Chinese automakers buy into European car industry

Chinese automakers have returned in force to Europe, buying up brands and plants after early efforts to get a foothold in one of the world's largest car markets failed.

Great Wall Motors is the latest China entrant, with production at its plant in Bulgaria due to start on Tuesday.

It may be surprising that Chinese firms seem so determined to get into Europe, a saturated market where car sales are declining, but there are benefits for them, especially in terms of branding and prestige.

Reflecting the growing global ambitions of Chinese automakers, Geely bought Volvo from United States (US) auto giant Ford for US$1.5 billion (S$1.9 billion) in 2010, less than a quarter of what Ford paid for the company in 1999.

Meanwhile, China's largest home-grown carmaker Chery Automobile has established its base in Italy with local company DR Motor and at the end of last year bought a Fiat plant at Termini Imerese in Sicily.

Chery is developing its own marque for Europe, Qoros, in cooperation with an Israeli company which should make its first model next year.

ORIGINAL SOURCE
Content used in this not-for-profit blog remain the property of their respective owners.