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    Three Ms, dreams or why
    China is the place to be
     

    PEOPLE buy.  So, the more people this world has, the more opportunities people have for businesses to prosper—or their inventions to pop up.

    Who said population explosion is a bane?

    No, on the contrary, it’s a boon. Always.

    Look around you.  It is in populated areas where people put up their businesses.  Near schools.  Near churches.  Near movie theaters.  Near bus stops or bus stations.  Near hospitals.  Near wet markets.  Near banks. Near malls.  Even near Meralco and Maynilad offices, or near government offices for that matter.

    You put up your store or shop or stall in a secluded area, what business awaits you there?

    We are not Gates, the Gokongweis, Tans or Sys, who could now sit in a rocking chair gazing at the sunset, wine, lemonade or beer in hand—and the cash register would still keep on ringing merrily just the same.

    We need to be creative all the time, imaginative, if we hope to succeed in our chosen line of business—or craft of creation.

    Of course, every business, every invention or innovation, has a uniqueness all its own.

    TAKE the motoring industry, for example. The automotive business is not merely about building and selling cars.  No.  It’s not just simply man and machine conspiring to invent an engineering marvel for our highways.  It is more than that.

    To build a car, you need the three Ms—Man, Money and Machine.  Man provides the money and the money produces the machine. Together, they create the miracle known as the car.  A car that satisfies, satiates, our insatiable longing for comfort and self-gratification at owning the latest state-of-the-art monster from the motoring business.

    POWER is oftentimes attached to money.  As the saying goes, “He who has the gold controls.”

    China now has the power to control the world—in a manner of speaking—because of its sheer number of people.  Its population of nearly 1.4 billion is almost a fourth of the world’s total.

    But by control here, I mean the control derived from the buying power of China.  As one sage so correctly put it, “One’s superiority in numbers would oftentimes produce the desired results.”

    Generally, China’s masses of people aren’t rich.  But just imagine combining all the crumb-monies of a billion people?

    A sea of bills would still ensue, enough to drown all of the Toyota assembly plants combined, including its Lexus line.

    OF all the car companies in the world today, it is stunning to note that Honda is taking the lead in doubling its efforts to invade China.  Not GM. Not Ford.  Not Chrysler.  Not Toyota.  Not Nissan.  Not Volvo.  Not Mitsubishi.  Not Isuzu.  Not BMW.  Not Jaguar.  But Honda.

    Recently, Honda announced plans to boost its production capacity in China by about 20 percent to 650,000 vehicles annually to grab a large share of the Chinese market.

    If this isn’t stunning enough to its rivals, I don’t know what is.

    Honda, Japan’s second-largest carmaker after world leader Toyota, said it will invest some ¥10 billion ($95.8 million) to double its capacity in the Dongfeng Honda factory to 240,000 units as early as this year, the Nikkei business daily has reported.  The report also said Honda intends to increase the number of stores selling the Acura luxury brand from eight to 20.

    Already, Honda has three sales networks with a total of 560 dealers across China; it plans to add another 140 dealerships by the end of 2008 and hopes to sell roughly 490,000 vehicles in China in 2008, up 15 percent from 2007.

    Last month, Honda reported that it produced 3,955,483 vehicles in the fiscal year ended in March, its 11th consecutive year of record production.  The carmaker sold 2,658,801 cars overseas in fiscal 2008, up 12.3 percent from 2007.  However, sales in Japan declined 7 percent, the sixth straight year-on-year decrease.

    Before this, Honda also announced that it would unleash its new hybrid car in 2009, one that is being ballyhooed as much cheaper than any hybrid being sold in the world market today—including the bestselling Prius.

    NOT to be outdone, Toyota has likewise unloaded its own salvo: a third-generation hybrid that is extraordinarily “greener,” which will roll off its assembly lines shortly.

    Toyota has targeted China as a hybrid market as early as seven years ago.  It bore fruition when, on December 15, 2005, it began production of the Prius in China; sales started on January 15, 2006.  Being the first car manufacturer in the world to sell the hybrid car in China, it’s but right and politically correct that Toyota’s Prius remains the bestseller in the hybrid segment in a country with a new-found freedom to own private property—if not luxury.

    Honda began selling its Civic hybrid in China in November 2007 and hopes to double, if not triple, its efforts at capturing a huge chunk of China’s hybrid-infatuated nouveau riche by year’s end.

    Honda’s not saying it, but they predict that they could be neck-and-neck soon with Toyota in China in the race for hybrid supremacy, given that Honda will shortly unravel the cheapest hybrid car in the market.

    GET this: Honda clearly knows that with Beijing’s private ownership laws drastically liberalized, if not radically relaxed to sky-high proportions, China, founded in 1949 by the Great Helmsman, Chairman Mao Zedong, has become a virtual businessman’s delight.

    Labor there being the world’s cheapest, investors have not stopped pouring in their resources in massive expansion moves all across the communist mainland, which is but one of only few countries with consistently strong growth prospects the last 10 years or so.

    Virtually all of the world’s motoring moguls have swooped down on China to firmly erect their assembly plants there so that our dream car might just one day suddenly swish through from the once-sleeping giant of the 20th century.

    The possibilities are simply limitless in this world that has the innate capacity to produce garage-scientists like Bill Gates, junk peddlers like Lucio Tan and shoe vendors like Henry Sy, who, from virtual scratch, all went on to become the greatest industry leaders of their generation.

    It is dreams that people are made of.  Ronald Reagan said, “The future belongs to the brave.”

    Twenty, thirty years from now, who knows what kind of a car we would be driving?  With hybrids possibly becoming commonplace by then, we might not be driving that car-of-the-future anymore; we might yet be flying it and call it “carne”—from the contraption of car-plane.

    And, should that be the case, pray tell me, who would have any need of the Wright Bros.?

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