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China and the North American Auto Industry Preliminary Thoughts for the Woodrow Wilson Center

Explore the dynamics of the North American Auto Industry and the entry of non-North American firms, with a focus on the Chinese Auto Industry. Analyze the problems, opportunities, trade policies, labor unions, supply chains, regulatory compliance, quality, intellectual property, investment incentives, and retail networks. Discuss the implications for the US and Canada.

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China and the North American Auto Industry Preliminary Thoughts for the Woodrow Wilson Center

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  1. China and the North American Auto Industry Preliminary Thoughts for the Woodrow Wilson Center Hudson Institute

  2. Thinking About Cars and the Continent What makes up the North American Auto Industry? What has been the experience of non-North American firms entering this market so far? What makes up the Chinese Auto Industry? What are the problems and opportunities for China in the North American vehicle market? What does this mean for the United States and Canada?

  3. The North American Auto Industry The Detroit Assemblers US, Canadian investment in GM, Chrysler New Entrant Assemblers Vertical Integration to Horizontal Supply Chains

  4. New Entrant Assemblers

  5. New Entrant Assemblers: Group 1

  6. New Entrant Assemblers: Group 2

  7. New Entrant Assemblers: Group 3

  8. Suppliers Tier 1, 2, 3 Sub-assemblies Components

  9. The Chinese Auto Industry: Part 1

  10. The Chinese Auto Industry: Part 2

  11. The Road to North America Import (components, vehicles) Joint Venture Acquisition Assembly

  12. The China Challenges Trade Policy Labor Unions Supply Chain Regulatory Compliance Quality Intellectual property Investment Incentives Retail network Canada & Mexico

  13. WTO membership reduces potential trade barriers NAFTA Rule of Origin North American border-crossing? Target for retaliation (cf. auto parts) Trade Policy

  14. China labor record problematic Advantage to capital, not labor in North America – how competitive is China? Bad History of Unionization of New Entrants Imports a large target for US labor Labor Union

  15. North American suppliers provide local content, access to technology Many connected to China already, will want reciprocity Defend local content rules Promiscuous? Higher cost, higher tech – labor cost advantage? Supply Chain

  16. Need to know regulators, process Can acquire compliant technology Regulation as a non-tariff barrier Public R&D Tech Transfer – USCAR and ITAR Regulatory Compliance

  17. Hyundai Problem Imports face quality challenge Recalls costly, including to reputation Collective Guilt Quality

  18. Chery v. General Motors (on behalf of Daewoo) Siemens high-speed rail Litigation Intellectual Property

  19. Can the governments afford them? Backlash potential The Volkswagen Problem Workforce training Infrastructure (esp. in green-field, non-union areas) Investment Incentives

  20. Dealership consolidation underway State regulated, internet not (yet) an option After sale service, warranty Aftermarket parts US & Canadian Consumers = demanding Retail Network

  21. Treat as separate markets? Local production justified? With local content, a NAFTA end-run? Border risk Canada friendlier than Mexico, Mexico more familiar than Canada Canada and Mexico

  22. China and the North American Auto Industry Import (components, vehicles) Joint Venture Acquisition Assembly Or…

  23. China and the North American Auto Industry Comparative Advantages in capital/technology versus labor, cost Divide and conquer world markets? Collaborate and conquer world markets? Avoid mutual conflict

  24. Canada and the Auto Industry Incentives for Japanese in Ontario Volvo duty drawback in Nova Scotia Hyundai in Bromont Auto Pact manipulation not possible; Zero Tariff for Japan? Green Industrial Policy? GM-Chrysler precedent – one industry?

  25. The Panda Game The Chinese market China likely to play one off the other Canada First Canada’s future role in the North American auto industry? US reaction?

  26. China and the North American Auto Industry Preliminary Thoughts for the Woodrow Wilson Center

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