Overseas ***: China wants to accelerate the offensive against Western markets with acquisitions?

The McKinsey Quarterly recently put forward a point of view: China has become the world's largest auto market in terms of sales volume. If China's automakers want to compete outside the mainland and decide to accelerate the segmentation of the big cake in Western markets by buying major Western car brands, what will happen to the world auto industry?

China tried to enter the auto market in Europe and the United States five years ago, but it has not seen any success so far. Today, some experimental measures have begun to appear because some of the cars produced in China are similar to some of the models currently on the market in the United States.

The McKinsey Quarterly pointed out in an article titled "Using Global Trends to Examine China's Automobile Industry." It points out that compared with automakers in developed countries, Chinese automakers enjoy a 35% cost advantage, and that China's original equipment manufacturing Businessmen have extraordinary ambitions. Therefore, it is definitely not groundless for China to accelerate its entry into the Western market. After Geely acquired Volvo from Ford, it once threatened that by 2015, it will sell 2 million cars in the United States. However, according to a survey conducted by the US IHS Global Insight, by 2020, China's penetration rate in the Western automobile market is only 0.2%.

The article stated that China may promote the image of Chinese cars by developing electric or hybrid technology and other clean energy technologies. Or, it may also enhance their competitiveness by increasing the safety, exhaust, and quality standards of cars sold in the country, while also strongly subsidizing local companies. Another assumption is that China may acquire a large-scale Western automotive brand that has a leading position in the industry. The most likely candidate is Fiat. The cooperation between Fiat and Chrysler will provide China with a mature brand. In addition, Chrysler’s important sales network in the United States will also help Fiat become a candidate.

The article also predicts that China’s automakers will forecast their share of the auto market in developed countries by 2020. According to forecasts, if China subsidizes clean energy vehicle technology and acquires mature brands in large quantities, it will actively promote the development of OEMs and manufacturers. By 2020, China will account for 7-15% of the developed country’s market share and profits will reach 4-8 billion US dollars.

If China really chooses to take the acquisition route, it will accelerate the pace of local companies' absorption of the best foreign technology and management skills, thus helping local companies to climb up the curve of learning faster, improve brand image, and better understand customers. Demand.