Tag: General Motors

East-West Car Markets

 

Since the Indonesian economy is currently growing in leaps and bounds, it seems to be the place to sell cars.  Of course, once one has some extra money to play with, a great way of showing it off is via his or her new flashy cars.  Auto manufactures around Asia are honing in on this newfound wealth as well.  Indeed, in 2011, Indonesians purchased 890,400 cars – a figure – according to Frost and Sullivan, that is set to increase to close to 940,000 this year.  As well – perhaps somewhat surprisingly – it seems that now Thailand is lagging behind Indonesia in the region. 

Foreign Eastern Automakers

In addition, automakers from out of Indonesia in 2011 promised to put close to $2bn into the country over the next few years, but time will tell if this is actualized.  Currently, Japanese manufacturers hold 90 percent of the market with Toyota boasting a second production plant about to launch.  As well, Suzuki is planning a third and Nissan is hoping to spend $250m to expand its current facilities.  Toyota also aims to boost its production by 70,000 by next year.  Both Nissan and Suzuki enjoyed huge increases in sales last year (Nissan by 50 percent and Suzuki by a third).

Foreign Western Automakers

It is not just companies in the east who are trying to make big profits in Indonesia in the car market.  Ford and General Motors are also trying to get in on the act.  For example, in 2011, Ford sold double the amount of cars it did in 2010; it hopes to repeat this success this year too.

China Conference at Washington Post

The popular place to invest these days is Asia, more specifically China.  For any high net-worth individual or business with capital in the western world, it seems their best bet is to bring it to China for the safest returns.  That is a given.  But what is not so well-known is the different options on offer and how the East can invest in the West.

Thus last Tuesday a conference at the Washington Post on business opportunities in China was held to discuss issues on American-Chinese economic relationships and how the West should use the East’s interest in making its investments in America.  The West needs to be careful about investments made there, striking a balance between being open and protective at the same time.

Whatever happens next though, it is clear that the interest between east and west is not minimizing though.  Right now there are approximately 20,000 Americans studying China and 130,000 Chinese studying in America.  Clearly bonds are developing between the two countries…east is meeting west.

There have been many investors and successful business leaders who have understood this need for a long time now.  General Motors (GM) has been making impressive investments more in China than in America. GM sold more cars in China than at home while not sending any cars back from China to the US.  So it’s happening.  East is meeting West and vice versa at increasing speeds.