Pulitzer Winner Wishes U.S.Car Sales

　　The inaugural meeting of the Global Automotive Forum will be held in Chengdu on September 16-17, 2010.The theme of the meeting is "Shaping the future of an industry in transition".This year's discussions at the Forum will cover the key issues and challenges shaping the future of the auto industry as it goes through a critical era of transition - including the impact of China's auto industry emergence and the center of world auto industry shifting.

　　During the Form, Pulitzer Prize winner and American Auto Press journalist Paul J Ingrassia accepted an interview from Auto Sohu.

　　SOHU AUTO: Welcome to the studio of our SOHU AUTO. Today you are our first interviewer of the International Auto Forum. As a car journalist, Mr. Paul J Ingrassia is already very experienced American reporter and once the Pulitzer winner. The first question is about the U.S. market; recently there are many signs of recovery in the U.S. economy, including the U.S. auto industry. Can you analyze the reasons for the U.S. auto industry recovery for us?

　　Paul J Ingrassia: we now have a relatively high unemployment rate in the United States. As you all know, after 7 months we will have an election. Now many voters are dissatisfied with the Obama administration.

　　SOHU AUTO: Obama has been encouraging the electrification of automotive industry, including many electric vehicle projects, the visit to the plants in Mississippi and GM models, how do you think Obama’s support for the auto industry?

　　Paul J Ingrassia: We now the U.S. government’s achievements on the economy is Obama’s supporting on the electric vehicles and automotive market, which is a really difficult decision. We need to use taxpayers’ money where it is more needed. This decision has been affected by the weak economic recovery in the United States. General Motors is facing a more and more dangerous situation. The economic recovery is actually a good chance for GM. We all know that in 2 months GM will issue its first IPO. Our auto industry sales performance in the United States now is in a relatively low level. Now we see a good momentum that GM has gradually become even or profitable. As for the economic recovery, it is really a very good signal to the auto market.

　　SOHU AUTO: the Big Three are now in a relatively stable state. However, now many economists are worrying about the double dip of the U.S. economy. If so, will it cause a deep impact on the automotive industry? Can you tell us your forecast of the future U.S. economic and auto industry?

　　Paul J Ingrassia: double dip is entirely possible. Starting from the next year or two years later our sales will increase constantly. Now our sales have reached 10 million. But four or five years ago, it was nearly 17 million, and 13-14 million was also quite satisfying

　　SOHU AUTO: Three companies, including GM were bankrupt, and now have been reborn. However, have the problems we have learned previously such as too high wages and social security for older employees and personnel all solved?

　　Paul J Ingrassia: This is not very critical issue; our high-level personnel are exactly paid higher than the Japanese companies. To us, we really would like to give good feedback to the qualified staff, like Ford’s Mulally.

　　SOHU AUTO: GM has replaced lots of CEOs, starting from the Henderson. What do you think of the frequent replacement of GM senior leadership? Besides, do you think GM will collect enough money to repay the United States government in time after recent IPO?

　　Paul J Ingrassia: The first question you said is right. About the frequent replacement of GM CEOs and senior leadership, now the state seems fragmented. I hope the GM management could be stabilized as time goes by. The most suitable should be put in the most needed place. And the second question is hard to tell, whether the taxpayers’ money can be repaid in time will take time to check.

　  SOHU AUTO: from the point of view of macroeconomic, now the U.S. car industry is in a stable balanced but dangerous stage. Since last year China's auto industry products volume had reached 13 million and some people think that China Automobile Industry is in face of risk, such as inventory pressure and so on. How do you see the two major automotive markets of China and the United Stateswould play the leading roles in the world wide automotive market recovery ?

　　Paul J Ingrassia: There is no doubt that China is the largest automobile market and it is very important to the world auto market. living standards are being improved quickly and growthof automobile industry is rapid. Chinese auto industry will continue to grow.

　　SOHU AUTO: About 20 years ago, there were around 100 automakers in China and whole auto industry was in chaos. Today there are still 100 automaker and automotive sales are over 10 millions. Will the merger and reorganization among the Chinese automakers, pushed by Chinese government help Chinese auto industry grow larger and play a greater role in the whole world auto industry?

　　Paul J Ingrassia: China's automakers are promising enterprises though their main business is not including car export. The reason that they are now exporting a small number of vehicles is that their growth mainly rely on the domestic market in the short term. Over time, I believe China’s automakers will export more vehicles but may encounter some problems on the trade and income. The advice I would like to give china’s automakers is that they must ensure increase the quality and introduce more technology in their products.

　  SOHU AUTO: let’s stop here and Mr. Paul J Ingrassia thanks again for receiving our interview.(Translator:Yalong/Jessie)