Chinese car manufacturer Zhongxing is aiming to export it's models to US in coming years :thumb:


--------------------------------------------------------------------------

FORBES

"A Chinese state-owned manufacturer of pick-up trucks and sport utility vehicles (SUV) has said it will start exporting to the US, the South China Morning Post reported.

A spokesman for Zhong Xing Automobile (ZXA), based in Hebei province in north China, told the Hong Kong paper that the company aimed to have the first Chinese vehicle on sale in the US within 16 months, with planned exports of 30,000 in 2007, rising to 150,000 by 2010.

Two other Chinese firms, Chery Automobile and Geely Automobile, have announced plans to export to the US, both targeting the low-end passenger car market, selling for less than 10,000 usd per unit.

The ZXA spokesman, who gave his name only as Wang, said the firm was in negotiations with agents in the US to set up a sales network and was working with testing and certification centres outside the US to pass the vehicles to meet US requirements.

The pick-ups and SUVs will sell for more than 100,000 yuan.

ZXA has an annual production of 40,000 pick-ups and 15,000 SUVs, with assembly operations in Malaysia, Russia and Ukraine and last year exported 7,000 vehicles, the report said."

Mel Rapton, a Honda principal in Sacramento, said he has an agreement to sell pickups and SUVs made by Zhongxing Automobile at a price of about $10,000 each according to www.freep.com Detroit Free Press on 12/17/05.

i find it funny that such a tiny maker expects to make to the US way before the bigger makers like SAIC and CHERY etc

"By AUTOMOTIVE NEWS

AutoWeek | Published 06/23/06, 9:02 am et

Toyota, Honda, Nissan and a host of other automakers export cars to the United States.

So why not Hebei Zhongxing Automobile Co.?

Who?

Tiny Zhongxing (pronounced jong shing), which sold a grand total of 7,840 vehicles in 2005 (down 34.0 percent from 2004), became the fourth Chinese automaker with plans to sell cars in the United States.

One problem, though: The Chinese automaker has no models salable in the United States. They don't meet U.S. emissions and safety standards.

ZX Automobile Co. of North America, a subsidiary of China America Automotive Inc., of Parsippany, N.J., says it plans to import SUVs and pickups manufactured by Zhongxing in the second half of 2007.

Zhongxing president Xiao Wei has admitted that technology is a huge obstacle. But Zhongxing is charging ahead.

"We are studying the requirements for the U.S. market," said Yang Yongjin, manager of Zhongxing's import and export department. "We will need to make the right adjustments as far as emissions and safety requirements to our models. The project isn't the responsibility of my department yet."

Chery Automobile Co., a small but successful Chinese automaker, originally aimed to begin exports to the United States in 2007. But its engineers have admitted that the task is tougher than expected. They now think 2009 is more realistic.

China America is not the first U.S. company to claim it will import Zhongxing's vehicles. David Shelburg, an Arizona businessman, also has said he would import a Zhongxing SUV. But Zhongxing never announced the plan and no SUVs appeared.

Zhongxing is in Baoding, a city a few hours outside of Beijing in northern China. Baoding also is home to Great Wall Motor Co., another Chinese SUV maker aiming to sell vehicles in the United States."

http://www.autoweek.com/apps/pbcs.dll/article?AID=/20060623/FREE/60619021/1041/makeview

Accompanied photo.

http://cwimg.us.publicus.com/apps/pbcsi.dll/bilde?Site=CW&Date=20060623&Category=FREE&ArtNo=60619021&Ref=AR&Profile=1041&maxw=490

Hebei Zhongzing is the name of yet another Chinese automaker that plans to have its vehicles sold in the U.S. ZX Automobile Co. of North America, which is a subsidiary of China America Automotive Inc., claims that it will be selling SUVs and pickups manufactured by Hebei Zhongzing in the U.S. by late 2007.
http://www.autoblog.com/media/2006/06/zhongzing1.jpg
Hebei Zhongzing is a small automaker even by Chinese standards, with a total annual output of last year amounting to only 7,840 vehicles. No vehicle in its current lineup meets U.S. emissions and safety standards, either. The company's president acknowledges that "technology is a huge obstacle," according to Autoweek. Meeting U.S. emissions and safety standards has been a thorn in the side of Malcolm Bricklin, whose insertion of Chery Automobile into the U.S. market has been delayed by this country's stiff safety and emissions requirements.

Zhongzing joins Malcolm Bricklin's Chery Automobile and Shufu Li's Geely Automobile Company in the Chinese auto industry's effort to establish a presence in the biggest automotive market in the world.

ZAP the USA independent auto distributor is interested in distribution of china cars. Particular interest in high efficiency electric and hybrid vehicles.

contact gstarr@zapworld.com

If ZX or any other china company is ready to sell, ZAP is ready to buy.

contact gstarr@zapworld.com

Ako još niste zapamtili ime ovog kineskog proizvođača - Hebei Zhongxing, vrijeme je da to učinite jer ova marka počinje ozbiljniji prodor na europsko tržište. Kinezi još uvijek dolaze kroz mala vrata do kupaca u EU, ali i Japanci su prije 30 godina dolazili sramežljivo, kao i Korejci prije 20 no obje su marke danas ovdje vrlo popularne.

Tako je sada red i na Kinezima koji ulaze na tržište preko jednog belgijskog uvoznika. S njime će prodavati svoje sporstke terence i pick-upove, a prvi koji dolazi je SUV, koji ipak nema kinesko ime, već svima u Europi lako pamtljivo - Landmark. Dakle Hebei Zhongxing Landmark je njihov prvi šminkerski terenac koji će za početak biti opremljen Mitsubishijevim benzincem obujma 2.4 litre.

Nije poznato kako je ovaj Kinez prošao na crash testovima budući da su loši rezultati glavni kamen spoticanja na zapadnim tržištima. Primjerice nedavno se jedan drugi kineski terenac Landwind (Kinezi očito vole 'zemaljska' imena) proizvođača Jianglinga na testovima EURO Ncapa doslovce razletio! Zbog tako lošeg rezultata nije osvojio niti jednu zvjezdicu što je bio presedan. Nadamo se da će Hebei Zhongxing - Landmark biti malo bolje sreće. (dč)

it say...landmark has come to belgium...some belgian export will sell those vehicles in europe...also the pick ups will be in offer...you see that they have mitsubishi engine

also it's sad...does this vehcile have crash test...and is it good or bad (like landwind)

latest article regarding this matter:

http://www.autoweek.com/apps/pbcs.dll/article?AID=/20061012/FREE/61011002/1041/TOC01ARCHIVE

Risky Proposition
Chinese car uncertified for U.S. sales, but dealers sought

By ALYSHA WEBB | AUTOMOTIVE NEWS

AutoWeek | Published 10/11/06, 12:44 pm et

DETROIT -- Trolling for dealers, a New Jersey-based importer will show two Chinese vehicles at the National Automobile Dealers Association convention in Las Vegas in February.

Importer China America Cooperative Automotive Inc. wants to bring two models to the United States: a pickup and an SUV. They are assembled by Zhongxing Automobile Co., a small auto manufacturer in Baoding, in the northern Chinese province of Hebei.

