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I won't be surprised if they pulled of a Geely Zx or a geely FX or Geely XP car at the end of the year :p
 

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I also think this is a good move.

Come into the market where the pie is the largest and most profitable. Once established, then expand the lineup to include other cars, such as sub-compacts.
 

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fate of brands

Yes it is definitely a different market than the one Toyota and Hyundai faced. Regulations are stricter, players are more numerous, competition is much more cutthroat, and low end margins are piddling.

But then again the upper end of the market is very unforgiving. If it's not done right the consequences are swift and final. Remember the Stirling's go at the US market in the late 80s. It was like a flash in the pan, never to be seen or heard from again.

On the low end, the bargain price is always the draw but then there needs to be substance and value behind it or the "Hyundai up-down-up scenario" will repeat itself.

I wish I had a crystal ball so I could see which Chinese brand will rise to the winners circle of the global market by say 2025, and which will suffer a fate like Yugo's or worse...
 

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Geely Boss: We May Build in United States

SHANGHAI — Geely Automobile, the largest independent Chinese automaker, is studying whether to assemble its cars in the United States, chairman Li Shufu told Reuters.

The company, which is based in Hangzhou, brought its compact CK-1 sedan to the North American International Auto Show in Detroit earlier this year and still expects to begin exporting cars to North America by late 2008.

"We could do that in several ways, and [U.S. production] is an option," Li told Reuters in an interview. Initially, however, cars will be shipped from the company's assembly plants in China.

Malcolm Bricklin, whose Visionary Vehicles is the designated U.S. importer and distributor for Chery vehicles, has also said the Chinese parent is considering whether to assemble some future cars in North America.

Geely has an aggressive global export plan. Li said the company now expects to export nearly 20,000 cars in 2006, mostly to developing markets with no local auto industry, and that figure could double in 2007.

By 2012, Li has said he expects Geely to be exporting more than 1.2 million vehicles a year, to major markets around the world.
 

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Will they be there?

This Detroit News article implies that Geely will be at the Detroit Auto Show in 2007. But it's a little fuzzy about whether its really going to join GW, Changfeng, Zhongxing (and maybe Chery).

What can they show? Concept cars maybe......? just to keep that "brand name" in front of their would-be customers......

I hope you are right M14.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20060705/AUTO01/607050364/1148
 

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Geely to set up production unit in Mexico.

January 15, 2008 - Chinese carmaker Geely Automobile Holdings Ltd plans to build an assembly plant in Mexico with a local partner to make U.S.-specific models to enter the world's biggest auto market, the company’s president Li Shufu said on Monday.

Geely and its partner will initially invest $500 million in the factory, which will have an initial capacity of 50,000 units and eventually may be expanded to 300,000, Li Shufu said in an interview with Bloomberg News yesterday at the North American International Auto Show in Detroit.

Geely will build a medium-sized car for the U.S. market, which will be offered as a hatchback or sedan, Li said, but offered no details. Li also neither disclosed who the company's partner in Mexico will be nor did he offer a timetable for this project, according to the Bloomberg report.

Geely hopes to boost its market share through expanding in the oversea market. Last year Geely sold 181,500 vehicles, far short of its initial target. However, the automaker aims to sell 230,000 units, an increase of 27 percent from the 2007 sales.

Beside Geely, China FAW unveiled plans to build a $150 million plant in Mexico's Michoacan state with Grupo Elektra SAB, the country's largest electronic-goods retailer, in November.
source: Gasgoo.com


Geely was also present at 2008 North American International Auto Show.
More than 20 years after Japanese automakers first appeared on the scene and began eating away slowly but steadily at the Big 3's market share, a new group of Asian vehicle manufacturers is lining up to try and take advantage of both their own growing domestic market as well as the large North American sector.

This year, there will be five Chinese automakers displaying a variety of vehicles at the North American International Auto Show which opens to the public Saturday at Cobo Center.

