But that's just the start of the brand building exercise. It will take years for them to build this brand, whether it's this brand or another brand, to upgrade to the Volkswagen level, in the meantime, they'll have to price a bit more aggressively. James Chao More Quotes by James Chao More Quotes From James Chao It's only chapter one of this story. James Chao company-news Foreign companies may already be in a box (in China), while getting a bigger share could be advantageous in terms of boosting profits, they may actually be already too dependent on their Chinese partners to sever those ties. James Chao company-news What's important for these emerging EV companies ... is the potential change in customer experience, if they can transform the way the car fits into our lives, creation of an entire ecosystem enabled by fast mobile internet connectivity, location-based intelligence ... will be critical. James Chao company-news Global automakers have largely focused on more expensive segments instead of the no-frills market that local Chinese brands have targeted, now, the lower-cost market is taking off and some global makers are finding their more premium products poorly positioned for this growth shift. And the worse news is that their product pipelines for the no-frills market is, with only a few exceptions, empty. James Chao business The product seems pretty good, styling wise, and they have got to get the core sedan product right which it appears that they have (with the GC9), but that's just the start of the brand building exercise. It will take years for them to build this brand, whether it's this brand or another brand, to upgrade to the Volkswagen level. James Chao mergers-acquisitions Going downmarket into low-cost SUVs may actually damage the brand in the long term, cRISIS MODE. James Chao business We expect the popularity of MPVs will spread more and more to family purchases. James Chao business This creates an environment where inertia is the norm, which allows automakers which may otherwise disappear to continue to survive for decades. James Chao top-news The last thing the Chinese automotive world needs is another brand, the elimination of more brands in China should be the route. James Chao business So, overall, they do have a shot at maintaining their margins around 9 to 10 percent if the luxury end of the market in China holds up. James Chao business This is a permanent move downwards in pricing, there are few signs of the trend letting up. James Chao business Capacity additions by automakers are coming on stream right now and in the next few years, just as the market has started to see some real weakness, it is all worrisome. James Chao business It's still a tale of two worlds, with domestic manufacturers probably hovering around 60 percent capacity and the international joint ventures at 80-85 percent. It's a big difference. James Chao business
