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Warren Buffett's Chinese Cars Will Start Killing The US Auto Industry As Soon As This Year
The Business Insider ^ | 1-13-2010 | Industry As Soon As This Year

Posted on 01/13/2010 6:43:49 AM PST by blam

Warren Buffett's Chinese Cars Will Start Killing The US Auto Industry As Soon As This Year

Vincent Fernando
Jan. 13, 2010, 7:12 AM

BYD, the upstart Chinese electric car maker Warren Buffett famously has an investment in, is planning enter the U.S. market as soon as the second half of this year.

Considering the U.S. market entrance by multiple new auto players (from Chinese firms BYD and Geely, to India's Tata and even U.S. upstart Tesla Motors) expect auto industry competition to get far more intense than it already is.

BYD just showed off their latest e6 model and while BYD chairman Wang Chuanfu was short on details, he hinted that BYD first target could be both U.S. companies' and the U.S. government's vehicle fleets:

WSJ: In China, where the e6 will first go on sale, BYD—which stands for Build Your Dreams—expects to sell vehicles for city use by the government, utility companies or fleets of taxis, according to Mr. Wang. BYD expects it could be used similarly in the U.S., while a later, plug-in hybrid vehicle may be more appropriate for individual American consumers.

[snip]

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: buffett; cars; china; hybrid
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1 posted on 01/13/2010 6:43:54 AM PST by blam
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To: blam

The US auto(GM/Chrysler) industry has killed itself.


2 posted on 01/13/2010 6:46:08 AM PST by caver (Obama's first goals: allow more killing of innocents and allow the killers of innocents to go free.)
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To: blam

Just who is going to buy a chinese made car? I won’t.


3 posted on 01/13/2010 6:47:54 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: driftdiver
Just who is going to buy a chinese made car? I won’t.

Forty or fifty years ago.

Just who is going to buy a japanese made car? I won’t.
4 posted on 01/13/2010 6:51:38 AM PST by FewsOrange
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To: blam

I’d rather ride a bike than buy CHICOM.


5 posted on 01/13/2010 6:51:58 AM PST by Rappini ("Pro deo et Patria.)
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To: blam

Hah, they’ll kill most of their customers way before they can kill any other car company.


6 posted on 01/13/2010 6:56:06 AM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: driftdiver

My first thought, Trust my life with Made in China vehicle??


7 posted on 01/13/2010 6:56:11 AM PST by Orange1998
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To: blam

The next Yugo.


8 posted on 01/13/2010 6:56:18 AM PST by mad_as_he$$ (usff.com)
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To: Rappini
Ironically enough, the Chicom auto companies are privately owned, while two out of the three US companies are socialized.
9 posted on 01/13/2010 6:57:46 AM PST by Mr. Lucky
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To: FewsOrange

Hah. Chinese manufacturing has one goal, to make it cheaper. It begins and ends there. Safety, reliability, longevity, quality, even usability are not factors.


10 posted on 01/13/2010 6:58:37 AM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: blam

Given to date the only CHINESE car to have any success was a daewoo badged as a Ford, I’m not worried about this year... .that doesn’t mean in 10 or 20 years they won’t be like the Japanese, but they aren’t there yet.

When DAEWOO tried to launch its own dealerships here without Ford rebranding, it was gone within a few years.


11 posted on 01/13/2010 7:00:58 AM PST by HamiltonJay
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To: driftdiver

I buy Japanese and American but I don’t want anything from China.


12 posted on 01/13/2010 7:07:48 AM PST by peeps36 (Democrats Don't Need No Stinking Input From You Little People)
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To: blam

My favorite Chinese Crash Test videos:

hear the test guys laugh out loud after the crash, it’s that bad
also, learn how to say “the results...are catastrophic” in French
http://www.youtube.com/watch?v=DZWy_fASSiQ&feature=related

front-end destruction so complete that the driver’s head hits the crash target itself
http://www.youtube.com/watch?v=4Swzbt76wBM


13 posted on 01/13/2010 7:08:06 AM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: blam

Most likely Buffet is right on this one for several reasons, the first of which are the US automakers themselves.

People will go down to Costco to get their new cars.


14 posted on 01/13/2010 7:14:52 AM PST by valkyry1
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To: blam

Warren Buffett is a POS. I still support Ford. They are generally a good company and not run by ChiCommunists who use slave labor, lie, cheat, steal....like the UAW.

Eff you Warren.


15 posted on 01/13/2010 7:16:48 AM PST by Frantzie (TV - sending Americans towards islamic serfdom - Cancel TV service NOW)
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To: Mr. Lucky

That maybe but I wonder if their profits go to PLA.


