Documentation Brochure - Hamburg Summit
Documentation Brochure - Hamburg Summit Documentation Brochure - Hamburg Summit
China´s Emerging Automotive Sector Zhu Yanfeng, China FAW Group Corporation, expects China´s automobile production to double by 2010 Summing up the outlook for China’s automobile industry, Bernd Gottschalk, President of the German Automotive Industry Association (VDA), stated that “today China is one of the great challenges for the automotive industry – and soon it will be one of the great challengers.” The challenge is a fast-growing market with production set to increase from well over five million vehicles this year to more than ten million in 2010, according to Zhu Yanfeng, President of China FAW Group Corporation and Chairman of the CFIE Presidium. You can see with the naked eye how fast the automobile industry has grown in China in recent years, said Mei Zhaorong, Honorary Director of the Institute of World Development, State Council of China, and recipient of the China-Europe Friendship Award of the Hamburg Summit 2006, “You used to see more motorcycles than cars on Chinese roads, now it is the other way round.” Gottschalk agreed, saying that “no other market has experienced such growth in volume and nowhere else have such large investments been made in recent years.” The automotive market in China has changed significantly since China joined the WTO in 2001, said Winfried Vahland, President and CEO of Volkswagen Group China. Vahland, whose company was active in China at a very early stage and is one of the leading manufacturers, noted that “we have to fight for all our customers.” Volkswagen does so mainly by means of state-of-the-art technology. “Today we have 1,600 R&D people in China, and we will be increasing that number,” he explained. VW has decided to offer only the latest technology in China, partly with a view to reducing the contribution of traffic toward environmental pollution. Zhu Yanfeng promised that “the automotive sector will play a key role in the economy.” In the next five years China would develop one or two brands of its own. It would do so, however, in accordance with the axiom “some people play tennis, we play ping-pong.” In other words, Chinese firms seek to conquer the low-price segment, whereas cooperations or imports will continue to predominate at the upper end of the market. This view was shared by Zhang Guangsheng, Vice Chairman of the Board of the Shanghai Automotive Industry Corp. (SAIC). “Domestic competition corresponds with international cooperation because competitiveness is a difficult process, but the result is worth it,” Zhang said. In China and everywhere else in the world, the emergence of strong brands is a key factor in modern competition on the automotive market. “For this to happen it is important that automotive production in China is integrated seamlessly into the worldwide supply networks of manufacturers and suppliers,“ Gottschalk stated. In this case, Gottschalk said, he is convinced that China will achieve its targets. “Everything I read in the five-year plans I have seen in reality. And whenever a competitor shows up, take him seriously. Chinese competition in Europe will happen.”
- Page 1 and 2: DOCUMENTATION 2006 THE HAMBURG SUMM
- Page 4: Welcome Address by President Karl-J
- Page 8: Let us like to be Neighbours Hambur
- Page 12: Still more Work to do
- Page 16: EU-China Trade Relations Lutz Bethg
- Page 20: Banking and Finance in China Heinz
- Page 26: Asia in 2015 - Scenarios Richard Ha
- Page 30: Competing Powers in Asia The Austra
- Page 34: China's Future Role in Asia Two cou
- Page 38: Supporting Programme At the end of
- Page 42: Outlook by Conference Chairman Niko
- Page 46: Summit Speakers Art of Illumination
China´s Emerging Automotive Sector<br />
Zhu Yanfeng, China FAW Group<br />
Corporation, expects China´s automobile<br />
production to double by 2010<br />
Summing up the outlook for<br />
China’s automobile industry, Bernd<br />
Gottschalk, President of the German<br />
Automotive Industry Association (VDA),<br />
stated that “today China is one of the<br />
great challenges for the automotive<br />
industry – and soon it will be one of the<br />
great challengers.” The challenge is a<br />
fast-growing market with production<br />
set to increase from well over five<br />
million vehicles this year to more than<br />
ten million in 2010, according to Zhu<br />
Yanfeng, President of China FAW Group<br />
Corporation and Chairman of the CFIE<br />
Presidium.<br />
You can see with the naked eye how<br />
fast the automobile industry has grown<br />
in China in recent years, said Mei Zhaorong,<br />
Honorary Director of the Institute<br />
of World Development, State Council of<br />
China, and recipient of the China-Europe<br />
Friendship Award of the <strong>Hamburg</strong> <strong>Summit</strong><br />
2006, “You used to see more motorcycles<br />
than cars on Chinese roads, now it<br />
is the other way round.” Gottschalk<br />
agreed, saying that “no other market has<br />
experienced such growth in volume and<br />
nowhere else have such large investments<br />
been made in recent years.” The<br />
automotive market in China has<br />
changed significantly since China joined<br />
the WTO in 2001, said Winfried Vahland,<br />
President and CEO of Volkswagen Group<br />
China. Vahland, whose company was active<br />
in China at a very early stage and is<br />
one of the leading manufacturers, noted<br />
that “we have to fight for all our customers.”<br />
Volkswagen does so mainly by<br />
means of state-of-the-art technology.<br />
“Today we have 1,600 R&D people in China,<br />
and we will be increasing that number,”<br />
he explained. VW has decided to offer<br />
only the latest technology in China,<br />
partly with a view to reducing the<br />
contribution of traffic toward environmental<br />
pollution.<br />
Zhu Yanfeng promised that “the<br />
automotive sector will play a key role in<br />
the economy.” In the next five years<br />
China would develop one or two brands<br />
of its own. It would do so, however, in<br />
accordance with the axiom “some<br />
people play tennis, we play ping-pong.”<br />
In other words, Chinese firms seek to<br />
conquer the low-price segment, whereas<br />
cooperations or imports will continue to<br />
predominate at the upper end of the<br />
market. This view was shared by Zhang<br />
Guangsheng, Vice Chairman of the<br />
Board of the Shanghai Automotive<br />
Industry Corp. (SAIC). “Domestic competition<br />
corresponds with international<br />
cooperation because competitiveness is<br />
a difficult process, but the result is<br />
worth it,” Zhang said.<br />
In China and everywhere else in the<br />
world, the emergence of strong brands<br />
is a key factor in modern competition<br />
on the automotive market. “For this to<br />
happen it is important that automotive<br />
production in China is integrated<br />
seamlessly into the worldwide supply<br />
networks of manufacturers and suppliers,“<br />
Gottschalk stated. In this case,<br />
Gottschalk said, he is convinced that<br />
China will achieve its targets.<br />
“Everything I read in the five-year plans<br />
I have seen in reality. And whenever<br />
a competitor shows up, take him<br />
seriously. Chinese competition in<br />
Europe will happen.”