But the vehicles have not met stiff U.S. emissions and safety standards. So dealers signed by the importer, also called Chamco, may have no vehicles to sell. Zhongxing produced 7,800 units in 2005.

Chamco, of Parsippany, N.J., says it has an exclusive agreement with Zhongxing to distribute the vehicles in the United States. It wants to sign up 120 dealers initially. Dealers must put up $250,000, which gives them an equity stake in Chamco, says William Pollack, the importer's executive vice president for strategic planning and marketing.

Says Chamco CEO Veechwin Li: "Our biggest challenge is to make sure the quality will be there."

Risky Proposition
Chinese car uncertified for U.S. sales, but dealers sought

By ALYSHA WEBB | AUTOMOTIVE NEWS
http://www.autoweek.com/apps/pbcs.dll/article?AID=/20061012/FREE/61011002/1041/TOC01ARCHIVE
AutoWeek | Published 10/11/06, 12:44 pm et

DETROIT -- Trolling for dealers, a New Jersey-based importer will show two Chinese vehicles at the National Automobile Dealers Association convention in Las Vegas in February.

Importer China America Cooperative Automotive Inc. wants to bring two models to the United States: a pickup and an SUV. They are assembled by Zhongxing Automobile Co., a small auto manufacturer in Baoding, in the northern Chinese province of Hebei.

But the vehicles have not met stiff U.S. emissions and safety standards. So dealers signed by the importer, also called Chamco, may have no vehicles to sell. Zhongxing produced 7,800 units in 2005.

Chamco, of Parsippany, N.J., says it has an exclusive agreement with Zhongxing to distribute the vehicles in the United States. It wants to sign up 120 dealers initially. Dealers must put up $250,000, which gives them an equity stake in Chamco, says William Pollack, the importer's executive vice president for strategic planning and marketing.

Says Chamco CEO Veechwin Li: "Our biggest challenge is to make sure the quality will be there."

Hebei Zhongxing Automobile Company (ZXAuto) has announced that it has entered into a new joint venture with the Changchun government that will lead to the production of sedans and crossovers.

Hebei Zhongxing Automobile Co Ltd general manager Xiao Wei said the company is confident it will be able to sell its pickups to the United States as early as 2008 at its high-grade pickup Grandtiger release conference.
Zhongxing started preparations for entering the US market at the beginning of this year. First, it is cooperating with the China America Cooperative Automotive Inc (CHAMCO) to make products which will be sold in the US meet the required safety and emission standards. Secondly, Zhongxing is building an international service support and quality system. Xiao also said if domestic vehicles can meet all US standards, which are relatively strict, and enter the US market with a price edge, they can keep pace with international products in quality and enter other markets quickly. So entering the US market is a top priority for Zhongxing.

This is great news!

I firmly believe that compact, 4 door pickups is the best vehicle to enter the US market first.

There is vertually no competition, and the bar on refinement and quality is probably the lowest of all vehicle segments.

Make sure the quality, durability, and reliability are all there, with a decent design and great price, add long warranty and maintenance programs, it will be a hit for sure.

I firmly believe that compact, 4 door pickups is the best vehicle to enter the US market first.

There is vertually no competition, and the bar on refinement and quality is probably the lowest of all vehicle segments.

Aside from the Ford Explorer Sport Trac, Chevrolet Colorado (7-year warranty), GMC Canyon (7-year warranty), Toyota Tacoma, Nissan Frontier, Isuzu I-Series (10-year warranty)...there's virtually no competition.

Those are so called mid-sized trucks. The only true compact is the Ranger, which is old and dying. The new one out (delayed 5 times) will be a mid-size too.

Btw, try to buy any of these (except the Ranger) for under 11K. Good luck.

The Colorado, Canyon, and I-Series are still small pickups.

And the reason why these trucks are moving up in size has much to do with the shrinking market for small pickups...at any price. Just because it's cheap doesn't mean there's a market for it. For $11k, you can get an excellent used small pickup (I even priced a new Isuzu I-Series for $11,800) or a very good used full-sized pickup. Why would someone forego the added utility (and that is what these buyers want) for the "newness" of a truck from an untested brand name?

The small truck market is shrinking because there's no profit for these giant car companies. That's the bottom line. Why do you think DCX is looking at Chery for a small car?

Buy used vs new? That applies to any vehicle segment - why would people buy a Kia when an used Honda may be better? People just do. I for one don't like used vehicles.

Imagine a well built 4 door compact pickup starting at $8900 with a great warranty? And a fully loaded 4X4 with a V6 for $14900? I think that would easily crack the market - better chance than any other vehicle segment.

Isuzu is still in business???

Let's see....small truck market is shrinking because nobody (not a significant number of buyers) wants a tiny truck. The Ranger's cheap and small...and sales are dropping. Bring in an old-technology Chinese small truck and it will be no better, but the Ranger has 3,000 dealers with a known history.

New vs used is becoming a tougher and tougher thing since late model used vehicles today are of a higher quality than NEW vehicles of just 20 years ago. So if you can get a used 50,000-mile F150 for the price of a new little Chinese truck, which do you think the market will prefer? And Kia sells a few hundred thousand vehicles because they're decent products for their price...they're competing with NEW cars more than used ones.

Imagine a well-equipped 11,000-mile Ford F150 for $9,000 (I just found it on cars.com). Do you really think a truck buyer would choose a new truck the size of a Ranger for the price of a gently used full-sized pickup? As proof...Isuzu sells only a few hundred I-Series pickups each month at the low prices they have and they carry a 10-year warranty. Price isn't everything.

Again, I do not believe no one wants small trucks, especially with the gas prices these days. They don't buy small trucks because there are no good choices. The major car makers simply abandoned this segment because they don't make any money at all. The Ranger is dying because it's just way too old, and the price is not that much cheaper than a F-150, which Ford can build for the same money and promotes heavily (when's the last time you seen a Ranger commercial?)

Remember just a few years back everyone wrote off the small car market? Small cars were ugly and unattractive (remember the Echo?) Now with gas prices going thru the roof and a new wave of smartly designed small cars, the segment is booming.

Same thing can be done to the small truck market. A smart and attractively designed, robust and reliable, well priced entry would do quite well. (Again, keep in mind of the gas prices. Without that factor, small trucks or cars would not fly in the US market.)

Let's see, do I want a gas guzzling, used F-150, about to run out of warranty, with funny dog pee smell and unknown stains on the seats, OR I could have a small 4 door pickup, with that brand new car smell, backed by a 10 year warranty, do much better on gas, all for the same $9000? I'd take the new truck thank you very much.

........I could have a small 4 door pickup, with that brand new car smell, backed by a 10 year warranty...... I'd take the new truck thank you very much.


From the CHAMCO website:

"ZXAUTO NA's SUV and pickup products offer a strong minimum 3-year/36,000-mile limited warranty program as well as a 495 Toyota-type 160-horsepower turbo-charged fuel injection engine (subject to change), currently projected to provide 25–30 miles per gallon fuel efficiency."

Oh by the way what's a "495 Toyota-type 160-horsepower turbo-charged fuel injection engine" ????