16 posted on 01/13/2010 7:18:45 AM PST by Rappini ("Pro deo et Patria.)
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To: Mr. Lucky

Owned by ChiCom generals. I laugh when I watch fat pig Americans go to those crappy Chinese buffett’s run by ChiCom military served by Chinese illegal aliens. Talk about mass suicide as they gorge on crap food filled with all sorts of fillers.

GM and Chrysler can drop dead but I still support Ford. Warren Buffett can go to h*ll.


17 posted on 01/13/2010 7:19:32 AM PST by Frantzie (TV - sending Americans towards islamic serfdom - Cancel TV service NOW)
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To: blam

There is a vocal crew among Freepers who echo many on the right wing’s(and many on the far left wing) sentiment that everything that China makes is junk. Those who say it in boast or jest can have a laugh but those who truly believe that are in a for rude shock. Does China produce a lot of junk? You bet - because there is a huge world market for cheap stuff of dubious quality. What many American critics and Freepers fail to recognize or admit is that China also produces many very high end items of excellent quality. The best way to understand Chinese quality is to realize that the bulk of products coming out of China are made to a foreign buyers specification. WalMart wants an electric can opener it can sell for $5 - some Chinese company will make them a $5 dollar can opener. Pioneer wants high end stereo electronics made to their technical specs, some Chinese company will make them. Just because the Chinese produce tons of cheap crap doesn’t mean they can’t (and aren’t) producing billions of dollars of high quality equipment and components.

With automobiles don’t think that the cheap Chinese cars that are sold in China or abroad will be what hits US markets. The Chinese will produce what the American consumer wants (and guys like Warren Buffet will figure out what that is)- They will produce a product with enough quality and reliability to satisfy the market and they will make it for less money than US and European manufacturers. Don’t kid yourself Americans.


18 posted on 01/13/2010 7:19:35 AM PST by azcap (Who is John Galt ? www.conservativeshirts.com)
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To: blam

Unions killed the auto industry in this country and continue to drive out manufacturing.


19 posted on 01/13/2010 7:21:04 AM PST by No_More_Harkin
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To: blam

Will these cars be of the same quality as Chinese made pet food, toys, etc?


20 posted on 01/13/2010 7:22:29 AM PST by algernonpj (He who pays the piper . . .)
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To: driftdiver

Pretty much. They’ve been importing tractors for some time now. If they’re any indicator I can’t see Chinese cars taking anything but a TINY segment of the market. Mostly their stuff is total crap w/o spares, readable instructions/repair manuals or a reasonable dealer net.


21 posted on 01/13/2010 7:22:52 AM PST by 556x45
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To: caver

Just as liberals consider conservatives to be more dangerous than our real enemies.

So also many on our side, seem to consider American workers to be the enemy.

Ronald Reagan, one of the greatest presidents and conservatives in history - was a union member. And autoworkers loved him.

Working Americans are not the enemy.

The foolishness of this hatred, is mind boggling.


22 posted on 01/13/2010 7:23:10 AM PST by Cringing Negativism Network (2012: Repeal it all... All of it!)
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To: blam

Electric cars are a pipe dream and guilt is not a sales approach.


23 posted on 01/13/2010 7:24:09 AM PST by Yogafist
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To: HamiltonJay
According to Wikipedia (Ha Ha), Daewoo was a South Korean conglomerate, and eventually sold its automotive branch to General Motors ... except for the commercial vehicle division, which went to Tata Motor in India.

FWIW.

24 posted on 01/13/2010 7:24:52 AM PST by ArrogantBustard (Western Civilization is Aborting, Buggering, and Contracepting itself out of existence.)
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To: driftdiver

hell no. You’d have to be nuts to willingly buy a car that was made in China. Everything they make falls apart or doesn’t work. Their tolerances are crappy, their iron is weak, and their quality control is non-existent. We’re running out of room in our landfills trying to bury all their garbage.


25 posted on 01/13/2010 7:29:11 AM PST by RC one (WHAT!!!)
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To: blam

So a Chinese made plug in hybrid is going to kill the already mostly dead by their own hand US auto market? Makes sense.


26 posted on 01/13/2010 7:30:07 AM PST by Republic of Texas (Socialism Always Fails)
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To: azcap; blam

Unfortunately Chinese manufacturers are also infamous for profit enhancing techniques such as ‘quality fade’ and the substitutions using cheaper (albeit toxic) materials.


27 posted on 01/13/2010 7:30:57 AM PST by algernonpj (He who pays the piper . . .)
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To: jiggyboy

Yeah, they’re funny videos, but the Chinese will learn from them and fix their problems, just as the Japanese did before them.

Learning is something that the US manufacturers have traditionally had a problem with.