Joining Geely International Corp., which is making its third appearance, and ChangFeng Motor Group, which exhibited last year, are BYD Auto Company, China America Cooperative Automotive Inc./ZXNA (Chamco) and Li Shi Guang Ming Auto Design Co.

Despite this accelerated incursion, most analysts don't expect the first Chinese car to hit North American showrooms until late this year or perhaps over the next two years.

Tony Faria, an auto analyst at the University of Windsor, said China's increased presence is "all part of their plan to test the waters even though their products are nowhere near ready in terms of design, technology, workmanship and fit and finish for a North American consumer."

But Faria said their first goal is to get reaction from the public and the media.
"They've learned from the Yugo experience whose vehicles were really so bad that it destroyed the Yugo name when they started selling before they were ready for this market," said Faria. "The Chinese are smarter than that and won't make that mistake."

Faria said there's a possibility some vehicles would be ready for the North American market later this year but "I expect it will be 2009 or later before we see any in large numbers."

According to Chamco, which already has North American headquarters in New Jersey and an engineering centre in California, the company expects to begin shipping SUVs and pickup trucks into the U.S. market by the end of this year with a price expected to be around US$13,500.

They expect to roll out similar vehicles in Canada early next year.
Chamco chairman Bill Pollack said "Detroit may not believe this but we are well on track to meet our goal of starting to export vehicles by mid-2008.

Pollack said he's confident that Chamco will be the first company to sell Chinese-made vehicles into the North American market.

Within a year, Chamco expects to follow with a line of sedans and crossovers and plans to open assembly plants in Mexico, Puerto Rico and Canada, although exact locations have not been announced.

A year ago, Chamco displayed vehicles in the Renaissance Center but wasn't officially part of the auto show.
Faria said that, unlike the Japanese automakers, China's are further along at the same point in their history because of the number of joint ventures they've forged with global companies such as Volkswagen, Toyota, BMW, Mercedes, GM and Chrysler.

"One Chinese company plans to start selling vehicles in Mexico this month and while those aren't ready for the U.S. and Canada, it's a start," said Faria.

Last year, auto sales in China reached more than 8.5 million units, second only to the U.S. and ahead of Japan as more and more Chinese find themselves financially able to buy cars as incomes rise and prices decrease.

There are as many as 100 auto companies in China all vying for a piece of the huge pie including Roewe, Landwind, First Automobile Works, Great Wall, Beijing Auto Works, Dongfeng Motor, Fudi Auto, GonowAuto, Brilliance China Automotive, Hafei Auto, Huatai, Qingling Motors, Zhengzhou Nissan, Polarsun Motors and Changan

Other Chinese automakers include Chery Motors, which is the largest in the country and now has a working relationship with Chrysler LLC, along with Shanghai Automotive Industry Corp. and Nanjing Auto, a pair of state-run companies which announced a merger late last month.

Ackowledging that his company's strength is price in an interview with Business Week last year, Geely Holdings' executive director Lawrence Ang said "our target is to put our car in the U.S. market by 2010."

In efforts to position themselves close to worldwide markets, other Chinese automakers have built assembly plants in Russia, North Korea, Egypt, Vietnam, Iran, Uruguay and Indonesia.

"There's little doubt in my mind that they'll build assembly plants in North America because the Chinese government, which still exerts major control over this industry, has said it does not want to export cars to North America in mass numbers but rather it wants to have a global presence by building assembly plants where it sells cars," said Faria
source: driving.ca


Despite having one of the smallest exhibits Chinese auto maker Geely managed to turn a few heads with its low cost vehicles at the North American International Auto Show in Detroit on Tuesday.
 

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More about Geely attending 2008 Detroit Auto Show.

Geely Automobile is ambitious. The Chinese company produced 2 million cars in 2006 and aims to produce 20 million cars in 2015. It's not quite ready to sell in the U.S. but the company says it is inevitable.


The LTI pictured above is exactly what it looks like -- a London Taxi. Not a clone of a London Taxi, but the real thing. Geely entered an agreement to produce it in China as part of a joint venture.


