Friday, April 30, 2010

Chinese automakers still can't lick quality problems

China's auto industry has come a long way, but quality is still a challenge. BYD has been one of the stronger and more popular makers.
By Calum MacLeod
If you think Chinese small cars will inundate the U.S. the way that Japanese cars took the country by storm in the 1960s and 1970s, well, rest easy.
Ain't going to happen anytime soon.
That's because there is every indication that the Chinese are not only failing to lick their quality problems -- but the cars may actually be getting worse.
For years, the American auto industry has predicted the inevitable arrival of Chinese cars.
They haven't arrived because China's internal demand for vehicles remains so high -- and because Chinese cars are so full of bugs and glitches.
The quality was supposed to gradually -- or rapidly improve -- but hasn't.
The latest indication comes from the China Association for Quality, which indicated this week that it's flooded with complaints about car flaws:
Complaints about cars that has quality problems within six months of purchase increased nearly 60% in the first quarter.
Complaints about safety issues and production defects rose 15% compared to the same period in 2009, according to Gasgoo, a publication of Automotive News.
Complaints about engine problems and crummy spare parts together comprised about half of all complaints about automotive product quality.
Whether it is quality or some other reason, Chinese cars are having trouble establishing a beachhead in Europe.
Brillance China Automotive Holdings, a BMW partner in China, is reportedly pulling out of Europe, Automotive News Europe reports.
It's pulling the plug after two models, the BS4 and BS6, didn't catch on, says Automotive News Europe.
"We have stopped exports to Europe. For now, we have no timetable for resuming the business," said an unnamed executive who reportedly has direct knowledge of the business, as quoted by the News.
That's interesting considering China is expected to have a huge price advantage when it exports cars. Like everything else from there, Chinese cars are cheap.
We expect that China will fix its quality problems.
It's in, after all, the most vibrant automotive market in the world right now. It's just taking longer than anyone expected.

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