28 posted on 01/13/2010 7:31:23 AM PST by Fresh Wind ("...a whip of political correctness strangles their voice"-Vaclav Klaus on GW skeptics)
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To: blam
Here are a couple examples of recent Chinese car crash tests:

That was the first car ever to get 0 stars in the ADAC tests. But they started doing better:

That car got 1 star! Do you really want to drive one? Much smaller cars, like the Toyota Yaris, are far safer.

29 posted on 01/13/2010 7:31:34 AM PST by antiRepublicrat
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To: azcap

bump.


30 posted on 01/13/2010 7:35:54 AM PST by Leisler (We don't need a third party we need a conservative second party.)
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To: ArrogantBustard

Oh, my mistake then... I was under the impression they were Chinese. Well guess we’ll see then.


31 posted on 01/13/2010 7:35:58 AM PST by HamiltonJay
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To: azcap
A Chinese power plant exploded recently when high-strength steel tubing blew out, says Roger Schagrin, general counsel for the Committee on Pipe and Tube Imports, which represents U.S. manufacturers of these products.

Dan Malone, construction manager for Garneau Manufacturing, based in Morinville, Alberta, Canada, an energy service company that works with many imports, said tests on a lot of 80 tons of Chinese steel tube products found "the welds failed horribly." Malone said there was no question that if the steel had been fabricated into a finished product and installed it would have failed and "would have killed somebody."

http://kipbiz.us/businessresource/forecast/archive/New_Threat_from_China_Steel_070907.html

32 posted on 01/13/2010 7:39:02 AM PST by RC one (WHAT!!!)
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To: Frantzie

Warren Buffet is a Chicom general? I wouldn’t have guessed.


33 posted on 01/13/2010 7:40:09 AM PST by Mr. Lucky
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To: jiggyboy

“Safety, reliability, longevity, quality, even usability are not factors”.

As another poster pointed out, this is exactly what was said about everything made in Japan, back in the 1950’s.

Then the Japanese imported AMERICAN EXPERTS to introduce Total Quality Management methods (in order to better sell to the American market) and the rest, as they say, is history.

Considering the number of Chinese young people attending universitites here in the U.S., I suspect the transformation of Chinese vehicles to meet the demands of the American marketplace will be remarkably fast.

As a business owner I can add; the simple calculation of the Chinese labor rate versus the American labor rate will be such a factor in the pricing of vehicles that this will potentially be a death blow to American car manufacturing.

The U.S. will probably remain the leader in technological innovation, however, but find a market for that innovation...in China.

Perhaps driving a “U.S. Government/Union Made” car will be a status symbol for some; sort of like folks driving a great big full-sized sedan back when compact cars first were introduced (people laughed at the small Ford car they introduced...can’t even remember the name anymore) and when Toyota introduced the Corolla into the U.S. everyone thought it was a joke (yes, I owned one; paid $56 a month for it for three years).


34 posted on 01/13/2010 7:40:47 AM PST by Happyinmygarden (Yes, actually, I have pretty much seen and heard it all before...)
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To: HamiltonJay

The Chevy Equinox has a Chinese built engine for its base model ( http://www.nytimes.com/2008/03/25/business/worldbusiness/25iht-chevy.4.11415496.html?pagewanted=2 ).

The Equinox is selling well.


35 posted on 01/13/2010 7:43:42 AM PST by Dr. Sivana (There is no salvation in politics)
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To: blam

free trade is killing America, Perot had it right and both parties had it wrong.

The giant sucking sound is getting louder.


36 posted on 01/13/2010 7:44:55 AM PST by TexasFreeper2009 (Obama lied, the economy died)
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To: FewsOrange

Comparing the Japanese to the Chinese is not a good parallel. The chinese do not have a culture of quality or of respect for other peoples intellectual property. All of those will become vital as they enter different markets.


37 posted on 01/13/2010 7:46:54 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: blam

now that they own 2/3 of the US auto industry, I suspect the government is going to suddenly decide someday soon that protectionism in the auto sector is actually a wonderful idea.


38 posted on 01/13/2010 7:47:31 AM PST by Buckeye McFrog
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To: Happyinmygarden

“Considering the number of Chinese young people attending universitites here in the U.S., “

They are certainly working hard to acquire knowledge at a fast rate.

“I suspect the transformation of Chinese vehicles to meet the demands of the American marketplace will be remarkably fast”

China is very good at destroying a culture and bringing those people into China. Over the last 4000-5000 years there really isn’t much precedent for other cultures rewriting the Chinese culture.

The US car industry is more than GM. Non-union and even some union (Ford) companies do a pretty darn good job.


39 posted on 01/13/2010 7:50:30 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: HamiltonJay

“DAEWOO “

This is a korean company, not Chinese. They are a very very large company which is successful in many areas. They certainly weren’t successful in the US car market.


