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Discussion Starter · #1 ·
So much for the critics reference to long tentacles of totalitarian rule.....Looks more like laissez faire to me.

Down in the very industrious town of Baoding there are five automakers struggling to make a living selling SUVs and pickups. Yes I know Great Wall is doing pretty well on its own with a pretty successful foray into foreign markets. But Zhongxing Auto has got new problems with its less than viable overseas representatives. And Xinkai Auto has been run out of Russia for poor quality. Meanwhile Baoding Dadi Auto, and Tianma Auto don't sell much more than 50,000 cars betweem them, and will be lucky to survive for much longer.

Why not merge into one competitive company and make Baoding the "SUV and pickup capital" of China?

These companies are undercapitalized and having trouble finding the necessary financing for future growth. Their small size makes economies of scale out of reach, and so there's no way they can stay profitable as material costs pressures continue to increase. It's true that in China's new market economy they are free to keep operating independently but if the status quo prevails then the death knell might be just around the corner.

Xinhua says that last month SUV sales jumped 47% so there is hope. But a leap must be made in Baoding to put aside hubris and to merge resources so a real impact can be made on China's auto industry by the working folks of Baoding. A real nice town.
 
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