21 Nov 06
If the new coupe from China Brilliance's Jinbei division, the Zhonghua M3 concept, were a modestly sized newcomer from, say, Holden, we'd hail the Australian company's sudden upturn in form.
And if Longbridge had seriously proposed a hybrid version of the Rover 75 we'd be waving the flag of St George as we marched along with a joyful spring in our step. That's precisely what was on show from state-owned SAIC, which bought the rights to the Rover 75 and has renosed and rebadged it as the Roewe 750, which goes on sale in China with conventional engines later this year.
Plans for SAIC, along with Chery and Geely, to start serious exports to the US and Europe have been put on hold. But don't mistake that for lack of ambition - it's chiefly because demand is so high at home. With 7,000,000 sales likely in 2006, China's domestic market is about to overtake Japan and could topple the US in a decade or so.
Meanwhile, Nanjing Auto plans to build a redesigned MGF in the US, Geely will build London-style black cabs and DaimlerChrysler opened a factory earlier this year on the outskirts of Beijing. It's a joint venture with BAIC and as well as the new E-Class, with the C-Class to follow next August, it's also been building the last-generation Mitsubishi Outlander, long after DaimlerChrysler's partnership with Mitsubishi ended in rancour. The Chrysler 300C is being assembled there, and from next February that will involve locally pressed body panels, rather than parts shipped in. The Sebring will join it next summer and there's more to come.
At the factory, many of the tasks that would be done by robot in Europe or the US are performed by a squad of humans. But labour rates are a lot cheaper here, and the relatively low quantity in which the cars are produced means it's cheaper to train the men than to buy the robot. It must also be politically wise to be seen as a big local employer.
