Chinese are not ready to buy Chrysler

Alysha Webb is the China Bureau Chief of Automotive News.

ALYSHA WEBB

Alysha Webb | Automotive News / March 15, 2007 - 10:12 am

SHANGHAI -- Several Chinese companies have been mentioned as possible purchasers of the Chrysler group. Anyone taking this seriously doesn't understand China's auto industry.

China's industry is like a gangly teenager who needs to shave but doesn't know how. If a Chinese company were to buy Chrysler, the result would range from a face covered with tiny cuts to a slit jugular vein.

Chrysler is tempting to Chinese automakers, which are looking at mature international markets with envy. Chrysler has advanced technology, a huge dealer network and well-known brand names.

Money to buy Chrysler would not be a problem. Loans available at favorable rates would be available from China's government if it endorsed the purchase.

But running a huge international automaker takes management talent that Chinese automakers lack.

The most talented Chinese managers are getting a good handle on the thriving industry in China. But their knowledge of business outside China is modest.

Take unions. Chinese companies have no experience dealing with such tough and demanding unions as the UAW and the Canadian Auto Workers.

U.S. politics would be another black hole for the Chinese. Imagine the political uproar if a Chinese company tried to buy Chrysler.

Beijing is encouraging Chinese companies to go international, and the U.S. market looks mighty tempting. But Chrysler would be the wrong road into the United States.