Chinese Cars Arrival Delayed
Below is a MRR and PLR article in category Vehicles -> subcategory Cars.
Chinese Cars: Delayed Arrival!
Summary
The introduction of Chinese cars to the U.S. market has been delayed due to three major concerns. However, they are still expected to arrive once these issues are resolved.Keywords
Discount auto parts, Geely Automotive, Chery Automobiles, Diphthong Motors, Chinese cars, car partsArticle
In recent years, there's been a lot of buzz about Chinese automakers entering the U.S. market. Brands like Chery and Geely have been at the forefront of this conversation, while some smaller companies have also received attention. Originally, these manufacturers aimed to introduce their vehicles by the summer of 2007. However, this timeline has been pushed back because several models failed preliminary U.S. safety tests. Despite these setbacks, it's likely that at least two Chinese manufacturers will begin exporting cars to the U.S. before 2009, with prices starting at a competitive $8,500.
The initial buzz about $6,600 cars from China has faded. Many auto enthusiasts, including myself, speculated about these inexpensive, basic vehicles potentially selling for less than $7,000?"around $3,000 cheaper than current U.S. models. Concerns about the effect on the auto industry were rampant. As it turns out, those fears were premature.
What Happened?
The pricing was accurate until U.S. automotive safety experts tested the vehicles. Every model tested failed, and it wasn't just minor issues like bumper problems. In one instance, the damage was so severe that the model was deemed unfit for the U.S. market. Instead, manufacturers were advised to release updated models that meet the latest safety standards.
Despite these challenges, Chinese automakers are planning to launch in the U.S. in the coming years, contingent on the following:
Approval from the Central Planning Committee
Let's not forget that China is governed under a totalitarian regime. Only high-ranking officials can authorize vehicle exports. With domestic demand soaring, exports will only happen once additional production capacity is available. Expect new factories from Geely Automotive, Chery Automobiles, and Diphthong Motors to address this.
Development of a U.S. Dealer Network
Geely is well ahead in establishing a dealer network, spearheaded by Malcolm Bricklin, the man behind Subaru's network in 1968. Bricklin, known for his automotive ventures in the '70s and the Yugo in the '80s, is now assembling a network to cover all 50 states and parts of Canada by 2008?"ahead of the launch of five Geely models.
Passage of Stringent Government Safety Tests
Although the initial models failed, that doesn't mean they won't eventually be available in the U.S. market. Remember the $6,600 price? It’s estimated that it would take an additional $1,500 to $2,000 per vehicle to meet U.S. safety and emissions standards, thus raising the price. Models that don't pass tests will not be imported; instead, expect a couple of compliant models to be introduced first, followed by updated versions of others in subsequent years.
By starting at $8,500, these Chinese vehicles are less threatening to the market than previously feared $7,000 models. Yet, the idea of purchasing well-equipped cars for under $10,000 has piqued curiosity?"a factor that importers of Chinese brands hope will capture your attention.
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