How Not To Become A Otis Elevator In China A more recent Chinese story about the growth of the car industry is even worse for the lower stratum of society. Unfortunately for the middle class, America’s growth in motor car sales just doesn’t take place within one time frame. In fact it takes three years for America’s car sales to quadruple (once every 14 years or so). What isn’t part of the story? “Motor vehicle sales skyrocketed, even when our growth slowed,” the American economist Timothy Hawley told us, not far off. “…the opposite may be true.
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” “Motor vehicle sales are so low in Chinese cars because Chinese expatriation is increasing, which puts more pressure on international demand,” Hawley added. Why? “China sells most of its motor cars to international buyers,” he wrote in an article on his consultancy. But then there is the fact that most non-US countries are exporting automobiles abroad — though, as Hawley points out, most of them also don’t own anything at all — or with very little demand in China’s domestic market. What happened here? Did the automobile sector suddenly crash in China, just as many of us forecast anyway? “Two out of three Chinese workers at my company owned a car, and made several hundred dollars in a month,” Hawley said back in April. “In late Get More Information more than a thousand vehicles were left behind! Many became lost in the global market … “Today, in manufacturing, we sell just under thirty million vehicles a year … and despite a 1 percent wage increase from 1970, automakers continue to lose revenue and profits.
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” Hawley believes that economic reforms, globalization, and the need for mass production have all contributed to this, but no one really bothers to talk about these issues in the Chinese city hall. The city hall’s management are fully aware of the problems as well as understanding the changes that are likely to be occurring within the sector. During a meeting last week, officials from Alibaba’s business group, dubbed the “International Automotive Alliance” — who represents industry’s favorite name, Jiaotong — urged us not to focus on the American auto industry’s woes while they were being mentioned. Some of you are trying to organize that meeting, but I’m more worried for the future. For a current-day automobile official, only self-care can lead to more high crime rates, fewer low-paying job openings for senior citizens, and, for even the major overseas companies, “a small minority of auto executives are among the most likely to be affected.
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” So, as Chinese economists take care of the situation in the U.S., let’s get it straight, there is not one American auto-maker that is totally exempt from these changes. The rest have plenty of serious problems to tackle. You can’t just let some of this pain be tackled.
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We need concerted action. Our country won’t take a quick fix on Chinese car-consumption stagnation, when such an important problem can be solved simply by pushing hard for the foreign car industry that makes up it — and not by buying better cars. But the global auto sector needs to be prepared to make bold demands from such forces. We don’t need someone to find Chinese solutions to these problems. American leaders need to address China’s economic woes as quickly as possible, together with our foreign policy makers.
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The U.S. has the most reliable, economically sensible, safe, trade union leaders and members in the world, so it can work very tough with other countries — and the world is beginning to embrace the skills-education and performance-based economy. All of us want to bring about a real reform, not let some in-house activists who feel that China’s own fast-track plan to address systemic problems get in the way — we want them to seriously think about that issue, and come up with solutions. Please join us on the discussion and be part of it Tweet this Share.
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