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Wire & Cable ASIA – May/June 2008
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Chinese car manufacturers must source 40% of parts by
value in China to avoid the higher tariff rates for finished
cars. The United States and the EU say that China promised
not to treat parts as whole cars when it joined the WTO
in 2001.
The WTO decision, an ‘interim ruling’ for now, will be
officially released later in the year. Beijing will thereupon be
given a ‘reasonable period of time’ to make changes in line
with its WTO commitments. A separate panel would then
have to rule on the Chinese compliance.
Meanwhile, the progress of the case is certain to be closely
watched by such automotive parts manufacturers as
Delphi Corp (Troy, Michigan), the world’s largest, with some
50,000 employees in the United States.
This present complaint, initiated in 2006, marks the first
time Western trading nations have banded together to seek
a formal WTO investigation into China’s trade practices.
Friction has grown as the trade deficits of the US and
Europe with China have widened. The US deficit with China
for 2007 is expected to exceed a record $250 billion. The
EU trade gap with China rose by 25% in the first 10 months
of 2007, to $195.5 billion.
Hyundai joins ‘the best for 2008’ in the US,
already dominated by Asian car makers
Nine of the ten cars cited as ‘Top Picks’ in the annual
auto issue of Consumer Reports are the products of Asian
companies; and Hyundai, a newcomer to the pantheon, is
represented by two cars. Honouring a South Korean auto
maker for the first time, the April issue of the influential
publication named the Hyundai Elantra SE and Santa
Fe best small sedan and midsize sport utility vehicle,
respectively.
Asian car makers have headed the annual list in recent
years. The sole US vehicle to make it this time is also
the first domestic entry to be a top pick since 2005: the
Chevrolet Silverado, a pick-up truck from General Motors.
While Hyundai’s share of the US market was just 2.9% in
2007, its stellar showing in Consumer Reports may change
that for the better. David Champion, the senior director
of automotive testing at CR, commented that ‘[Hyundai
offers] a very, very nice, competent car with all the bells
and whistles for a very reasonable price, that’s going to be
reliable as well.’
Each Top Pick scores at or near the top of its category
among more than 260 vehicles recently tested. Each has
an average or better predicted-reliability rating, based on
the problems subscribers reported on almost 1.3 million
vehicles. Starting this year, Top Picks also must provide a
critical safety feature, electronic stability control (ESC), either
as standard equipment or as a readily available option.
Toyota models won top honours in four categories: ‘green’
car for fuel conservation (Prius), luxury sedan (Lexus
LS460L), small SUV (RAV4), and minivan (Sienna). The
Nissan Infiniti G35 was named best upscale sedan; the
Honda Accord best family sedan; and the Mazda MX-5
Miata ‘most fun to drive.’