Global brands face challenge of rising domestic car quality
- Source: Global Times
- [14:26 January 20 2011]
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A visitor at the Saturday opening of the Auto China 2010 examines a Great Wall Motor Hover SUV with a dragon emblazoned in its hood. Photo: IC
When Ric Hull first looked at launching Great Wall Motor pickup trucks in Australia last year, he considered rebranding them, worried that their obvious Chinese origins would raise questions about their quality.
Ateco Group, Hull's auto importing and dealership company, decided against marketing the low cost models under "GWM" label, and sales are booming.
"We initially thought: do we resolve the brand question, do we call them GWM? But then we thought that people would know anyway, and that seems to be working very well," Hull said.
"The thing that's fascinated us about China is how rapidly they are progressing. The cars, just a few years ago, would not have been saleable in markets like ours. But today they are," Hull told Reuters at the 2010 Beijing International Automotive Exhibition (Auto China 2010) this week. The show began April 23 and continues through Sunday.
Global auto executives gathered at the biannual event are also recognizing the stiffer competition they face as Chinese rivals step up their quality standards.
Chinese carmakers, some with the help of foreign partners, have rapidly improved vehicle qual-ity as they prepare to take on established international brands such as Volkswagen, General Motors and Hyundai Motor in the higher segments of the market that they dominate in China.
With such improved quality and cut-rate prices, established automakers could one day be competing against China's most successful brands not only in China but also on the global stage, executive said.
"I have no doubt about it," Nissan Motor CEO Carlos Ghosn told a small group of reporters at the Beijing auto show. "This may take time. Obviously today, when you take a look at a show like this, there is more improvement to be made.
"Some Chinese brands are going to...gain credibility. They're going to be acquiring know-how, like the Volvo acquisition," he said, referring to Geely Automobile's deal last month to buy Volvo Cars from Ford Motor.
