China’s Automotive Shakeout

Published on Author Mike

I have a (Google blogspot) blog called Autos and Economics. My latest post (of a few minutes ago) is on a pending shakeout in the Chinese auto industry. The origins of the industry’s excess capacity include the government’s “import substitution industrialization” policies of the 1980s and 1990s, and – since 2001 – a rush by global producers to establish a foothold in what is now (by a significant margin) the world’s biggest market. But despite its size China has too many firms, too many brands, too many factories and too many models. There will be a bloodbath. What is unclear is who will survive. All but 2-3 Chinese domestic brands and the most recent global entrants are in my analysis all at risk.

Read! — and if you could, publicize among classmates, friends, workmates, relatives….the post reflects an array of analytic issues common to many industries in China.