Quote:
Originally Posted by Number 3
China has strict laws on local content and local manufacturing. Also, the Joint Ventures GM has (SGM, Wueling (sic?)) can not be foreign owned. In fact GM just sold the 1% controling interest back to SGM, now owning only 49%. Korea is another tough market to export to. No real laws, but apparently you are statistically more likely to get a tax audit if you buy a foreign car.
No one understands the advantage that a strong CAPTIVE/PROTECTED home market gives Japan, Korea and Germany.
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To illustrate the results of Japans protectionism: Toyota, Honda, and Nissan have ~80% of Japan's passenger car market and all imports account for something like ~5%
If that happened in America with GM, Ford, and Chrysler I don't think any of them would have had the financial problems they experienced.