Daewoo Bankruptcy The topic of Chinese cars can't hide The development model of the Korean auto industry was once favored by some people in China, and it was suggested that the Chinese auto industry should also go the way of South Korea. Of course, China did not eventually go to South Korea. Daewoo Motor Co., one of the three major automotive companies in South Korea, recently declared bankruptcy. This news once again attracted people's attention. Some people say that China is fortunate that it did not introduce the Korean model, otherwise it would be a misguided one. The implication is that China's auto industry has not caused the South Korean auto industry a major downturn. What deserves our great attention is that when Daewoo Motors collapses and the Korean auto industry faces difficulties, it must be noted that there are many "shadows" of South Korean auto industry. This “shadow†is not necessarily whether we copy the development model of South Korea in some places. It is because there are some phenomena in the Chinese auto industry that are strikingly similar to Daewoo Motors. Fundamentally, the bankruptcy of Daewoo and the declining trend of the Korean auto industry are affected by the Asian financial crisis. From the perspective of phenomena, it is manifested that more and more "bubbles" are piled up in supernormal high-speed development, plus the investment front. The constant increase caused a large increase in non-performing assets, and the excessively high debt-to-liability ratio brought extraordinary risks. When these phenomena suddenly change drastically in the capital market and product market, they will inevitably bring about the passiveness of the entire industry. It must be noted that the Chinese auto industry is currently facing many hidden dangers. Repeated construction, repeated investment, and a lot of manpower, material resources, financial resources, a serious waste phenomenon. Due to the lack of effective support for large-scale production, high input can not achieve high output, not only the market pressure on the product increases, but the pressure on funds becomes more apparent. Some companies have even reached the edge of bankruptcy. From the perspective of the entire industry, although governments and enterprises have done a lot of effective work in recent years, the situation of serious decline in profits still exists in quite a number of enterprises. These serious problems and phenomena deserve a good reflection when we summarize the lessons of Korean automobiles. Of course, what is more worth mentioning is that South Korean cars have been growing at a very fast pace in a very short period of time, and some things are still being learned by the Chinese auto industry. Further, the predicament of the Korean auto industry today also has international background factors, especially the squeeze factors from developed countries. This point, when China today studies how to join the WTO after joining the WTO, it cannot but ignore it. The premature impact with the developed countries is an important reason for the passiveness of the Korean automotive industry. According to industrial economic theory, the development of the industry is a process of gradual upgrading, and it must accumulate enough strength to find profit points before it can develop to a higher market. The unconventional high-speed development of Korean cars for a period of time lacked a solid foundation of strength, and eventually they could only be squeezed in the developed countries. Li Jingsheng, director of the China Automotive Industry Economic Information Institute and expert on auto issues, said: In fact, South Korea’s economic development path is very similar to that of Japan. According to the method of industrial upgrading, it starts with light textile and then upgrades to chemicals, automobiles, and steel. Then go to electronics, gradually accumulate funds, and develop the foundation, from the low-end product market to the high-end product market step by step. It should be noted that under such a strategy, the automotive industry in South Korea has grown rapidly. In the 1960s, there was no automotive industry. By the 1980s, it had become an important role for the global automotive industry. However, at this time, the Korean auto industry had made a strategic mistake and did not wait until it had accumulated enough power to start upgrading. Such as Daewoo Automobile constantly builds factories in some underdeveloped areas. This kind of “burning money†approach must consider the support of funds. First, where is the turning point of capital input and output, and the land can be turned into a virtuous circle; and second, how long can this support last? The lack of sufficient strength to accumulate can only bring about the ultimate disaster. From the perspective of the international environment, the rapid development of the Japanese economy has made Western and Western and other developed countries not wish to see a single Japan. They must limit South Korea’s development in all aspects. Under such circumstances, South Korea has not only focused on strengthening its basic strength, but has prematurely opened up its position to share a share with the developed countries in the high-end product market. For example, South Korea has developed rapidly in the manufacturing of mid-to-low-end cars, but it has not been able to compete with developed countries in the manufacture of high-end cars. However, South Korea has advanced. It took nearly 30 years for Japan to begin production of high-end vehicles such as Lexus. South Korea, after 10 years, put forward a plan for high-end cars that want to compete with Mercedes-Benz and BMW. Without the formation of sufficient strength on the mid-to-low-end vehicles, high-, medium-, and low-end vehicles will make a full-scale