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It smells like kerosene: how Chinese cars are driving European business into hysterics

  • September 25, 2023
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Finally, it has dawned on the minds of European car manufacturers that their Chinese competitors are not cute idiots or funny creatures like pandas. These are serious, purposeful

It smells like kerosene: how Chinese cars are driving European business into hysterics
Finally, it has dawned on the minds of European car manufacturers that their Chinese competitors are not cute idiots or funny creatures like pandas. These are serious, purposeful and therefore dangerous rivals. It is true that Europeans are still trying to be brave and are in no hurry to admit that the collapse of the value system that has dominated for decades is imminent. The AvtoVzglyad portal listened to the words of the directors of global automotive companies.

The likely Chinese expansion into Europe has not been seriously discussed in the public sphere for a long time. It was either demoted to the level of a funny anecdote, or they intelligently talked about the low quality of cars from the Middle Kingdom and their technological backwardness. And recently all this was not far from reality. But the Chinese did not sit still. They tried not to draw special attention to themselves and worked at an accelerated pace to eliminate the above shortcomings. Different from us, by the way.

And now some very senior people in the global auto industry are faced with the need to reassess the threat posed by the Tien Shan. Somehow it unexpectedly turned out that the Chinese car industry, so despised by arrogant Europeans, has quietly risen to a high world level.

Self-soothing

Naturally, the first defensive reaction was complacency. Volkswagen Group CEO Oliver Blume has distinguished himself in this area. He said Chinese cars do not pose a problem for European carmakers. They say they haven’t been able to dump so far, and it’s the price war that the high-end businesses of the rest of the Old World fear more than anything else.

Yes, production costs at Chinese companies are 20% lower, but especially in Europe they will have to spend significant amounts of money on adapting to crazy European standards, but also on building a retail network.

Oliver Blume also said: “Over the last ten years the Chinese have learned how to make cars, but we have automotive know-how, quality levels and brand heritage – so our position is very strong.” Probably no one explained to Mr. Blume that the Celestial Empire didn’t care about the European tradition of carefully cultivating and cherishing the brand’s history. The Chinese use a cheaper and more effective multi-brand system, as the AvtoVzglyad portal has already written.

Pessimism

Luca de Meo, CEO of the Renault Group, spoke much more honestly, in whose speeches openly panicked notes seeped through: “All we can do is accept this, look at everything soberly; act modestly, but not and play the victim… When the Japanese and Koreans came to Europe, the same thing happened.” He convinces himself and others that everything is under control and is being done for the good of Europe:

“There are people who hesitate between protectionism, laissez-faire and rolling out the red carpet. There is no reason why we shouldn’t allow people who do good things for European consumers to enter the market and give people what they want…

At the same time, Luca de Meo himself complained about the lack of practice in Europe to support production, as research and development work is mainly subsidized. But the most pessimistic was BMW CEO Oliver Zipse, who described China’s growing competitiveness this way:

– I want to send a signal: I consider this an imminent risk…

Referring to the EU’s plans to ban cars with combustion engines by 2035, he predicted: “The core segment of the car market will either disappear altogether or not be occupied by European manufacturers.”

It smells like kerosene

In fact, not only Mr. Zipse, but also the other two car bosses spoke with boring consistency about electric vehicles. However, we will forgive everything. On the one hand, they simply had no choice but to prioritize the “green” issue: this would throw them out of the liberal trend – something unforgivable in the modern world. On the other hand, not only Chinese cars with combustion engines, but also Chinese ‘electric trains’ are attacking Europe.

Moreover, it is unknown which of them attacks more aggressively. And if we ignore the ritual bows and reassuring bows, it becomes clear that European manufacturing workers – unlike politicians – started to feel like things were starting to smell like kerosene to them.

Photo globallookpress.com
Photo globallookpress.com

The likely Chinese expansion into Europe has not been seriously discussed in the public sphere for a long time. It was either demoted to the level of a funny anecdote, or they intelligently talked about the low quality of cars from the Middle Kingdom and their technological backwardness. And recently all this was not far from reality. But the Chinese did not sit still. They tried not to draw special attention to themselves and worked at an accelerated pace to eliminate the above shortcomings. Different from us, by the way.

And now some very senior people in the global auto industry are faced with the need to reassess the threat posed by the Tien Shan. Somehow it unexpectedly turned out that the Chinese car industry, so despised by arrogant Europeans, has quietly risen to a high world level.

Self-soothing

Naturally, the first defensive reaction was complacency. Volkswagen Group CEO Oliver Blume has distinguished himself in this area. He said Chinese cars do not pose a problem for European carmakers. They say they haven’t been able to dump so far, and it’s the price war that the high-end businesses of the rest of the Old World fear more than anything else.

Yes, production costs at Chinese companies are 20% lower, but especially in Europe they will have to spend significant amounts of money on adapting to crazy European standards, but also on building a retail network.

Oliver Blume also said: “Over the last ten years the Chinese have learned how to make cars, but we have automotive know-how, quality levels and brand heritage – so our position is very strong.” Probably no one explained to Mr. Blume that the Celestial Empire didn’t care about the European tradition of carefully cultivating and cherishing the brand’s history. The Chinese use a cheaper and more effective multi-brand system, as the AvtoVzglyad portal has already written.

Pessimism

Luca de Meo, CEO of the Renault Group, spoke much more honestly, in whose speeches openly panicked notes seeped through: “All we can do is accept this, look at everything soberly; act modestly, but not and play the victim… When the Japanese and Koreans came to Europe, the same thing happened.” He convinces himself and others that everything is under control and is being done for the good of Europe:

“There are people who hesitate between protectionism, laissez-faire and rolling out the red carpet. There is no reason why we shouldn’t allow people who do good things for European consumers to enter the market and give people what they want…

At the same time, Luca de Meo himself complained about the lack of practice in Europe to support production, as research and development work is mainly subsidized. But the most pessimistic was BMW CEO Oliver Zipse, who described China’s growing competitiveness this way:

– I want to send a signal: I consider this an imminent risk…

Referring to the EU’s plans to ban cars with combustion engines by 2035, he predicted: “The core segment of the car market will either disappear altogether or not be occupied by European manufacturers.”

It smells like kerosene

In fact, not only Mr. Zipse, but also the other two car bosses spoke with boring consistency about electric vehicles. However, we will forgive everything. On the one hand, they simply had no choice but to prioritize the “green” issue: this would throw them out of the liberal trend – something unforgivable in the modern world. On the other hand, not only Chinese cars with combustion engines, but also Chinese ‘electric trains’ are attacking Europe.

Moreover, it is unknown which of them attacks more aggressively. And if we ignore the ritual bows and reassuring bows, it becomes clear that European manufacturing workers – unlike politicians – started to feel like things were starting to smell like kerosene to them.

Source: Avto Vzglyad

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