Here's the reason why Chinese cars (or other Chinese-made crap) are "deathtraps" (very low quality & extremely unsafe):
Anybody who understands East Asian culture and history will tell you how they are drastically different from each other. Just because something happened in one location at one time doesn't mean it will repeat at another location at another time. You only need to see the history of Hong Kong, Singapore, and Taiwan to tell that global brands like Toyota, Sony, Samsung, and Hyundai won't emerge from China. Why is that? Because of Chinese tendency to pursue short term profits in exchange for a long term growth, and the government's failure to establish an economic plan with a long term vision.
You cannot compare Chinese auto industry with Japanese/Korean auto industry for following reasons.
1. Japanese/Korean auto makers had tiny domestic markets and were forced to crack US and EU markets just to survive from the beginning. China's domestic market is rather large and Chinese auto makers don't have to go to overseas to survive. In fact, engineering cars to be US/EU regulation compliant could be fatal in a market condition where there is zero regards for safety and quality, and consumers shop only based on pricing alone. Make your car better than your competitor and raise your price, your competitor undercuts your price with an inferior but cheaper car and you are dead in China where the prices drop every quarter.
2. Chinese consumers themselves no longer consider Chinese brand vehicles when the intended price budget is more than $5,000. Accordingly, almost all Chinese brand vehicles are priced below $5,000. This heavy focus on low-price vehicles prohibit Chinese makers from higher priced and higher quality vehicles suitable for the US and EU markets.
Here's the reason why chinese cars (or other chinese crap) are "deathtraps":
Anybody who understands East Asian culture and history will tell you how they are drastically different from each other. Just because something happened in one location at one time doesn't mean it will repeat at another location at another time. You only need to see the history of Hong Kong, Singapore, and Taiwan to tell that global brands like Toyota, Sony, Samsung, and Hyundai won't emerge from China. Why is that? Because of Chinese tendency to pursue short term profits in exchange for a long term growth, and the government's failure to establish an economic plan with a long term vision.
You cannot compare Chinese auto industry with Japanese/Korean auto industry for following reasons.
1. Japanese/Korean auto makers had tiny domestic markets and were forced to crack US and EU markets just to survive from the beginning. China's domestic market is rather large and Chinese auto makers don't have to go to overseas to survive. In fact, engineering cars to be US/EU regulation compliant could be fatal in a market condition where there is zero regards for safety and quality, and consumers shop only based on pricing alone. Make your car better than your competitor and raise your price, your competitor undercuts your price with an inferior but cheaper car and you are dead in China where the prices drop every quarter.
2. Chinese consumers themselves no longer consider Chinese brand vehicles when the intended price budget is more than $5,000. Accordingly, almost all Chinese brand vehicles are priced below $5,000. This heavy focus on low-price vehicles prohibit Chinese makers from higher priced and higher quality vehicles suitable for the US and EU markets.
Here's the reason why chinese cars (or other chinese crap) are "deathtraps":
Anybody who understands East Asian culture and history will tell you how they are drastically different from each other. Just because something happened in one location at one time doesn't mean it will repeat at another location at another time. You only need to see the history of Hong Kong, Singapore, and Taiwan to tell that global brands like Toyota, Sony, Samsung, and Hyundai won't emerge from China. Why is that? Because of Chinese tendency to pursue short term profits in exchange for a long term growth, and the government's failure to establish an economic plan with a long term vision.
You cannot compare Chinese auto industry with Japanese/Korean auto industry for following reasons.
1. Japanese/Korean auto makers had tiny domestic markets and were forced to crack US and EU markets just to survive from the beginning. China's domestic market is rather large and Chinese auto makers don't have to go to overseas to survive. In fact, engineering cars to be US/EU regulation compliant could be fatal in a market condition where there is zero regards for safety and quality, and consumers shop only based on pricing alone. Make your car better than your competitor and raise your price, your competitor undercuts your price with an inferior but cheaper car and you are dead in China where the prices drop every quarter.
2. Chinese consumers themselves no longer consider Chinese brand vehicles when the intended price budget is more than $5,000. Accordingly, almost all Chinese brand vehicles are priced below $5,000. This heavy focus on low-price vehicles prohibit Chinese makers from higher priced and higher quality vehicles suitable for the US and EU markets.
1) Japanese and Korean gadget, phone and car makers release sleek, innovative new devices or vehicles domestically in Japan and Korea.
2) Chinese rip-off companies buy one, and return to China where the whole thing is copied.
3) The Chinese companies sell the fake version domestically in China.
4) when the original is finally sold in China, Chinese consumers think the original is a counterfeit of a Chinese original, since the Chinese phone was sold first, and are OUTRAGED at the copyright violation. Counterfeiters cost legit companies about $600 billion per year and growing fast, and the overwhelming majority of it happens in China.
1) Japanese and Korean gadget, phone and car makers release sleek, innovative new devices or vehicles domestically in Japan and Korea.
2) Chinese rip-off companies buy one, and return to China where the whole thing is copied.
3) The Chinese companies sell the fake version domestically in China.
4) when the original is finally sold in China, Chinese consumers think the original is a counterfeit of a Chinese original, since the Chinese phone was sold first, and are OUTRAGED at the copyright violation. Counterfeiters cost legit companies about $600 billion per year and growing fast, and the overwhelming majority of it happens in China.
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Anybody who understands East Asian culture and history will tell you how they are drastically different from each other. Just because something happened in one location at one time doesn't mean it will repeat at another location at another time. You only need to see the history of Hong Kong, Singapore, and Taiwan to tell that global brands like Toyota, Sony, Samsung, and Hyundai won't emerge from China. Why is that? Because of Chinese tendency to pursue short term profits in exchange for a long term growth, and the government's failure to establish an economic plan with a long term vision.
You cannot compare Chinese auto industry with Japanese/Korean auto industry for following reasons.
1. Japanese/Korean auto makers had tiny domestic markets and were forced to crack US and EU markets just to survive from the beginning. China's domestic market is rather large and Chinese auto makers don't have to go to overseas to survive. In fact, engineering cars to be US/EU regulation compliant could be fatal in a market condition where there is zero regards for safety and quality, and consumers shop only based on pricing alone. Make your car better than your competitor and raise your price, your competitor undercuts your price with an inferior but cheaper car and you are dead in China where the prices drop every quarter.
2. Chinese consumers themselves no longer consider Chinese brand vehicles when the intended price budget is more than $5,000. Accordingly, almost all Chinese brand vehicles are priced below $5,000. This heavy focus on low-price vehicles prohibit Chinese makers from higher priced and higher quality vehicles suitable for the US and EU markets.
- Japan(5-star-ratings): http://www.youtube.com/watch?v=KxGr38YSIn4
- Korea(5-star-ratings): http://www.youtube.com/watch?v=fhX2Q8X9ha4
- China(Zero-star-ratings): http://www.youtube.com/watch?v=F06LjugtIUo