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Wednesday, October 18, 2006



NE: "Detroit fears China's foray into the global auto market - but Chinese auto executives admit it could be 2020 before they will be ready to take on the world market"

The Chinese introduced a model at the recent Paris Auto Show. It was a great hit amongst the younger generation and those looking at price above all else.

Renault is having a good success with its Dacia (made in Rumania) and available at knock-down prices.

If Renault can set up a modern line of manufacturing in Rumania, any car maker can do so in China. The demand is there, so it is simply a question of time. I suggest the 2020 is wildly exaggerated.


I am Currently in China and investigating the automotive industry. As I have been a buyer of mostly Japanese cars and worked on emmissions and saftey stardards I am finding that the joint venture models are doing well and the others a well behind. I guess they need to employ some foreign experts to set them on the right lines.
you can contact me on [email protected]

Arthur Eckart

Purchasing power parity (PPP) is an inaccurate measure of output. If a non-tradable good, e.g. a haircut, is $1 in China and $10 in the U.S., then PPP will overstate China's output of haircuts by 10 times. Also, quality differences aren't accounted for. A Chinese haircut may not be much better than an unskilled U.S. haircut. Moreover, if the world price of a Toyota is $10,000, a Chinese barber couldn't afford one, unlike a U.S. barber. China's output using a hard currency is roughly $2 trillion, while using PPP is roughly $9 trillion.


Steve: "I guess they need to employ some foreign experts to set them on the right lines."

Not to worry. Come back in five years. (They are hiring them from Renault and Volvo, according to recruiters I know.)

Just as the Russians have taken back the Sakhalin oil project and will hire North Sea experts (at an exaggerated cost) to develop the infrastructure - telling American Big Oil to go ... er, you-know-where.

This latest expansion in the world economy is fairly unique as regards two factors: First, it is relocating capital resources to countries with an enormously underpaid workforce and, secondly, when the countries in question need technical expertise, they simply hire it in from the outside, which teaches the locals to employ it. Most of the processing and manufacturing techniques are not rocket-science but decades old.

Most importantly, the Chinese are not stupid. They have basic skills (graduating thousands of engineers and technicians every year) and learn quickly - they adopt foreign technologies eagerly.

They are on a long march, but they'll get there.


Note to Steve: Renault of France wanted to introduce an "entry-level" car into Europe at base price that seriously undercut current car pricing.

It developed (in France) the "Dacia" model and had it built in Rumania. The model, known as the Logan in France, is doing extremely well. The drive train comes from France, the engine from somewhere in Europe, but assembly costs are maintained low by means of cheap Rumanian labor (average salary is 250€ per month.)


The current labour rates here are still very low( $100-150 per month ) and i guess that way many automakers are coming and of course the auto sales are growing. I am currently working on introducing foreign investment for different fuels. As the automotive industry grows we need to be looking towards the future usage of fuel. With my main interest in the automotive industry, I see great future for Chinese automokers and foreign automakers coming to China. I am considering joining an automaker and currently looking for the great chance to based in the biggest growing auto sales industry in the world.

You mentioned above that Renault and Volvo are Hiring. Which place handles the hiring for them as i may well be interested to join them.


Steve: "I am currently working on introducing foreign investment for different fuels."

Biofuels are all the rage in Europe, largely because European farming subsidies are coming down and politicians see this sector as a White Angel.

I doubt it. The Brazilian experience is based on ethanol production from sugar cane fields that are replaceable every ten years. Obtaining ethanol from corn means replanting the crop every year, and that means it costs more in farming costs to produce the fuel than its market price will allow.

If you can find sugar cane fields in China, already worked with sufficient manpower, then put your investment there. As you know probably, you will need a local partner. So, be careful.

The Chinese have not forgot the foreigners who came at the turn of the 20th century, when its last Dynasty was coming to a close, to control the production of opium, which was subsequently introduced to the local population. (Ever see the 1987 Bertolucci film "The Last Emporer"? It's worth viewing.)

So, I suggest that no one think that China is welcoming foreigners with open arms and a glad heart. They need FDI ... for the moment. But, that moment will come and go. (Chinese firms are already exporting FDI to create manufacturing plants in East Europe.)

China is for the Chinese. Always has been, always will be. The sleeping giant has awoken.

"Which place handles the hiring for them as i may well be interested to join them."

I have no idea how their recruitment is handled. From reports, they employ local recruiters for local staffing. And, yes, these recruiters do look for English-speaking talent already in China.

For the moment, the question of technology transfer is handled internally (according to these reports). That is, it is more than likely Renault or Volvo engineers are responsible for implanting the production/assembly techniques employed in China.

Besides, at first, the products will be assembled from imported European parts. Then, little by little, components will be substituted from local manufacturers who are capable of the same quality controls. TT always happens in this manner, particularly in the metal industries.

That's about all I know of the subject.

Arthur Eckart

Any country can reverse engineer. However, discovering or creating value is much more difficult. Hopefully, for the global economy's sake, China will not go into hibernation for hundreds of years again, if its carefully built "house-of-cards" collapses. Much of the U.S. auto industry is obsolete, except perhaps for trucks and SUVs. China faces a great deal of competition.


AE: "China will not go into hibernation for hundreds of years again, if its carefully built "house-of-cards" collapses."

