The rise of China’s automakers should not worry European car manufacturers, according to AT Kearney vice president Philip Dunne.
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Chinese automakers will use low labour rates and government support to grow dramatically over the next decade. But that “should not be much concern to European automakers,” Dunne told the Automotive News Europe Congress in Barcelona.
To successfully compete against China and other low-wage countries in the short term, western automakers need to work globally, said Dunne.
To keep prices competitive western automakers also must source parts from low-wage countries and build cars in the markets they sell in.
“European automakers are used to working globally,” added Dunne.
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By GlobalDataHe said western automakers must make their operations in China even leaner and more efficient to maintain their head start in the country. European suppliers must quickly become more global to compete, including manufacturing in China, Dunne said.
“For suppliers I have two suggestions,” he said. “Learn Mandarin and keep tight control of your intellectual property rights.”
