Posts tagged ‘China’


Coronavirus: the weakening of globalization, and the lessons to learn

12.03.2020

A generation ago, I don’t think many would have thought that globalization could be brought to its knees by a virus. They may have identified crazy politicians using nationalism as a tool, but probably considered that would not happen in developed economies and democracies sophisticated enough to withstand such assaults.
   This course correction might be poetic to the pessimist. Those who emptied their own nations’ factories in favour of cheaper Chinese manufacture perhaps relied on appalling conditions for their working poor; and if China were incapable of improving their lot—and you can argue just why that is—then with hindsight it does not seem to be a surprise that a virus would make its leap into humankind from Wuhan, itself not the shiny metropolis that we might associate with the country’s bigger cities. Those same corporations, with their collective might, now find themselves victim to an over-reliance on Chinese manufacture at the expense of their own, with their primary, and perhaps only, country of manufacture no longer producing anything for them as the government orders a lock-down.
   I argued months ago that failing to declare the coronavirus as a matter of international concern a week before the lunar New Year was foolhardy at best; perhaps I should have added deadly at worst. Here is the period of the greatest mobilization of humans on the planet, and we are to believe this is a domestic matter? If capitalist greed was the motive for downplaying the crisis, as it could have been within China when Dr Li Wenliang began ringing alarm bells on December 30, 2019 and was subsequently silenced, then again we are reaping the consequences of our inhumanity: our desire to place, if I may use the hackneyed expression, profits above people. And even if it wasn’t capitalism but down to his upsetting the social order—the police statement he was forced to sign said as much—the motive was still inhuman. It was the state, as an institution, above people and their welfare.
   We arrive at a point in 2020 where one of Ronald Reagan’s quotes might come true, even if he was talking about extraterrestrials. At the UN in 1987, President Reagan said, ‘Perhaps we need some outside universal threat to make us recognize this common bond. I occasionally think how quickly our differences worldwide would vanish if we were facing an alien threat from outside this world.’
   This might not be alien, but it is a universal threat, it is certainly indiscriminate and it affects people of all creeds and colours equally.
   Our approaches so far do not feel coordinated globally, with nations resorting to closing borders, which prima facie is sensible as a containment measure. You would hope that intelligence is being shared behind the scenes on combatting the virus. I’m not schooled enough to offer a valuable opinion here so I defer to those who are. But I’m not really seeing our differences vanish, even though we are being reminded at a global level of the common bond that Reagan spoke of. This is a big wake-up call.
   Examining the occidental media, there appears to be a greater outcry over President Donald Trump closing the US from flights from the EU Schengen zone than there was when China faced its travel ban, suggesting to me that barring your nation from people within a group of 420 million is a bigger deal than barring people from a group of 1,400 million. One lot seems more valued than the other lot.
   What I do believe is that we have made certain choices as a people, and that while the pure model of globalization raises standards of living for all, we, through our governments and institutions, haven’t allowed it to happen. We’ve not seen level playing fields as we were promised. We’ve seen playing fields dominated by bigger players, and for all those nations that are sucked into the prevailing mantra that arose in the 1980s, we’ve allowed our middle classes to shrink and the gap between rich and poor to grow. The one economic group that assures prosperity has been eroded.
   As it’s eroded then we’re looking at economies that favour the rich and their special interest groups over the poor, rather than investing in public infrastructure and education.
   No wonder many lack faith in their institutions, and their willing and continued pursuit of the monetarist order over humanistic agenda.
   Yet at the one-to-one level many differences disappear. It’s not helped by social media, those corrosive corporations that seek to separate through algorithms that encourage tribalism, but those that take the time to have a dialogue realize that we are in this together. Within these elaborate websites lies some hope.
   My entire working career to date has been mostly one where individuals and independent enterprises have formed contracts to do business, creating things that once didn’t exist through intellectual endeavour. We have done so outside elephantine multinationals, within which many imaginations have been stifled. We are people who can think outside the square—and all too often, the inhabitants of the square reject us anyway.
   When the world comes back online, I hope we have learned some lessons about the source of our troubles. We’ve willingly let certain institutions get too big at our expense; we’ve allowed a playing field slanted in their favour that encourages a race to the bottom by outsourcing to underpaid people; and as a result we’ve allowed unhygienic conditions to flourish because they’re “over there”, instead of holding corporations and nations to account. It will take us making choices with our eyes open about policies that champion individuals over big corporations; genuinely creating level playing fields where entrepreneurship can flourish at every level and benefit all; ensuring that we properly fund education and other long-term investments; and having strong foreign policies that can constructively call out injustices by suggesting a better way. We need to do this over the long term. The big corporations have mustered global power and so must individuals. Nationalism is not the answer to solving our problems: it is a reaction, a false glimpse into the past with rose-coloured glasses. It is no more a reflection of our past than a young northern lad pushing his bicycle uphill to Dvořák’s ‘New World Symphony’. Nostalgia is often inaccurate.
   Whether you are on the left or the right, whether you love Trump or Sanders, Ardern or Bridges, we’re simply lying to ourselves if we think the other political side is our enemy, when it’s in fact institutions, political or corporate, that have grown too distant to be concerned with anyone but those in power.
   Call me an idealist, but we could be on the verge of a humanistic revolution where we use these technological tools for the betterment of us all. Greta Thunberg has done so for her agenda, and we have a chance to, too: a global effort by individuals who see past our differences, because we have those common bonds that Reagan spoke of. Let’s debate the facts and get us on track, resisting both statism and corporatism at their extremes, since they’re sides of the same coin. What empowers us as individuals? In the system we have today, is there a party that can best deliver this? Who’ll keep the players honest? When we start asking these in the context of the pandemic, the answer won’t be as clear as left and right. And I’m not sure if the answer can even be found in major political parties who wish to deliver more of the same, plus or minus 10 per cent.
   Or we can wait for the coronavirus to disappear, carry on as we had been, keep dividing on social media to help line Mark Zuckerberg’s pockets, and allow another pandemic to venture forth. It can’t be business as usual.

