Monday, June 14, 2004

Free Trade before Fair Trade - the Story of the Chevrolet Spark

Recent news from the China auto show included announcements that several automakers, including GM would invest billions in increasing production capacity in China. So much capacity is being added that it is projected that China will become a net exporter of cars within 3 years.


Automakers are doing this even though there is ample evidence that the Chinese government is condoning the outright theft of the foreign companies' designs. Honda motorcycles were copied down to the logo.

Earlier this year (see link below from Forbes.com) China made a complaint to Chinese trade officials that its Chevrolet Spark was copied by a Chinese firm as the Chery QQ even before the Chevrolet car hit the streets.

Instead of joining a race to the bottom in China, automakers could invest in U.S. plants.
Forbes.com: Stolen Cars

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