• Oct 8, 2010
Peugeot 3008 Hybrid4 – Click above for high-res image gallery

Cracking the burgeoning Chinese automobile market is a challenge that nearly every automaker in the world is currently grappling with. Among the myriad reasons why the Chinese nut is a tough one to crack is that the government has set strict regulations and laws that must be met before it will approve of any automaker doing business within its borders.

For instance, no foreign automaker is allowed access into the country without first partnering up with a local manufacturer from China. Naturally, that means sharing a great deal of resources and technology – and that presents a big problem with you're dealing with cutting-edge products that you've spent a ton of time and money developing.

PSA Peugeot Citroën is the latest automaker to express concerns with the notion that its intellectual property must be handed over to its Chinese partners, Dongfeng Motor Group and Changan Automotive. Problem is, to sell in China, Hybrid4 technology must also be in the hands of Dongfeng and Changan, which is something PSA isn't keen on. "The Chinese government will have to reconsider its position," according to PSA Chief Financial Officer Frederic Saint Geours. Sounds unlikely, but we'll see.



[Source: Automotive News China – sub. req'd.]


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    • 1 Second Ago
  • 18 Comments
      • 4 Years Ago
      Good for them.

      They see that this could have HUGE implications for them in the future as they basically teach their up-and-coming competition the tricks of the trade.

      I am sure none of the American car makers have the balls to say no... they'll be quick to sell their future all in the name of a few quick bucks now.
      • 4 Years Ago
      .....
      • 4 Years Ago
      Great stand by Peugeot.
      • 4 Years Ago
      yes - yes.... they should do that... and bring them here to the USA instead.
      • 4 Years Ago
      The Chinese take what they want. They will get the technology regardless if the car is sold there or not?
      • 4 Years Ago
      This is the high price of doing business with Communists.
      • 4 Years Ago
      You have to hand it to the Chinese, they know how to act like a super power. Who needs to pay for R&D when you have a potential consumer base of 1.3 billion people to exploit in order to get other countries and companies to give you their R&D?
        • 4 Years Ago
        I agree... It might not be "fair" but some countries know where the future is headed and realize that to be competitive, they have to throw their weight around and get their own domestic industries up to speed as quickly as possible because that is where the well-paying jobs will be in the years to come.


        When we try doing anything even remotely smart like that here in the US, you get the "that's socialism" cries from the idiots on the right. :rolleyes:

        • 4 Years Ago
        It's completely fair. Nothing forces PSA to do business in China.
        • 4 Years Ago
        For this exact reason, and because I'm about to become an American mechanical engineer, china can eat a penis.
        • 4 Years Ago
        And that's why we should only share third-tier technology with them. Keep the best stuff at home. Peugeot has the right idea. We should seriously do the same. If they won't respect our property rights, they can keep making the hybrid/electric equivalents 2004 Sebrings and 1990s Jettas. The Chinese can assume the rights to our obsolete technology and keep running their auto industry to the same standards ours used 10 years ago.
      • 4 Years Ago
      I'd hate to be the one to decide whether or not an automaker should go to China. On one hand, the chance to earn a ton of money. But on the other hand, I'd lose all my intellectual properties one way or another with almost no way to protect myself. If I were in charge with PSA, I'd flip a coin.
        • 4 Years Ago
        I don't know why this would be a problem with you. If a foreign country won't respect your Intellectual Property rights, sell 'em the obsolete stuff. They get to make 2004 Sebrings and 1990s Jettas. When they demonstrate they can play by the rules, they can have newer, nicer stuff.

        This isn't profound policy; it's a poor government call that will continue to hold them back.
        • 4 Years Ago
        Such is the beauty of capitalism. The stakes may be high, there's a potential to sorely lose, but there's also the opportunity to be quids in.

        In short, the Chinese exploit us at the very game we bleat about as being above any other.
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