attack. With scattered forces and scattered funds, there must be hidden dangers. In a country with a relatively backward economy, its enterprises must enter the big market and must start from the low-end product market. Do not expect too much "over". The Chinese auto industry must act according to economic laws and take the road of gradual upgrading of the industry. Li Jingsheng believes that the market for high-end products is certainly high profits, developed countries can not easily let go, but they also have a great advantage of occupying this market. To develop to this market, we must build up enough experience and funds in the low-end product market. China's auto industry has advantages in the low-end product market. Some basic industries are not worse than South Korea, and they must enlarge this market as soon as possible. Some people now think that China can cross a certain stage in the process of industrial development. This is unrealistic. The maturity and support of social infrastructure must be taken into account. It must be seen that the establishment of a social organization system is a high-level form of economic development. It is difficult to establish an industrial system. Capital is strength and it is an important guarantee for development. The effective guarantee of Daewoo’s lack of funds will eventually fail to support it. It must be noted that Chinese auto companies currently do not have an effective method of organizing funds. This is very unusual. Li Jingsheng pointed out that developed countries have? ? ? ? ? ? ? ? ? ? ? ? ? You can call a lot of social funds. On the other hand, in China, corporate funds are borrowed from banks. There are two reasons why this type of social capital cannot be used effectively. First, the traditional cultural concept determines that everyone wants to be a “leaderâ€, preferring to borrow, rather than risk sharing. Dividing the interests causes the company’s own interest to be overburdened. Second, the government still lacks a method of organizing funds. In particular, during the initial period of reform and opening up, because automobile companies did not initially have any capital accumulation, even though some companies had joint ventures and cooperation with others, many companies were not qualified from the perspective of investment entities and had to lend to banks for construction. In the early stages of the project, large debt burdens were placed on the project. Some people say that some of the joint ventures are now China’s personnel plots. It is not normal for foreign companies to make drawings and even see the current money. There is nothing wrong with the direction of industrial policy to develop the Korean automotive industry. The developed countries can compete through the survival of the fittest and the post-developed countries can not. It is necessary to find out the focus and support.
Daewoo bankruptcy Chinese car can not open topic 1
Daewoo Bankruptcy The topic of Chinese cars can't hide The development model of the Korean auto industry was once favored by some people in China, and it was suggested that the Chinese auto industry should also go the way of South Korea. Of course, China did not eventually go to South Korea. Daewoo Motor Co., one of the three major automotive companies in South Korea, recently declared bankruptcy. This news once again attracted people's attention. Some people say that China is fortunate that it did not introduce the Korean model, otherwise it would be a misguided one. The implication is that China's auto industry has not caused the South Korean auto industry a major downturn. What deserves our great attention is that when Daewoo Motors collapses and the Korean auto industry faces difficulties, it must be noted that there are many "shadows" of South Korean auto industry. This “shadow†is not necessarily whether we copy the development model of South Korea in some places. It is because there are some phenomena in the Chinese auto industry that are strikingly similar to Daewoo Motors. Fundamentally, the bankruptcy of Daewoo and the declining trend of the Korean auto industry are affected by the Asian financial crisis. From the perspective of phenomena, it is manifested that more and more "bubbles" are piled up in supernormal high-speed development, plus the investment front. The constant increase caused a large increase in non-performing assets, and the excessively high debt-to-liability ratio brought extraordinary risks. When these phenomena suddenly change drastically in the capital market and product market, they will inevitably bring about the passiveness of the entire industry. It must be noted that the Chinese auto industry is currently facing many hidden dangers. Repeated construction, repeated investment, and a lot of manpower, material resources, financial resources, a serious waste phenomenon. Due to the lack of effective support for large-scale production, high input can not achieve high output, not only the market pressure on the product increases, but the pressure on funds becomes more apparent. Some companies have even reached the edge of bankruptcy. From the perspective of the entire industry, although governments and enterprises have done a lot of effective work in recent years, the situation of serious decline in profits still exists in quite a number of enterprises. These serious problems and phenomena deserve a good reflection when we summarize the lessons of Korean automobiles. Of course, what is more worth mentioning is that South Korean cars have been growing at a very fast pace in a very short period of time, and some things are still being learned by the Chinese auto industry. Further, the predicament of the Korean auto industry today also has international background factors, especially the squeeze factors from developed countries. This