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Posted in business, China, culture, globalization, politics, social responsibility, technology, USA | No Comments »


Z cars

11.03.2020

I did say I’d blog when Autocade hit 4,100 models, which it did yesterday. Proof that the hundredth milestones aren’t planned: the model was the Changan Zhixiang (長安志翔 or 长安志翔, depending on which script system you prefer) of 2008, a.k.a. Changan Z-Shine. A less than stellar car with a disappointingly assembled interior, but it did have one thing many period mainland Chinese cars lacked: a self-developed engine.
   It shows the nation’s quick progress. The Zhixiang was Changan’s (back then, we’d have written Chang’an) first effort in the C-segment, after making microvans, then A-, then B-segment cars, with quick progress between each. The Changan Eado, the company’s current C-segment sedan, might still be rather derivative, but the pace of improvement is still impressive.
   After 1949 through to the late 1970s, Chinese cars in the PRC were few in number, with mass production not really considered. The first post-revolution cars had panels that were hand-beaten to the right shape in labour-intensive methods. Some of those cars borrowed heavily from western ones. Then came licensed manufacture (Jeep Cherokee, Peugeot 504, the Daihatsu Charade at Tianjin) as well as clones (Citroën Visa, SEAT Ibiza). By the 1990s some of these licensed vehicles had been adapted and facelifted locally. The PRC started the new century with a mixture of all of the above, but by the dawn of the 2010s, most Chinese press frowned upon clones and praised originality, and the next decade was spent measuring how quickly the local manufacturers were closing the gap with foreign cars. It’s even regarded that some models have surpassed the foreign competition and joint-venture partners’ offerings now. Style-wise, the Landwind Rongyao succeeds the company’s (and Ford affiliate’s) Range Rover Evoque clone, the X7, with a body designed by GFG Style (that’s Giorgetto and Fabrizio Giugiaro, the first production car credited to the father-and-son team’s new firm) and chassis tuned at MIRA. The Roewe RX5 Max is, in terms of quality, technology, and even dynamics, more than a match for the Honda CR-V—a sign of things to come, once we get past viral outbreaks. Styling-wise, it lacks the flair of the Rongyao, but everything else measures up.
   But the Zhixiang was over a decade before these. Changan did the right thing by having an original, contemporary body, and it was shedding Chinese manufacturers’ reliance on Mitsubishi’s and others’ engines. To think that was merely 12 years ago, the same year Autocade started.

