“Could Detroit Become America’s First Chinese City?”

http://www.westernjournalism.com/detroit-become-americas-first-chinese-city/

According to Western Journalism, “The governor of Michigan, Republican Rick Snyder, has already made a formal request to Obama’s Homeland Security for 50,000 special immigration visas to accommodate the expected wave of Chinese settlers”. Like many American foundations, wealthy Chinese businessmen are slowly buying Detroit’s real estate properties. They view this “as a rare […]

Another round of recall from GM?

http://www.autonews.com/article/20140515/OEM11/140519931/gm-recalls-2-7-million-u-s-vehicles-for-issues-including-taillamps?cciid=email-autonews-blast&r=6466C5926134B9P

GM just announced today that it is going to recall 2.7 million US vehicles for problems from brake lights to brakes. The recalled models include Malibu, Malibu Maxx, Pontiac G6, Saturn Auras, and Chevy Corvette.

According to Autonews, GM spent $1.3 billion in recall-related charges in the first quarter. In the second quarter, it […]

Energy deals between China and Russia

China is currently the biggest net importer of petroleum and other liquid fuels. More than 50% of China’s annual consumption of oil is imported. The graph below also tells us that more than 60% of oil supplies will be imported in 2020. The consumption is closely related to the number of automobiles. China has more […]

“BMW Group reaffirms target for full year 2014”

http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/investor_relations/corporate_news/news/2014/news_q1_2014.html

BMW was performing extremely well during the first quarter of 2014. A report from BWM AG suggests that “first-quarter sales volume, revenues and earnings were all up on the previous year”. The report also provides the following information: Worldwide sales rose by 12.3% to 428,259 units (2013: 381,404 units); Group revenue rose by 3.9%; […]

Chinese investors in Africa

Chinese investment in Africa (非洲)Red = Mining Blue = Mfg 2011

According to Wall Street Journal, Chinese companies have made significant amount of investment in Africa. Among these investments, 30.6% of them are invested in mine industry, 19.5% in finance industry, 16.4% in construction industry, and 15.3% in manufacture industry. These investments are […]

Steel Industry and Auto Industry

Steel is the basic material of automobiles. Without sufficient steels, it would be impossible for auto companies and their suppliers to operate. When we visited Metalsa in Roanoke, I asked one of the executives how many steel suppliers are there near Roanoke. He said “only one”. Considering that there are many other auto suppliers and […]

Chapter Three (Kuangdi Zhao)

Summary:

In the era after World War II, urban society became increasingly violent. Crime rate soared during the 1960s, 1970s, and 1980s, despite the overall economy was strong. Urban society also became fragmented due to the changes in urban demographics. Immigrants and minorities moved into metropolitan areas as the majority population moved to the suburbs. […]

Performance of US industrial companies in 2013

Though the article below is not directly linked to the auto industry, I think it would be still interesting to share this information.

http://www.industryweek.com/IW-US-500

During our visit to Ford World Headquarter, the lady from HR department told us that there are not enough STEM students in US. STEM is an acronym referring to the academic […]

An interview with Elon Musk by Caixin (a Chinese business newspaper)

Tesla’s Income Statement since 2012: Blue is revenue, Orange is profit

It has not made any significant profits in the last eight quarters, but its revenue is growing. A large portion of Tesla’s revenue comes from selling “credits” to other auto companies. All auto companies are required to meet certain emission standards around the […]

Financial services in auto industry in China: opportunity and obstacle

It was not uncommon to see people come to car dealers and pay their cars by cash. The story depicted by this article published on Wall Street Journal could happen quite frequently. Customers came in with ¥300000 ($50000) of cash.

As our government keeps cutting expenses, less government’s money is used on purchasing new vehicles. […]