Again, I do not believe no one wants small trucks, especially with the gas prices these days. They don't buy small trucks because there are no good choices. The major car makers simply abandoned this segment because they don't make any money at all. The Ranger is dying because it's just way too old, and the price is not that much cheaper than a F-150, which Ford can build for the same money and promotes heavily (when's the last time you seen a Ranger commercial?)

Remember just a few years back everyone wrote off the small car market? Small cars were ugly and unattractive (remember the Echo?) Now with gas prices going thru the roof and a new wave of smartly designed small cars, the segment is booming.

Same thing can be done to the small truck market. A smart and attractively designed, robust and reliable, well priced entry would do quite well. (Again, keep in mind of the gas prices. Without that factor, small trucks or cars would not fly in the US market.)

Let's see, do I want a gas guzzling, used F-150, about to run out of warranty, with funny dog pee smell and unknown stains on the seats, OR I could have a small 4 door pickup, with that brand new car smell, backed by a 10 year warranty, do much better on gas, all for the same $9000? I'd take the new truck thank you very much.
The Ranger (and Mazda B-Series) is thousands of dollars less expensive than an F-Series, as are the GM triplets (Chevrolet Colorado, GMC Canyon, Isuzu I-Series). Even with the 4-door Isuzu being sold with a 10-year warranty and a price well under $15,000, sales are still pitiful.

Gas prices are far from "going thru the roof" and the compact car market is doing well, but it's not "booming." Other than Scion's 150,000 additional sales, what vehicle is "booming" in that segment? Yaris? Echo sold very well in its first years too. Aveo? The Metro sold very well in its first years.

Pickups are, for the most part, designed to work. Some casual buyers are realizing that and moving to cars and "crossovers." And the people who actually use their trucks would rather have a full-sized pickup (a V6 F150 gets only slightly less mileage than a V6 Ranger) or at minimum a mid-sized pickup from Dodge or Toyota. There's little or no demand for a pickup smaller than those trucks in the US. If Subaru's Baja had been a bigger seller, I might be convinced otherwise. But I just don't see it.

As for price, off-lease F150s can be found clean (no dog pee) with plenty of mileage left on them. An F150 will routinely run well over 100,000 miles without a major problem...who's going to believe that a "no-name" brand from a country that has never sold a vehicle in the US will do the same on their first try? And who will repair it when something does go wrong?

Now try and sell that brand new 4 door Isuzu for $10,000 - you don't think they can sell 100,000 of them a year? Same with the Subaru's Baja (the styling is aweful I know). You'd be crazy not to.

In my mind, this "small truck" entry from a Chinese truck maker, must meet any and all minimum requirements to enter the US market. With that said, we don't need to worry about service and parts - those demands will be met. The truck will have to be modern and well-built, with as many parts already available on the market as possible - such as piston rings and gaskets. A crappy product is simply not acceptable here, the success of any strategy depends on it. The size should be similar to last gen Toyota Tacoma.

Small car segment is not booming?!? The segment is up some 15+% in some reports I've seen, while the overall market is down. Even the about to be redesigned Corolla is setting records. Good luck trying to buy a Yaris or Fit. You mentioned Scion - now imagine Scion coming out with a hot uni-body compact pickup, inline with the rest of the lineup, with tons of personalization parts and a low price - I'd think that would sell very well.

Yes, the gas price has come down from the $3+ we paid in CA over the summer, but people are shell-shocked and everyone understands that we will again see $3 soon, if not $4. The "casual" buyers of trucks, which is about 70% of them, are switching out of trucks because they don't have a choice.

I don't know where you live, but from where I stand, I can see a lot of first time car buyers, young people, low-income folks, people who want a second or third car, or want something to haul or tow their toys around (such as dirt bikes or jet ski) to be interested in a well-built and well-backed brand new compact pickup starting under $9,000 and fuel efficient. Selling 100,000 a year is not out of the question.

Used cars outsell new ones by 3 to 1. So for every 3 people who would choose a used truck, 1 would choose a new one. Yeah, plenty of people would take your used F-150, but there will be folks who would take my new truck instead for the same money.

I don't disagree that there will be challenges. But I still believe this is the easiest vehicle segment for the Chinese cars to enter. If Chinese car makers can't even successfully enter this segment, they shouldn't come to the US market at all.

Btw, if you don't think this is the easiest segment, please suggest which one is...?

Now try and sell that brand new 4 door Isuzu for $10,000 - you don't think they can sell 100,000 of them a year? Same with the Subaru's Baja (the styling is aweful I know). You'd be crazy not to.
No...I don't think that, and it's my job to study such things. If a four-door Isuzu could sell 100,000 copies at $10,000, they'd sell more than the 6-7k a year at just a couple thousand dollars more.

Buyers want to know that they can get service (which a new brand cannot guarantee)...and a used car already has a dealer network available. Buyers want to know that the truck will have some value in five years...ask Daewoo buyers what their cars are worth today. All these things point to a new Chinese truck NOT reaching 100,000 units of sales in the first few years of sales in the US.

American trucks are better equipped than the Chinese trucks. They're better quality. And they don't get taxed with a 25% tariff (which Chinese trucks would get).

The Isuzu is a Chevy/GMC knockoff, so no one in their right mind would buy a Chevy re-badged as an Isuzu (it's like a downgrade), that's where this particular problem lies. Now, how many Chevy/GMC/Isuzu sells in a year? Yes, a lot. Now reduce the price to $10,000... they'd flying off the shelves.

Again, you're talking about dealer network and maintenance/repair services - I've said it's a given that whoever comes to this market, in any vehicle segment, must have this area covered, so it's a moot point. Ask Daewoo buyers? Why not ask Kia and Hyundai buyers?

The 25% truck tariff only applies to 2 door single cab trucks (I'm pretty sure of it). That's why I keep saying a "4 door truck", and the truck can't be something right off the Chinese market, it has to be a design up to US standards - so we can assume it will be nicely designed, engineered, and equipped.

Finally, my whole point in all of my posts in this thread is that the compact pickup is the easiest vehicle segment for the Chinese car makers to enter the US market. All of the points you raised, about quality, reputation, dealer network, resale value, used vs new, etc. applies to any vehicle segment, so again, they're moot points. Chinese car makers will need to face those obstacles no matter what vehicle segment they enter first.

So one more time - I think compact pickup is the easiest segment to enter first and I gave my reasons. Which segment do you think would be easier or more ideal? Please provide your reasons and rationale.

The Isuzu is a Chevy/GMC knockoff, so no one in their right mind would buy a Chevy re-badged as an Isuzu (it's like a downgrade), that's where this particular problem lies. Now, how many Chevy/GMC/Isuzu sells in a year? Yes, a lot. Now reduce the price to $10,000... they'd flying off the shelves.
Technically, Chevrolet and GMC are knockoffs of the Isuzu pickup since Isuzu designed the truck in the first place. The Isuzu is already under $12,000 in transaction prices for extended cab pickups and a little more for crew cabs, they carry a much better warranty than the Chevrolet/GMC (making the GM brands a downgrade), and they sell far fewer than 10,000 units a year. The ONLY reason why Chevrolet and GMC are clearing 165,000 trucks a year is because they have somewhere above 5,000 dealers selling them, which brings us to the next point...
Again, you're talking about dealer network and maintenance/repair services - I've said it's a given that whoever comes to this market, in any vehicle segment, must have this area covered, so it's a moot point. Ask Daewoo buyers? Why not ask Kia and Hyundai buyers?
Yes, they "must have this area covered," which they won't. It has taken Kia 14 years to build their current dealership network and they have no vehicles sold in volumes over 100,000 units a year. Hyundai has over two decades in the US and they have one 100,000-unit model. Unless you're talking 20 years after model introduction, my bet is against Zhongxing selling 100,000 of any model in the US in a year.