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Posted in business, cars, China, design, interests | No Comments »


I prefer the 99 per cent who don’t rely on Google

10.03.2020


Almost three screens of apps, none of which require Google.

I had a good discussion on Twitter today with Peter Lambrechtsen, and if you want to have a peek, it’s here. He’s a really decent guy who makes some good points. But it does annoy me that my partner, whose phone is a stock standard one, with all the Google and Vodafone spyware, cannot run Über, either, and that it wasted half an hour of her life yesterday. Between us we’ve lost 90 minutes because of programs in two days that don’t do what they say on the tin.
   I have several theories about this, and one of Peter’s suggestions was to get a new phone—which is actually quite reasonable given what he knows about it, though not realistic for everyone.
   Theory 1: the people who make these apps just have the latest gear, and to hell with anyone who owns a phone from 2017. (Silicon Valley is woke? Not with this attitude.)
   Theory 2: the apps just aren’t tested.
   Theory 3: the apps are developed by people who have little idea about how non-tech people use things.
   We got on to rooting phones and how some apps detect this, and won’t function as a result.
   I’d never have rooted mine if there wasn’t an easy manufacturer’s method of doing so, and if I could easily remove Google from it (services, search, Gmail, YouTube, Play, etc.). Nor would I have touched it had Meizu allowed us to install the Chinese operating system on to a western phone.
   I wager that over 99 per cent of Android apps do not need Google services—I run plenty without any problems—but there’s less than 1 per cent that do, including Zoomy and Snapchat. I live without both, and, in fact, as the 2020s begin, I find less and less utility from a cellphone. So much for these devices somehow taking over our lives. You get to a point where they just aren’t interesting.
   So why does the 1 per cent become so wedded to Google?
   You’d think that app developers would believe in consumer choice and could see the writing on the wall. A generation ago, Microsoft’s bundling of Internet Explorer got them into hot water. More recently, the EU fined Google for violating their monopoly laws. People are waking up to the fact that Google is wielding monopoly power and it’s bad for society. Why contribute to it, when the other 99 per cent don’t?
   If I build a website, I don’t say that you need to have used something else to browse it: there’s an agreed set of standards.
   And I bet it’s the same for Android development, which is why there are now superior Chinese app stores, filled with stuff that doesn’t need Google.
   We prefer open standards, thank you.
   While these tech players are at it, let us choose whether we want Google’s spyware on our phones—and if we don’t, let us banish it to hell without rooting them. (Next time, I’m just going to have to ask friends visiting China—whenever that will be—to get me my next phone, if I haven’t moved back to land lines by then. Just makes life easier.)

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Posted in China, internet, technology | No Comments »


Fixed Vivaldi’s poor type display, thanks to wmjordan

07.03.2020

It took two months but I finally got there.
   Vivaldi now displays type normally though the browser interface is slightly messed up. But I’ll take good type display, thanks.
   On the MacType forums, a user in China called wmjordan was in the same boat but had found a solution. In their words:

For the recent version of Vivaldi 2.10, 2.11, you need to create a shortcut, and modify the command line, append the "--disable-lcd-text" parameter behind the executable name, and MacType will work on the web page content window. The "--disable-features=RendererCodeIntegrity" parameter is recommended by snowie2000.