Aside from the LTI, Geely produces cars comprised of Chinese intellectual property, and that includes powertrains -- it doesn't borrow major hardware components from other manufacturers.

Taking a gander at the FC sedan pictured above, it's pretty clear the company won't have GM or Toyota in a stranglehold anytime soon. However, caution would state that other automakers keep their eyes on Geely, else be blindsided by a Hyundai-like ascent into maturity.


Article at Autoblog:
http://www.autoblog.com/2006/01/10/geely-makes-history-at-detroit-auto-show/

 

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Well at least Geely is talking some sense now.


China's Geely sees US market entry no sooner than 2013

DETROIT, Jan 15 (Reuters) - The head of Geely Automobile Holdings Ltd. (0175.HK: Quote, Profile, Research) said on Tuesday it would take the Chinese automaker at least five years to begin selling cars in the United States, stressing there was no room for missteps in entering one of the world's most competitive markets.

"(The timing) depends on changes in the auto industry, in Geely, and in the global economy," Chairman Li Shufu told Reuters in an interview at the North American International Auto Show.

"If nothing goes wrong, then maybe we will be ready in about five years."

Geely's timeline is conservative compared with those of other Chinese upstarts such as Changfeng Group and Zhongxing Automobile.

U.S. venture Chamco Auto said this week it wanted to begin distributing Zhongxing's cars in the United States some time this year, in what will likely be the first entry by Chinese-made cars.

But Li, whose company began building cars just 10 years ago in rural China, said Geely's edge would be its technologically advanced cars, while the company also needed more time to study the needs of the local market.

"Being cautious is essential for the very survival of our company," he said. "No failure is allowed. Long term, it will be good for the company."

Asked at a news conference on Monday when Geely would enter the United States, Li had said he was not sure yet whether his cars were welcome in the market

Geely returned to the Detroit auto show for the third time this year, bringing its newest models, including the CK, FC and MK sedans. The Detroit show is a global automotive showcase.

Geely also produced a video on a stability system designed to keep vehicles from rolling over in the event of a tire blowout in a bid to demonstrate its focus on innovation.

Li said he expected to make money in the initial stage of selling in the United States despite the investments that would be needed to develop a sound sales and after-sales network.

Geely is also preparing to build a factory in Mexico. Li declined to disclose how much the group would invest on the project, but said the automotive side alone could cost roughly $500 million.

"It's a group action, so it will require a lot of money," he said.

Geely expects to have production capacity of 1.7 million vehicles by 2015 in China through nine factories. It now has two plants overseas and four more in the pipeline. (Reporting by Chang-Ran Kim, Editing by Peter Bohan)

http://www.reuters.com/article/rbss...2120080115?pageNumber=2&virtualBrandChannel=0
 

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Another Geely's hype or is it real ?

China's Geely plans export of 100,000-yuan car to US, Europe - report

14 Jul 2008
Xinhua Newsfeed

BEIJING (XFN-ASIA) - Geely Automobile Holdings Ltd plans to begin exporting a hatchback model priced at around 100,000 yuan to the US and Europe next year, the South China Morning Post reported.

"We don't have a detailed timetable for landing the models in the mature markets, but we've prepared well by planning the launch with vehicles that match the quality and standards of those markets," said Daniel Dai, Geely's vice-president of international business.

The four-door FC-2 was designed to meet emission and safety standards in the two markets, as well as regulations covering recyclable components.

(1 usd = 6.85 yuan)

http://www.quamnet.com/newscontent.action?listSectionCode=NEW_HK&articleId=891164
http://www.gasgoo.com/auto-news/7091/Geely-to-export-100-000-yuan-car-to-U-S-Europe.html



Geely's FC-1 C-ncap crash result was very surprising, the highest score for any Chinese model, beating Suzuki, Honda and Nissan.



But can you still trust Geely on this ? the question remains unanswered.
 
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