Car companies are not going fast enough in the Chinese market

It is true that the growth of the Chinese auto market has slowed down a lot this year. Some forecasters expect that the growth in 2011 will not exceed 10% to 15%, which is a small increase compared with the previous two years.

But wait, what is 10% for the 18 million market? 1.8 million vehicles, equivalent to the production capacity of 6-7 assembly plants.

Whether or not it slows, the fact is that everyone involved in the automotive business feels strong demand. We don't just say building a new factory but we need to build it faster.

Car companies are still not willing to go too fast so far.

Joe Hinrichs, CEO of Ford China, said: “We hope to build faster, but the time to build a new plant must be well-arranged.” Hinrichs' previous position was Ford's vice president of manufacturing in North America, where he served 16 months ago.

Ford has two final assembly plants in China that will take several years to complete.

Hinrichs said: "We can use these capacities very quickly, but we must use these capacities."

Some suppliers are trying to meet the needs of the market.

For example, GKN Transmission Systems has enjoyed a significant market share in China over the past decade. The company has just built a new factory in Changchun, northeast China, and can produce 1 million CVJ sideshafts per year. Its main customers are FAW and its Western joint venture partners.

The plant will be completed and put into production within one year, with well-trained employees.

Marc Vuarchex, managing director of Asia Pacific at GKN Drive Systems, said that it takes twice as long to complete the same plant construction in Europe and the United States.

GKN broke ground in May 2010 and was put into production in March this year.

Vuarchex said: "In this rapidly evolving environment, we must consider our customers. We must do this."

The work of GKN will be even harder and faster. The climate of Changchun alone will be described. As it is close to Siberia, the winter will be long and cold.

When GKN's other 156,000-square-foot factory was built, it took six months to train employees. The 250 employees at the plant that was put into operation this year will have to work hard on the first day of the plant. Indeed, in China today, it is not too much to grasp.



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