my command line:

vivaldi.exe --disable-lcd-text --disable-features=RendererCodeIntegrity

   I used the latter method, but the type was still quite poor for me. I had to do one more thing: start Vivaldi in Windows 8 compatibility mode.
   It’s messed up the top of the browser a little but it’s a small price to pay to have everything readable again.
   Snowie2000, the main dev for MacType, says a registry hack is their preferred workaround, at github.com/snowie2000/mactype/wiki/Google-Chrome#workaround-for-chrome-78.
   It turns out that Chrome 78 (and presumably Chromium 78, too) did indeed have a change: ‘Starting from Chrome 78, Chrome began to block third-party DLLs from injection. But they provided a way to disable the protection either from the command line or by policy.’
   I was right to have investigated which version of Vivaldi represented the change earlier (it was 2.9, which equated to Chromium 78). After testing wmjordan’s suggestions out on 2.9, I upgraded to 2.11, and it was still fine.
   Opera GX is still the more resolved browser (works as it should out of the box) but there are some aspects of Vivaldi that I’m familiar with after two-and-a-half years (to the day). Looks like I’ll be going back to it for my main browsing, but I know I’ve found another great browser along the way, and I’ve updated my Firefox, too.

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Posted in China, technology, typography | No Comments »


Could this happen one day at GM?

22.02.2020


The MG line-up in New Zealand. Could it be part of a bigger portfolio of brands later this decade?

In the context of what has happened with Holden, and Peter Hanenberger’s thoughts on the direction of GM, I wonder how far away we are from seeing these headlines:

Cash-strapped GM sells passenger car brands to SAIC to focus on trucks and SUVs

and:

SAIC builds passenger-car brand portfolio with Wuling, Baojun, Chevrolet, Roewe, MG, Buick and Cadillac

You can almost think of MG as Pontiac and Roewe as Oldsmobile … With the decimation of the GM line-up globally, and the segments they no longer field (e.g. C-segment cars in many markets), will they even have the investment needed to sustain the car brands?
   I know they are saying this was all necessary to fund the electrification of the range and autonomous tech, but isn’t this the same company that nixed the EV1 and failed to make the Volt a Prius-beater?
   The Chinese state wasn’t about creating “Chinese Leyland” when they forced SAIC and NAC to merge. They had much grander plans.

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Peter Hanenberger’s unintended post mortem of Holden

19.02.2020


The 2009 Chevrolet Caprice SS, sold in the Middle East but made in Australia.

I came across a 2017 interview with former Holden chairman Peter Hanenberger, who was in charge when the company had its last number-one sales’ position in Australia. His words are prescient and everything he said then still applies today.
   He spent over four and a half decades at GM so he knows the company better than most. Since he departed in 2003 he had seven successors at the time of the interview; and I believe there have been a couple more since.
   A few interesting quotes.

‘It’s [now] a very short-sighted company.’
It feels like it. The sort of retreating it’s done, the dismantling of global operations, and the failure to see how global platforms can achieve economies of scale is something only a company beholden to quarterly stock price results will do. And it doesn’t help its longevity.
   Even Holden, which looked like it was going to simply depart the passenger-car sector at the end of last year before a full withdrawal now, tells us that there doesn’t appear to be a long-term plan in place that the US management is committed to. Not long ago they were going on about the two dozen models they planned to launch to field a competitive line-up.

‘For me General Motors was a global player. Today General Motors is shrinking to an American company with no foresight, which is in very bad shape, which has missed the market.’
Remember Hanenberger said this in 2017, when it still had presences in many Asian countries. In 2020 it very much looks like GM will be in the Americas (where it still fields reasonably complete line-ups, although God knows if they have anything in the pipeline to replace the existing models) and China. Russia, India, Australia, New Zealand and Thailand are gone or going, and western Europe went in 2017 before the interview.

