13 world debuts for Shanghai Motor Show
April 17, 2009 by Matt Brogan
With manufacturers cutting costs left, right and centre, it would seem 13 is the lucky number – at least where the Shanghai Motor Show is concerned.
Shanghai will host what has become an increasingly high-profile motor show next week and with China one of the world’s few remaining growth markets car makers are trying their utmost to impress show visitors with no fewer than 13 world debuts.
One of the highlights will be the unveiling of the Panamera grand tourer, Porsche’s fourth model line and its most important product launch in years.
German rival BMW will also take the wraps off two brand new models, including the 760Li sedan, the first car to feature its newly developed eight-speed automatic transmission.
While the other premieres are mostly local brands, both organisers and external parties are confident in the show’s success.
“China is the only healthy large car market in the world right now,” said Graeme Maxton, a Europe-based auto analyst. “That means it’s going to get far more attention. Everything else is collapsing. The only place you can grow is China.”
Many Chinese automakers will join their foreign rivals in showcasing such advanced technologies to demonstrate they have the means to compete when environmental regulations are eventually tightened.
Top Chinese carmaker SAIC Motor will display an electric car developed in-house as well as a hybrid version of its Roewe sedan, which is expected to hit showrooms next year.
Privately held Chery Automobile is also due to display vehicles in the hybrid and pure electric car segments, which BYD Auto is keen to dominate.
Perhaps more staggering is the sheer number of prototypes that will be on display from some of the Chinese brands.
Geely will unveil no fewer than 22 new models, mostly under three new upcoming brands: Gleagle, Emgrand and Shanghai Englon.
Chery and Great Wall Motor will also join Geely in unveiling mid- to high-end sedans as local brands attempt to move upmarket.
CarAdvice will keep you posted on all the news from Shanghai next week.
Tags: Shanghai Motor Show
Could China become the new automotive giant in the world? With Americas manufacturers in trouble and China exporting to more contrary’s it might happen
If the world economy collapses and companys that dont go bust move on to china and india,were workers get low wages,very little benifits and unsafe work practices.So when the western world wants to rebuild after the collapse,they will have to compete against China and India(after the last deprsion there was no other major manufacturing centers in the world too compete against),our wages would have to be reduced to compete,and we may never get back to the standard of living we currently enjoy.All the fools who hope we lose our auto industry,You Should Be Hung At The Gallows.
Phill your argument is circular.
If Australia didn’t have an manufacturing industry then we wouldn’t have to lower wages because we wouldn’t actually be competing with China and India!
If anything the standard of living would increase because like you said, identical cars can be produced in these countries for less because of their lower wages, meaning cheaper cars for us, and thus more disposable income for us to spend on other things.
RoFlmaTiC (If Australia didn’t have an manufacturing industry then we wouldn’t have to lower wages because we wouldn’t actually be competing with China and India!)If we don’t have a manufacturing industry that means less jobs.As someone on another post said,Australia gets most of its profts from mining exports,if China buys Aussie mining companys,there goes that income too,so I don’t understand when you say our standard of living will increase.Australia is a country Serverly Hinderd by the World Trading Game.
Australia is in the unenviable position of being a raw materials supplier, a banana republic that supplies ore. And some bananas. Manufacturing adds value to commodities, but there isn’t the labor available or will to turn all the local resources into more valuable products. China has the manufacturing cornered, maybe Rudd should invest in something Australia can compete in, like, um… doing design work for GM-Schezuan?
Phill, all the “local manufacturers” are foreign owned enterprises anyway so what you said about the Chinese buying up Australian mining companies is moot.
Regarding the increase in the standard of living, I will start with a simple example to outline the benefits of trade.
Say there are 2 countries in the world. Country A is great at making cars and 5 men from Country A can make 200 cars a year. Country A however has a terrible climate for agriculture and so 5 men from Country A can only grow 100 tonnes of wheat a year.
Country B has a great climate and as a result, 5 men from country B can grow 300 tonnes of wheat a year. However the wages in Country B are comparatively high, and the components are sourced from overseas and thus 5 men from country B can only make 70 cars a year.
If both countries don’t trade, and for the sake of simplicity have 10 people, then Country A ends up with 200 cars and 100 tonnes of wheat, and Country B ends up with 70 cars and 300 tonnes of wheat.
If however each country sticks to what it does best (ie. it has a comparative advantage in doing this), then Country A can make 400 cars with 10 people, and Country B can make 600 tonnes of wheat.
Those 2 countries then trade half of their local production for half of the other countries, meaning that both countries end up with 200 cars and 300 tonnes of wheat respectively. Compare this to what they would have ended up with if they had decided to go it alone.
My point in the above post is that China has a vast supply of labour who work for cheap. Australian manufacturers (allegedly) can’t really compete in this respect simply because of as you put it Phill, our higher standard of living.
So how does Australia benefit?
Well through having cars manufactured overseas, the same car can be made for say, 2000 dollars less. That means that every Australian would have to pay say 2000 dollars less on their purchase of a car compared to if it was made in Australia. That means that every Australian has 2000 dollars more to spend on other things; more disposable income. Like the Kevin Rudd bonus aims to do, if this 2000 dollars is spent on other stuff then the positive effect on our local economy will be multiplied severalfold.
And as I posted in the Proton thread a few topics back, if you want to see what happens when you have a automotive manufacturer which is protected by its countries government, Proton is a great example. The Malaysian government taxes foreign cars at something like 100%, this is the only way that Proton can compete against the Korean and Japanese brands. So the poor people of Malaysia have to pay more money for inferior products; everyone suffers for the benefit of a few (the automotive workers).