Enverge Electric Concept Vehicle made by GAC, a Chinese auto company headquartered in Guangzhou
American car companies like Ford and General Motors have always wondered when a Chinese Manufacturer would enter the U.S Market because of the fact that China is one of the world's largest producer of automobiles. They are finally given an answer: 2019. Days after the Detroit auto show on Monday, GAC Motor announced that they plan to operate in the U.S and begin selling vehicles next year. Currently, the GAC Motor car company is looking at a possible partnership with Fiat Chrysler Automobiles. Fiat Chrysler is an Italian-American company (Fiat: Italian and Chrysler: American).
I believe that this partnership could boost revenues for both GAC Motor and Fiat Chrysler if this partnership is made possible since Fiat Chrysler is currently the 8th biggest automobile company. In addition, I strongly feel that more Chinese Car Companies will start to invest in the U.S Market. Not only does this benefit the automobile makers, but it also can boost our economy. I like that.
Do you think the partnership with Fiat Chrysler will make a huge difference for both companies? Will this deal greatly impact other American car companies? Or do you think that this investment will be a disappointment to Chinese Car Manufacturers?
https://www.nytimes.com/2018/01/15/business/chinese-cars-fiat-chrysler.html
https://www.nytimes.com/2018/01/15/business/chinese-cars-fiat-chrysler.html
3 comments:
People are always willing to try new and interesting things. It is no doubt that cars have a huge impact on our daily lives. When there is something new on the market, it sparks curiosity, ultimately leading to sales. Since Fiat Chrysler is the 8th biggest automobile company, it already has a following which can boost sales and generate a new wave of potential buyers. If these cars actually make their mark in the car industry, I believe that the Chinese Car Manufacturers and people will be satisfied. Taking this risk would be beneficial no matter the outcome because the company can identify what they can improve the future of sales.
America is built upon the free market ideals and the integration of further competition from that ideology is good for consumers. However, in the current state of the American automobile industry with lacking performance since the great recession this might be detrimental. The market has been favoring foreign competitors for more than a decade and with more companies that are centralized in other countries this may be another nail in the coffin for American based companies. While there is contribution from Chrysler they seem to be the middleman for GAC motors to better integrate into the American Market. With Trump administrations unfavorable opinion of foreign produced products it will be interesting to see if there is any government action that will be implemented to protecting American based companies
I think that more foreign competition in the American market for the automobile industry may end up helping the overall economy, and of course foster more innovation and competition, however it may spell bad news for American based automobile companies. Chinese automobile has been increasing steadily and now well surpasses that of USA, and this may only serve to extenuate that. However, it will be interesting to see a new car out on the market and on the road, and it will be interesting to see how American consumers respond to the new brand on the market. It seems odd that China has taken so long to get into the American automobile market, especially after nations like Germany and Japan made their presence felt (but then again, I don't know much about the automobile industry).
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