They are going to save Detroit?
"Chinese auto firms sprouting up fast in Detroit; Today they supply batteries and parts, but US sales of cars might not be far off" by Bill Vlasic | New York Times, May 13, 2013
DETROIT — Dozens of companies from China are quietly putting down roots in Detroit, part of the country’s steady push into the American auto industry.
Chinese-owned companies are investing in US companies and new vehicle technology, selling everything from seat belts to shock absorbers in retail stores, and hiring veteran engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers.
While starting with batteries and auto parts, the spread of Chinese business is expected to result eventually in the sale of Chinese cars in the United States....
As businesses sprout with little fanfare, Chinese companies seem to be trying to avoid the type of public opposition experienced by the Japanese automakers Toyota and Honda in the 1980s, when the sudden influx of foreign cars — competing head-on with cars from General Motors, Ford, and Chrysler — was perceived as a threat to American jobs.
Our own government is a threat to American jobs.
In contrast to the Japanese, the Chinese are assiduously avoiding the spotlight. Last year, the biggest carmaker in China, Shanghai Automotive Industries, opened offices in suburban Detroit without any publicity, which is almost unheard of in an industry that thrives on media coverage.
That tells you someone is keeping it quiet.
But China’s growth in the US auto industry is drawing notice in Washington. Last year, the Obama administration filed a complaint with the World Trade Organization that said China’s government was unfairly subsidizing the production of some parts shipped to America. And the country’s inroads into American-made batteries and electric vehicles have drawn scrutiny because that sector of the industry has been heavily subsidized by the US government.
The American industry’s overall resurgence has drawn a growing Chinese population to Detroit. About 50,000 Chinese, many of them engineers and other professionals who work at General Motors and Ford Motor Co., live in the metropolitan area.
Evidence of their new influence is sprinkled through civic activities, with community groups sponsoring youth soccer leagues, basketball tournaments, and musical performances at Detroit Tigers games. One organization runs a Chinese soup kitchen every year at a homeless shelter.
Business networks are growing, too. The Detroit Chinese Business Association boasts a flourishing membership and counts about 100 Chinese-owned businesses, mostly auto-related, in the region. The Ford Chinese Association, with 650 white-collar workers, has become one of the largest employee groups at the company....
Many Chinese suppliers are pursuing direct business with the Detroit car companies, which now get many of their most common parts from low-wage nations such as Mexico....
And now they will get them from China.
In addition to Chinese companies locating in Detroit, a cottage industry of lawyers, accountants, and corporate advisers has grown up to assist them. Their numbers are small, but the impact of the Chinese on the local economy is slowly expanding....
The Wanxiang Group, which has its US headquarters near Chicago, has acquired several American auto parts and solar companies in recent years. But it attracted little attention until it took an interest in A123 Systems....
See: Powering Up This Post About China
Pin Ni, president of the company’s American unit, said, ‘‘We act, talk, and walk like an American company. In the end, it’s all about making money.’’
Other Chinese companies are averse to publicity. Shanghai Auto is the largest carmaker in China and has joint ventures there with GM and the German automaker Volkswagen. But when the company opened its Detroit-area offices last year, even GM was surprised....
Related: Planes, Trains, and Automobiles: Backing Up the Volkswagen
The arms-length reaction underscores the sensitivity surrounding the Chinese presence in the US industry....
‘‘The Chinese have a lot of money, and they are moving fast,’’ said David E. Cole, a founder of the Center for Automotive Research in Ann Arbor, Mich....
They better be careful or they will get a ticket for speeding.
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