‘Maybe it fits into the vision of Trump; America first. But how the world is going to work also in the future is not because of America first and America only. It’s global. I think there will be no GM in the near-future.’
Everyone else is desperate to do tie-ups while GM retreats. I think GM will still be around but it’ll be a Chinese firm.

‘I couldn’t give a shit what they thought in America.’
I don’t mean this as an anti-American quote, but I see it as a dig against bean counters (whatever their nationality) fixated on the short term and not motorheads who know their sector well.

‘For me Holden didn’t have enough product, and the second one [priority] was I wanted to get these cars they had into export. For me it was very clear the products they had could be exported and they should go on to export.’
You saw the failure of this in the early 2010s when Holden failed to keep its Middle Eastern deals, and the US models returned. It could have been so different, though I realize GM was very cash-strapped when they needed the US taxpayer to bail them out.
   Bruce Newton, who wrote the piece, says that the Middle East was worth up to 40,000 units per annum, with A$10,000 profit per car. It cost Holden A$20 million to develop them for left-hand drive. I’d have held on to that sort of opportunity for dear life.

‘There was nothing going on that was creative towards the future of Holden as in Australia, New Zealand and toward the export market. They just neglected this whole thing.’
That was Hanenberger when he visited his old workplace in 2006. With product development cycles the way they are, it’s no wonder they were so ill placed when the Middle Eastern markets lost interest in the VE Commodore and WM Caprice (as the Chevrolet Lumina and Caprice), and China in the Buick Park Avenue.
   It’s an interesting interview and perhaps one of the best post mortems for Holden, even if it wasn’t intended to be so three years ago.

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Posted in business, cars, China, leadership, USA | 1 Comment »


The death of Holden

17.02.2020

GM pulled out of Russia and India, so with hindsight, those of us Down Under, with a far smaller total population, shouldn’t have thought we were particularly special.
   Even where GM remains, such as South Korea, there’s a broken model range, with a big gap where the Cruze used to be.
   It’s becoming apparent that GM, with no more right-hand-drive markets to cater for, will be a company that only offers full lines in China and the Americas.
   Some GM-watchers have been calling for the demise of Holden for years, just as they had called for the deaths of Oldsmobile and Pontiac years before. But as I argued in a letter published in the (also-defunct) Condé Nast Portfolio, each brand occupies unique territory, and, had they not been diluted, could still appeal to certain buyers that more mainstream ones, e.g. Chevrolet, cannot reach.
   Holden was always a tough case in Australia, where we noted it was very tied to nationalism. Once local manufacture finished, its sales plummeted.
   It wasn’t the case in New Zealand, where all cars had been imported for decades and we never had the sense that Holden was our ‘own car’. However, GM New Zealand (as it then was) had created a handful of Holdens unique to this market that the Australians never saw. Once upon a time, it was a more independent beast.
   When Holden ceased Australian manufacture, sales didn’t drop the same way in this country. With Kiwis loving entries in the CD market, the Commodore isn’t an uncommon sight, and remains the choice of the police.
   But the same argument of economies of scale applies to New Zealand, a country with a population of five million: GM had no desire to allow this country much wiggle room compared with Australia. Whatever happened there would necessarily happen here.
   Those 600 jobs that are going include redundancies in New Zealand.
   Over the years it had seemed Holden was on life support. There was a golden age where the HQ series and its derivatives flew the Holden flag high, but after the oil crises, there was a real possibility the company could have bit the dust in the mid-1980s, becoming an import-only operation.
   A plan circulated within GM to replace the top Holdens with Cadillacs, while the rest of the range would be made up of cars from around the GM empire—which, in those days, included Opel and Isuzu.
   But the Australians won the day and the VN Commodore got the green light. By the end of the 1990s, Holden was in great shape, including an export programme for cars based off the VT Commodore.
   You could say history repeated itself with the global financial crisis in the late 2000s—where GM, keen to continue, asked for US$50,000 million from the US taxpayer. But perhaps more importantly, it sold the controlling stake in its venture with SAIC of China to its Chinese partner for a mere US$85 million. That was one deal that allowed GM to raise funds elsewhere, but it also saw the beginning of a technological transfer to China. Even after GM bought back the share, SAIC would get control of the JV’s sales’ company.
   Numerous SAIC cars were built on GM platforms—the Roewe 950, for example. Cars made by GM ventures began appearing with SAIC-owned brands—the MG Hector in India, a rebadged Baojun 530, for one; it also appears as the second-generation Chevrolet Captiva in some other markets. Once upon a time GM might have earned a royalty for any car built on its tech, but it’s unlikely here as the two companies share in the profits.
   While SAIC hasn’t succeeded with MG Down Under, you notice more of a push these days, and it has already made an impact in New Zealand with the Maxus commercial line-up, rebadged LDV. Export sales aren’t a big deal for the Chinese giant, but with the Chinese economy slowing, they could be eyeing up more international markets.
   With SAIC keen to get more of the action for themselves, GM’s operations in many of its outposts became irrelevant.
   Holden held on for dear life and arguably had one of its more competitive ranges for years—but in this context, GM might not have had much choice.
   It has little to do with the consolidation of markets and all to do with much higher-level strategic decisions. After all, hardly anyone in China will have grown up with idea of Holden being Australia’s own car.

