China as Pacesetter | F&I and Showroom
China’s automotive industry has become the competitor North America’s counterpart must now try to catch up with. A recent conference of domestic players discussed how to go about it.
The nonprofit Center for Automotive Research convened U.S. and Canadian auto industry leaders to consider China’s position and how the North American allies can get in line with “China Speed,” as the roundtable was called.
The event’s intent was to assess China’s position in automotive and how North America’s auto industry can respond to its growing presence. Participants agreed that trade tariffs and other protectionist approaches won’t be enough to keep up.
The discussion identified a mix of factors that fuel China’s auto industry, not just an abbreviated product-development cycle.
Other sources of grease to what’s been the world’s biggest auto industry for nearly 20 years include government industrial policy, plenty of capital, streamlined decision-making, local materials sourcing, vertical integration and digital-first vehicle development, according to the center.
“It reflects a coordinated system designed to move quickly and build scale,” said center President and CEO Elizabeth Krear. “North America does not need to replicate that system, but it must become more intentional about reducing complexity, accelerating collaboration and investing in the capabilities that will define the next generation of automotive leadership.”
Participants compiled a list of responses North America’s industry and governments should pursue to stay in the game with China:
- Use of artificial intelligence, machine learning and other technologies to make faster development decisions
- More collaborative research in auto technologies, including advanced manufacturing, batteries and connectivity
- More benchmarking of Chinese automakers and North American startups to “challenge legacy assumptions and identify more efficient practices”
- Develop standards for auto cybersecurity, connected-vehicle data and safety and supply chain transparency
- Continue to develop strengths in advanced automation, software, engineering, AI and regional innovation
“North America has the engineering talent, technology base and innovation capacity to compete,” Krear said. “The challenge is translating those strengths into faster execution.”