The Chinese Are Coming - Wild Apricot Buffett & Bill Gates Investors; ... 2005 6M 3% 2010 18M 4%...
Transcript of The Chinese Are Coming - Wild Apricot Buffett & Bill Gates Investors; ... 2005 6M 3% 2010 18M 4%...
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The Chinese Are Coming How Big, How Fast, How Powerful?
February 1, 2017
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Chinese New Year: Hey Buddy, No Cuts
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From Revolutionary to Pragmatic
All China Understanding …
Starts With The People in Charge
“Who are our friends who are our enemies?” “Black Cat, White Cat, If It Catches Mice, It's a Good Cat"
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Chinese Auto Companies Are Already Here
Strategic Shift Started in 2010, Accelerated in 2015
Happening Now
Midwest Suppliers
California EV/AV
Volvo & Buick
Coming By 2020
GAC Trumpchi & Co – Price
Lynk & Co. - Direct Model
Acquisitions - (FCA?)
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Chinese Entry Started with Acquisitions in 2010
Beijing West Industries (BWI) acquired Delphi Advanced Testing in 2010 for US$
100 million.
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2010-2016: 128 Investments, Worth $5 Billion
Yanfeng (Revenues $11B) Started Out as a Junior Partner to Visteon.
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Chinese EV/AV Base Camp in California
Funded by Ambitious Chinese Internet Billionaires
Design in…
Costa Mesa
Gardena
Los Angeles
San Jose
Sunnyvale
Build in…
Costa Grande, AZ
Lancaster
Las Vegas, NV
Moreno Valley
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Faraday Future Presents The World's
Quickest Electric Vehicle
FF financials are shaky but the product is the real deal.
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Next EV Introduces the NIO EP9,
the World's Fastest Electric Vehicle
"We aim to build a robot that looks like a car."
- Padmasree Warrior, COO, NIO
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Wanxiang Group Owns Karma,
the Re-incarnated Fisker
Purchase Price: $149M. Production in Moreno Valley, California.
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BYD Sells $550K to $1.2M Buses to Stanford
University, City of Long Beach
Warren Buffett & Bill Gates Investors; Production in Lancaster, California.
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A "Wait-But-What" Moment:
China-Built Buicks Shipped to the US
Volvo, Buick, Cadillac in 2017. Volkswagen next?
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A Massive, Protected Home Market.
Import duties, VAT, Duties: US $30K Car Goes to $45K in China.
Chinese Vehicle Market 2000-2016
Imports Share
3.6%
Source: OICA
2000 2M 4%
2005 6M 3%
2010 18M 4%
2014 24M 6%
2016 27.5M
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But Aren't Shanghai Streets Covered With
Buicks, VWs and BMWs?
Summary: Most of the money stays in China with Chinese companies.
Make Keep
3.87 M
1.25 M
133,000
1.94 M
615,000
67,000
2016 Sales in China
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Deng’s Strategy for China - Build Cars to
Call their Own.
Strategy
• Set Up 50/50 JVs
• Get Know-How
• Build Our Own
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Sleeping in Same Bed, Dreaming Different Dreams
1980 - 2000
The Kit Price Wars
2000 - 2010
The Concubine Economy
2010 - 2020
The End of the Beginning
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China Targets Global Leadership in EVs:
One Stone, Three Birds
Aggressive EV Tech Transfer Demands on Global Automakers.
1. Minimize Oil Imports
2. Fix Air Pollution
3. Lead in a Technology
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Beijing Leaders Invite Internet Billionaires to Join
in 2014
Chinese Internet Money Swarms into California.
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What's Coming Just Around the Corner?
Imports? Direct Sales? Capital!
Trumpchi GS4.
M&A
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Alibaba, Apple & Foxconn:
American Jobs, Jobs, Jobs.
"I want new plants built here for cars sold here!"
- Donald J. Trump, January 24, 2017
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Level 22 Tower II, Lippo Centre
89 Queensway, Admiralty,
Hong Kong
www.dunneautomotive.com