While the Japanese have long held control of the Asian sector of the foreign car market in America, and Korean-made Kias and Hyundais have climbed the hard ladder of respectability to deliver impressive 2007 models, Americans should brace themselves for the introduction of Chinese-made vehicles in the U.S. (potentially by the end of this year).
Eighteen Chinese carmakers displayed their wares at the 2007 Shanghai Auto Show. The companies who have the most ambitious plans for exports are Brilliance, Great Wall, and Zhongxing Auto.
Zhongxing has a U.S. partner in Chamco, with plans to introduce a line of sports utility vehicles in this country early in 2008. Currently Great Wall exports to Russia with plans to expand into Eastern Europe. Brilliance will start exporting a sedan to Germany and the Netherlands this May with an expected price tag of $26,000.
Looking long-range at the possible impact of the global distribution of Chinese cars, the pressure currently being exerted by the Chinese government to force the production of fuel-efficient and alternative fuel vehicles could make their products popular in this country as well. Various Chinese automakers are experiementing with fuel-cell, gasoline-electric hybrids, and battery cars with universities and think tanks across the country researching automotive propulsion systems.
Conversely, the heavy participation of American auto makers in the Shanghai show (Ford displayed 52 different models) and the existence of collaborative projects between American companies and their Chinese counterparts points to the growing vitality of this evolving Sino-American connection. The next 18 months should be interesting in seeing this connection make the translation to a real market presence.
Posted on April 25th, 2007 by Shorty
Filed under: business
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