I pointed to Daewoo because Hyundai and Kia actually have some resale value. Daewoo does not. Yugo didn't. Price alone does not sell a vehicle, and I can almost guarantee that a $10,000 four-door pickup from China will compete more with 4-year old (or more probably 6-year old) used pickups. I can't imagine any significant number of new-truck buyers seriously considering a $10,000 "small" pickup from an unknown manufacturer when a $12,000 Isuzu or $15,000 Ford/Chevrolet is available with more cargo capacity and proven track records...and documented resale values.

The 25% truck tariff only applies to 2 door single cab trucks (I'm pretty sure of it). That's why I keep saying a "4 door truck", and the truck can't be something right off the Chinese market, it has to be a design up to US standards - so we can assume it will be nicely designed, engineered, and equipped.
Actually the tariff applies to "trucks," 2-door, extended cab, or 4-door pickups and even commercial vans. There was even a point where 2-door SUVs were considered to be trucks under the same regulation.

So one more time - I think compact pickup is the easiest segment to enter first and I gave my reasons. Which segment do you think would be easier or more ideal? Please provide your reasons and rationale.
You're probably right that this would be the easiest to enter. My point is that "easiest" doesn't equate to "easy." All of the obsticles I've mentioned are huge which is why the number of new light-vehicle manufacturers entering the US market in the past 20 years can be counted on one hand.

Technically, yes, Isuzu did most of the design work (while under partial GM ownership) but who cares? The general public's perception is much more important (and you emphasized that in many of your points). The fact is no American is going to buy the same Chevy/GMC truck with an Isuzu logo on it.

Re-read all of my posts. I never said it will be easy - I only said this is the easiest segment to enter. I never said it will be Zhongxing. I never said whoever it may be could sell 100,000 in the very first year. It's like when someone said let's build a computer from scratch and you jump right in and say, "Oh, you can't build a computer overnight!" yet no one implied it can be done overnight...

I'm talking apple, and you keep talking orange. At the very least, you agreed that this is the easiest car segment to enter. Good. ("Easiest" is relative, like the English major is easier than Genetic Engineering).

Again, all of the obstacles you mentioned are well known, by everyone in the car industry, even all the folks on this forum. Nothing new there. Those same obstacles will only be greater if you try to bring vehicles in another segment, such as Bricklin's plan with luxury cars. At the very least, the obstacles are smaller when it comes to low-priced compact pickups.

The Chinese cars will eventually be here. Do you not agree with that? I'm sure you do. They will HAVE TO overcome all of the obstacles you mentioned and more, yes? I'm certain you would have to agree with that too. It will take a ton of money, lots of time, great people, and good products, marketing, service, etc. etc. to get the business up to speed, yes? I'm positive you have to nod your head. To get straight to the point, these obstacles are NOT unique to the compact truck segment, and you can stop talking oranges now...

Take whatever angle makes you feel best, but I was talking the same apples as you.
The fact is no American is going to buy the same Chevy/GMC truck with an Isuzu logo on it.
This goes to my point. The SAME truck with a better warranty, a lower price, and established dealerships can't sell 10,000 units. And your point is that it's a lesser name. Do you think another brand entering the US market with no history and a $10,000 price tag will have a better name than Isuzu?

I never said whoever it may be could sell 100,000 in the very first year.
Right, but even five or ten years will take STELLAR quality and a SPECTACULAR dealer network. Pickup truck buyers are particularly patriotic in the US, which is probably why the Ranger (and ancient vehicle) still sells 100,000 units a year. And yet another reason (on top of the tariff issue) that all pickups sold in the US are actually built in North America.

Again, all of the obstacles you mentioned are well known, by everyone in the car industry, even all the folks on this forum. Nothing new there. Those same obstacles will only be greater if you try to bring vehicles in another segment, such as Bricklin's plan with luxury cars. At the very least, the obstacles are smaller when it comes to low-priced compact pickups.

The obstacles are smaller, but in the long-term selling something higher priced with even more features (Bricklin's BMW at a Chevrolet price idea) is a better concept. If you enter at the entry level, you're going to be saddled with the "cheap" label for a long time, like Hyundai who now builds very good cars but still can't shake the Excel heritage.

The Chinese cars will eventually be here.
Yes. So will the Indian and Thai manufacturers. I even expect Russian vehicles at some point and there's the potential for Brazilian vehicles to return to the US market. But pickups have a financial handicap (except for Thailand who might be excempted from the "chicken tax" that charges 25% on pickups), even for low-cost Chinese manufacturers.

Enough of this apple and orange talk...I'm getting hungry.

Here's my problem with your "oranges".

Essentially NONE of your points is unique to the compact truck segment, they universally applies to all vehicle segments, whether they be luxury, sports car, full size SUV, etc. etc.

My only point of this entire thread is that the compact truck segment should be of the least resistence for entry, given the requirements for fit-and-finish, NVH, styling, etc. are lower than any other vehicle segment.

STOP telling me how difficult it will be, EVERYONE KNOWS IT WON'T BE A CAKE WALK, NO MATTER WHAT VEHICLE SEGMENT IT IS, REGARDLESS OF WHETHER IT'S CHINESE, INDIAN, OR RUSSIAN THAT IS TRYING TO CRACK THE MARKET. That is "orange" talk.

If you're talking "apples" with me, you should only argue about whether or not the compact truck segment is the easiest segment to enter first. (And if not, what is?)

Is that clear enough for ya? (Peeps are DENSE on this forum... :nono: )

By the way, just for your sake, I created a topic called "Potential obstacles / difficulties of entering the US vehicle market", so you can continue on and on about how it will take 20 years for a new foreign brand to establish itself in the US market... ;)

http://www.chinacarforums.com/forum/showthread.php?p=10023#post10023

The Isuzu is a Chevy/GMC knockoff, so no one in their right mind would buy a Chevy re-badged as an Isuzu (it's like a downgrade) .

No, Isuzu made these for years for GM, who re-badged them

The 25% truck tariff only applies to 2 door single cab trucks (I'm pretty sure of it).

Nope. All trucks.

So one more time - I think compact pickup is the easiest segment to enter first and I gave my reasons. Which segment do you think would be easier or more ideal? Please provide your reasons and rationale.

Mid-sized trucks, semi-completed, finished in the states. 4% tariff on un-finished vehicles.

No, Isuzu made these for years for GM, who re-badged them
The Chevrolet LUV was a rebadged Isuzu pickup, but all GM pickups sold in the US since 1983 have been produced in GM plants.

Just an FYI for this brand

http://www.chamcoauto.com/

Not to argue with anyone, but can someone cite the source on the 25% US tariff on imported trucks? I swear I read it somewhere and it only applies to single cab trucks.

