Chinese Manufacturer Opens Assembly Plant in Europe

When I was looking for gondola manufacturers that have open up conclave whole kit and caboodles in Eastern atomic number 63, I stumbled upon some real interesting articles with information I havent heard almost before. The article of Spiegel, which is a highly reputable German newspaper, is about the Chinese car manufacturer commodious rampart Motors which has opened an fictionalization whole kit in Bahovitsa, Bulgaria recently in 2012. When I read this, I immediately realized that this process normally is the another(prenominal) way around, European car manufacturers who move their assembly plants to China due to lower labor costs.But in this article it depicts upon the opening of an assembly plant in Europe by a Chinese car manufacturer. As I kept discipline the article I more or less understood why the Chinese manufacturer is making this move. Great Wall Motors is not the offshoot Chinese car manufacturing company that wanted to open up assembly plants in Europe. Ther e were several others however they have failed to meet stiff European safety standards.Other Chinese carmakers be also expanding into Europe, as they are buying assembly plants of European car manufacturers to improve the quality of their cars and thence to meet the stringent European safety 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 prolonged have to be exported from China to Europe and thus Great Wall Motors is circumventing EU import taxes and tariffs.Therefore, the cars that are produced in Europe are meant to be sold in the European market. This saves Great Wall Motors a bar illuminate of money. But then 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 cheap labor. Bulgaria is the poorest country in the European Union, and therefore is the most attractive location to open an assembly plant because it also has the lowest wages and taxes.However, the labor force is considered as wholesome educated and therefore ensures high productivity levels and operational performance. Another doer 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 competitive edge in the European market. At first, they plan to sell its cars in Eastern Europe and expand afterwards on into other EU countries.Another factor they do not mark in the Article but in my opinion is also highly relevant for this topic is the EU economic crisis. Due to the economic crisis, umteen people have lost their jobs and therefore have less money to spend. This can be seen as another reason why Great Wall Motors went to Europe bec ause this is a way they can market their cheaper cars to the European consumers who are very price sensitive due to the economic crisis. This is an chance for foreign car manufacturers in general.To conclude, the tables have turned as it use 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 locomote their production to the European continent. Article http//www. spiegel. de/international/business/cheap-labor-in-bulgaria-chinese-open-first-car-plant-in-europe-a-816851. html