While there has been lot’s of news about “re-shoring” manufacturing to the United States from China we should all be aware that, while this is a welcome phenomenon,the trend is still outbound.
Check out these headlines today…..
Volvo To More Than Double Vehicle Models In China.
Bloomberg News (4/21, News) reported Volvo “said it plans to more than double its number of models to compete with Volkswagen AG (VOW)’s Audi and BMW AG in the world’s largest automobile market.” Volvo, which is owned by China’s Zhejiang Geely Holding Group Co., and “currently sells 6 models in China, is planning to introduce 10 new ones in the country within six years, including ‘bigger and more luxury high end’ vehicles, as well as medium- to small-sized cars such as the V40 hatchback,” the automaker said.
Nissan To Manufacture Two Infiniti Models In China. BBC News (4/20) reported, “Nissan Motors has said it will start manufacturing two models of its luxury brand Infiniti in China in an attempt to tap into the fast-growing market.”
Volkswagen To Build New Factory In China. AFP (4/23) reports Volkswagen “will build a new plant in Xinjiang, a province in China’s undeveloped far west, a company official said” yesterday. Marketing and distribution chief Christian Klingler said in Beijing on the eve of a major auto show in the Chinese capital, “The new plant is only part of our ‘go west’ strategy.'”
China Auto Industry Faces Rising Inventory. Bloomberg News (4/22) reported, Volkswagen “said China’s slowing automobile industry is facing rising inventory levels.” The country’s “auto market had inventory of about 2.3 months during the first quarter, compared with 2 months a year earlier, Soh Weiming, executive vice president at Volkswagen China, said in Beijing today. Stockpiles may rise to 2.6 months by the middle of the year, he said.”