China's 3 musketeers race against the global auto giants
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Weak link
The marketing side of Chery has been its weakest link so far, as it has failed to come up with blockbuster cars after a barrage of new model trials in recent years failed to generate strong sales. Chery's lack of manufacturing quality consistency, product market appeal, and a good brand name are all adverse elements in its uphill battle to catch up with global giants.
Geely is taking a shortcut with its Volvo acquisition. This strategy is banking on Volvo's technologies and brand image elevating those of Geely. Some analysts think this can be a double-edged sword in that the Geely-Volvo combination might dilute Volvo's value more than helping with Geely's competitiveness. The jury may be still out, as Mr Li Shufu, Geely's chairman, has a history of making gutsy moves and succeeding against all odds.
The three musketeers are working hard like a stubborn tortoise racing against a hare. They are making impressive progress as can be seen at the Shanghai Auto Show. But even if their respective strategies succeeds, it is surely going to be a long march.
For the most part, automobiles are status symbols, particularly in China. The image of an auto brand takes a long time to change for the better, but only a few months for the worse. For example, Hyundai's auto quality has improved greatly over the years compared with itsto its disastrous entry into the North America market 20 some years ago, as witnessed by several of its models repeatedly making it to the JD Power's top list. But Hyundai cars are still regarded as cheap cars in the US today.
Chinese auto makers are merely following the footsteps of Hyundai 20 years ago. If they persist in developing truly indigenous technologies and consistently improving quality, they may have a chance to be the next Hyundai in China.
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