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> So what’s gonna be VW’s answer?

As crazy as it sounds if you know anything about the industry, better management and increasing wages in China.

Chinese firms are generally extremely dysfunctional internally. That didn’t matter when they paid people a small fraction of western wages, but significant wage growth for years adds up. Continue ~9%/year wage growth and things would be at near parity in a little over a decade.

Obviously, that’s no guarantee but rapidly developing countries eventually develop. Things are about to get really interesting.



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