By Matthew C. Keegan
Updated August 1, 2007
Chinese made cars will soon be cruising many American streets. Much like Asian makes before it, these cars will start out with ultra low prices. If you thought that your Kia was priced low, wait 'til you see the prices planned for these imports!
Chery, Not Chevy
China is laying plans at this
very moment to begin shipment of passenger vehicles to the North American
market by mid 2007. Chinese automobile manufacturer, Chery, yes read that
again…the company sounds strangely like Chevy, is looking at bringing not
just one, but a whole fleet of low cost production vehicles to our shores.
Proposed prices will astound you and could potentially bring the U.S. auto
market to its knees. Don’t think for even one moment that Japanese and
Korean automakers will be immune from this flood of low cost cars. Chery
vehicles have been designed – some say stolen – from current Asian models
and will compete directly against the likes of Toyota, Honda, Nissan, and
Hyundai. China’s long awaited war with the US – at one time expected to
begin with a Red Army attack on Taiwan -- may be fought on an economic front
instead.
Chery, a state-owned car producer formed in China’s eastern Anhui Province,
is currently building a number of cars in China including the QQ – a compact
car strangely similar to the Daewoo Spark [GM’ Korean division], as well as
several sedans and a compact SUV. Indeed, recent charges made by Toyota, GM,
and Honda have all alleged that Chery mimicked or outright stole designs
from at least one of each automaker’s vehicles including the Honda CR-V. For
the record, the Toyota case was rejected, Honda is still attempting to work
out a solution with their case, and GM recently dropped its suit after the
Chinese automaker agreed not to sell their cars in the US under the Chery
name which GM has stated is too close to the Chevy name. Chinese courts have
also ruled that the Daewoo Spark design was not registered in China, so GM
dropped its suit.[1]
The Ultra Compact Chery QQ
At present, the Chery vehicle line up includes the tiny QQ; a compact SUV
built jointly with Mitsubishi called the Tiggo; and three sedans: the
Oriental Son, the Flagcloud, and the Windcloud. Recently, Chery unveiled a
newly designed crossover vehicle along the lines of the Chrysler Pacifica.
With an introductory MSRP of under $20,000 the Chery crossover will seat up
to seven passengers and come equipped with both four and six cylinder
engines. As you might guess the Chery crossover, if equipped similarly to
the Pacifica, could be priced some ten thousand dollars less than the
Chrysler model.
The Chery Dealer Network
While the Chery dealer network within the US has yet to be established, it
is under development; a limited version of the dealer network is expected to
be in place by Summer 2007 when the first Chinese vehicles arrive. A rapid
expansion of this same network across the US and Canada has been planned
over the ensuing years and although the Chery name will not be used in the
US, you can expect that whatever name is selected these cars will impact the
way many Americans buy their cars from that point forward. Oh, by the way,
two other Chinese automakers -- Shuanghuan Automobile Manufacturing, LTD and
Geeley Automotive -- are also expected to export cars to the North American
market soon after Chery makes its debut.
While it is too early to say, the opening of the lucrative North American
automobile market to cheap Chinese vehicles could possibly shake the
American economy in ways never anticipated. I, for one, shudder to think
just how all of this might unfold.
References:
[1] Xinhua News Agency. " IPR Disputes Between GM, Chery Solved Amicably." November 19, 2005. http://www.china.org.cn/english/BAT/149291.htm (accessed August 1, 2007).
[2] Hammond, Don. "Another businessman announces plans to import Chinese autos." May 13, 2005. http://www.post-gazette.com/pg/05133/503791.stm (accessed August 1, 2007).
[3] Lubo, Li. "The Quality Drag on China's Car Industry." June 29, 2007. http://www.businessweek.com/globalbiz/content/jun2007/gb20070629_028900.htm (accessed August 1, 2007).
External Links:
Chrysler, China's Chery Sign Export Deal
GM Sues Chinese Firm
For Copying
Author Information:
Copyright 2005-2008 -- Matthew Keegan is The Article Writer
who writes on a variety of topics including: advocacy, automobiles, aviation, business, Christian themes, family, news, product reviews, travel, writing, and more. Samples from his portfolio are available right online.