So Range Rovers, Toyota Landcruisers, Porsche, and any other imports EPA or the gov label as "trucks" get this tariff? How does it work? I'd really like to know.

Range Rovers, Land Cruisers, and Cayennes are SUVs. Being four-door SUVs, they side-step the law. There was a time when regulators made a differentiation between a 2-door SUV and a 4-door SUV where the 2-door models were trucks and the 4-door models were "passenger cars," but Nissan sued and won making all SUVs "passenger cars" under the law.

Pickups of all bodystyles (as long as they have an open bed) are "trucks" and fall under the "chicken tax." I'm not sure how the law treats vans (specifically Kia, Hyundai, and Mazda minivans) since it was originally established to punish Germany who was exporting Volkswagen vans to the US.

So anything with an "open" bed? How about a truck with a removable "camper"? A lot of folks add them to their trucks to enclose the bed, after market parts of course.

Maybe making the removable "camper" standard? ;) The 1st gen 4 Runner by Toyota had this exact feature, so did some Ford Bronco.

Sounds like a pretty easy law to "bypass". The law is probably against WTO regulations, but no one has yet to complain :confused:

The actual regulation may not say "bed" but may refer to an opening from the passenger area to the cargo compartment. If you made a Bronco/4Runner-like vehicle, that would be an SUV. I do recall Subaru creating the BRAT with the jump seats in the bed to make it a passenger car and not a truck, therefore evading the tariff.

The "chicken tax" only applies to countries that the US does not have trade agreements with. If you were to build a truck in countries like Chile or Israel or the Dominican Republic, your vehicle would be exempt. Australia and Thailand have been working on similar agreements (the former may already exist).

when do you think that they'll go to the US?

Risky Proposition
Chinese car uncertified for U.S. sales, but dealers sought


dont count your chickens before your eggs are hatched.

what if the chinese cars takes years to certify (if ever:D :lol: ), the dealers will get a raw deal, the aggro and the agony:(

why does china feel the need to make a land cruiser clone,built your own rig,are they kidding:lol: its junk

New Jersey Company Plans To Sell Chinese Autos By 2008
January 03, 2007
http://www.trucktrend.com/features/news/2007/163_news070103_01l+chamco_admiral+front_view.jpg

Truck Trend,

A New Jersey-based company called China America Cooperative Automotive, or simply Chamco Auto, has been quietly developing a plan become the first seller of Chinese-made automobiles in North America. The company has formed a partnership with China's Hebei Zhongxing Automobile Company (ZXAUTO) and wants to begin selling cars late this year or early 2008.

Everyone can't be the first. Sorry. Maybe they can be the second?

Chamco wants to be first to import to U.S.
January 12, 2007

BY JUSTIN HYDE

FREE PRESS BUSINESS WRITER

Tucked away in a ballroom at General Motors Corp.'s headquarters was a one-company, two-vehicle auto show offering a new proposition to potential dealers: Sign up now for the chance to sell trucks from China.

The China America Cooperative Automotive Inc., or Chamco Auto, aims to start imports of a compact SUV and a four-door pickup from China to the United States by mid-2008, both with a price tag of $13,250. Unlike Changfeng Auto Group, the Chinese manufacturer displaying cars at the Detroit auto show, Chamco Auto is a New Jersey-based marketing group with a contract to import models from Zhongxing Automobile Co. in China.

Advertisement


Bill Pollack, Chamco's chairman, said the company was taking a careful approach -- capping the number of Chamco dealers, conducting safety tests and modifying the Zhongxing models with American touches such as larger cup holders -- to ensure that a "made in China" label doesn't create a negative connotation among U.S. car buyers.

"We know we'll have people come after us," Pollack said. "We're not going to give them the opportunity."

Zhongxing already exports its vehicles to 40 countries, and Pollack said Chamco would import the two models to Mexico starting later this year as a sort of extended durability test. Chamco executives ran their first crash tests on the two models a few months ago, and Pollack said work was under way to make the models meet all federal crash and environmental standards to earn Chinese export licenses.

"China is taking a broad view of the auto industry," Pollack said. "It's not going to allow a single company with poor quality to ruin the rest."

Once the vehicles can be imported, Chamco aims to sell about 75,000 in the first year and 200,000 the next. In addition to the two trucks, Chamco plans to add a crossover and a sedan to its lineup after its launch.

Pollack and Veechwin Li, the company's chief executive, said about 20 of the company's planned 150 dealers had been approved, with many more in talks. As part of their agreement, dealers are granted stakes in Chamco.

<<< sigh >>>>

it will be interesting to see zhongxing deers in driveways of americans

CHAMCO official site:
http://www.chamcoauto.com/index.php

A 4 door nicely equipped truck with leather interior for $8,000 USD! It's exactly what I was talking about in this thread!

Just get the styling right, the quality up to par, and bring it to the US and watch it sell like hot cakes!

," but Nissan sued and won making all SUVs "passenger cars" under the law.


Hudson, are you talking about the 1988-1989 2 Door nissan Pathfinder, where nissan did not sell the 2 door any more, only the 4 door??!

Also speaking of American Market penetration, Peugeot of France is a well established car manufaturer, yet they had trouble in the US market and had to quit, so did Rover whose cars were then based on Honda civic/accord and legend. Where as Hodna thrived and profited, rover cars based on same mechanicals did not. In a nut shell getting into the americal market is not a cakewalk. Chinese manufacturers should still try and failure should not be something to be ashamed off, but used as a learning curve for a better next time

Those two SUVs are predicted for sale in USA:
http://www.blogsmithmedia.com/www.autoblog.com/media/2007/06/vegas_promo_2.jpg

http://www.autoblog.com/2007/06/07/steve-saleen-to-bring-chinese-cars-to-u-s/

CHAMCO AUTO was one of five Chinese companies that displayed vehicles at 2008 North American International Auto Show in Detroit.

CHAMCO AUTO, a truly innovative automotive importer, will make a unique, celebrated stop at the 2007 North American International Auto Show on January 10 and 11.

CHAMCO AUTO, whose mission is to become the first automotive company to import and distribute vehicles produced by Chinese manufacturers throughout North America, will have an unprecedented vehicle unveiling away from Cobo Hall, at the Cartier Ballroom in the Marriott Hotel on E. Jefferson Avenue in downtown Detroit. Unlike any other automotive company, CHAMCO AUTO has distinguished itself from the industry, and set itself apart from other auto show participants, by:

* Developing an exclusive partnership with ZXAUTO China, providing the importation of a line of entry-priced vehicles to the North American market. CHAMCO AUTO will import, market and distribute SUVs and pick- ups, starting in late 2007 to mid 2008 into Mexico and the US, and plans to bring in sedans and crossovers one year after that. CHAMCO AUTO is also negotiating with other Chinese car manufacturers to fill out the line.

* Utilizing a unique business model that dramatically reduces costs by outsourcing a variety of functions to the world's leading Fortune 500 automotive experts in such areas as transportation and logistics; service, parts and warranty; legal; information technology and marketing.

* Employing the principle of "shared ownership" to ensure that all key stakeholders involved with CHAMCO AUTO are highly motivated to succeed. These stakeholders include our Chinese car manufacturers, outsourcing providers, executive team and our dealer partners.

