How Close Are Chinese Cars?

Remember at the 2006 Detroit Auto Show how Chinese Automaker Geely Motors caused a stir by bringing their newest models to the show? Well, we have been following the Chinese car market and have a wide variety of emotions over the prospects of the Red China selling cars in the USA.. With automakers such as Honda already in the Chinese market and exporting cars to Belgium it shows that the Western World will buy a car made there. That has to worry the Big 3 and it is particularly troubling to Cleveland's stronghold in the automarket. DaimlerChrysler is looking to import a small car from China car manufacturer Chery (who GM picks on for its similarity to its Chevy brand). A lot people are probably thinking to themselves: "I am an American and will not purchase a car from China because I am Patriotic". They also probably talk about the quality and a lot of other issues but the fact simply is that if you can purchase a car with similar features and offer a warranty and price it for less it will sell. It will get badmouthed and ridiculed but it will sell. And what that will do the economy in the Cleveland area could be devastating.

So how close are these cars to be a reality. Probably closer than we would like to imagine. Bruce Belzowski told Investors Business Daily on Oct 31, " China's auto market is going to hit a wall when everyone who can afford a car has a car. Thats when China becomes a big car exporter." China is selling more cars everyday with a growth margin of 26% over the last year. As that market dries up look for Chinese auto manufacturers to make a huge push to break in the United States. And that is probably what keeps auto executives up at night as its just one more thing to worry about.



Tags: chery geely nanjing hafei zhonghua SAIC lifan