CN's Car Brands/Makers Wither in Domestic Market + 'Quality Fade'

choi

(1) Tian Ying, China's Plans for Its Own Car Brands Stall. Blomberg BusinessWeek, Sept 9, 2012.
http://www.businessweek.com/arti ... wn-car-brands-stall

Quote:

"The [auto] industry today accounts for 30 million jobs, or 11 percent of China's workforce.

China's own stars "SAIC, Dongfeng, and China FAW generated less than 10 percent of their profit last year from selling their own passenger-vehicle brands, says China FAW Deputy Engineer-General Zhou Yongjiang.

Note: Summary in print.
(a) Below the title and above the text:
(i) > Mainland automakers are big producers--for foreign partners
(ii) > "China's indigenous cars are the lowest in the food chain"
(b) Summary in the table of contents: China builds lots of cars, but it can't build a winning brand
(c) Brilliance China Automotive Holdings
www.brillianceauto.com

(2) Michael Dunne, Chinese Asbestos in Australia? Blame ‘Quality Fade.’ China Real Time Report, Aug 17, 2012.
http://blogs.wsj.com/chinarealti ... blame-quality-fade/

Quote:

"Earlier this week, two leading Chinese car companies, Great Wall Motor and Chery Automobile, confirmed they are recalling 23,000 cars and trucks they’ve sold in Australia because asbestos was discovered in their engine and exhaust gaskets.

"The most likely culprit is a China manufacturing phenomenon, vividly described in the book Poorly Made in China, known as 'quality fade.' Companies deliver initial product samples that pass inspection tests with flying colors. In time, however, the quality begins to deteriorate as the manufacturer – often under pressure to preserve profits – introduces cheaper or non-standard product materials.

Note: Paul Midler, Poorly Made in China: An insider's account of the tactics behind China's production game. John Wiley & Sons, 2009.