* Only 150 joint venture dealer partners will be selected during our first two years to develop and ensure a superior dealer network for CHAMCO AUTO, with large exclusive territories.

The exciting unveiling of this unheard of entry-level priced line of pickups and SUVs at the 2007 North American International Auto Show, and the opportunity to become a part of this extraordinary event, will showcase the one of a kind opportunity.

"This is an extremely exciting time for CHAMCO AUTO as we prepare to arrive in the city of Detroit for the 2007 North American International Auto Show. The vehicles we will have on display, across the street from the show, are second to none and will offer new and exciting automotive choices priced at least 20% below any and all comparably equipped models from name brand competitors, including other Chinese importers. We invite interested dealers to come and witness history in the making as CHAMCO AUTO takes the Motor City, and the automotive industry, by storm," said Bill Pollack, Chairman of CHAMCO AUTO.

CHAMCO AUTO, based in Parsippany, New Jersey, expects to become the first company to import Chinese-made vehicles into North America. Further information about ZXAUTO China can be found at www.zxauto.com.cn. Information on CHAMCO AUTO can be found at www.chamcoauto.


Chamco Auto's sport utility vehicle is displayed at the North American International Auto Show in Detroit, Sunday, Jan. 13, 2008. Despite a year where toys made with lead paint and tainted toothpaste fueled distrust about the "Made in China" label, Chinese automakers are showing increasing interest in cracking the lucrative U.S. market. It may be a challenge to persuade American drivers to buy Chinese, observers say. But with high-profile recalls failing to squelch demand for China-made products, the day for Chinese cars on U.S. roads is nearing.

http://s2.mojalbum.com/kitajci-2-foto_4219952_10393030_10690783.jpg

About CHAMCO AUTO.

The CHAMCO Story
On January 26, 2006, CHAMCO AUTO signed a definitive, exclusive agreement with Hebei Zhongxing Automobile Company, Ltd. ( ZXAUTO China).

Both CHAMCO AUTO and our Chinese partners are absolutely committed to quality. We selected ZXAUTO China because of its high quality manufacturing and assembly standards. Our contract with ZXAUTO China includes a provision whereby CHAMCO AUTO's quality engineers will monitor assembly at approximately 187 critical inspection points (one for each 18 inspection points), and must signify their personal approval by laminating 10 Gold Quality Seals on each vehicle. CHAMCO AUTO will not launch any vehicle unless and until it is proven to get on the road and stay on the road. Our subsidiary, SMS, Ltd., one of the leaders in automotive design, engineering, testing and certification is in China now, working with ZXAUTO China to ensure that safety ratings, crash testing, and road worthiness meet regulations in Mexico, Canada, and the U.S. and exceed customer expectations. SMS, Ltd., has redesigned the Chinese products and guarantees that those vehicles will be certified during 2008.

The certification project is under the direction of Steve Saleen, an automotive icon. Steve, the creator of the world's fastest production car, the Saleen S7, as well as the Saleen Mustang, has many years of compliance expertise. He is confident that our schedules will hold, and he is on record stating that we will enter the U.S. market in 2008 with fully homologated vehicles, world-class quality, and unequalled value.

As homologation engineering work continues, CHAMCO AUTO and ZXAUTO China are also making feature changes to address North American consumers' tastes. Many of these changes, which reflect feedback from hundreds of dealers who have seen and test driven our demo vehicles, are already incorporated in a "new generation" of the SUV and Pickup, which have now arrived in the U.S. (please contact us if you would like to see the new demo vehicles). These consumer enhancements will continue as further feedback is received.

CHAMCO AUTO will aggressively promote our Chinese vehicles, beginning about 100 days before they arrive. Jerry Della Famina, one of the most famous names in the advertising/PR business together with the Berline Agency, one of the leaders in advertising placement and management of auto events, will ensure creative, attention-getting ads and favorable press coverage. However, by being first to sell Chinese-made cars in North America and by CHAMCO AUTO's newly formed subsidiary, Green Motor Vehicle Corporation, which is in the process of retrofitting to full electric all ZXAUTO vehicles as green, we expect hundreds of millions of dollars of free publicity - through talk shows, media "buzz" and good old-fashioned word of mouth.

About twelve months after the SUVs and Pickups arrive in the U.S., and as a result of ZX AUTO's joint venture with the city of Changchun we plan to follow with fully loaded Sedans and Crossovers. In addition, negotiations are currently underway with several Chinese automobile manufactures for additional vehicles types to complete our entry-level product line.

To further expand our capacity, CHAMCO AUTO intends to set up three SKD plants, one in the Southeast of the U.S. and/or Puerto Rico, Canada, and Mexico. In addition, CHAMCO AUTO, together with its Chinese partners, plans to build a 500,000 Sq. Ft., assembly plant facility in a location in North America where the local and federal government gives CHAMCO AUTO the best tax benefits and other incentives, and to qualify under NAFTA.


Models:
-SUV (Zhongxing Landmark)
http://s2.mojalbum.com/kitajci-2-foto_4219952_10393030_10690827.jpg

-Pick Up (Zhongxing Tiger)
http://s2.mojalbum.com/kitajci-2-foto_4219952_10393030_10690830.jpg

Article about CHAMCO at Autoblog:
Laugh if you must, the wares that CHAMCO were showing off at the Detroit Auto Show were certainly a lot more humble than what you'd find at Lexus. China America Cooperative Automotive is seriously considering bringing pickup truck to the United States that they've retained the services of Steve Saleen to help guide them through the federalization process. The goal is to have the vehicle on sale here by 2009. Styling-wise, CHAMCO's un-named truck isn't going to win any EyesOn awards, but at $13,500, who cares? Besides, it could have looked a lot more grotesque, but it's not entirely a toad.

The equipment levels will meet market expectations, with power steering, windows, locks, and mirrors. Not a cupholder in sight, though. Materials inside the Anony-Truck will have you reliving the glory days of 1985, when truck interiors were seemingly blow-molded on the same production line as 2-liter soda bottles. Power comes from a 2.7-liter four cylinder serving up 150 horsepower and 180 lb-ft of torque through either a five speed manual or four speed automatic. Chortle now, but keep in mind another automaker from Asia that got its start with cheap little un-named pickups -- Toyota. For CHAMCO, it could be a smarter entry point than cars, anyway. The Ranger can only carry on for so long, and everyone else has pushed up the size and price of their once-small trucks.


http://www.blogsmithmedia.com/www.autoblog.com/media/2008/01/chamcointro.jpg
http://www.blogsmithmedia.com/www.autoblog.com/media/2008/01/chamco4.jpg
http://www.blogsmithmedia.com/www.autoblog.com/media/2008/01/chamco3.jpg
http://www.blogsmithmedia.com/www.autoblog.com/media/2008/01/chamco1a.jpg

I like it - the ext looks pretty good, the int is awful tho... is it really that hard to come up with a better int?

So many parts look so close to a Toyota... any relationships there???

