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Saturday, January 2, 2010

SAAB as a car may be gone, but their technology lives on


A Chinese auto company, Beijing Automotive Industry Holding, Co.(BAIC), purchased from GM Saab's underpinning and vehicle safety technology so they can engineer a car that finally meets most safety standards for export. China's auto makers have designed very unsafe vehicles that will not pass North American and EU safety standards for import. BAIC is fast tracking the technology in an attempt to be ready for any automotive market up swing.

However the technology they have purchased the model 9-5 that dates from 1988 and the 9-3 that is a decade old, so it is still old technology compared to current models from Japan, Korea, the EU and North America.
Motor Trend reports the BAIC is going to actually build the Saab 9-5 model, not just incorporate the technology into a Chinese designed car. However, GM also reported that they were going to make the new 9-5 slated to go to market in 2011 as a new Buick. That could be a problem if they decide to market the Saab/Buick in China, with BAIC also producing the car. GMs badge in China is Buick, so I see the connection. However, some reporting may be delayed and thus GM might have relinquished all rights to the Saab 9-5. Saab has enjoyed a following mainly because of its Swedish connection. Will the US Saab dealers now sell the Chinese made Saab and how will that go over with the American buyer?  


I see China trying to build an automotive manufacturing industry to take on Japan, Korea, Europe and Detroit. If they can produce quality cars at a lower price, like they do everything else we buy, then they will capture the market, as they have with electronics. It is obvious to me that they want to dominate the heavy manufacturing sectors to insure steady employment of its masses and economic dominance in the world, as America once was. They saw how the US became a world power, not by military force, but by its industrial manufacturing of heavy goods to the world. Now that the US is no longer a leader in this sector, our economic dominance is falling. China is there to fill the void and be the next super power.

Our economic policy should be to bring back heavy manufacturing and export to China cars, appliances, and other major items. In that way, we would have better employment and a thriving economy. Unfortunately, we have exported our economic force to China, we are only a consumer country now.

We may curse Nixon for opening this giant of an economy to the world.

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