This post also appears in Drivetribe and Lucire Men.

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Posted in business, cars, China, New Zealand, USA | 2 Comments »


The standard Chinese New Year news report

26.01.2020


Janos Perian from Pixabay

Every year, I hear or read a news report along these lines here:

It’s Chinese, or the lunar, New Year today, and Asian communities all over New Zealand are coming together with their families to celebrate. It’s the Year of the Rat, which means it will be a lucky and prosperous year.

Sometimes they’ll append the last statement with ‘says [insert prominent Chinese New Zealander]’ or ‘says [insert name], president of the New Zealand Chinese Association.’
   I know this because one year I was the name inserted, but you need the context, and there’s never any room for it since it’s usually the last story in the news.
   Here’s how the interview tends to unfold.
   ‘It’s the Year of the Rat next year. What’s that going to bring?’
   ‘Well, it really depends. Every year has its own energy, and it applies differently to every person depending on their bazi and the trend of their year. It’s like western astrology: different strokes for different folks.’
   ‘But do you reckon for some it’s going to be lucky and prosperous?’
   ‘Yes, for some it will be.’
   Bingo. There’s your closing sentence. ‘It’s the Year of the Rat, which means it will be a lucky and prosperous year, says local Chinese man Jack Yan.’ And that’s why every year, the news report is a cookie-cutter item about an ethnic community really into luck and money.
   I mean, if you lived in Wuhan right now, you’ll probably be saying it’s going to be a shit year because your New Year’s practically been cancelled and you can’t see your whānau while your city’s in lockdown. I think the closest equivalent would be, for an American, Thanksgiving being cancelled, and for many, Christmas being cancelled.

Incidentally, I’m not sure why the WHO held back on declaring the corona virus outbreak an international matter. Did they not know the New Year is the greatest migration of humans on this planet? Repatriating Brits after Thomas Cook collapsed is child’s play. And now we have the people suspected of having the virus arriving in certain other countries.

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It took a while: Autocade hits 4,000 models

08.01.2020

The Chinese-market Buick Enclave became Autocade’s 4,000th model today. It wasn’t planned: in fact, I had readied a photograph of the Hyundai Tiburon (RD), expecting that would be the 4,000th. But, as happens with this site, you spot something, and you want that clarified. I haven’t been methodical about Autocade, ever—it has always been about what took my fancy and whether my reference books on the topic were around. (After the move, a few still aren’t, so fans of smog-era US cars may have some waiting before they see those increase in numbers again.)
   Just as I do with each millionth page view, I thought I’d see how the entry numbers had progressed:

December 2009: 1,000 models (21 months to first 1,000)
December 2012: 2,000 models (three years to second 1,000)
December 2014: 3,000 models (two years to third 1,000)
January 2020: 4,000 models (six years and one month to fourth 1,000)

   In other words, these last 1,000 took ages, and I suspect it’s a mixture of busy-ness on other ventures and the fact that a lot of modern cars that get entered aren’t that inspiring.
   When many entries of new models into Autocade are of SUVs, especially Chinese ones that have little to distinguish themselves, then it’s not as fun as adding those models that you’ve had some connection with from your youth. The first 1,000 were easy: I remembered many of the details (cubic capacities and prices, for instance—I am that much of an anorak when it came to stuff from my childhood) and while I still checked with books, they didn’t take that long to write. But how many of us care about the difference between the Honda Pilot and Passport, or the links between the Beijing X3, Changhe Q35, BAIC X35 and Senova Zhixing anyway?
   I imagine that there’s more editing that goes on today, too. When a current model gets entered, you just put the start of production and ‘to date’. But there’s no guarantee we’ll revisit that page when the car ends production; and often there’s no announcement of the cessation anyway. Naturally with more pages on the database, the more time you’ll spend editing and correcting existing content than creating brand-new stuff. China’s massive boom in the late 2000s and most of the 2010s meant a plethora of models got entered, and with the market the way it is there, cannibalization of your own model lines hasn’t struck some car makers as an issue yet.
   There’s also the issue of translation: you want to go to a Chinese resource when writing about Chinese cars, and my literacy hasn’t really kept up with my age.
   A middle-aged man uses, in part, nostalgia to make sense of the car world—I buy Octane and Classic and Sportscar more than Autocar and Car these days—and while it’s easy to understand Kas, Fiestas, Focuses and Mondeos, it’s not as second-nature to utter EcoSport, Puma, Escape and Mustang Mach-E. It is no surprise to see Mercedes-Benz stick with its A, B, C, E and S pecking order, even for its SUVs (prepend GL). The next generation of motorhead will have no such issue: they’re used to these big line-ups and where everything sits.
   I’ll keep building, and there is plenty of exotica that hasn’t been entered. Perhaps between those and the Chinese crossovers, it can remain interesting.

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Posted in cars, China, interests, internet, media, New Zealand, publishing, Wellington | No Comments »


Baojun doesn’t scream ‘premium’ and ‘next-gen tech’ to me

10.10.2019

I have to agree with Yang Jian, managing editor of Automotive News China, that Baojun’s new models ‘obviously’ failed to reverse the brand’s sales’ decline.
   It is obvious given that the vehicles are priced considerably above the previous ones, and despite its next-gen tech, there’s no real alignment with what Baojun stands for.
   There might be a new logo (débuted January 2019) but GM expects that this, the new premium products, and (I would expect) other retail updates would undo nearly nine years of brand equity.
   The associations of Baojun as an entry-level brand run deeply, and the new models are like, if you’ll pardon the analogy and the use of another car group, taking the next Audis and sticking a Škoda badge on them. Except even stylistically, the new Baojuns bear little resemblance to the old ones—they’re that radical a departure.
   I wonder if it would be wiser to keep Baojun exactly where it was, and let it decline, while launching the new models under a more upscale GM brand, even one perceived as ‘foreign’ or ‘joint venture’ by Chinese consumers.
   DaimlerChrysler made the mistake of killing Plymouth when it was surplus to requirements, then found itself without a budget brand when the late 2000s’ recession hit. Chrysler, once the upper-middle marque, had to fill the void.
   There’s a reason companies like GM and Volkswagen have brands spanning the market: they feed buyers into the corporation, and there’s something for everyone.
   And while it’s possible to move brands upscale, creating four lines where the base model prices exceed the highest price you have ever charged for your other base models is just too sudden a shift.

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Posted in branding, cars, China, technology, USA | No Comments »