You are indulging in wishful thinking, AE.

The chinese culture is far older than that of the US, and parallels that of Western Europe. It's inventions includes gunpowder, the wheelbarrow, the compass, cast iron, an astronomical clock, the first counting machine (called an abacus), acupuncture, paper and printing, etc., etc., etc. (See the list here: http://www.crystalinks.com/chinainventions.html)

Yes, they did not invent the Internet. But, neither does that make them stupid.

There is no reason that China should not take its rightful place in the world. Unfortunately, assuming that place has no prerequisite called "democracy".

Arthur Eckart

Lafayette, China was surpassed by Europe, the U.S. (which didn't exist 250 years ago), and dozens of small countries. China is in its rightful place. A growth at any cost policy may become too costly, particularly in a competitive global economy.


I have been working with one of the biggest plants of chemicals here and we are now producing ethanol. As this plant will be the only producer in this province and with goverment support for foriegn investment and the growing need for the fuel in China, we see it as a great oppertunity to move ahead in the market.
We see China growing everyday and it will not stop for many years to come. In fact it seems to be catching every other market. Automotive industry is predicted to continuosly grow for many more years and this creating a fuel shortage. So the need for more fuels is now. Tell me some of you thoughts.

Arthur Eckart

Steve, right, the energy industry in China should continue to grow, since it produces heavy goods. Also, it won't be long before Chinese consumers shift from bicycles to autos in large numbers. Unfortunately, China's large input costs of energy and raw materials may continue to depress wages. So, foreign autos are too expensive for most.


I also see a number of foreign automakers making there way in to China. and As China has over 1 Billion people and at this time only 2% of the people being able to afford cars. but the increases of cars sold over the past two years is what is making foreign automakers here. It is been said that in the next 20 years China will be the biggest sales country for automotive products and we can see even nowdays more and more people can afford cars. Ok I also can see small cheaper Chinese Brand cars but also lower priced compact cars from foreign automakers are making their way into the market.
Petrol prices are rising here also and more and more parking problems in the cities.
One of the big problems is the older buildings dont have parking at all. Which I see as even 15 years ago property developers didnt see China developing so fast and had not thought for this problem.
Would like to know more about what you all do. please do continue our talks.


AE: "So, foreign autos are too expensive for most."

Not if they are built there, and the automotive companies with smaller models are falling over one another to do just that.

Not just automotive. Airbus signed a manufacturing agreement with the Chinese to produce the A-320 there ... but restricted to China with no possibility of resale outside of China. (But, when the time comes, they will also assume an export role, I am quite sure. Either that, or China will design a small commercial aircraft and purchase the engines from Rolls-Royce, P&W, etc.)

Boeing, no fool of a company, has opened a plant to produce seats (as I recall). So, they are putting their foot in the water.

Any Business Development executive (worth their salt) cannot avoid China in their strategies.

Arthur Eckart

Steve, large potential consumer markets, e.g. China, India, and Indonesia, have been disappointments for many foreign firms, because wages remain low (in world prices rather than PPP). However, China can mass produce its own autos, while foreign models remain luxury goods.



Indirapuram Village,
Nelvoy Post,
Salavakkam Via,
Kancheepuram Dist,
Pin Code No: 603107,
E.Mail: [email protected]
Mobile No:9840765921.

To take up a challenging career in an esteemed organization .

B.com (Marketing Management )
+2 Passed In Govt High Sec School.

HDCA ( Honours Diploma in Computer Application)
( Ms – Excel, Ms –Word, Ms-PowerPoint )
Tally 6.3 Version.
Present Experience:
Company : Asahi India glass ltd, Chennai.
(Auto glass supplier to HYUNDAI, Ford , HM, Toyota & Architectural )

Designation : Junior Officer-Production Planning & Control
Period : June’06 to Till Date
Job Description:
Achieve Target Production against CSD (Customer Support Division) plan.
Preparation Production Plan as well as Despatch plan against the order from CSD
Preparation of Machine wise schedule for the day as well as for the week.
Preparation of Plan vs Actual Report & analysis.
Preparation of Capacity Planning & 4M Analysis
Preparation of Work Order Information Sheet to Production.
Effective Communication from CSD to factory.
Conducting Management Review Meeting & Monthly result analysis
Designation : Quality Inspector
Period : From June 2002 to March 2005.

Designation : data entry ( Paint Shop)
Period : From April 2005 to August 2005.
Kuthambakkam Village,Poonamallee,

Designation : Stores Supervisor
Period : From September 2005 to May 2006
Job Responsibilities:
Working ERP System
Preparing G.R.N . ( Goods Receipt Note )
Maintaining Records
Check the Stock
Inventory Reports.
Work Order Issue

Personal Details:

Name : M . Sivakuamr

Father Name : A . Mani

Date of Birth : 14-05-1984

Age : 23 Years

Sex : Male

Religion : Hindu

Nationality : Indian

Marital Status : Un Married

Language Known : Tamil , English

I here by declare that the above the given information is correct to the
Best of my knowledge and belief.

Thank You

Yours Faithfully


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Petrol prices are rising here also and more and more parking problems in the cities.
One of the big problems is the older buildings dont have parking at all. Which I see as even 15 years ago property developers didnt see China developing so fast and had not thought for this problem.
Would like to know more about what you all do. please do continue our talks.


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