Imports Jolt Taiwan Car Firms' Security

Taiwan's automobile makers have enjoyed a comfortable existence until now. The rising value of the New Taiwan dollar and new political moves to lower import duties have opened the door to a massive incursion of import autos at highly competitive prices. The invasion is leading some of Taiwan�...

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Bibliographic Details
Published inAsian business Vol. 24; no. 6; p. 25
Main Author Shapiro, Don
Format Journal Article
LanguageEnglish
Published Hong Kong Times Publishing Corp (HK) Ltd 01.06.1988
Subjects
Automobile industry
Business conditions
Exports
Imports
Joint ventures
Manycompanies
Tariffs
Trade policy
Taiwan
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Summary:Taiwan's automobile makers have enjoyed a comfortable existence until now. The rising value of the New Taiwan dollar and new political moves to lower import duties have opened the door to a massive incursion of import autos at highly competitive prices. The invasion is leading some of Taiwan's bigger automakers to team up with major foreign car giants. But some of those agreements could be short-lived. According to auto experts in Taiwan, a profitable export program needs 90% local content, and the best Taiwanese automakers can do is 70%. The supply of sophisticated items like carburetors and some engine parts is inadequate. Despite stormy forecasts, all 8 manufacturers in Taiwan express confidence they will be survivors. Regardless of their strategies, analysts say the manufacturers will need more government support to withstand the imports.
ISSN:0254-3729
1560-7054