AUTONEWS

Chinese conglomerate nears absolute Mercedes control

Volvo and Lotus, legendary brands known in the four corners of the planet that are now under the control of an Asian auto giant that has been gaining ground in the global auto market in recent years ... The Chinese auto industry began to reinvent itself recently when embarked on an aggressive strategy to restructure its car industry - Chinese manufacturers turned to Europe, hiring world-renowned designers who worked for major western brands like Ferrari and Porsche. Another important factor was the adoption of modern European aluminum block motors with independent valve control, from which Chinese brands have aggressively invested in marketing; showing to the west the famous slogan: '' European design and engine ''. This strategy from the Asian giant's manufacturers was instrumental in showing the rest of the world that Chinese automotive engineering could think.
The Chinese economy has grown quite significantly at the beginning of the last decade that continues to this day - but not as much as it once did. This situation caused the government to invest heavily in the automotive sector. An important factor in making the Chinese market today one of the largest on the planet and being heavily harassed by western automakers.
In Brazil the car invasion of China began more strongly in 2012, when JAC Motors brought the J3 model to rival the main traditional automakers in Brazil (Ford, VW, Chevrolet, Fiat...).



J3 model 2012

JAC Motors bet on a well-equipped model with modernized European engine and Italian design. The Chinese brand has invested in a very aggressive marketing strategy in traditional and virtual media. This worked in part because the brand's consumer got to know the best quality yet attractive Chinese product, but JAC forgot to create an innovative and efficient logistics model in the spare parts distribution business. their dealers, which has left many customers frustrated with the brand. At the moment the Chinese automaker Chery has been gaining a significant space in the Brazilian auto market, the company has started to implement a new and efficient aftermarket structure, which has pleased its consumers.
Now the hot topic on the world market is the aggressive growth of the BAIC group over the legendary Mercedes, recently the Chinese group has invested a considerable amount to be currently one of the main shareholders of the German brand.
Many industry experts find this proximity to the eastern conglomerate dangerous. According to them, Asians want unrestricted access to the company's technology sector and then benefit from its automotive subsidiaries in China.
Others on the subject go even further, many even say that the goal is to promote Xu Heyi (current chairman-BAIC) to be the chief CEO of Mercedes, from which the Chinese could legally employ three-pointed star technology. in their brands like Foton, Baw, Bjev ... it's a matter of strategy that so far seems to be the most viable.

Kelvin James
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