Fili’s world

TheMarker, Haaretz’s financial section, reports once again that Chinese cars are expected to arrive in Israel. Here’s a translation of the highlights from "First dealer for Chinese cars in Israel - ‘Everybody should fear the Chinese’" article:

"There are good reasons for the delay" explains Moshe Caduri, dealer CEO. "The Chinese are very focused, and they plan to arrive at the western markets with the right cars. They want to be competitive". Chinese cars will arrive in Israel after they adjust to the European regulations.

There’s another cause for delay : The Chinese car companies believe that the Chinese market comes first. [...] The overwhelming growth for the cars market in China has much to do with the better life style. Caduri : "Nowadays, China has more cars than before. Look at what’s happening in Beijing - it used to be only bicycles, and today it’s all cars. Every ride take 6 times longer than a few years ago because you get stuck in endless traffic. Everybody has new private cars". [...]

"By 2010, at least 3 leading Chinese car manufacturers will arrive at Europe, each with a few models. By 2015 the Chinese produce will be dominant, with 5 or 6 more companies joining in. By 2020, the Chinese will lead the world in manufacturing and sales, and I believe that they’ll have just as good quality … everybody should fear the Chinese" says Caduri. [...]

Caduri’s China romance began in 1992. "I started with China from curiosity", says Caduri. "I took a suitcase and just left to China. The first time I was there as a tourist, and the second time I already came with an international contracts attorney and did business. The Chinese were unbelievably willing. Naturally, I focused on the market I know best about - cars. I visited many factories, and I’ve been offered to buy a few". [...]

The fast economical growth in China resulted in a change for the way Chinese business is conducted. Caduri : "Lately, it’s harder to get something from the Chinese. It’s harder to settle because they started to think different. [...] The Chinese are run like western companies, they want to check you up. Furthermore, there’s the culture, which makes it difficult. Negotiation is usually longer and harder". [..] "The Chinese understand their power. You have to invest a lot more to get anywhere. [...] The Chinese have already proved worthy and everybody now understands that Chinese products are of good quality"

Although the Chinese still have a very bad reputation for quality, I think that with the right price tag and a precise marketing plan, the Chinese cars can become a big hit in Israel, especially among students.