Zhongxing Auto to tap into U.S. market this year
Jan. 17, 2008 (China Knowledge) - Chamco Auto, a New Jersey-based auto firm said it plans to sell SUVs and picking-up vehicles made by Chinese auto maker Zhongxing Automobile Co this year, marking the first Chinese auto firm tapping into the world's largest auto market. Chamco Auto has signed a cooperation agreement with Zhongxing, under which it is assigned as the exclusive importer and dealer

Last year ran the news about the construction of a 300 million dollar Chamco plant in Tijuana Mexico.
Chamco also had meetings with mexican car dealers, show them the cars and give them a dossier with FAQ and information.
The price for a Chamco dealer was about 300,000 dollars and existed different ways of participation, dealers, supliers, etc.
Supposedly the 1st chinese car ever sold in Mexican soil would be in last September from one of the 25 expected dealers. Septemeber came but didn't the Chamco SUV's or Pick up's.
The reason, according to many mexican newspapers, the lack of investors and the relative inadequate venue, Tijuana is relatively new in the car industry, they only have a Toyota plant wich has less than 10 year produciong cars. This two factors made Chamco delay it's plan for the plant.
Time passed by and nothing were written about Chamco plant, until now.
February 12th. In the frame of the 2008 NAIAS and right after Geely declaration of a plant in Mexico, Chamco confirmed the plan for a plant not in Tijuana but in Monclova City in the Mexican estate of Coahuila (Coahuila also builds Ford and GM cars). Coahuila was selected because of the tradition in carassembly and has a wide border with Texas wich gives the state an advantage over other locatios.
Now let's just wait for instalation of the factory first stone.

Yoy can read the full note in spanish at http://www.vanguardia.com.mx/diario/noticia/automotriz/finanzas/traera_chamco_una_armadora:_hara_coahuila_autos_ch inos/119395

Chamco's in-fighting may hamper Chinese automakers' entry into American market.

March 17, 2008 - The recent internal conflict of Chamco Auto, a prospective Chinese automobile importer could hamper a Chinese automaker Zhongxing from entering the North American market, local media Shanghai Business News reports today.

Bill Pollack, Chairman of Chamco Auto, or China America Cooperative Automotive Inc., claimed that the company is still under control of him and other major shareholders. But the CEO and COO of Chamco said they had fired four executives including Pollack.

Led by the newly appointed chairman Mario Ferla and new president Thomas Del Franco, the new management has reportedly brought a suit to a court in New Jersey, accusing the former managing team with corporate frauds, mismanagement and misappropriation of corporate funds.

Chamco Auto hoped to sell its imported Chinese-made trucks through 75 dealers beginning next year, but it's not clear yet whether these vehicles have passed federal regulations.

The company is the exclusive importer and distributor of pickups made by Hebei Zhongxing Automobile Co. in the North American market. Chamco also plans to introduce Geely's vans and SUVs.

The uncertainty future of the company has clearly brought uncertainty to the future of the Chinese automakers that are eager to enter North American market.

"It reminds us of the New York-based Visionary Vehicles LLC's, an American company that failed to bring Chinese cars to American market two years ago," the Chinese newspaper said, warning that it would be highly risky to rely wholly on one distributor to enter the American market.

It certainly seems so, although we often hear that xxx company is planning to export to the USA or Europe, the actual execution of the exportation plan rarely goes through, rarely. China Car Times can only think of Brilliance off the top our heads that have actually exported to the West, oh, and Landwind. I guess you could count SAIC and Nanjing Auto group in there as well, seeing as they bought their way into England via Rover/MG. Zhongxing automobile company, based in Hebei central China have signed a deal with American company ChamCo to help Zhongxing build a sales, and after sales network in the United States, they are currently preparing for sales of upto 150,000 units before 2010 in the American market alone! Obviously Zhong Xing knows how to set the bar, even the modest Geely is only aiming for 100,000 cars by the year 2010.

Where and when did you hear that?

After the 2008 Detroit Auto Show, things just got worser and worser for Chamco. Chamco hasn't decide yet where they would settle their Mexican plant, there was a legal action taken between the two leaders of the company (who both claim to be CEO) and Steve Saleen (who was supposed to get the Zhongxing SUV to meet the US safety standard) quietly left.

So, it seems unlikely that Zhongxing will export to the US within a near future.

Joest

Do you know why Steve Saleen left ?

Is he disappointed with Zhongxing ?

I don't know why he left. But when he founded SMS (Saleen Motor Sport) a couple of month ago, the Chamco/Zhongxing part has been cleared from his resume.
So, he must have been really upset when he left.

This would not surprise me if Saleen had bowed out of this unpleasant mess. However the website of the maverick group still lists him as president and CEO of ZXAuto NA.

And it also lists a number of his family members as staff members as well.

The court will decide which group is the legitimate representative of Zhongxing in the U.S.. In the meantime Zhongxing is in limbo with regards to export to North America.

http://www.chamcoautomotive.com/ourStaff.html

There's currently not much sign of life here............

Chinese automaker cuts ties to Chamco.

July 02, 2008 - Tired of dealing with an American company tied up lawsuits, Chinese automaker Hebei Zhongxing Automobile Co. has terminated its contract to supply Chamco Auto with vehicles.

Would-be importer Chamco was put into the hands of a legal custodian in April by an American court. Since then, more than a dozen executives with automotive expertise have resigned, sources familiar with the case said.

Among the departed is Steve Saleen, a well known specialty carmaker who brought a team to Chamco to prepare Chinese vehicles for sale in the United States. Also gone is Mario Ferla, a former Fiat executive hired to run Chamco.

Chamco's importing arm -- ZX Automobile Co. of North America Inc., based in California -- may be forced into bankruptcy court. Creditors filed the bankruptcy petition this month in U.S. Bankruptcy Court. ZX Auto North America did not respond within the required 20 days to the petition.

In a letter to Chamco executives, Heibei Zhongxing Automobile said it was backing out of the contract to supply an SUV and a pickup because Chamco has been unable to operate in a normal manner.

No one at Chamco headquarters in Parsippany, N.J., could be reached for comment, and Chairman Bill Pollack did not return calls to his cell phone.

On March 3, Ferla, Saleen and six other Chamco execs sued E. Michael Daspin, Chamco's founder, claiming fraud. In April, a judge shut down the company, giving temporary control to a court-appointed trustee.

Thirty-seven would-be dealers paid franchise fees of up to $300,000 (2.1 million yuan) to Chamco.

Zhongxing still has hopes of someday selling in the United States, but no specific plan is being pursued, a company source said last week in China.

From:Automotive News China

My first impression of Zhongxing some 8 years ago was a good one. Although a bit rough around the edges, it looked like a company with its ducks all in a row. Even VW at one time entertained thoughts about taking a stake in the company.

But it seems that Zhongxing's efforts to find the right partner to enter important markets have been plagued with problems.


Reports told us that it had resorted to selling vehicles in Russia under the FAW nameplate but not much more has been heard of that.
A 2003 agreement with Antonio Finamore of Canada to launch "ZX Auto" company never seemed to get off the ground. Then Zhongxing signed an MOU with a Honda dealer in Sacramento in an effort to penetrate the US market. But when the Chamco investors came along, Zhongxing dumped Rapton Honda, and threw its lot in with the New Jersey-based company, Chamco, or the new ZX Auto NA, as it was called.

