tag:blogger.com,1999:blog-2755700415043205247.post3843119147609187011..comments2023-03-28T08:18:07.711-07:00Comments on ChinaBizGov: Chinese Auto Dealer Generalizations / Shameless Waiguoren BiaoyanG. E. Anderson ---http://www.blogger.com/profile/11194863913108812712noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2755700415043205247.post-48218334137525809602009-05-17T11:08:00.000-07:002009-05-17T11:08:00.000-07:00wow, what a story, sounds like a lot of fun...wow, what a story, sounds like a lot of fun...Bohttps://www.blogger.com/profile/15128324833198291933noreply@blogger.comtag:blogger.com,1999:blog-2755700415043205247.post-80650475632330708402009-05-06T23:36:00.000-07:002009-05-06T23:36:00.000-07:00According to this article, the profits of Chinese ...According to this article, the profits of Chinese car makers are currently under a lot of pressure:<br /><br />http://en.ce.cn/Industries/Auto/200905/06/t20090506_19002544.shtml<br /><br />Sure, Chinese financial statements can be a little misleading at times. But if the companies are large enough (and if you are looking not only at one single company, but several companies in aggregate), they should be able to provide you with at least a rough indication as to where the industry is headed (IMHO).Thomashttps://www.blogger.com/profile/05980127611042973278noreply@blogger.comtag:blogger.com,1999:blog-2755700415043205247.post-7717584481220408762009-05-06T22:55:00.000-07:002009-05-06T22:55:00.000-07:00Thanks, everyone for your astute comments!
Aimee,...Thanks, everyone for your astute comments!<br /><br />Aimee, I forgot to mention the importance of the internet for the car shopping experience! The GM did tell me that customers come in knowing exactly what they want, and exactly how much they should be expected to pay. He also said that they occasionally get groups of 20 or more people who organize themselves over the internet, and go to the dealership to negotiate a group purchase. Some will even place their orders over the web directly with the dealership.<br /><br />Great points on financial statements, Thomas and Micah. While I do intend to dig into publicly available financial statements of the listed companies, I will do so with a somewhat skeptical view.<br /><br />Many of these listed entities are only the tip of a huge, unlisted iceberg (also known as a "jituan"). The presence of so many unlisted entities that are part of the same group give a lot of opportunities for shifting expenses around. In other words, financial statements may not accurately describe a company's performance or financial condition. (But this is not a surprise, right?)<br /><br />Not that China doesn't have good accounting principles -- indeed, they follow international standards more closely than the US does -- but not even the best auditors can find every little discrepancy. And of course, the more complicated the ownership structure, the easier it is to hide things in plain sight.<br /><br />In future, I will be happy to comment more on what I find in listed company financial statements.G. E. Anderson ---https://www.blogger.com/profile/11194863913108812712noreply@blogger.comtag:blogger.com,1999:blog-2755700415043205247.post-8045554614842381642009-05-05T17:35:00.000-07:002009-05-05T17:35:00.000-07:00A lot of what the GM told you is taken directly at...A lot of what the GM told you is taken directly at face value. I wonder if hard data (like Thomas mentions) would back up his statements, or tell a different story.<br /><br />Also, there's the whole 软件/硬件 issue.Micah Sittighttps://www.blogger.com/profile/07974162639554851660noreply@blogger.comtag:blogger.com,1999:blog-2755700415043205247.post-6261545150435342332009-05-05T08:23:00.000-07:002009-05-05T08:23:00.000-07:00That was a very interesting post.
Regarding the o...That was a very interesting post.<br /><br />Regarding the one-week delivery time: It doesn't necessarily mean that they "build to order". I wouldn't rule out that the factory simply has a large inventory of the standard models. <br /><br />Regarding cash-flow / profitability of the smaller players: Do none of them publish financial statements? I would have thought that at least some of them are listed?Thomashttps://www.blogger.com/profile/05980127611042973278noreply@blogger.comtag:blogger.com,1999:blog-2755700415043205247.post-70079659822913857002009-05-05T07:54:00.000-07:002009-05-05T07:54:00.000-07:00Greg,
Incredible firsthand account on the [potenti...Greg,<br />Incredible firsthand account on the [potential] differences between US and Chinese auto dealers. I also noticed that China's auto brands really emphasize the process of building a car, quality assurance, engineering of parts, etc. on the front end (sales). If you haven't already, be sure to check out websites for these car dealers and you'll see what I'm talking about. We in the West may not care so much about "R&D equipments and systems" or "annual output of X units" when purchasing a vehicle, but apparently thse are major selling points in China- interesting contrast. Waiguo pengyou ;-), looking forward to hearing how the research is going. Really enjoyed this post!Aimee Barneshttp://www.aimeebarnes.comnoreply@blogger.com