Chinese cars not ready for Australia

20 Aug, 2007 10 Comments

With the recent appointment of former vice-president of Shanghai General Motors, Chris Gubbey as the head of GM Holden, the Australian motoring world (at least CarAdvice) has gone mad with thoughts of Chinese built cars heading to Australia.

GoAuto boss John Mellor recently attended a convention where Mr Gubbey put these speculations to rest. The problem with Chinese cars, Mr Gubbey told the audience, is that they are not hugely benefited by cheap labour costs. With only around 10% of production costs counting for labour, the Chinese pay similar prices for the goods needed for producing cars.

Another problem will be meeting all of the Australian Design Requirements, which will mean much safer built cars and increased levels of standard equipment, none of which is currently offered on most Chinese made vehicles.

Mr Gubbey believes Chinese cars will be here in around four to five years as the quality is improving rapidly. He also insists that despite the quality and financial burdens on Chinese manufacturers, many are pushed into exports by the Chinese government.

Then there is the rapid employment of foreign auto engineers and specialists to help improve quality and technology. Mr Gubbey also claims Chinese manufacturers are no longer simply copying western designs and technology, but instead developing their own, a claim we strongly dispute.

As we recently reported, Chinese cars have failed miserably in Europe and not faring so well in third-world countries such as Russia either.

Mr Gubbey insisted that his appointment will not lead to Holden badged Chinese vehicles any time soon, instead he will be working to increase the value for money offered by Holden to increase pressure on Chinese vehicles if/when they come to Australia.

CarAdvice recently drove the Indian made Mahindra Pik-up, and was generally disappointed with the attention paid to interior refinement.

Click to read the Mahindra Pik-up Review.

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10 Responses to “Chinese cars not ready for Australia”

Foggy Says:
August 20th, 2007 at 5:16 pm
Gubbey may not have a choice in the matter if Holden continue to bleed as they are now. GM Head Office might force him to do it.
(Report)
Matthew Says:
August 20th, 2007 at 5:30 pm
Holden’s competition would be hoping they introduce lots of Chinese built cars as it will decimate Holden’s long term reputation.
(Report)
Myke Says:
August 20th, 2007 at 5:32 pm
Not if they don’t meet Australian Design Requirements.
(Report)
Bavarian Missile Says:
August 20th, 2007 at 7:36 pm
Anyone heard of a little toy company called Mattel ?

This what happens when you take your eye off the ball with the Chinese. I feel for Mattel ,I really do and any other manufacturer thinking of getting their products made there.
(Report)
ROBERTO Says:
August 20th, 2007 at 8:06 pm
KEEP YOUR EYES ON HOLDEN AS THEY ARE BLEEDING AND IT IS COMING UP. ANY CARMAKER CANNOT CONSTANTLY OFFER FREEBEES WILLY NILLY AS HOLDEN HAS HELD THE UPPER HAND LONGTERM IN THAT AREA AS IT WILL SHOWUP!!! WE ARE SEEING A CHANGING OR MORPHING OF ITS IDENTITY AND THE VXR IS THE FIRST REALIGNING BACK FROM KOMBIDORE TO 4 CYLINDER?
(Report)
ROBERTO Says:
August 20th, 2007 at 8:09 pm
HOLDEN IS NOT FULLY KEEPING IT EYES ON THE BALL HERE… KOREA & CHINA (they already sell cars there such as rebadged Statesman called Chairman I think?). Why do you think Mike Simcoe is in Korea (PROJECT 1) - PROJECT 2 = CHINA
(Report)
ROBERTO Says:
August 20th, 2007 at 8:10 pm
For Mike Simcoe to not be Downunder when chief designer for so long says PLAN 1 & PLAN 2!
(Report)
Reckless1 Says:
August 21st, 2007 at 9:57 am
Roberto, you’re an example of why people seriously consider censorship.
(Report)
ROBERTO Says:
August 21st, 2007 at 10:24 am
Reckless1 - you are an classic example of a mediocre John Citizen steady as she goes
(Report)
phaeton Says:
August 22nd, 2007 at 9:43 am
I bet the Chinese will come under a current well known brand. (GM, VW, Toyota or Ford (produces S-Max))

Remember VW sold the Shanghai Volkswagen manufactured 2004-05 Polo Classic (sedan) here.
It failed miserably due to uncompetitive pricing and not having an Auto option to target our Senior citizens was a big minus.

Now VGA and its Chinese partners have learnt from there mistakes, Jutta Dierks VGA MD has stated that a Chinese sourced VW is not out of the question.

Anyway I believe anyone of these Chinese marques will come here very soon. SAIC’s Roewe, Nanjing MG, Chery, Brilliance, Great Wall Motors and a FAW brand.
(Report)