You knew it was gonna happen - details on Chinese cars coming to the US
As previously reported by ABG, Chinese firms now have the industrial confidence to bring their products to our shores. They want more dollars instead of their money - yuan.
I attended a meeting this week in New York (and got out of midtown about 2 hours before the steam pipe explosion). What I heard was explosive in its own way - CHAMCO (Chinese American Cooperative Automotive, Inc) intends to start selling Chinese made-SUVs and pick-ups in the US around mid-2008. CEO Bill Pollack gave an animated and fact-filled presentation about how these vehicles, currently sold in 52 countries, are being prepped for US introduction. These are not hybrids or EVs. They are current style big vehicles with body on chassis design. Bob stressed that QUALITY has to be apparent in the vehicle from day 1 and, as CEO, the steps are being taken to provide both the vehicles and the dealers with Quality - meaning excellent design and build quality, a full featured warranty and spare parts support program, a select group of dealers (only 150 in the US at first) and proven parts made by proven 2nd and 3rd tier suppliers.
The vehicles will be made in Baoding, China not too far from Beijing. A second plant is under construction with the intent to eventually introduce a Chinese made sedan and hybrid in the 2010-12 time frame. Bob did not release dimensions or weights but he did release the target price for the SUV: $13,500 MSRP. This in a way is problematic to ABG. It allows Americans to buy a big vehicle for a low price which means they will have money left over to buy more fuel. On the other hand, we can all admit there are people that really do need an SUV for their family/business needs and these Chinese vehicles may be the way to get the job done until hybrid versions come along.
There is another point here: the US has been the home of mass production and industrial leadership since World War 2. Our claims to fame were our steel and automobile factories and our engine and airframe industries. Now we are in an era of globalization which means those who can do it best and cheapest somewhere in the world will do it. Let's face it , the US auto industry build cars here for the North American market. They don't sell too many US-sized vehicles elsewhere in the world. Meanwhile, Europe and Asia build cars for the US market. Now so does China. Welcome to the party. Everybody play - compete - nice.
Reader Comments (Page 1 of 1)
Kardax 2:59PM (7/20/2007)
This'll really make the big American automakers freak out. They make most of their money on SUV-class cars. Even if China only gets a small percentage of that market, it could spell doom to GM, Ford, and Chrysler.
Expect the big 3 to launch an extensive lobbying and marketing campaign to smear and disrupt the Chinese vehicles as much as possible.
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Lou 4:40PM (8/19/2008)
Just like they did with the Suzuki Samurai? What a shame.
Chris 4:26PM (7/20/2007)
Your last sentence about competing "nice" was funny when you consider the wages the Chinese workers get paid and the benefits their government supplies their corporations relative to ours. There is no fair ground with them.
But, eventually, their wages will rise and they will have no comparative advantage.
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Chris M 4:38PM (7/20/2007)
Bad timing! SUV sales are plummeting due to high gas prices, so unless this model gets reasonably good milage it won't sell. Also, Ford and GM have finally got their act together on quality, and the low paid inexperienced chinese workers are not likely to match Detroit quality, let alone the Japanese and Koreans.
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Don 4:39PM (7/20/2007)
I wonder what China's learning curve will be? 10 years? Less? After seeing what the Koreans are capable of...
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Bill 5:19PM (7/20/2007)
Chery (sp?) cars from China were supposed to be here by now.
When they were tested none of them came close to meeting U.S. safety (impact) or emissions standards.
Last I heard they were still being "redesigned"
I'll believe Chinese cars in the U.S. when I see them on the street - not until then.
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hynosube 2:28AM (7/21/2007)
There is nothing wrong to enter U.S. market, but I hope they burn and crash.
They claim to have so many engineer to do exactly what?
In very sleazy and dishonorably way copy Toyota tundra and Nissan something
I get it; They STEAL other companies design and now they come to U.S. to earn HONEST buck...? did I miss anything...
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john riley 12:41PM (7/23/2007)
A smallish, cheap pickup might be interesting. No body else seems to care about this market now. Auto technology doesn't get much simpler, so it might be a good starting point.
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John Rowell 12:41AM (7/24/2007)
China is the new industrial superpower.
They have been for a couple decades or so.
Oh, here I go stating the obvious again. Sorry.
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Moonzie 12:41PM (8/16/2007)
In fact China has the ability to buy the car imported abroad, and with the development of China, the consumption of China will increase gradually in the world.
And as stated by the author, the US has been the home of mass production and industrial leadership since World War 2. Our claims to fame were our steel and automobile factories and our engine and airframe industries. So let's make it.
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