(By
Jason Simpkins )There's no question that the big "winner" in the global financial
crisis has been China. While for the past two years developed economies
have been scrambling to keep afloat China has taken a nuanced approach
to achieving its economic and political goals.
China has used depressed commodities prices to stock up on long-term supplies of raw materials such as oil, copper, and iron. And it's used structural weakness in the U.S. financial system as justification for replacing the dollar as the world's main reserve currency.
Now, the Red Dragon is looking to make headway on the highway by
winning global market share in the automotive market while U.S.
heavyweights spin out.
"We aren't afraid of the financial crisis," Zhou Fuquan, vice president of Geely Automobile Holdings Ltd. (PINK: GELYF), told Bloomberg News. "On the contrary, we hope it will penetrate even further as it has provided us with some opportunities."
Geely is China's biggest private automaker, but that isn't exactly
saying much. The company's annual output is just 300,000 units, and its
market share in China is a meager 3%. Still, Hangzhou- based Geely is
determined to become a global player in the auto industry. It has
ambitions to sell 2 million cars a year, including 1.3 million overseas
– even though right now the company generates just 5% of its sales from
abroad.
Of course, that's why the financial crisis has been more of a
financial opportunity for Geely. In March, Geely bought key assets from
bankrupt Australian gearbox maker Drivetrain Systems International –
the world's second-largest maker of automatic transmissions.
"The economic downturn provides us with very good overseas acquisition opportunities," Daniel Dai, vice president for international business at Geely, told China Daily. "We get the best technology with the best price."
Geely has also set up a joint venture with Manganese Bronze Holdings PLC (MBH) to produce the TX4 London Taxi in Shanghai.
