China Car Forums banner
1 - 6 of 6 Posts

·
Registered
Joined
·
20 Posts
Discussion Starter · #1 ·
.... While profits are down from the glory days on the big vehicles, Detroit companies still had a gross profit of $12,250 on each big SUV and $11,449 on each big pickup truck they sold in the first half of the year... The figure does not include incentives or other payments to dealers.

... By contrast, the companies made only $1,100 on every compact car they sold and $800 on every sub-compact...

NYT, July 28, 2006

I was always wondering why US has virtually no foreign cargo vans (except for Mercedes Sprinter sold as Dodge Sprinter). With $11,449 gross profit on pickups, I can see that restricting access to this market makes sen$e.
 

·
Registered
Joined
·
772 Posts
With $11,449 gross profit on pickups, I can see that restricting access to this market makes sen$e.
The market is not restricted, as the 25% tax could easily be dodged by producing the vehicle in Mexico.

The real issue is foreign automaker's inexperience with American-style heavy vehicles, with big engine, big transmission, and a thick steel chassis sturdy enough to tow 10,000 pounds. Not even Toyota has figured out this market after a decade of trying, as their efforts consistently fall behind GM and Ford efforts. And the typical buyers are conservative country folks who are considered more "patrotic" than import loving East and West-coast residents.
 

·
Registered
Joined
·
20 Posts
Discussion Starter · #3 ·
Gas prices hit everyone, in fact that's what the article was about - the plumeting sales of domestic SUVs and pickups. As to the fruitless efforts of Japanese brands in this sector - I didn't have such impression when visited the Toyota plant in Fremont, California.

And I've been to Texas recently - you may see a young black guy driving a Cadillac, but Asian cars are just as prolific as everywhere else. And guess what population group has the most growth - latinos. And guess what they are driving... So I say Americans buying American no longer holds - it's a very progmatic country after all.

As to the restrictions for imported cargo vans - I do believe they exist. At least I can not explain why there is not a single cargo van except for the Mercedes Sprinter sold as Dodge. When Toyota came up with Toyota Van, which had a cargo version, it was so popular (and still is) that they almost doubled the price within just 5 years (1984 - $12000, 1989 - $22000). And then all of a sudden they stop selling it. Officially, it was replaced by Previa, but Previa has no cargo model.

So I think Chinese are in good position to take advantage of this gap, with Japanese technology, of course. But unfortunately I have not yet seen any effort in this direction. This is why I am curious - has anyone ever heard of Chinese planning to sell vans (mini-buses) particularly the cargo ones in US?
 

·
Registered
Joined
·
1,268 Posts
Dmitry said:
......This is why I am curious - has anyone ever heard of Chinese planning to sell vans (mini-buses) particularly the cargo ones in US?
Dmitry
Marco Antonio Orozco Alvarez, of GH Motors de Mexico, S.A. de C.V. (GHM) and Global Automotive Holdings GAH, Inc. International, a Las Vegas, Nevada based company, have made some kind of agreement to import vehicles that are manufactured in China to Mexico, and later to the U.S.. Among these is the Brilliance M1 and the Jinbei HiAce van.
Although as recently as last March just-auto.com mentioned the GAH plans, and Edmunds.com said the "company will open a showroom in Guadalajara, Mexico, shortly, with a Las Vegas showroom to follow later this year", a look at the websites doesn't look encouraging.
have a look:
http://www.ghmotorsmexico.com/spanish/home.htm
http://www.globalautoholdings.com/
It seems the HiAce would make a great transporter for migrant workers and as airport shuttles in the U.S..
As you probably know Jinbei, although the pioneer in China's HiAce production, is only one of many currently producing it there.
 

·
Registered
Joined
·
507 Posts
Hmm, great ideas... go for high profit sectors instead of low margin ones.

Since compact cars have such tiny margin, why not go after cargo vans? Even large 4 door pickup trucks and SUV's - no 25% tariff if more than 2 doors.
 

·
Registered
Joined
·
20 Posts
Discussion Starter · #6 ·
Today I paid $3.50 for a gallon of 87. You can almost see the monstrous
american cars begging to be killed. We need imported vans, anyone in US
small business sector will tell you that. It's a very good time for Chinese.
 
1 - 6 of 6 Posts
Top