Mar. 17, 2006. China's booming auto industry

Excellent article regarding China's growing automobile manufacturing industry:
http://www.nytimes.com/2006/03/12/business/yourmoney/12ford.html

I have always been intrigued by the automobile industry, and I think China has been fortunate to have so many foreign companies establish an infrastructure for them.

It is interesting to juxtapose the troubles of US auto manufacturers with the growth of Chinese auto manufacturers. At this point, I think both suffer from lack of creativity and innovation, however, China is not burdened with labor/union disputes compared to GM. The challenge for Chinese auto manufacturers in the future will be to establish an infrastructure that will allow for sustained growth. It seems that right now, Chinese workers are more than happy to work for low wages, but how long will that continue until the industry becomes developed?

Someone please correct me if I'm wrong, but I think Japanese workers and auto manufacturers also have strong union/labor ties. However, I think the difference between US and Japanese manufacturers has been in the innovation. You don't have to worry about trimming your workforce when they are producing products in demand. GM/Ford and also DaimlerChrysler need to begin designing products that are forward looking and ahead of its time. Out of the three, I think only Chrysler has recently recognized that. But I think it's too late for GM, and they probably won't be able to turnaround until they declare bankruptcy to clear itself of its debt.

I could talk all day about the auto industry, and what I think manufacturers need to do to be successful. If anybody has connections at an auto manufacturer, please let me know. Next to running a sports organization, my passion is in the auto industry.