Bilateral kinship, auto industry changes top issues at seminar

The US and China have already established such a deep economic relationship that it would be very hard to pull back without causing a deep ripple through both nations' economies, said the president of Wanxiang America Corp and vice-president of the China General Chamber of Commerce Chicago.

"Economic fundamentals will dictate our relationship, and our track has already been defined and it is one of integration," Pin Ni told attendees at a seminar in Detroit Monday on the auto industry sponsored by the chamber and the accounting firm of Grant Thornton LLP.

Ni, who launched Wanxiang America in 1994 as the North American offshoot of a privately held Chinese conglomerate and turned it into a major auto-parts company, said while there is concern over the bilateral relationship, he hasn't seen a major slowdown in Chinse investment in the US.

"We don't think that is necessarily the case. There are two Chinese companies who want to open plants in the Midwest right now," he said.

Ni's remarks came before a panel discussion on the auto industry and how technology, electric vehicles and mobility will radically alter the auto industry.

"The auto industry will change more in the next 15 years than it has in the last 50," said Kevin Gillis, senior vice-president of Key Safety Systems Inc.

Richard Walawender of the Detroit-based Miller Canfield law firm, said that mobility companies seeking to exploit emerging technologies in autonomous driving, vehicle electrification and connectivity are disrupting the traditional models of the auto industry.

Walawender said one area undergoing a rapid change is the relationship between original equipment manufacturers (OEMs) like Ford and General Motors and their suppliers.

"The days of OEMs imposing conditions on suppliers are ending," he said and noted that technology companies like Google are taking a seat at the auto industry's table.

Gillis, whose company's products include air bags and other safety equipment, said a key challenge for his company is where the occupant or occupants will be in an autonomous or driver-less vehicle.

"Occupants will become more like airline passengers. When we board a plane we let the pilot and staff handle the plane. Autonomous vehicles will offer a similar experience," he said.

Despite the rapid progress of autonomous vehicles, states have been slow to update their laws and regulations to account for the new technology. Only a dozen US states have authorized autonomous vehicles said Walawender.

Qiang Hong of the Center for Automotive Research noted that Michigan has taken the lead among the states.

"Michigan allows no driver in the vehicle for testing and also allows autonomous trucks to be tested," he said.