Joint ventures in China expose Big 3 Auto Makers to piracy

[Analog]

Sharing technology and manufacturing processes with another carmaker -- potentially a future global competitor -- is dangerous.

"History shows that Chinese joint venture partners are prone to knock off your products," says Theut, a longtime counselor for foreign companies operating in China.

Text

 

[Eli]

Geez.

What are they, a bunch of commies over there?

 

[wnied]

Thats the only way they can compete in the Global economy. They have the cheapest labor already, but their line of product sucks ass, so they offer "Joint Ventures" with international companies which immenently fail, and they get the technology they need to make knock off products to sell world wide.

Been happening forever. Chinas governments been doing it for ages, and getting away with it too.
~wnied~

 

[Imdmn04]

Originally posted by: wnied
Thats the only way they can compete in the Global economy. They have the cheapest labor already, but their line of product sucks ass, so they offer "Joint Ventures" with international companies which immenently fail, and they get the technology they need to make knock off products to sell world wide.

Been happening forever. Chinas governments been doing it for ages, and getting away with it too.
~wnied~

WTF are you talking about, have you ever been to China? When I was in Shanghai, the most popular car model is the VW Santana(20 to 30 percent of all cars on the street are this model), which is a vehicle that is made by the joint vernture bettween VW and the local company there. It is the most sold vehicle for a decade there.

There are ripoffs, but they do not dominate the market at all, since people can buy the real thing almost as cheap because of a joint venture.

Some of the most popular models in china:
VW Santana
VW Passat
VW Polo/Golf
VW Jetta/Bora
Audi A4
Audi A6
Honda Accord
Nissan Cefiro
Nissan Bluebird
Buick Century

All of these are made by joint ventures, and they dominate about 70-80 percent of the market.

 

[EyeMWing]

Look at where all the "Russian" military aircraft are produced today. Yep. They're Chineese knockoffs!

 

[Eli]

Originally posted by: Imdmn04

Originally posted by: wnied
Thats the only way they can compete in the Global economy. They have the cheapest labor already, but their line of product sucks ass, so they offer "Joint Ventures" with international companies which immenently fail, and they get the technology they need to make knock off products to sell world wide.

Been happening forever. Chinas governments been doing it for ages, and getting away with it too.
~wnied~

WTF are you talking about, have you ever been to China? When I was in Shanghai, the most popular car model is the VW Santana(20 to 30 percent of all cars on the street are this model), which is a vehicle that is made by the joint vernture bettween VW and the local company there. It is the most sold vehicle for a decade there.

There are ripoffs, but they do not dominate the market at all, since people can buy the real thing almost as cheap because of a joint venture.

Some of the most popular models in china:
VW Santana
VW Passat
VW Polo/Golf
VW Jetta/Bora
Audi A4
Audi A6
Honda Accord
Nissan Cefiro
Nissan Bluebird
Buick Century

All of these are made by joint ventures, and they dominate about 70-80 percent of the market.

:Q

 

[kranky]

I have a good friend with first-hand experience with this. His company did a "joint venture" with a Chinese company because they hoped to get a number of follow-on contracts. To get their foot in the door, they offered the Chinese company a very low price.

As you might guess, the Chinese company took all the information and promptly started manufacturing their own parts, and his company never got another dime. Not a thing they could do about it.

 

[RU482]

how can the big 3 be harmed by technological piracy when they are buying stakes in all of the Chinese auto manufacturers? They are going to profit off of technology sharing!!

 

[iwearnosox]

Originally posted by: redly1
how can the big 3 be harmed by technological piracy when they are buying stakes in all of the Chinese auto manufacturers? They are going to profit off of technology sharing!!

It's difficult to extract money out of chinese investments, although it looks good on paper..

 

[dpm]

Originally posted by: wnied
Thats the only way they can compete in the Global economy. They have the cheapest labor already, but their line of product sucks ass, so they offer "Joint Ventures" with international companies which immenently fail, and they get the technology they need to make knock off products to sell world wide. Been happening forever. Chinas governments been doing it for ages, and getting away with it too. ~wnied~

The whole form-a-partnership, sink-the-partnership, then make-off-like-a-bandit-with-the-goods trick is so old its not funny.

For a closer to home example - take microsoft and that smartphone manufacturer - Sendo. Sendo develop the phone, Microsoft sink Sendo, then microsoft scoot with the tech and get some chinese companies to make the phones cheap. Sendo gets screwed. Sendo sues... I think the court case is still going on.

 

Screw China.
All the money we pour into their country goes to their military.

 

[richardycc]

Originally posted by: Imdmn04

Originally posted by: wnied
Thats the only way they can compete in the Global economy. They have the cheapest labor already, but their line of product sucks ass, so they offer "Joint Ventures" with international companies which immenently fail, and they get the technology they need to make knock off products to sell world wide.

Been happening forever. Chinas governments been doing it for ages, and getting away with it too.
~wnied~

WTF are you talking about, have you ever been to China? When I was in Shanghai, the most popular car model is the VW Santana(20 to 30 percent of all cars on the street are this model), which is a vehicle that is made by the joint vernture bettween VW and the local company there. It is the most sold vehicle for a decade there.

There are ripoffs, but they do not dominate the market at all, since people can buy the real thing almost as cheap because of a joint venture.

Some of the most popular models in china:
VW Santana
VW Passat
VW Polo/Golf
VW Jetta/Bora
Audi A4
Audi A6
Honda Accord
Nissan Cefiro
Nissan Bluebird
Buick Century

All of these are made by joint ventures, and they dominate about 70-80 percent of the market.

you didn't know we have experts on everything here at ATOT ranging from astronomy to zoology and everything in between. Ask a question on chicks and dating, these experts will give you excellent advise, eventhou they never had a gf and their current SO is their own right hand.