Saturday, December 20, 2008

Yuan Watch : Look into the eyes of the Big Red Dragon
New York, NY (PRWEB) December 19, 2008 -- Mitchell Clark, writing in today's issue of the investment and market letter Profit Confidential, warned Detroit that the low-cost structure and battery expertise of Chinese car manufacturers would make "competing a real challenge" for the Big Three and stressed that any federal bailout must stipulate accelerated hybrid development.

Clark discusses a new Chinese-built plug-in hybrid car, stating, "This vehicle is expected to sell for about 149,800 yuan, or approximately $22,000 in U.S. dollars." Clark contrasts this with U.S.-made cars, writing, "Say they get approval to export this vehicle to the U.S. market and it brings the cost of the vehicle up to $25,000. The Volt is expected to hit the marketplace with a price tag of around $40,000. This is the makings of a real problem."

U.S. manufacturers are ill-prepared to compete in the rapidly expanding hybrid market. "We've got the 'Chevy Volt' coming in 2010 and Chrysler is actually working hard at developing hybrid electric systems to put into a number of its vehicles, including the 'Jeep.' Ford seems to be a bit behind in electric vehicle development, saying it's about five years away from any major production. We've got to get these vehicles in the marketplace and rolling as soon as possible. The problem we have is that Chinese companies have significant expertise in battery technology development, and that country also boasts a very low cost structure, which is going to make competing a real challenge.

No comments: