A major imbalance arose in the auto industry as the western world auto industry came under serious pressure due to the management of some automakers and the economy. During the same period, the eastern world started making many more cars, which were cheaper because labor costs in the eastern world were much lower than the rest of the world. The reason they have cheaper labor is because of the massive labor force at their disposal.
At the same time, Eastern countries addressed their quality problems by poaching highly skilled automotive engineers from the Western world. This triggered a massive wave of brain power between West and East. This shift in intelligence has resulted in a massive increase in the amount of high quality cars manufacturers in the East are getting.
The eastern countries even merged with some of the world famous car manufacturers. Some of these world-renowned manufacturers decided to open their own factories in the east. This wave in the East came like an unstoppable tsunami, increasing competition between East and West.
Forecasts are that the East will overwhelm the West in auto manufacturing due to its massive labor force. That workforce, combined with the highly skilled automotive engineers they’ve poached from the West, makes them a force to be reckoned with.
This whole paradigm shift will see the East and Japan join forces and Japan is already a recognized force in the auto industry. There are predictions that new electric cars will also come from the East as Mr. Warren Buffet bought some shares in a big company in China called “BYD” which plans to tackle the electric car industry, “BYD” stands for “Build Yours”. Dream”.
All major players in the automotive industry are involved in the development of electric cars, even in South Africa there is a company that is developing an electric car. This will create a power shift in its own right in the automotive industry as electric cars will very soon replace traditional cars. According to forecasts, this will happen much faster than most people believe. Let’s not be skeptical about this and look forward to all of these power shifts that may come in the future and hope it will be good for the greater good.