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Suppliers look for economies as costs rise.

Publication: Automotive News
Publication Date: 14-MAY-07
Format: Online
Delivery: Immediate Online Access
Full Article Title: Suppliers look for economies as costs rise.(2007 Guide to China's Auto Market)(Industry overview)

Article Excerpt
Byline: Alysha Webb

China is touted as the low-cost country of choice to make auto parts. Reality is setting in, though, as suppliers are finding that China is not always so inexpensive.

High material costs and rising wages are pushing up manufacturing costs in 2007. Meanwhile, volumes per model sold in China are small, so achieving economies of scale is difficult.

Nonetheless, automakers will continue to demand lower prices. So even well-established global and domestic Chinese suppliers...

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