China Shifts Gears: Automakers, Oil, Pollution, and by Kelly Sims Gallagher

By Kelly Sims Gallagher

Chinese language creation of autos rose from 42,000 automobiles according to 12 months in 1990 to 2.3 million in 2004; the variety of passenger autos at the highway doubled each and a part years during the Nineties and maintains to develop. In China Shifts Gears, Kelly Sims Gallagher identifies an unparalleled chance for China to "shift gears" and steer clear of the standard difficulties linked to the auto industry--including city pollution as a result of tailpipe emissions, greenhouse fuel emissions, and excessive dependence on oil imports--while spurring monetary improvement. this modification will in simple terms occur if the chinese language govt performs a management function in development household technological means and pushing international automakers to move purifier and extra energy-efficient applied sciences to China. If each new vehicle bought in China had the cleanest and such a lot energy-efficient of the car applied sciences already on hand, city pollution should be minimized, emissions of climate-altering greenhouse gases will be below projected, and the chinese language car might proceed to flourish and give a contribution to China's regular monetary improvement. yet to date, Gallagher reveals, the chance to shift gears has been missed.Gallagher seems to be intimately at 3 U.S.-Chinese joint ventures: Beijing Jeep, Shanghai GM, and Chang'An Ford. those case experiences are dependent on unique examine, together with interviews with ninety executive officers, undefined representatives, and specialists in either nations. Drawing from the case reviews, Gallagher explores the bigger problems with the environmental and financial results of expertise move within the motor vehicle and the coverage implications of "leapfrogging" to extra complicated expertise.

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Additional info for China Shifts Gears: Automakers, Oil, Pollution, and Development (Urban and Industrial Environments)

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By the mid-1990s, the Chinese auto industry was providing the demand for 5–6 percent of total steel production, 80–90 percent of petroleum products, 14–16 percent of machine-tool production, 50 percent of tempered-glass production, 45 percent of tire production, 15 percent of engineered-plastics production, and 15 percent of paint production (CATARC 2001). On the other hand, it has been shown that in general, FDI is not always positive for the receiving developing country. For example, a World Bank study noted that foreign investment does not necessarily stimulate new economic development because FDI is often attracted to the already productive sources of the economy, not the less productive ones (Saggi 24 Chapter 3 2002).

S. competitors to be the first company in the Chinese market, but AMC also beat out all the Japanese competitors as well. S. 1 The gate of Beijing Jeep in downtown Beijing (photo by author) to be losing out to the Japanese auto manufacturers. To illustrate how optimistic Wall Street was about the Chinese market, AMC’s stock jumped 40 percent just after the announcement of the joint venture was leaked to the press in 1983 (Mann 1989). Yet the euphoria surrounding the investment failed to acknowledge some of the huge challenges that this new joint-venture company would face.

1 In 1979 French car company Renault bought a minority stake of AMC with an agreement that AMC would sell Renault models in the United States. Almost a decade later, in 1987, Renault sold its stake to Chrysler. Chrysler eventually merged with Daimler-Benz to become DaimlerChrysler AG in 1999. Each successive foreign owner assumed ownership of the minority foreign stake in Beijing Jeep. DaimlerChrysler’s ancestors date back about a century to 1883, when Benz & Company was formed, and 1908, when Walter P.

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