Now, in the wake of Chamco's fracture and subsequent legal quagmire, Zhongxing has ended its relationship with both Chamcos.

In a completely new and troubled US auto market, will it look for another way to get its foot in the door? That's the big question.

Or perhaps it will wait until it has first developed a passenger car up in Changchun, with its Chanlin partner as was rumoured not long ago. Oddly enough, we saw no sign of even a concept car at the recent Beijing show.

Guess we will have to wait and see.

Zhongxings main intergrity was behind their model Deer.

Zhongxing Auto delays $300 mln Mexico plant

From:ReutersJuly 23, 2008

SHANGHAI, July 23 (Reuters) - China's Hebei Zhongxing Automobile Co has put on hold its plan to build a $300 million plant in Mexico near the U.S. border as it seeks a new partner for the operation, a company executive said on Wednesday.

He said the company, a mid-sized Chinese automaker, had terminated its partnership with Chamco Auto, a U.S.-based vehicle importer, earlier this year, although he declined to discuss details of the matter.

"We are still looking for a new partner," said the executive, who asked not to be identified.

Zhongxing Automobile had planned to start making sport utility vehicles and pickups next year at the Tijuana, Mexico, assembly plant, which will have annual production capacity of 150,000 units.

Plans called for exporting 25 percent of the Tijuana-assembled vehicles to the United States, Chamco said in June of last year.

In a message posted on Chamco Auto's website and dated July 17, 2008, the company's chairman Bill Pollack said a letter of termination from Zhongxing Auto had failed to meet contractual requirements and was invalid.

But the Zhongxing executive said his company had postponed its Mexico production plans and would not start construction of the facility until it secured a replacement for Chamco.

Zhongxing Auto, based in northern China's Hebei province, is now talking with several potential partners, he said, although he declined to name them.

The assembly of Zhongxing vehicles in Tijuana would allow them to be exported to the United States duty free, under North American free trade rules.

Mexico is already a major auto producer, with assembly plants for Nissan Motor Co (7201.T: Quote, Profile, Research, Stock Buzz), Ford Motor (F.N: Quote, Profile, Research, Stock Buzz), Volkswagen AG (VOWG.DE: Quote, Profile, Research, Stock Buzz) and other big industry names.

Zhongxing is one of several Chinese automakers, including the largest, SAIC Motor Corp (600104.SS: Quote, Profile, Research, Stock Buzz), hoping to emulate the global success of their Japanese and Korean rivals.

SAIC, owner of the MG brand, plans to resume making MG TF sports cars in Britain in August and will begin selling them in the UK via more than 40 dealers later this year, its president Chen Hong said in June.

Zhongxing Auto mulls building American JV

By Kelly From:Gasgoo.comJuly 23, 2008

Shanghai, July 23 (Gasgoo.com) Chinese automaker Hebei Zhongxing Automobile Co. has found a new partner after cutting the cooperation with its former American partner Chamco Auto, which is involved with lawsuits, reports Nanfang Metropolis News.

Zhongxing’s plan for the North American market will not be disrupted by the cooperation halt with Chamco, but will be postponed as preparations need restarting, the company officials said.

According to Zhongxing sources, a new partner has been introduced, and chief officials of the company are now in Zhongxing for an overall inspection of its manufacturing, research and development sector preparations by Zhongxing. The two sides may build a new joint venture based on the Zhongxing Changling plant to develop new models jointly for the American market.

The Zhongxing Changling facility, a joint venture by Zhongxing and Changling Group in Changchun, targets to build a capacity of 200,000 SMPVs, SUVs and pickups.

The report also said Zhongxing may change its name when landing America as its current name couldn’t pass the assessment of the US Patent and Trademark Office (USPTO). Therefore, the company’s export project for America is inevitably delayed due to a combination of factors.

http://www.gasgoo.com/auto-news/7165/Zhongxing-Auto-mulls-building-American-JV.html

The question we might ask now is, will Chamco follow Bricklin's example and sue Zhongxing? Perhaps the answer hinges on the outcome of the domestic lawsuit involving the old Chamco and the new Chamco.
In any event it seems that lately China manufacturers are getting an abrupt initiation into the litigiousness of the global auto industry.

Shanghai, July 28 (Gasgoo.com) After terminating the contract with its former partner, the New Jersey-based vehicle importer CHAMCO (China America Cooperative), Chinese maker of pickups and SUVs Zhongxing Auto is set to explore the U.S. market by joining hands with Changan Auto, reported The Beijing News today.

A Zhongxing insider told the newspaper that Changan Group's vice president recently visited Hebei-based Zhongxing Auto to talk about jointly exploring the American market in the future. The two sides have agreed to develop a special "mini-truck" model together as an initial product for export to the U.S., with other models to follow up.

Their jointly-developed models for export to the American market will be assembled by Zhongxing Auto out of components from suppliers of both companies, and the finished vehicles will be exported to the U.S. through Zhongxing's overseas sales network. Analysts said that Changan Auto would take this opportunity to acquire Zhongxing Auto and make it an SUV and pick manufacturing base of Changan.

In mid-July when the talks were underway between the two Chinese automakers, there were three American "guests" seen on their inspection tour of Zhongxing's factories, research and development center, and other facilities, making detailed inquiries about the production, quality control, and logistics of the pickup maker.

It is obvious that Zhongxing-Changan's joint plan for exporting pickups and SUVs to the U.S. is set for implementation soon. According to its global growth agenda, Changan Auto aims to sell 200,000 vehicles overseas in 2010, with the United States and Europe as its major target markets
http://yaqeenauto.spaces.live.fr

YAQEEN, what is the purpose of publishing same news in different threads?
One post is enough.

http://www.chinacarforums.com/forum/showthread.php?p=26097#post26097

YAQEEN, what is the purpose of publishing same news in different threads?One post is enough.
Hi Martin , It's just because this news concern both zxauto & changhan, so that it'd interest readers of both marks
I notice you're toooooo up-dated (on ne peut rien vous cacher)sorry

Chamco COO heads to ZX Auto, eyes sales in 40 countries

August 07, 2008

SHANGHAI -- The chief operating officer at would-be distributor Chamco Auto has left the company to join ZX Auto and is aiming to expand sales into 40 countries.

Thomas Del Franco joined ZX Auto in July 2008 as general manager of global sales at its subsidiary ZX International. He is based in Baoding, Hebei province.

ZX Auto, known formally as Hebei Zhongxing Automobile Co., is a small maker of pickups and SUVs. Last year, it sold 38,633 vehicles.

The company is currently expanding annual capacity at its plant in Changchun to 80,000 units by mid-2009, from 30,000 units today. The company's main plant in Baoding has annual capacity of 55,000 vehicles.

Del Franco says his goal is extending ZX Auto's reach into 40 countries, "with the last expansion to come into North America, where a full subsidiary will be formed."

Del Franco was chief operating officer at China American Cooperative Automotive Co., the North American distributor known as Chamco, from 2007 until July 2008.

Chamco was placed under a legal custodian in April by a New Jersey court amid a tangle of lawsuits. More than a dozen executives have since resigned.

http://www.gasgoo.com/auto-news/7346/Chamco-COO-heads-to-ZX-Auto-eyes-sales-in-40-countries.html