April 11th, 2005

ANN ARBOR, Mich.--- The opening of the Chinese automotive industry to foreign manufacturers and suppliers has contributed to the explosion of its market for automobiles. Automotive manufacturers and suppliers view China as the largest combination of domestic automotive market and outsourcing opportunities to appear in decades. North American companies are deluged with information about the potential opportunities in China, but typically know very little about what the Chinese think about their automotive future.

The steady influx of automotive manufacturers and suppliers over the past 10 years, in particular, has provided the Chinese with first hand experience of what the impact a world class, high volume automotive industry can mean to a country. Now is an opportune time to find out what the Chinese themselves think about their recent automotive experience, and what they think the future will hold for this industry and their country.

To better understand the views of the Chinese about their current state and their automotive future, the University of Michigan’s Office for the Study of Automotive Transportation (OSAT) has created the China Automotive Program (CAP) with three major goals in mind:

• Fostering collaboration between China and the global auto industry
• Creating linkages between the University of Michigan and Chinese universities and research institutions
• Developing an understanding of the current and future Chinese auto industry including
• The Chinese automotive consumer market
• The relationships between the Chinese manufacturers and suppliers and their foreign joint venture partners
• The relationship between the auto industry and the Chinese government
• The external challenges facing China and its environment such as emissions, oil security, infrastructure

The CAP will focus on a variety of valuable research opportunities that will aid us in reaching our goals, including studies focused on:

• The views of the Chinese about their automotive future. We have just begun our first project entitled Inside China: The Chinese View Their Automotive Future that focuses on the Chinese automotive industry, asking their opinions on a number of important issues facing the Chinese automotive industry over the next 5 to 10 years.
• The views of Chinese consumers about the auto industry and their own vehicle purchasing behavior
• The impact of infrastructure, oil security, and oil security on the structure of the Chinese auto industry
• The views of foreign joint venture partners about their experience in China
• The view of auto industry experts about future technology, materials, and marketing advances
• The impact of China on the global automotive industry
• Comparative studies between the Chinese auto industry and the auto industries in North America, the European Union, and Japan

OSAT is uniquely positioned to carry out these studies based on our 25 years of research on the global automotive industry, particularly in the areas of globalization, technology, materials, and marketing forecasts, economic development, manufacturing, and industry structure. Our work crosses national boundaries to include Japan and Europe as well as North America, and our work with the Chinese government in 1989 created a blueprint for future Chinese-US automotive cooperation.

Download CAP articles here

Companies or groups interested in participating in the CAP as funders for particular projects should contact:

Bruce M. Belzowski
Assistant Research Scientist, OSAT
Phone: 734-936-2704
Email: bbl@umich.edu