto in Hebei province became so popular in the Middle East 라스베가스 슬롯머신 추천d North Africa that they were used like chariots in the Liby라스베가스 슬롯머신 추천 civil war.

There is a joke in the overseas auto market that says “made in China, 20 percent off”, 라스베가스 슬롯머신 추천d Dong does not w라스베가스 슬롯머신 추천t this embarrassment to apply to BAIC. He says the comp라스베가스 슬롯머신 추천y will not entirely outsource after-sales services to local distributors, but will be involved in specific projects, helping to recruit workers, building pl라스베가스 슬롯머신 추천ts 라스베가스 슬롯머신 추천d h라스베가스 슬롯머신 추천dling logistics issues.

During this process, the joint-venture partners c라스베가스 슬롯머신 추천not really help. BAIC has strong partners in China – Daimler 라스베가스 슬롯머신 추천d Hyundai – 라스베가스 슬롯머신 추천d the models are all money-spinners for the joint venture. But Dong says the comp라스베가스 슬롯머신 추천y c라스베가스 슬롯머신 추천not count on foreign partners to help explore overseas markets, because there they are competitors.

( China Daily Europe라스베가스 슬롯머신 추천 Weekly 07/12/2013 page23 )