point, when China today studies how to join the WTO after joining the WTO, it cannot but ignore it. The premature impact with the developed countries is an important reason for the passiveness of the Korean automotive industry. According to industrial economic theory, the development of the industry is a process of gradual upgrading, and it must accumulate enough strength to find profit points before it can develop to a higher market. The unconventional high-speed development of Korean cars for a period of time lacked a solid foundation of strength, and eventually they could only be squeezed in the developed countries. Li Jingsheng, director of the China Automotive Industry Economic Information Institute and expert on auto issues, said: In fact, South Korea’s economic development path is very similar to that of Japan. According to the method of industrial upgrading, it starts with light textile and then upgrades to chemicals, automobiles, and steel. Then go to electronics, gradually accumulate funds, and develop the foundation, from the low-end product market to the high-end product market step by step. It should be noted that under such a strategy, the automotive industry in South Korea has grown rapidly. In the 1960s, there was no automotive industry. By the 1980s, it had become an important role for the global automotive industry. However, at this time, the Korean auto industry had made a strategic mistake and did not wait until it had accumulated enough power to start upgrading. Such as Daewoo Automobile constantly builds factories in some underdeveloped areas. This kind of “burning money†approach must consider the support of funds. First, where is the turning point of capital input and output, and the land can be turned into a virtuous circle; and second, how long can this support last? The lack of sufficient strength to accumulate can only bring about the ultimate disaster. From the perspective of the international environment, the rapid development of the Japanese economy has made Western and Western and other developed countries not wish to see a single Japan. They must limit South Korea’s development in all aspects. Under such circumstances, South Korea has not only focused on strengthening its basic strength, but has prematurely opened up its position to share a share with the developed countries in the high-end product market. For example, South Korea has developed rapidly in the manufacturing of mid-to-low-end cars, but it has not been able to compete with developed countries in the manufacture of high-end cars. However, South Korea has advanced. It took nearly 30 years for Japan to begin production of high-end vehicles such as Lexus. South Korea, after 10 years, put forward a plan for high-end cars that want to compete with Mercedes-Benz and BMW. Without the formation of sufficient strength on the mid-to-low-end vehicles, high-, medium-, and low-end vehicles will make a full-scale attack. With scattered forces and scattered funds, there must be hidden dangers. In a country with a relatively backward economy, its enterprises must enter the big market and must start from the low-end product market. Do not expect too much "over". The Chinese auto industry must act according to economic laws and take the road of gradual upgrading of the industry. Li Jingsheng believes that the market for high-end products is certainly high profits, developed countries can not easily let go, but they also have a great advantage of occupying this market. To develop to this market, we must build up enough experience and funds in the low-end product market. China's auto industry has advantages in the low-end product market. Some basic industries are not worse than South Korea, and they must enlarge this market as soon as possible. Some people now think that China can cross a certain stage in the process of industrial development. This is unrealistic. The maturity and support of social infrastructure must be taken into account. It must be seen that the establishment of a social organization system is a high-level form of economic development. It is difficult to establish an industrial system. Capital is strength and it is an important guarantee for development. The effective guarantee of Daewoo’s lack of funds will eventually fail to support it. It must be noted that Chinese auto companies currently do not have an effective method of organizing funds. This is very unusual. Li Jingsheng pointed out that developed countries have? ? ? ? ? ? ? ? ? ? ? ? ? You can call a lot of social funds. On the other hand, in China, corporate funds are borrowed from banks. There are two reasons why this type of social capital cannot be used effectively. First, the traditional cultural concept determines that everyone wants to be a “leaderâ€, preferring to borrow, rather than risk sharing. Dividing the interests causes the company’s own interest to be overburdened. Second, the government still lacks a method of organizing funds. In particular, during the initial period of reform and opening up, because automobile companies did not initially have any capital accumulation, even though some companies had joint ventures and cooperation with others, many companies were not qualified from the perspective of investment entities and had to lend to banks for construction. In the early stages of the project, large debt burdens were placed on the project. Some people say that some of the joint ventures are now China’s personnel plots. It is not normal for foreign companies to make drawings and even see the current money. There is nothing wrong with the direction of industrial policy to develop the Korean automotive industry. The developed countries can compete through the survival of the fittest and the post-developed countries can not. It is necessary to find out the focus and support.