Friday, April 22, 2005

China - the world's factory for cars as well

During the Shanghai Auto Show, DaimlerChrysler shocked the automotive world by announcing their intention to export small cars from China to the United States. This is just another step in China's direction towards becoming the world's factory. Auto parts have been manufactured in China since long, and the problems to compete with the west so far have just been the quality. Gradually the quality is increasing and is currently on par with Korea and rising.

China's Commerce Ministry is forecasting the automotive exports, which mainly consists of auto parts today, to increase from $11.8 billion last year to between $70 and $100 billion by 2010.

If we haven't done our scenario work about how the world will look like when China steps forward, it is about time now!

The main problem today is that our institutions are almost completely unable to think about decline. TV-program after TV-program is reporting on the effects of the business tsunami created by WalMart and others... but who is building the structures that will come after? If it is necessary for the old organizations to die and for others to rise from the ashes, who is creating the new frameworks and mindsets for them?

International Herald Tribune - China on brink of cracking car market


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