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The main problem facing China's auto industry by jodie mht





Article Author Biography
The main problem facing China's auto industry by
Article Posted: 04/22/2012
Article Views: 55
Articles Written: 1547
Word Count: 699
Article Votes: 0
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The main problem facing China's auto industry


 
Automotive
China's auto industry growth is expected to peak value in 2020. According to conservative estimates, the peak of China's auto output may reach about fifty million, accounting for almost 50 per cent of the global automotive production and sales (Nobel laureate in economics Edward Prescott forecast annual output of China's auto sales will reach 75 million in 2020 units). Capacity no different from the risk of overproduction and oversupply backfire, or will become a catalyst for full-blown recession by the Chinese auto industry, which is the main problem of the current Chinese auto industry will face. China "repairer movement produced a number of scattered, small-scale automobile enterprises, which is not conducive to automobile production to focus on the improvement of the degree of increase of the production and the cost of competition between enterprises, reducing the effectiveness of the automobile industry. As the automotive industry, the industry chain is longer, associated with larger, more far-reaching. Labor costs, raw material prices, energy prices continued to rise, further weakening corporate profitability, excess capacity, enterprises, industry, and the country great harm. An economic power must be the formation of a number of globally competitive industries, is particularly important in the economic globalization today. Automotive industry as the backbone of the industry, because of its large industrial scale, the other related industries associated with strong subject to the attention of almost all industrialized countries. Western economic powers, America, Japan, Germany, France, meaning no vehicle power, the United States during the financial crisis did not forget the automotive industry a helping hand, which are fully illustrated for an industrialized country, a car power is a manufacturing power or even an integral part of economic power. Automotive industry as the highest degree of industry globalization, competition is fierce. All major industrial countries at the same time accept the free market competition, are sparing no effort to support their country's automotive industry with a greater competitive advantage, especially the power of the emerging automotive industry especially, such as South Korea. But now China's auto industry management bulls, management confusion, mutual isolation, lack of specialization and collaboration, "scattered, chaotic, and poor, weak word to describe also appropriately. Chinese auto companies affiliation, "princes" buildings across the country, therefore, the objective existence of different interests and interest-driven segmentation and protection pattern, the segmentation and protection not only severely restricted the horizontal flow of financial resources, but also the country a serious imbalance in the optimal allocation of the unified market, resulting in a large number of unreasonable duplication of investment, repeat the introduction, a serious waste of duplicate construction and duplication of production, so that products, enterprises and industrial structure convergence qualitative. The Chinese are still walking an "introduction - backward - and the introduction of ..." the road, always is the assembly plant with the overseas colonies of the world's auto giants. China should take the introduction - and digestion - development - innovation, industry-oriented path of development. Since China's reform and opening up in the strong market demand stimulus, plus the local governments chasing GDP performance, which led to overheating of the automobile industry, with national vehicle production capacity will greatly exceed the ability of market demand, supply the huge investment bubble. Automotive industry chain length on the local economy leading role in Japanese high return on investment temptation China except Tibet, almost all provinces and autonomous regions, the basic car identified as pillar industries, the number of automobile companies from ten years ago, production capacity concentration increase, is still up to more than 130 in the world, big but not strong, almost become a big automobile outside the overseas colonies and global "overseas processing plant". For the purposes of economy, the new Audi A6L intelligent thermal management system, variable pump is the heart of this system. Main products: car camera, car dvd player and car dvd are with good quality. In cold start, the pump automatically stops the transfer; suspend the engine cooling cycle, making the engine warmed up rapidly to reach the best working conditions, thereby reducing fuel consumption. In addition, the automatic engine start-stop system and energy recovery systems, also still make a contribution in order to reduce fuel consumption.


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