Another year passes with no clear U.S. launch dates for China's OEMs, but more partnerships take root.
As the partnerships between Chinese automakers and stateside companies dissolve and realign, so does the timeline of an expected U.S. introduction of Chinese-made vehicles.
Some Chinese OEMs had planned to be entrenched in U.S. soil by now, while others are patiently estimating introductions that are still years down the road.
The biggest reported hurdles have been regulatory, as Asian automakers study up on U.S. environmental and safety standards and how to meet these regulations while retaining the low costs the country has adopted.Despite the change in projected launches, it is an eventual certainty that we will see Chinese-made cars on U.S. roads, and these vehicles are expected to have a significant impact on aftermarket parts prices here.
One of the biggest recent announcements was the separation of entrepreneur Malcolm Bricklin from a proposed joint development agreement with Chery Automobile Co., China's top-selling domestic brand.
Bricklin, who was the driving force behind such U.S. introductions as the Subaru and the ill-fated Yugo, as well as the Bricklin, a sports car that assumed his namesake, says he is no longer negotiating exclusively with Chery, opting instead to go forward with discussions with other Chinese manufacturers and U.S. and European design and engineering firms.
In an official statement released in December, Bricklin said, "The crux of our decision came from the realization that the Chinese need to learn that you cannot develop cars for the Chinese domestic market and then upgrade them for the North American market. You must instead build for the North American market and then de-option for other markets, never having two standards for quality since great quality is the only option."Bricklin's network of U.S. dealerships is still being assembled to fly the Visionary Vehicles LLC banner.
In a previous interview with Aftermarket Business, Bricklin said the Visionary Vehicles line would carry the luxury of an Audi or BMW, while maintaining the price point of a Toyota Camry.
Kevin Chen, CEO of Shanghai KOWIN Automotive Components, a division of Chery, agrees that Chery will need to go beyond modification of its existing vehicle line to prepare for U.S. introduction. "If we want entry, we need to design new models," he says.
Meanwhile, Chery has struck a number of partnerships recently, including one with DaimlerChrysler to distribute Chery-made vehicles in Europe and other countries, and an agreement with Delphi to provide occupant protection systems (OPS), like airbags and impact sensors.
Company officials believe these partnerships will put them on a better path to reaching the North American market.
The Chrysler Group, whose preliminary agreement with Chinese automaker Geely fell through last year, clearly is making a bid to tap younger, first-time car buyers and those driving in fuel-economy sensitive marketplaces.
Chrysler reportedly expects to sell these vehicles under its own moniker in the United States. This type of agreement has been commonplace, as other U.S. automakers have been involved in partnerships with Chinese OEMs and have been selling vehicles in China for quite some time.
Geely makes inroads
Then there's Geely, a significant player in the Chinese OEM arena and a company looking for outside assistance in its branding efforts. The company is offering 2 million yuan (approximately $260,000) to whoever can design the best logo for the company; it's an effort the automaker hopes will bolster its global branding strategy.
Geely anticipates a 45-percent increase in sales this year. The forecast of 296,000 units in 2007 marks an increase over last year, which saw a 40-percent sales jump for the company.
Geely was also the first Chinese automaker to debut at the North American International Auto Show early last year. At this year's show, Hunan Changfeng Motor Co., Ltd. set up shop with pickup trucks and small SUVs. The OEM hopes to begin U.S. export within two years.
The news from Chinese carmakers far eclipses the U.S. Big Three, as Chery reported a 61-percent increase in sales last year, said to be the highest growth experienced by a Chinese automaker.
Chinese OEMs also face a difficult battle on their home turf, as a number of foreign carmakers are aggressively seeking a piece of the pie in this booming marketplace.
The Associated Press reports that vehicle sales in China are expected to be 8 million this year, a 15-percent increase over last year, as U.S. auto sales flatten. In all fairness, the stateside automotive market is more mature than China's still nascent marketplace, and U.S. auto sales were 16.5 million last year.
The road to the U.S. market from China is being paved with a number of partnerships, and because there are literally dozens of automakers in China, some are bound to find their way to U.S. shores.
When Chinese cars do reach the stateside mainstream, will they be a short-lived trend or a mainstay like the Japanese nameplates? Only drivers and the U.S. auto industry itself can answer this question.
