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This is pretty crazy....they were at the detroit autoshow

Geely makes Detroit debut

www.chinaview.cn 2006-01-12 13:56:18

BEIJING, Jan.12 -- Geely Automobile Holdings Ltd., China's first car maker to exhibit at the Detroit motor show, said its Free Cruiser compact car is undergoing U.S. road and emission tests and should go on sale for less than US$10,000 by 2008.

"This is like a first step in a long march," said Li Shufu, Geely's chairman. "This is one step for us to bring our car to the world."

Geely has set a goal of selling 25,000 to 50,000 cars a year in the United States starting in 2008, said John Harmer vice president and chief operating officer of its U.S. unit. The Free Cruiser compact car, called 7151CK outside China, seats five passengers and is about the size of a Honda Civic.

A front-window display at the biggest industry show of the world's largest vehicle market raises the brand's profile among customers and dealers. Geely, based in eastern Zhejiang Province, follows Chery Automobile Co. and Chang'an Automobile Co. in trying to sell cars overseas, repeating the export strategy that helped Toyota Motor Corp. and Hyundai Motor Co. grow into two of the world's largest assemblers.

"They are saying: ‘Well, if we stay at home, margins will decline, and we have to know what it takes to compete globally, so let's get out there,'" said Mike Dunne, president of Automotive Resources Asia Ltd., in Shanghai. "Geely and Chery are out there way ahead of everybody else" in pushing for exports, he said.

Chery and Geely were China's sixth and seventh-largest by sales volume in 2004.

"Chinese carmakers are going on the same path as Japanese and South Korean assemblers by using their cheap costs and low prices to attract customers," said Yale Zhang, a CSM Asia Corp. analyst in Shanghai. "They will gradually enhance their quality, build their brand image and introduce high-end products."

Geely, profitable even when it sells vehicles at less than 70,000 yuan (US$8,600) each, is taking advantage of wages that are 5 percent of Detroit's average pay to sell low-priced models. The company pays workers US$3.50 an hour for wages and benefits, Geely's Harmer said. By contrast, members of the United Auto Workers (UAW) union at General Motors Corp. (GM) earn US$64 an hour.

"The UAW and GM may not like it, but we're in a global economy," Harmer said. "The American consumer needs a high quality product that won't put them in debt for seven years, and that's what we're going to give them."

Geely switched to assembling cars in 2000 after more than a decade of making refrigerator compressors, selling 5,000 cars overseas in 2004 out of a capacity of 200,000 units.

It's the largest Chinese automaker that isn't affiliated with the government. Geely specializes in low-price models, such as the 1.3-liter-engine Merrie with a base price of 33,000 yuan.

Geely is aiming to export 1.3 million cars by 2015 out of 2 million it's aiming to produce, or about 2 percent of the estimated global market share. Li said. Total sales may rise to 200,000 units this year from 140,000 last year, he said.
 

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I dont really forsee Chinese cars to make it in America anytime soon. Chinese cars arent known to be as safe as cars from North America. I havent seen any Chinese cars with automatic transmissions either. That and alot of rip-off designs that will be contested by lawsuits.
 

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chechnya said:
I dont really forsee Chinese cars to make it in America anytime soon. Chinese cars arent known to be as safe as cars from North America. I havent seen any Chinese cars with automatic transmissions either. That and alot of rip-off designs that will be contested by lawsuits.

well they are 75% here ...they are 100% planning to come to US ..and hhave already made some big moves in doing so and partnered with few distrubitors

i think they know the laws...they arent 3 people companies....

but i think they will have as much market share as KIA after few years
 

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http://www.usatoday.com/money/autos/2006-02-26-chinese-cars-usat_x.htm?csp=34
(posted yesterday)

This is basically something i expected

"Geely's problems could be more damaging. "We have a major problem with the current engine," says John Harmer, COO of Geely-USA. It won't pass U.S. anti-pollution rules and could be difficult to redesign. Buying engines from another maker would boost costs and probably prevent Geely from hitting its goal of a $10,000 U.S. selling price."

"The car also failed a side-impact test designed to duplicate the government's. Geely engineers are traveling to the USA in the next few weeks to review the safety tests so they can redo the car, Harmer says"

And the problem is, if the crash test ratings are poor or JUST ABOVE FAILING then i expect people wont even look at the car. Id like to see some crash test ratings and approx miles per gallon/fuel effciency ratings aswell. These things are the biggest problems i saw facing the importation of Chinese cars.
 
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