No one denies the impact that China has had on world markets nor doubts that it will continue to be a major player in manufacturing. Still, Chinese auto makers are finding the road to world domination far rockier than they might have thought.

While China’s domestic auto market is red hot right now, Chinese exports to Western markets are barely measurable. This should be an ideal time for the Chinese to gain the technology and access to markets that they need by snapping up brands from floundering Western auto makers but their success so far has been limited. Automotive News cites BAIC’s failed attempt to buy Saab from General Motors as one more example of the obstacles that China faces as it tries to expand globally. Even if a Chinese manufacturer is able to consummate an acquisition, sellers (e.g. Ford) may seek to specifically exclude intellectual property from the deal.

Furthermore, CNNMoney reported earlier that Mexico is making a comeback as American corporations are finding attractive manufacturing costs, lower transportation costs and easier access to domestic distribution networks in our southern neighbor. Chinese car makers also are said to be looking at Mexico as an entry point to North American markets but manufacturing capacity will be of little use if they don’t also have the technological expertise to meet U.S. and European safety and emissions standards.

--M.D.