Good capitalism, bad capitalism

From the s+b book review of "Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity":

"Countries where activities that promote growth are rewarded will grow faster than countries where this is not the case,” the authors write. And they are firm in their view that the contribution of entrepreneurs to growth is fundamental. To this end, the book offers four key pieces of advice to policymakers:

1. Make it easy to start a business
2. Enforce property and contract rights effectively and fairly
3. Focus government policies on growth rather than redistribution
4. Ensure an open economy with strong antitrust policies to keep up the pressure from competition.

Tags: capitalism

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Good capitalism, bad capitalism

From the s+b book review of "Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity":

"Countries where activities that promote growth are rewarded will grow faster than countries where this is not the case,” the authors write. And they are firm in their view that the contribution of entrepreneurs to growth is fundamental. To this end, the book offers four key pieces of advice to policymakers:

1. Make it easy to start a business
2. Enforce property and contract rights effectively and fairly
3. Focus government policies on growth rather than redistribution, to minimize unproductive lobbying
4. Ensure an open economy with strong antitrust policies to keep up the pressure from competition.

Tags: capitalism

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Good capitalism, bad capitalism

From the s+b book review of "Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity":

"Countries where activities that promote growth are rewarded will grow faster than countries where this is not the case,” the authors write. And they are firm in their view that the contribution of entrepreneurs to growth is fundamental. To this end, the book offers four key pieces of advice to policymakers:

1. Make it easy to start a business
2. Enforce property and contract rights effectively and fairly
3. Focus government policies on growth rather than redistribution, to minimize unproductive lobbying
4. Ensure an open economy with strong antitrust policies to keep up the pressure from competition.

Tags: capitalism

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Dealer consolidation trend in Canada

There is a significant move away from traditional, one-store dealerships (which are mainly family-owned) and towards large multi-dealer groups in Canada.

There are a total of 3,000 new car dealerships in Canada. The number of dealerships with individual principal owners has shrunk by 1,000 during the past decade. Today some 85 groups own 900 dealerships. And this trend looks to continue.

The same has been happening in the U.S., where the average public dealer company has gone from 22 to 150 stores over the past decade.

Comments from Dennis DesRosiers of DesRosiers Automotive Consultants:

• It won’t be long before dealer groups control more than 50 per cent of Canada’s annual new vehicle sales (1.65 million units).
• Auto manufacturers in Canada are encouraging the best dealers to buy other outlets, particularly underperforming ones.
• In today’s world, stores need to become more sophisticated in their management, which is easier for larger groups with more capital.

 Comments from Vigen Ghazarian of Cormark Securities:

• Some manufacturers want to reduce their dealership base and increase volume per franchise, which would give store owners more money for investment and improvement of brand image.
• This trend to groups will accelerate, despite profitable dealerships under family ownership.
• Traditional family dealerships use legacy systems and processes with sales-force productivity that are the same today as 20-30 years ago. The days of success with such methods are numbered.

Read this here.

Tags: auto industry

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Honda hybrid aims for Prius

Honda has announced a big push in the hybrid segment, most importantly an entry-level car, unnamed yet, that will sell for $19,000, get 60 mpg, and directly target the Toyota Prius. It will be officially presented in October at the Paris Auto Show.

Honda also says they will release three more hybrid models by 2012: an updated Civic Hybrid and a CR-Z hybrid coupe (see photo of concept model) in 2010, and a hybrid Fit in 2012.

Read it at Wired.

Tags: Honda, hybrids, Honda CR-Z hybrid, Honda Fit hybrid, alternative energy, Toyota Prius, Honda Civic hybrid, Honda Fit hybrid

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Volvo suitors from China

Two Chinese automakers have shown an interest in buying Volvo from Ford.

Chinese automaker Guangzhou Automotive may be interested, but only after they finalize their current IPO stage in October;  they plan to raise $1 billion by dual-listing in Hong Kong and Shanghai.

Guangzhou Automotive has joint ventures in China with both Toyota and Honda. They plan to invest $1 billion in a plant to build their own branded cars in 2010.

Chery Auto, one of China’s largest and most well-known carmakers, has also been named in the media as a possible buyer of the Volvo assets.

Tags: Volvo, Ford, Guangzhou Automotive, Chery, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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First Chinese vehicles in U.S.

The Tiger Champ ($12,995) is the first American-made Chinese vehicle, and it rolled off the assembly line last week, in the form of a small utility truck intended for military bases, golf courses, college campuses, industrial complexes, private residential communities and municipalities (according to the manufacturer).

The Chinese automaker involved? Not Geely, Changfeng, BYD (all present at the Detroit Auto Show) or well-known powerhouses FAW, Shanghai Automotive, Dongfeng or Chery, but rather  Chongqing ChangAn Automobile Co., Ltd...  Though less well-known they are China’s third largest vehicle maker, and their U.S. name is Tiger Truck.

Tiger’s plant is in Oklahoma and employees one hundred, and they assemble the Tiger Champ from parts and kits shipped from China; half of the parts used in final assembly will be US-sourced.

I read of this here.

Tags: Chongqing ChangAn Automobile Co., Ltd., Changan, Chang’an, Tiger Truck, Tiger Champ, automotive industry, China auto industry, auto industry

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