In the wake of the economic recession and the global oil crisis, auto industries around the globe have been forced to dramatically restructure in order to survive. In America, this shift has been especially pronounced. Measures such as government bailouts, new marketing strategies, introduction of cleaner vehicles, and new employee contracts failed to save major companies such as Chrysler and GM from filing for bankruptcy earlier in the year. Year-on-year sales increases have been in the single digits throughout the year.

Meanwhile, China’s auto industry has shown apparent resiliency to these negative trends. In November, Chinese automobile sales surpassed those of the US for the first time ever, reaching 1.34 million units. Although the industry has undergone significant restructuring as in the US, the overall market share of Chinese cars is increasing even as American markets struggle. Chinese sales accounted for roughly one quarter of global sales in November. Although the number of cars on the road in China is much smaller than in the US, things will undoubtedly change as the Chinese consumer market continues to expand and the Chinese car industry becomes more of a presence in the global market.

In some cases Chinese companies have bought out some of their American counterparts. In October, the relatively unknown Sichuan Tengzhong Heavy Industrial Machinery company signed a deal to buy GM’s Hummer. This marked the beginning of a chain of negotiations between American companies and Chinese buyers. The companies BAIC and Geely have shown interest in Ford’s Volvo, and the sale of GM’s Saab is also still on the table, with Chinese carmakers among the most eager to buy. As the American industry regains its footing, cooperation with its Chinese counterparts will play an increasingly large role.

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