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Wheel and Rims Industry: The Case for China and the United States - Essay Example

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This essay represents an overview of wheel and rims industry by studying the case for China and the United States. China is the market of the future, and successful companies expanding their bases throughout the world to see China as a necessary market…
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Wheel and Rims Industry: The Case for China and the United States
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Download file to see previous pages This essay represents a deep and thorough analysis of wheel and rim industry and seeks to outline the past, the present and the future trends in relations between US and China.
Heavy inflow of foreign investment — primarily from Hong Kong, Taiwan and Japan — is centered on aluminum wheel rim production. The resulting JV companies produce wheel rims for both the China factories of these leading automakers, and for export to the aftermarkets. Private enterprises are also lured by the strong growth of the aluminum wheel rim industry. Twenty-two percent of the companies surveyed for have been in the industry for five years at the most. These suppliers produce almost entirely for export, shipping mainly to overseas automakers. Those that sell locally cater mostly to domestic aftermarkets.
Top aluminum wheel rim makers in mainland China are Liufeng Machinery Industry, Dicastal Wheel, Zhejiang Wanfeng Auwei Auto Wheel, Nanhai Zhongnan Aluminium Wheel, Xiamen Mingxing Industry, China Wheel and Wheeltech Aluminum Industry. All of these companies have annual capacities exceeding 1 million units.
The study concludes that China’s rapid ascent in automobile parts production is inevitable with the increasing investments pouring in. The United States automobile manufacturing companies are increasingly relying on Chinese imports thereby endangering local firms. Nonetheless, these local firms can survive by also locating production plants in China. ...Download file to see next pagesRead More
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