Cars.com’s 2025 Automotive Trends report highlights a complex market shaped by high prices, increasing affordable options, and evolving definitions of “American-made” vehicles.
– Persistent Challenges:
New-car prices remain high at $49,000, despite interest rate cuts.
High loan delinquencies and declining used-car values complicate affordability.
– Positive Developments:
Inventory of new cars under $30,000 grew by 42% in 2024, offering hope for budget-conscious buyers.
Used EV prices dropped sharply, improving accessibility for cost-conscious consumers.
– Evolving Market Dynamics:
The definition of “American-made” is shifting, driven by domestic EV battery production and foreign automakers’ U.S.-based operations.
Hybrids are gaining traction, appealing to buyers seeking a balance between gas and electric vehicles.
While 2025 poses challenges, growing inventories, improved affordability in some segments, and new tools for shoppers provide opportunities for navigating the automotive landscape.
Experts in the Automotive Industry Asia
You need one, but don`t want to hire one permanently?
“The possibility of dreams coming true is what makes life interesting.” – Paulo Coelho
Christmas time and the end of the year – time to pause for a moment to preserve what has been tried and to start something new….
When we realize that the time we take for another person is the most precious thing we can give, we understand the meaning of Christmas. (Roswitha Bloch)
With this in mind, we wish you and your family hours of reflection, relaxation, happy holidays, and a good, joyful start to the New Year.
Christmas Greetings from Thailand to every Christian who loves our humanitarian service, consultant, and training of GTEC for Western companies to deal with their challenges in Asia, or for Chinese companies who want to go abroad to BRICS countries for investments.
———-
Yesterday, Friday, December 20th, our GTEC PROFIT GROWTH ACADEMY closed its doors for the CHRISTMAS PARTY in HONGKONG (see picture) and some other events with my family there will follow, but GTEC will be back to continue on Dec 26, with an extraordinary Profit Growth investment project in Thailand.
This year has been filled with incredible achievements, connections, and shared successes. Thank you to our team, freelancers, business partners, participants, experts, and professors for making it all possible.
We wish you a joyful holiday season and an inspiring start to 2025.
Expanding your business into Asia, particularly China, can be challenging if you’re unfamiliar with local business customs. In China, Guanxi—the intricate network of personal and professional relationships—is crucial for success. But what exactly is Guanxi, and how can you build and handle it effectively? We’ll answer these questions and more as we support you throughout your international expansion strategy.
What is Guanxi?
Guanxi is the cornerstone of business relationships in China and a fundamental concept in Chinese society. While it can be loosely translated as “network,” “relationship,” or “circle,” its deeper meaning refers to the web of “involved relationships” that link individuals. Essentially, Guanxi encompasses everything related to personal and professional connections.
For Europeans, the concept of Guanxi can be challenging to grasp, as it blends business and personal ties—something that contrasts with the more distinct separation between work and personal life in Europe.
In practice, Guanxi functions like a trusted contact book, but with a key difference: it is made up of people you can rely on. It’s a system that allows you to tap into your network for support, particularly in business, where connections are often the key to success.
The Role of Guanxi in an Outsourcing Strategy
In Chinese business culture, trust and belonging form the foundation of relationships. Building guanxi—a network of trusted connections—requires time, but once established, it becomes a powerful tool. Chinese partners, bound by guanxi, are often willing to provide extensive support.
This system reinforces hierarchical roles, fostering trust and exclusivity in business dealings. For instance, businesses may avoid entering markets already occupied by others out of respect for established relationships.
Additionally, Guanxi helps prevent public humiliation by resolving issues discreetly. When challenges arise, Chinese individuals and businesses prefer to consult their Guanxi network rather than risk public embarrassment.
At its core, Guanxi operates as an exchange of favors. It involves offering a favor at one time, with the expectation of receiving a service of greater value in the future. This asymmetrical dynamic sustains and strengthens the relationship, as providing a greater return ensures the bond remains active. Conversely, failing to honor this norm can lead to social exclusion. Guanxi is not a permanent commitment but requires consistent effort to maintain.
At its core, guanxi operates as an exchange of favors—a service offered today is repaid with a greater favor in the future, maintaining and strengthening the relationship. However, guanxi requires ongoing effort to sustain. Neglecting this social norm risks severing the relationship, and failing to reciprocate appropriately can lead to exclusion from the network.
For companies, guanxi is a strategic asset. A strong network, especially one that includes investors, can significantly push business growth. Chinese investors are active participants in these networks and often share valuable insights on platforms like Zhihu, a popular social media platform for exchanging knowledge. Cultivating and leveraging Guanxi can, therefore, offer a competitive edge in navigating the complexities of the Chinese market.
How to Build Guanxi
Establishing Guanxi begins with forming a foundation of trust, which must be both absolute and mutual. Entry into a Guanxi network typically requires sponsorship from a trusted third party who can introduce you to key individuals. This trust transcends simple professional relationships, as all parties involved commit to a mutually beneficial, win-win collaboration. The principle of reciprocity is central to building and sustaining Guanxi, where both sides make consistent efforts to maintain a stable relationship.
Steps to Establish Guanxi
Participate in Events and Gatherings
Joining external events, such as business lunches or networking functions, is an effective way to initiate Guanxi. These settings provide an opportunity to learn and adhere to cultural norms, such as bringing a thoughtful gift and presenting it with proper etiquette. Observing these rules demonstrates respect and leaves a positive impression.
Respect Cultural Norms
Understanding and respecting Chinese habits and social norms are critical. For example:
Toasting Etiquette: During a toast, the position of your glass reflects respect. When toasting with someone of higher rank, ensure your glass is slightly lower than theirs.
Nonverbal Communication: Avoid raising your voice or gesturing excessively when expressing opinions, as these actions are considered impolite and may harm your reputation.
Adaptability
Being adaptable is essential, particularly when interacting with individuals of higher status. Demonstrating cultural sensitivity and adjusting your behavior to align with social norms will help you foster strong relationships.
Word of Mouth
Recommendations and introductions through word of mouth are powerful tools for expanding Guanxi. In Chinese culture, trusted endorsements carry significant weight and can open doors to valuable connections.
Incorporating Guanxi into Your Presentation
Feature People: Include photos of colleagues, clients, or teams you’ve collaborated with to showcase your relationships and emphasize a spirit of cooperation.
Share Experiences: Highlight images from events, milestones, or gatherings to create a personal, relatable narrative.
Recognize Partners: Display logos of partner companies and images of key clients or suppliers to show respect and appreciation for the network supporting your business.
The Economic Benefits of Guanxi
When built and maintained effectively, Guanxi becomes a strategic asset that can enhance both business growth and career development. A strong Guanxi network can save time, provide access to resources, and serve as a catalyst for long-term success.
In particular, having an investor within your Guanxi network is highly advantageous. Investors not only provide financial backing but also lend credibility and support, making business development smoother and more efficient.
Respecting cultural norms, committing to reciprocity, and engaging actively in meaningful interactions are key to building a robust Guanxi, which can offer significant personal and professional advantages.
If you have further questions, or suggestions, or would like to discuss more about cross-cultural presentations, feel free to reach out. Let’s learn together and make each presentation a step toward genuine connection and successful collaboration. If you want to learn more about our sales initiatives in Asia, Europe, and BRICS countries for your products as well as our open posts as an expert in your field, please write us at [email protected].
Experts in the Automotive Industry Asia
You need one, but don`t want to hire one permanently?
New release. Delivery before Christmas, writes Amazon. Customer review: 5.0
The days of cheap raw materials and energy sources are gone. Suppliers will demand price increases due to the rising costs of energy and materials. This book describes how your purchasing department is able to gain (more) profit for your company and includes new ideas for successful purchasing and supplier development in Asia. The author discusses how to reduce costs in productive (BOM) and non-productive materials (NPMs) and how to calculate product and tool costs. As well, the book shows ways to negotiate your results with your suppliers in Asia and build an effective system of supplier relationship management.
Management in China. Wer in Asien geschäftlich aktiv ist, sollte das Buch gelesen haben – das schreibt die Presse zu Recht. Das Buch gibt Hunderte von konkreten Anregungen, wägt auf allen Ebenen verschiedene Konzepte zur Problemlösung auf ihre Anwendbarkeit in der Praxis ab, und schildert im Detail, wie sich messbare Verbesserungen erzielen lassen. Das Spektrum erstreckt sich von der Geschäftsentwicklung und Restrukturierung über Einkauf, Vertrieb, Fertigung, Logistik, Standortwahl und Qualitätsmanagement bis hin zur erfolgreichen Verhandlungsführung in China. Lieferung noch vor Weihnachten, schreibt Amazon Publisher : Diplomatic Council e.V. (February 24, 2023) Language : German Print length : 187 pages
Most companies’ strategies deliver only 63% of their promised financial value.
Why? Leaders press for better execution when they really need a sounder strategy. Or they craft a new strategy when execution is the true weak spot.
The result: wasted energy, lost time, and continued underperformance.
How to avoid these errors?
View strategic planning and execution as inextricably linked — then raise the bar for both simultaneously.
Start by applying seven deceptively straightforward rules, including: keeping your strategy simple and concrete, making resourceallocation decisions early in the planning process, and continuously monitoring performance as you roll out your strategic plan.
By following these rules, you reduce the likelihood of performance shortfalls. And even if your strategy still stumbles, you quickly determine whether the fault lies with the strategy itself, your plan for pursuing it, or the execution process.
The payoff? You make the right midcourse corrections — promptly. And as high-performing companies like Cisco Systems, Dow Chemical, and 3M have discovered, you boost your company’s financial performance 60% to 100%.
Source: Havard Business Review
Experts in the Automotive Industry Asia
You need one, but don`t want to hire one permanently?
Stay tuned for regular updates on microdots—an innovative technology that remains largely under the radar across much of the globe. But it’s a game-changer, especially in the fight against professional car theft!
Microdots have already proven their worth by removing the financial incentive for car thieves. In Europe, stolen vehicles are frequently trafficked to Russia and African nations, or dismantled for parts. Fraudulent warranty claims on high-value components also contribute to the growing costs that insurance companies and law enforcement agencies are forced to shoulder. Just imagine: in Africa alone, Interpol dedicates countless man-hours to identifying stolen cars from Europe, reconnecting them with their owners, and returning them.
And here’s where things get even more critical—electric vehicles (EVs) bring a whole new set of challenges, with their abundance of high-value parts. The solution? Microdots. When installed by the original equipment manufacturer (OEM), they provide lifetime protection for the entire vehicle and its parts. Chinese EV makers can seize this opportunity to showcase their commitment to reducing costs for countries receiving their products—by protecting against theft, fraud, and unnecessary financial strain. This move could boost their reputation as responsible corporate citizens, and while it won’t remove tariffs, it sends a strong message of goodwill.
This strategy could even sway the European lobby groups advocating for affordable Chinese EV imports, given that local automakers can’t compete at those price points. If China responds by tightening its grip on the auto parts supply chain, Europe’s costs could skyrocket even further. The proof is in the numbers: over the past 12 years, countries like South Africa and Taiwan have seen remarkable success after making microdots mandatory.
As your expert in the ESG, automotive, and machinery sectors across Asia, I’m here to help. If you’d like to dive into the details of how microdots can safeguard your products, feel free to visit GTEC, send me an email, or give me a call!
Experts in the Automotive Industry Asia
You need one, but don`t want to hire one permanently?
In the fast-paced and ever-evolving business world, interim managers play a crucial role in steering companies through transitions and challenges.
But what if there was a way to transform these obstacles into opportunities for growth and success?
Meet the interim manager – your trusted guide on this transformative journey.
Interim managers can bring a wealth of expertise and a fresh perspective to your organization. They are skilled at implementing effective strategies and documenting both input and output to ensure lasting impact.
As your guide, the interim manager will help you cross the threshold from uncertainty to clarity. They will dive deep into your company’s operations, identify critical areas for improvement, and execute strategies designed to drive immediate results.
Throughout this journey, the interim manager will tackle challenges head-on, document their strategies, and measure the outcomes. The trials faced and the solutions implemented will showcase the tangible value added to your organization.
At the end of their tenure, an interim manager doesn’t just leave behind a list of tasks completed; they leave behind a clear record of the progress made and the results achieved. This documented success is not only a testament to their effectiveness but also a valuable tool for the company going forward. It provides insights into what worked, what didn’t, and how future strategies can be refined for even greater success.
You’ll be equipped to lead your company forward with the knowledge and strategies gained during this transformative journey.
By embracing the expertise of an interim manager, you are not only overcoming immediate challenges…
But also setting your company up for long-term success.
Interim managers bring far more to a company than just temporary leadership. They deliver strategic value by implementing necessary changes and documenting the results, providing a roadmap for continued success. With an added value of up to six times their cost, the investment in an interim manager is one that can pay off significantly, helping your company navigate challenges, seize opportunities, and achieve lasting growth.
Are you ready to transform your company’s operations in Asia?
Asia’s education system, particularly in vocational training, often lacks the dual education framework familiar in other parts of the world.
The gap in practical knowledge can be startling.
For example, I’ve witnessed workers in workshops hammering on aluminum, only to be surprised by the resulting dents. This lack of basic technical understanding is a significant hurdle.
My Biggest Success in Asia: Building a “Learning Organization”
1. Establish In-House Academies
The first step to overcoming this challenge is to create a “learning organization” within the company.
Setting up an in-house academy allows employees to learn essential skills from one another.
This approach is cost-effective and fosters a culture of continuous improvement, where employees immediately apply new knowledge to their work.
2. Foster Enthusiasm for Education
When employees realize that knowledge is their personal wealth – something that cannot be taken away – they become enthusiastic learners.
This enthusiasm drives productivity and innovation, as employees are motivated to apply what they’ve learned.
The Entrepreneurial Leadership Approach
1. Lead from the Ground Up
Leading as an entrepreneur means more than just executing orders from headquarters.
It involves inspiring employees to take ownership and work collaboratively toward building a forward-moving company. This approach ensures that everyone is invested in the company’s success.
2. Implement an Internal Suggestion System
One of the most effective strategies I’ve used in Asia is the implementation of an internal suggestion system.
This system encourages employees to submit their ideas for improvement, fostering a culture of innovation.
Contrary to some headquarters’ concerns, this approach is neither costly nor risky. It can be implemented quickly and yield significant benefits.
3. Encouraging Employee Participation
By simply asking employees for their ideas – whether through a suggestion box or direct conversations – you tap into a valuable resource of creativity and problem-solving.
Rewarding employees for implemented ideas not only boosts morale but also drives the company forward with fresh, practical innovations.
Achieving Success Together ❤️
As an interim manager in Asia, your role is important in bridging the education and skills gap while fostering a collaborative, entrepreneurial spirit within the company.
The company is up and running!
Ready to lead your company to new heights in Asia?
Ask questions and get advice tailored to your situation!
For more information, please contact:
Karlheinz ZUERL – CEO of GTEC (German Technology & Engineering Cooperation)
Effizienzsteigerung in einer traditionsreichen Fertigungsanlage in Tianjin, China: Wie wir OEE auf ein neues Level gehoben haben
In Zeiten, in denen Krisen wie die Corona-Pandemie, der Ukraine-Krieg oder die Energiepreisspirale den Alltag durcheinanderwirbeln, steht eines fest: Unternehmen müssen agil bleiben. Natürlich spielt dabei die Kontrolle von Kosten und Liquidität eine große Rolle – doch eine goldene „Low hanging fruit“ wird oft übersehen: der KPI OEE (Overall Equipment Effectiveness).
Wir standen vor der kniffligen Aufgabe, die OEE in einer altgedienten italienischen Produktionsanlage in Tianjin zu verbessern – und ja, das war eine echte Herausforderung! In einer in die Jahre gekommenen Fabrik kämpfen Interim Manager mit einer Fülle von Problemen, sei es die Verfügbarkeit der Maschinen, die Leistungsrate oder die Qualitätsrate. Doch wer uns kennt, weiß: Herausforderungen sind unser Ding! Und genau hier zeigt sich, warum Interim Manager wahre “Change Champions” sind. Mit ihrer Unabhängigkeit von internen Firmenpolitikern und ihrer geballten Erfahrung bringen sie den frischen Wind, den solche Situationen brauchen.
Warum gerade Interim Manager? Sie haben keinen Ballast, keine “Karriereleiter” im Hinterkopf und sind nur einer Sache verpflichtet: Der Aufgabe! Und das macht sie zum perfekten Sparringspartner für Transformationen, bei denen Emotionen und Unternehmenspolitik oft die Hauptrolle spielen. Kombiniert man diese Unabhängigkeit mit aktuellem Fachwissen, viel Erfahrung und einem sensiblen Umgang mit der Unternehmenskultur, dann wird aus einem Interim Manager der Gamechanger für solche Projekte.
Unser Team hat bei dieser Herausforderung tief in die Trickkiste gegriffen und die Effizienz auf der Produktionsfläche durch verschiedene Maßnahmen sprunghaft gesteigert:
Maschinen unter die Lupe genommen: Eine gründliche Analyse der gesamten Ausrüstung war der erste Schritt. Wir haben Ineffizienzen aufgedeckt und gezielt eingegriffen.
Lean-Prinzipien eingeführt: Mit Lean-Methoden haben wir Abfälle reduziert und die Prozesse auf Effizienz getrimmt.
Mitarbeiter fit gemacht: Durch gezielte Schulungen und Training haben wir das Team auf den neuesten Stand gebracht – technologisch und methodisch.
Unsere Erfolgsstrategie – Schritt für Schritt Zunächst haben wir die Verluste identifiziert, indem wir die aktuelle Maschinenleistung mit den Herstellerdaten verglichen. Klingt simpel, aber das war die Grundlage, um loszulegen! Mit einer cleveren Pareto-Analyse und einem ausgeklügelten Maßnahmenplan haben wir uns Stück für Stück vorgearbeitet:
Wir haben die größten „Verlustbringer“ identifiziert – angefangen bei den Geräten, die am meisten Potential verschenkten.
Menschliche Fehler als Ursache? Durch detaillierte Prozessanalysen konnten wir diese ausschließen.
Wir haben sichergestellt, dass die Rohstoffbedingungen den Anforderungen der Maschinen entsprechen.
Ein synchronisierter Wartungs- und Verbesserungsplan sorgte für kontinuierliche Optimierungen.
Die Ergebnisse lassen sich sehen!
Verfügbarkeit: Durch eine Kombination aus Ursachenanalyse (RCA) und gezielten Maßnahmen (CAPA) haben wir die Maschinenverfügbarkeit von 84 % auf satte 92,5 % gesteigert.
Leistungsrate: Kleinere Stillstände? Kein Problem mehr! Dank regelmäßiger Kontrollen der Maschinen und Teile konnten wir die Produktivität um 38 % steigern – von 9,36 auf 12,86 Stück pro Bediener und Tag!
Durchlaufzeit: Bei der Generatorlinie halbierte sich die Durchlaufzeit von 12,2 Tagen auf nur noch 6,1 Tage – ein riesiger Fortschritt!
Und das Beste? Die Qualität schoss förmlich durch die Decke:
Kundenausfälle bei Generatoren: Von 4.261 auf 0 – ein unglaublicher Erfolg!
Fehlerquote bei Steuerungen: Von 1.657 auf 0 reduziert.
Interne Fehlerquote: Um beeindruckende 86 % gesenkt – von 117.845 auf 16.413 Fehler.
Ausschusskosten: Von monatlichen 704.000 RMB auf nur noch 13.000 RMB – das sind 97 % weniger!
Dank dieser Verbesserungen erhielten wir nicht nur mehr Aufträge, sondern konnten sogar eine dritte Schicht installieren – ein echter Meilenstein für Umsatz und Gewinn!
Experts in the Automotive Industry Asia
You need one, but don`t want to hire one permanently?
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