The Chinese army is attacking from the East

Chery

photo credit: H2SO4

I would like to talk about an argument “frivolous”, so trivial that nobody was able to see it, at least in Europe.

In the last ten days of March it was announced that Chery’s Chineses will supply 15 A3 Sedan and 2 Tiggo (SUV) to the police in Belgrade . The news might not appear so interesting but there is something unrevealed to say.

Browsing the company website of Chery we can see its clear advance towards the West that stops to “the iron curtain” (although Italy has an agreement with DR).
Starting to alert my mind I discover that there is a statement related to the tender gained in Serbia where the brand was chosen among several competitors like Skoda, Peugeot, Fiat, Volkswagen, Toyota and Hyundai.

The presence of Chery in Serbia started with the creation of a distribution network organized one year ago.

Chery is not an unknow carmaker apart from its various partnerships. Currently it own 12 plants and thousands of dealers all over the world becoming the largest Chinese cars exporter.
The strategy of supplying Serbia government is not unusual. Chery had other important supplies in Egypt and Iraq.

The moments of reflection are various.
A) The strategic choice of not coming in Western Europe: the sign of a decline and difficulty to penetrate a saturated market.
B) The interest of the emerging European and Middle East Countries.
C) The choice to supply to governments. This choice does not financially pay but has an impact on immediate visibility and clear success in the medium to long term.

Everyone knows that China “bought” Africa and if China starts to sell the product, for the European countries can only be the beginning of an unprecedented crisis.

But what could be the solutions?
In my opinion there are two main points:

  1. We must not do the mistake that the automotive sector (previously in the electronic field) made many years ago with the Japanese: underestimated and derised;
  2. To politically work  in developed countries (also in the ones under development) on the marketing of cars imported from the Middle East with fixed and rigid rules of social responsibility, so in importing (western) countries.

The last statement is certainly cutting across all sectors and seems that someone is moving in this direction. We can read the interview with dr. Gori of Pirelli Ltd that it was published on April in the italian magazine “Quattroruote”.

Without having those two above points in the middle of any action, in my opinion, there is no type of solution for the future of our economy and, simultaneously, the “democratization “of work in developing countries.

 

(Translated by Matteo Ceronetti)

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  1. There is a new upgrade for Great Wall.

    The plant Bulgarian Bahovitsa, bulit with the local partner Litex Motors, is ready to assmble 4,000 units a year, with approximately 150 employees.

    The Director of Marketing points said that: “… this is only the initial step considering that the capacity will increase to about 50,000 units per year, with a work force of 2,000 employees …”

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