40 posted on 01/13/2010 7:52:29 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Happyinmygarden; Fresh Wind

Nope, no way. The Japanese intention was always to make excellent products. It was a matter of national pride for them to be able to emulate American quality and business practices, which were at that point the standard of the world.

China has no similar intention. None. I’ve been writing for years here about seeing first-hand in an electronics lab in 2000 how they deliberately remove necessary components from electronics designs (stolen or legitimately obtained) in order to save a penny here and there. It is absolutely shocking and is the explanation for why Chinese electronics fail miserably and quickly.

That was ten years ago and there’s been no improvement whatsoever. Japan on the other hand was starting from rubble in 1945 and had Deming on their soil by 1950.

How many articles do we see about China importing quality control specialists vs articles about China exporting cadmium bracelets, fake pharmaceuticals, poisoned pet food, etc.

And I don’t want to hear about how those are “exceptions”. An “exception” every month is a strategy, and it’s a national one.


41 posted on 01/13/2010 7:54:40 AM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: driftdiver

You are correct, it was my mistake.


42 posted on 01/13/2010 7:57:36 AM PST by HamiltonJay
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To: azcap
China also produces many very high end items of excellent quality

Ok let's have a few examples. Names we've heard, things we can buy. Stuff that's been around a while. And by the way, "SOMY" TV's and "CHISCO" routers don't count.

43 posted on 01/13/2010 7:59:50 AM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: azcap

I agree. China is just a huge, cheap, labor pool.
Design, quality, marketing, etc. come from the company selling the product.

Its just easy for the head company to blame their Chinese manufacturing when something bad happens. The head company should have a periodic test program set-up for their own products. If the Chinese products don’t measure up to their specs they shouldn’t accept them.


44 posted on 01/13/2010 8:05:53 AM PST by toast
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To: Cringing Negativism Network

Sorry. The UNIONS have ruined the auto industry here in America.

Making work and wages REASONABLE for employees is one thing. But the TRUTH is that the unions now suck the lifeblood out of companies. -Most of it to go to LEFTIST political purposes.

I worked union jobs for 20 years. I watched this all happen.


45 posted on 01/13/2010 8:06:11 AM PST by joethedrummer
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To: blam

Uh....where are they going to get the electricity for all these cars? People won’t let the power companies build power plants as it is.


46 posted on 01/13/2010 8:14:17 AM PST by McGavin999
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To: blam

#18 & #34 are right on.
The Chinese WILL make cars for the world. Americans WILL buy them. They WILL be of high quality, in time. and they WILL decimate the US auto industry.
Automobiles are a COMMODITY just like any other widget. That America has not progressed past manufacturing 100 year old, gas burning, steel encased personal transportation is the problem.
The XKE was one of the finest cars in the world. The Vette killed it in every way. The classic Beetle and the BMW 3-series had and have been world class standards for many years. The Corolla and the Infiniti G series killed them.
I hate Buffet as much as the next guy, but the Chinese will take over the Auto industry, as we did after WWII and as the Japanese did during the 80’s.
“Flogging a Dead Horse” was not just a great post mortem listen, it is also a sign post for the US auto industry.
Get past the 100 year old tech, the old paradigm of bigger better faster stronger and make something really NEW! Compete and Beat the competition or go the way of the buggy whip.


47 posted on 01/13/2010 8:17:04 AM PST by Macoozie (Go Sarah! Palin/Bolton 2012)
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To: driftdiver

“Just who is going to buy a chinese made car? I won’t.”

I have long predicted that brand spanking new Chinese cars will literally be on the shelves of Sam’s Club. Very small. Very basic. Priced competitively with a used car - around $8,000.

For a first time car buyer, new sounds better than used, and its easier to finance a new car.

The Chinese are kinda slim on labor costs. R & D costs...don’t really exist in China. They just copy other products.

Here’s the racket - if you want to sell cars in China, you have to form a partnership with a Chinese company. Through this ‘partnership’, the Chinese company gets access to all intellectual data. Eventually, a carbon copy of your car gets pumped out of Chinese factories. Its already happened with Saturn, several years ago - cars meant for the Chinese market.

Would Americans buy a Chinese car? We buy Chinese tv sets, tools, every damn consumable good at Wal Mart, etc. Oh yes, Americans will buy these.


48 posted on 01/13/2010 8:27:31 AM PST by lacrew (The 274th trimester is a very late procedure)
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To: blam

Zero brags about having Warren Buffet on his economic team and here he is outsourcing car manufacturing to China.


49 posted on 01/13/2010 8:33:13 AM PST by jersey117
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To: blam

If they don’t get in this way they will get in making parts.


50 posted on 01/13/2010 9:25:22 AM PST by Anti-Bubba182
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