China to enter US Motorhome market in 2011

[Mc2guy]

I don't discount the chinese, they have a model that is very successful.  Copy the best products using cheaper parts and cheaper labor.  This model is perfect for disposable consumer goods.  It doesn't, however, work for refined durable goods.  Specifically, cars.  The chinese could replicate (and do) the best amercan, japanese, and german cars.  But the products are certainly less than the originals, and for the cost, there isn't a strong value proposition, which is why gheely hasn't staked any market share in the U.S. to date.

To my earlier comments, the COGs for motorhomes cannot be more than 15-20% labor, which mutes the competitive advantage the chinese bring, cheap labor.  I cant see this model working unless the backers of this venture are planning to subsidize the product heavily in order to gain market share.  We'll see I guess we'll see, but I'm still not seeing the value...

 

[chrpennings]

During the time we lived in HongKong (1970-1974) our boat was build by Cheoy Lee and designed by a retired British Navy engineer. His job used to be inspecting Navy Marine ships and contracting repair works with Cheoy Lee.
We purchased the boat when he returned to the U.K. It was only a few years old and came with a boat boy who took care of all the maintenace. Of course he became on the payroll of the company. We spended many weekends on the boat and all we had te do was driving to the harbour and step on board. Of course the fridge was loaded with San Miguel.

chris

 

[Tom]

I have a lot of experience as a boat boy. My captain steps on the boat and expects everything to be clean and in working order.

 

[Gary RV_Wizard]

And you do a fine job, Tom.  A good boat boy who knows his place is a great asset! 

 

[Gary RV_Wizard]

The Chinese company that was planning on bringing a motorhome to the US market has put that plan is "on hold".

Bill Horvath, project manager for the Motorhome Division of China?s Yutong Bus Co, recently stated:
?...The management team of Yutong Bus Co. ... has decided to place further development of Class A motorhomes for the North America markets ?on hold.?"

The reasons given were the size of the market and uncertain economic conditions. Hardly a surprise, eh?

 

[PatrioticStabilist]

I buy very few things made in china that hold up.  Right now I have 2 new light fixtures out and they were made there.  One you cannot even get the bulbs out to replace so whole thing has to come out.  One in the laundry not even up a year, have to look and see what's wrong with it.  All kinds of stuff from them that either never works or breaks immediately.

The motorhome has enough going on with it without getting involved with a chinese one.  We try to buy American.

Yet in Angola where Tom is the main contractor on the project is who else?  Chinese, man they are taking over.

They are letting us joint venture with us, then once they take over the design and technical info, they start making it harder for the US to stay there.  Haven't we figured that out yet, we are giving they all our technology for them to build one.  Stupid aren't we.

 

[tvman44]

Before that we will be stuck with chinese made components for RV's.

 

[Jim Dick]

Before that we will be stuck with chinese made components for RV's.

We already are stuck with them. I've worked on new trailers that have the chassis stamp "China"!!!

 

[cpeters]

I just bought the grandkids a Little Tykes tow with a Made In USA sticker. I will not buy a China Motorhome.

 

[Dar]

Bill Horvath died earlier this month so it might be on a perminant hold unless someone else shares his vision;

http://www.rvbusiness.com/tag/bill-horvath/

 

[taoshum]

Some, if not all, of the best diesel cruisers in the boating business are made in Asia, shipped to the US and sold for a reasonable margin.  It takes no leap in imagination to visualize the same approach to a MH.  They certainly have the capital to do it... all they need to do is cash in a few billion US T-Bills.    Hell of a mess, being deeply in debt to China.

 

[Kim (skyking4ar2) Bertram]

You might be able to project them taking the same path as the Japanese did after WWII, and over a period of years, mastering quality control, and a Chinese Lexus might enter the market.

I am good with my current American rig, even with its pimples. But I HAVE enjoyed my Lexus's, Toyota's, and Honda's.

 

[Carl L]

The Japanese steel industry came into our steel market and even with a 35% tariff delivered a superior and cheaper product paying close attention quality control and customer specs.  They drove the poorly managed and capitalized American Big Steel into the ground.

The Japanese car industry almost did the same thing with the US automobile market delivering superior cars with close attention to QC and to customer needs.    Ford seems to have picked up on the trick (which our boy, Deming taught the Japanese) and seems to be delivering good competitive machines.  GMC is in the process of pulling up its sock and may yet escape from the tank via its bankruptcy. 

Given what I have seen of the general run of US RV industry, if the Chinese do their homework and learn QC from the Japanese, they could steal the US mfr's lunch in a few years. 

 

[Gary RV_Wizard]

Given what I have seen of the general run of US RV industry, if the Chinese do their homework and learn QC from the Japanese, they could steal the US mfr's lunch in a few years. 

Especially since the US RV mfgrs leave their lunch out on the picnic table unattended much of the time. 

 

[Pierat]

I wonder, not sure, if we didn't used to say that nothing made in Japan help up, until it did. Then Korea. Maybe China is next on the parade?

 

[catblaster]

There's a book worth reading regarding Chinese manufacturing and business philosophy, "Poorly Made in China" it's on amazon and available for download on kindle.
The Chinese do not think the same way we do regarding quality, copying, and fairness.