And, a recent tour of one of the Asian powerhouse’s vehicle plants has proved this beyond a shadow of a doubt, at least to Honda President and CEO Toshihiro Mibe.
“We have no chance against this,” Mibe said upon a visit to a Shanghai parts factory, commenting on its seamless automation across all levels of production. Logistics, procurement and all aspects of the process were so automated, in fact, that he did not spot a single human worker on the supplier’s floor.
Ford executives saying even three years ago that China was way ahead of the game
Toyota’s CEO has likewise said regarding not just his company, but the industry in general, “unless things change, we will not survive”
That’s the problem with disrupters, people are so involved with dismissing them that they don’t see what’s happening. For years it was all about cheap Chinese labour then turn around and discover that it’s really all about robotic factories and slick organisation. Throw in EVs and it’s the same but worse.
People always point out that China “isn’t really a Communist country.” And while they certainly are different from the days of Mao, they forget that, from the beginning, the goal was to treat the market economy as a means to an end. The CCP values market economics because it allowed China to quickly industrialize. They don’t value capitalism for its own sake; they view it as a necessary evil.
Because of this, they’re able to do the kind of long term industrial planning that is unthinkable in the US. And there’s ultimately likely to be a lot less resistance to mass automation in China than in the US. If the state owns all the automated factories and distributes their goods fairly to all, why oppose automation? Automation is only a bad thing if it represents losing your livelihood, your method for keeping a roof over your head.