Managing The Dragon

It’s hard to believe, but at this time last year, no one knew where the world was headed. Trillions of dollars of wealth had been wiped out by the global financial crisis that began in September 2008; once powerful banks, investment banks and insurance companies the world over had been reduced to financial cripples; General […]

Last week was particularly newsworthy in China, with an important milestone being reached and the release of positive economic data. The production of the 10 millionth vehicle by China’s auto industry this year represents a key milestone in the country’s development. Many government and industry officials gathered in Changchun, home to First Auto Works, to […]

It’s only been six months, but it seems like ages since 2008 finally gave way to 2009. Though uncertainty will always be part and parcel of economics and finance, it’s hard to remember a time when there was less clarity in global economics. By January, trillions of dollars of wealth had been wiped out by […]

When I was starting up in China, many experts cautioned me on what I would encounter. “It’s not a free market and there’s no rule of law, they told me. “The government controls the courts, the companies and the banks. Central planners in Beijing, not the marketplace, decide what goods to produce and which companies […]

When we look back 20 years from now, the year 2009 is likely to be viewed as the year in which the baton of leadership in the global auto industry passed from the United States to China. For the last 100 years, the American car market and American carmakers set the pace in the global […]

In order to meet the objectives of its various stakeholders–stockholders, employees, creditors, suppliers and anyone else with an interest in the company’s success–a company must run its business and perform according to a variety of metrics. Sometimes, however, circumstances become so critical that it must adopt an overriding, singular focus for the good of all. […]

At the start of 2008, the two key numbers in China’s auto industry were 10 million and 1 million. With sales of both passenger cars and commercial vehicles (trucks and buses) growing at 20 percent or more in the first few months of the year, it seemed all but certain that China’s auto industry would […]

First it was Fannie Mae and Freddie Mac; then AIG; and then 14 of the country’s largest commercial banks. Every day it seems, more and more companies in the United States are becoming “state-owned enterprises,” a term I had always associated with the Chinese economy.   The next round of state ownership—or at least bailout—is […]

One of our good friends from the Chinese media was gathering background information for a story she was writing on the auto industry and came over to speak with me. We sat down and discussed a wide range of issues that dealt not only with China, but also with global trends. Apart from any insight […]

The combination of a housing slump and oil at about $140 per barrel is proving to be the straw that is breaking the back of the U.S auto industry. U.S. auto sales plunged in June as the economic slowdown and high gasoline prices have hit all U.S. carmakers hard. Sales were down 28 percent at […]