Chinese Manufacturer Opens Assembly Plant in Europe

When I was looking for for political machine manufacturers that set about inconsiderateed up host whole shebangs in eastern europium, I stumbled upon some very interesting articles with entropy I crapnt hear about before. The article of Spiegel, which is a exceedingly reputable German newspaper, is about the Chinese car manufacturer Great environ Motors which has opened an crowd plant in Bahovitsa, Bulgaria recently in 2012. When I teach this, I immediately realized that this carry through normally is the other way around, europiuman car manufacturers who move their assembly plants to mainland chinaware due to lower labor costs.But in this article it depicts upon the opening of an assembly plant in atomic number 63 by a Chinese car manufacturer. As I kept reading the article I more or less mum why the Chinese manufacturer is reservation this move. Great contend Motors is not the counterbalance Chinese car manufacturing company that valued to open up assembly pla nts in Europe. There were several others however they rich person failed to meet stringent European safeguard standards.Other Chinese carmakers are in addition expanding into Europe, as they are buying assembly plants of European car manufacturers to improve the quality of their cars and consequently to meet the stringent European golosh standards. This is a way for those Chinese car manufacturers to make progress in quality. So first of all, why in Europe? By producing in Europe, the cars that are produced no longer have to be exported from mainland China to Europe and thus Great mole Motors is circumventing EU import taxes and tariffs.Therefore, the cars that are produced in Europe are meant to be ex kind in the European market. This saves Great Wall Motors a lot of money. But thus a second question arises where in Europe? Great Wall Motors did not choose Bulgaria as location for their assembly plants because of its geographical location, but rather for their trashy labo r. Bulgaria is the poorest country in the European Union, and indeed is the most attractive location to open an assembly plant because it also has the ratiocination-place wages and taxes.However, the labor force is considered as well educated and so ensures high-pitched productivity levels and operational performance. Another figure that made Great Wall Motors to relocate to Europe, is the fact that wages in China for factory workers have been rising the last few years, and that other car manufacturers have been relocating their assembly plants to countries in Eastern Europe to gain a more free-enterprise(a) edge in the European market. At first, they plan to sell its cars in Eastern Europe and expand later on into other EU countries.Another factor they do not mention in the article but in my opinion is also highly relevant for this topic is the EU economic crisis. Due to the economic crisis, some(prenominal) people have lost their jobs and therefore have less money to spend . This goat be seen as another resolve why Great Wall Motors went to Europe because this is a way they can market their cheaper cars to the European consumers who are very value sensitive due to the economic crisis. This is an hazard for foreign car manufacturers in general.To conclude, the tables have turned as it used to be European car manufacturers opening up assembly plants in China, and now it is the Chinese car manufacturers opening up assembly plants in Europe. This article resembles the reasons why this change has occurred and why Great Wall Motors has travel their production to the European continent. Article http//www. spiegel. de/external/business/cheap-labor-in-bulgaria-chinese-open-first-car-plant-in-europe-a-816851. html