Chinese cars drive on world stage
Updated: 2008-01-28 16:12
In the opposing corner there's brash talk and hopes to sell here quickly. One automaker at the show boasted a sign stating their identity as "the first importer of Chinese vehicles to North America". Headed to North America (only Mexico so far) is Chamco Auto, a joint venture between ZXAUTO China, SMS, Ltd and Steve Saleen, who's famous in the automotive industry as the creator of the world's fastest production car. Chamco claims it chose ZXAUTO China because of their build quality and they went through safety and durability testing before the decision to head to this continent.
Chamco showed two vehicles in Detroit: a pickup similar to a Dodge Dakota or Nissan Frontier, and an SUV that could fit up to seven passengers reminiscent of the Mitsubishi Montero Sport that was discontinued in 2004. A believer that Americans aim to spend less and get more bang for their buck, Chamco will take on the lower echelon of the car industry ($12,000 -$20,000) in hopes to lure customers who would otherwise buy a 3- or 4-year-old used vehicle from a known brand, or those who simply want a bigger vehicle for less money.
The market may be turning towards inexpensive or small cars. Ford released a study projecting that sales of small cars will grow by 25 percent until 2012. But Chamco is resting on its idea that in this price range people can get a bigger vehicle and the company can do well.
But breaking in as an unestablished player with no known record of quality may be unwise. Chamco intends to sell pickups and SUV's to a market that demands the best and where domestic makes lost their share as Toyota and Nissan finally established credibility in the segment in the last 25 years.
Leaning on the green side is BYD Auto, a global manufacturer of cell phone batteries. It plans to step into the chic hybrid segment of the automotive industry with dual-mode cars, powered by rechargeable battery and gas technology.
By circumstance BYD may follow Nissan, Toyota, Mercedes and other foreign carmakers who became employers when they set up an operation stateside. Aside from the legal procedures that each Chinese company said they are struggling with, BYD president and chairman Wang Chuanfu says the company can't afford the costs of importing from China. If BYD gets enough market share it will enter into local production and bring in jobs.
While the dual-mode idea is fresh, the current hyped-up hybrid market is led by names Americans trust: GM, Ford, Honda and most notably Toyota. In the US nearly 350,000 hybrids were sold in 2007 as Toyota captured three of the top-four spots in that segment, led by their now four-year-old Prius, which sold 181,211.
BYD targeted hybrid shoppers by unveiling a model bearing a striking resemblance to the last generation Honda Accord sedan, save of course for the battery-powered technology. In fact most of BYD's cars at the show resembled other popular cars, including the Merceds-Benz C-Class and Toyota Corolla. The look-alike game won't make anyone take you seriously, and Hyundai learned that the hard way until their very recent turnaround. BYD has a long way to go before we see new designs, but unlike other Chinese makes their business is based on under-the-hood innovation.
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