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When I was looking for car manufacturers that have opened up set up plants in Eastern The european countries, I stumbled upon some very interesting articles with information We haven’t heard of before. The article of Spiegel, which is a extremely reputable German newspaper, is approximately the Chinese car company ”Great Wall membrane Motors” containing opened an assembly grow in Bahovitsa, Bulgaria just lately in 2012. While i read this, My spouse and i immediately noticed that this process normally is the different way around, European car manufacturers who also move their particular assembly plant life to China due to reduced labor costs.

However in this article this depicts after the starting of an assemblage plant in Europe by a Chinese car manufacturer.?nternet site kept reading the article I actually more or less recognized why the Chinese manufacturer is making this move. Wonderful Wall Power generators is certainly not the 1st Chinese car manufacturing firm that desired to open up assembly plants in Europe. There were several others, however they have failed to meet up with stringent Western safety standards.

Other Chinese carmakers can also be expanding in Europe, because they are buying assembly plants of European car manufacturers to boost the quality of their particular cars and so to meet the stringent European safety requirements. This is a way for those Chinese car manufacturers to make improvement in top quality. So to start with, why in Europe? By simply producing in Europe, the cars that are produced not anymore have to be released from China to Europe and thus Great Wall membrane Motors is definitely circumventing EU import taxation and tariffs.

Therefore , the cars that are produced in Europe are made to be sold in the Euro market. This kind of saves Great Wall Motors a lot of money. However a second question arises, exactly where in Europe? Great Wall Motors did not choose Getaway as position for their assemblage plants for its geographical location, but rather for their affordable labor. Getaway is the weakest country in the European Union, and therefore is the most desirable location to spread out an assembly plant since it also has the cheapest wages and taxes.

However , the work force is considered as well educated and thus ensures substantial productivity levels and detailed performance. An additional factor that made Superb Wall Power generators to transfer to European countries, is the fact that wages in China intended for factory workers have been increasing the last few years, and that various other car companies have been transferring their assemblage plants to countries in Eastern The european union to gain a much more competitive advantage in the Western market. To start with, they decide to sell it is cars in Eastern European countries and increase later on in other EUROPEAN countries.

One other factor they don’t mention in the Article however in my opinion is usually highly relevant for this subject is the EUROPEAN economic crisis. As a result of economic crisis, many people have dropped their jobs and therefore have less money to spend. This can be viewed as another reason why Great Wall structure Motors visited Europe because this is a way they can market their more affordable cars to the European consumers who are extremely price hypersensitive due to the recession. This is the opportunity for foreign car suppliers in general.

To conclude, the furniture have switched as it accustomed to be European car manufacturers opening up assemblage plants in China, and after this it is the Chinese car producers opening up assembly plants in Europe. This article resembles why this change has happened and why Great Wall membrane Motors features moved their very own production to the European country. Article http://www. spiegel. de/international/business/cheap-labor-in-bulgaria-chinese-open-first-car-plant-in-europe-a-816851. html

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