/ Industry, News / China: Great Wall is an example of the local brands problems

China: Great Wall is an example of the local brands problems

Linked In Share
China: Great Wall is an example of the local brands problems

Great Wall Motors, China’s biggest SUV producer was just a year ago the investor’s sweetheart – with investors loving its cheap to build, cheap to sell models.

Now, although the company has constant ambitions of global sales and dominance, because its stock achieved new records, had earning margins higher than any automaker and even had top executives talking about selling more than Jeep, it’s all crumbling around them. The reason is simple and also fundamentally complex – they wanted to go upscale.

That’s because – for the second delay in a row, sales of the 200,000 yuan ($32,100) and up Haval H8, Great Wall’s first sport utility vehicle competing against foreigners like Ford’s Kuga or VW’s Tiguan hit a barrier. The company last week announced it would cease indefinitely the model’s sales because of serious quality problems.

“We believe the event indicates domestic automakers haven’t met requirements to upgrade to be a high-end vehicle maker,” wrote Vivien Chen, a Hong Kong-based analyst at Oriental Patron Financial Group. “The event definitely hurt customers’ perception of H8, and hurt company image.”

The problem is localized to just one model of a company, but it actually understates the local brands issues – China is definitely a different automotive market from the rest of the world – and the foreign brands swiftly understood that – which elevated to new heights their local sales.

Via Bloomberg

by Aurel Niculescu (my Google+) - Monday, May 12th, 2014 - filed under Industry, News. Image credit: .
Linked In Share
Related Articles
china Great Wall local brands


Discuss: China: Great Wall is an example of the local brands problems

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Relaxing engine freeze talk ‘nonsense’ – Wolff
Relaxing engine freeze talk ‘nonsense’ – WolffSep.21 (GMM/Inautonews.com) Toto Wolff has declared Mercedes' obvious resistance to moves to relax F1's engine 'freeze'. The ...
Ferrari wants three-car teams ‘for the show’
Ferrari wants three-car teams ‘for the show’Sep.21 (GMM/Inautonews.com) Ferrari has split from the pack and declared its support for three-car teams in formula one. Amid ...
Honda plans to charm Alonso at Suzuka – report
Honda plans to charm Alonso at Suzuka – reportSep.21 (GMM/Inautonews.com) Even in the midst of Fernando Alonso's anger and warnings, rumours about his future just will not go ...
Grosjean slams Renault in Singapore qualifying
Grosjean slams Renault in Singapore qualifyingSep.21 (GMM/Inautonews.com) Romain Grosjean made his thoughts about Renault's below-par 2014 'power unit' more than clear as he ...
Deputy PM says sanctions won’t stop Russia GP
Deputy PM says sanctions won’t stop Russia GPSep.21 (GMM/Inautonews.com) Russia is pressing ahead with its preparations for next month's inaugural grand prix in Sochi. That ...
Sixth engine penalty inevitable now for Vettel
Sixth engine penalty inevitable now for VettelSep.20 (GMM/Inautonews.com) Sebastian Vettel's bad season continued to get worse even at the Singapore circuit he humbled at the ...
Massa tells Alonso to resist McLaren switch
Massa tells Alonso to resist McLaren switchSep.20 (GMM/Inautonews.com) Felipe Massa has advised his former Ferrari teammate Fernando Alonso to stick with the Italian team ...
FIA clampdown dubbed ‘Radio Ga-Ga’ in Singapore
FIA clampdown dubbed ‘Radio Ga-Ga’ in SingaporeSep.20 (GMM/Inautonews.com) F1's intended clampdown on performance communications between teams and drivers has been dubbed ...
Toro Rosso targets Suzuka debut for Verstappen
Toro Rosso targets Suzuka debut for VerstappenSep.20 (GMM/Inautonews.com) Toro Rosso intends to give Max Verstappen his F1 weekend debut in Japan early next month. Earlier, ...
Button admits McLaren decision could end career
Button admits McLaren decision could end careerSep.20 (GMM/Inautonews.com) Jenson Button has acknowledged that McLaren's deliberations over its 2015 lineup could leave him ...
Vettel ‘the right man for Ferrari’ – Ecclestone
Vettel ‘the right man for Ferrari’ – EcclestoneSep.19 (GMM/Inautonews.com) Bernie Ecclestone has named struggling world champion Sebastian Vettel as "the right man for ...
Test Drive: Peugeot 2008 1.6 e-HDI
Test Drive: Peugeot 2008 1.6 e-HDIThe small crossover offered by the French automaker has become an acquaintance to the inautonews.com team, with the 2008 being ...
FIA backtracks on car performance radio clampdown
FIA backtracks on car performance radio clampdownSep.19 (GMM/Inautonews.com) The FIA has backtracked over its total clampdown on "performance"-related radio communications in ...
Next-gen Mitsubishi L200 to be offered as a Fiat too
Next-gen Mitsubishi L200 to be offered as a Fiat tooMitsubishi and Fiat have signed a partnership which will lead to the development of a midsize pickup truck by the Italian based ...
Lamborghini Veneno Roadster is looking for a new owner
Lamborghini Veneno Roadster is looking for a new ownerThe last example of the Lamborghini Veneno Roadster is currently looking for a new owner who will have to pay 5,700,000 EUR ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Peugeot_2008_1
2015 Vencer Sarthe 1
ferrari 458 italia crash germany autobahn 1
chevrolet-corvette-z06-rear2015
lamborghini gallardo crash mount sinai 1
Spied 2016 Mercedes E-Class 001
ferrari fxx for sale dubai 1
Volkswagen Beetle GRC 1
Range Rover Evoque SW1 1
kia vehicles paris motor show 1
Scion x Riley Hawk Skate Tour xB
Volvo XC90 R-Design 1

More automotive from inautonews
The small crossover offered by the French automaker has become an acquaintance to the inautonews.com team, with the 2008 being tested in two other occasions. The coordinates remain the same though; the model needs to prove its prowess in the crowded scenery of the fastest-rising segment in ...
read more
Inautonews Editors Section
Test Drive: Peugeot 2008 1.6 e-HDI
Test Drive: Peugeot 2008 1.6 e-HDIThe small crossover offered by the French automaker has become an acquaintance to the inautonews.com team, with the 2008 being tested in two other ...
Top 10 Ferrari F1 drivers No.1 Michael Schumacher
Top 10 Ferrari F1 drivers No.1 Michael SchumacherThe greatest driver of the modern age and perhaps the most complete off all-time he rewrote all the conceivable records in such a dominant fashion ...
Can Ricciardo do a Prost ’86?
Can Ricciardo do a Prost ’86?For the third time this season, Mercedes faltered in their 1988-esque campaign and there’s only one man ready to pounce whenever opportunities ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: GM CNG vansThe North American based automotive giant General Motors has recently issued yet another recall, ... Recall roundup: Toyota vehicles for fire riskThe Japanese based automaker Toyota has recently issued a recall for several of its vehicles ...
Safety Section