Chinese Automaker Changfeng Will Make Debut At Detroit Show
Along with exotic cars and concepts from big global auto makers, visitors to the international auto show this month in Detroit will see vehicles from an obscure Chinese auto maker called Changfeng Group Co.
Up close, the five Changfeng vehicles, two sport-utility vehicles, two pickup trucks and a concept car, don't look like much of a threat to established global auto giants. All of them, except for the SUV called the Liebao (cheetah in English) CS6, have quirky exterior looks that put them outside the mainstream of the flock of crossover utility wagons and pickup trucks crowding the U.S. market.
But Changfeng's presence in Detroit — its first international auto show outside China — highlights a shift in the competitive landscape of China's auto industry that could trouble Detroit's struggling Big Thee in years to come.
“Before, when competition wasn't free, it was difficult for us to survive in the market, compared with those big state-owned enterprises,” says Jianxin Li, the company's 53-year-old chairman and a Communist Party leader in Hunan province. “Real competition will do more good for us.”
Real competition in China could also mean more headaches for big global auto makers outside China. As Changfeng's Detroit auto-show display indicates, Chinese auto makers are looking to compete with the global giants in overseas markets. For Changfeng, Mr. Li says, selling in the U.S. is important because it will help boost the image of the company's vehicles in China, where picky consumers are suspicious of the quality of Chinese brand cars.
The rapid growth of China's domestic auto market has pulled in technology and technical talent that give even small auto makers such as Changfeng the building blocks to assemble a modern vehicle fit for sale in a developed market — if not right away, then one or two product generations from now.
The first Chinese cars sold in the U.S. in significant volume could be sold under the badges of DaimlerChrysler AG's Chrysler Group, under a deal struck late last month between Chrysler and Chinese auto maker Chery Automobile Co.
Industry analyst Michael Dunne, a vice president of market-research firm JD Power Asia Pacific Inc., says smaller Chinese car makers such as Chery, Great Wall Motor Co. and Geely Automobile Co. could have an edge in moving into export markets because they are nimbler and better able to adapt than some of the big state-controlled vehicle makers.
“Who will come out as a winner or a loser in the survival battle among China's numerous auto makers and wannabes will depend on how they adjust themselves to the market,” he says.
Changfeng, based in Changsha, Hunan province, represents the next tier of China's automotive strivers. The company, with roots in a factory that repaired guns for the People's Liberation Army in the 1950s, has put itself on a steep learning curve. Changfeng began producing SUVs just a decade ago in a joint venture with Japan's Mitsubishi Motors Corp.
In Changsha, Changfeng is busy designing cars after engineering the two SUVs it will display at the Detroit auto show. The company hopes to bring these to market as early as next year, pending approval from Beijing. Changfeng hopes sometime within the next decade to have trucks to sell in the U.S. under its Liebao brand. Changfeng, through its majority owned Anhui Changfeng Yangzi Motor Manufacturing Co. unit, already exports compact pickups to countries in the Middle East, Africa and South America.
Tags: chery geely nanjing hafei zhonghua SAIC lifan
Up close, the five Changfeng vehicles, two sport-utility vehicles, two pickup trucks and a concept car, don't look like much of a threat to established global auto giants. All of them, except for the SUV called the Liebao (cheetah in English) CS6, have quirky exterior looks that put them outside the mainstream of the flock of crossover utility wagons and pickup trucks crowding the U.S. market.
But Changfeng's presence in Detroit — its first international auto show outside China — highlights a shift in the competitive landscape of China's auto industry that could trouble Detroit's struggling Big Thee in years to come.
“Before, when competition wasn't free, it was difficult for us to survive in the market, compared with those big state-owned enterprises,” says Jianxin Li, the company's 53-year-old chairman and a Communist Party leader in Hunan province. “Real competition will do more good for us.”
Real competition in China could also mean more headaches for big global auto makers outside China. As Changfeng's Detroit auto-show display indicates, Chinese auto makers are looking to compete with the global giants in overseas markets. For Changfeng, Mr. Li says, selling in the U.S. is important because it will help boost the image of the company's vehicles in China, where picky consumers are suspicious of the quality of Chinese brand cars.
The rapid growth of China's domestic auto market has pulled in technology and technical talent that give even small auto makers such as Changfeng the building blocks to assemble a modern vehicle fit for sale in a developed market — if not right away, then one or two product generations from now.
The first Chinese cars sold in the U.S. in significant volume could be sold under the badges of DaimlerChrysler AG's Chrysler Group, under a deal struck late last month between Chrysler and Chinese auto maker Chery Automobile Co.
Industry analyst Michael Dunne, a vice president of market-research firm JD Power Asia Pacific Inc., says smaller Chinese car makers such as Chery, Great Wall Motor Co. and Geely Automobile Co. could have an edge in moving into export markets because they are nimbler and better able to adapt than some of the big state-controlled vehicle makers.
“Who will come out as a winner or a loser in the survival battle among China's numerous auto makers and wannabes will depend on how they adjust themselves to the market,” he says.
Changfeng, based in Changsha, Hunan province, represents the next tier of China's automotive strivers. The company, with roots in a factory that repaired guns for the People's Liberation Army in the 1950s, has put itself on a steep learning curve. Changfeng began producing SUVs just a decade ago in a joint venture with Japan's Mitsubishi Motors Corp.
In Changsha, Changfeng is busy designing cars after engineering the two SUVs it will display at the Detroit auto show. The company hopes to bring these to market as early as next year, pending approval from Beijing. Changfeng hopes sometime within the next decade to have trucks to sell in the U.S. under its Liebao brand. Changfeng, through its majority owned Anhui Changfeng Yangzi Motor Manufacturing Co. unit, already exports compact pickups to countries in the Middle East, Africa and South America.
Tags: chery geely nanjing hafei zhonghua SAIC lifan
posted by Smartcar Owner at 11:42 AM
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