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Chery Automobiles: China?s Auto War Begins

por Linda Colmenero (2020-04-13)

China is laying plans only at that very moment to start shipment of passenger vehicles to the North American market by mid 2007. Chinese automobile manufacturer, Chery, yes read that again?the business sounds strangely like Chevy, is looking at bringing it's unlikely that any, but a whole fleet of inexpensive production vehicles to your shores. Proposed prices will astound you and also may potentially bring the U.S. auto market to its knees. Don?t think for one moment that Japanese and Korean automakers will be immune using this flood of inexpensive cars. Chery vehicles have been designed ? some say stolen ? from current Asian models and may compete directly contrary to the likes of Toyota, Honda, Nissan, and Hyundai. China?s long awaited war with the US ? at once expected to start with a Red Army attack on Taiwan -- may be fought on an economic front instead.

image.php?image=b17joe001.jpg&dl=1Chery, a state-owned car producer formed in China?s eastern Anhui Province, is currently constructing a variety of cars in China including the QQ ? a concise car strangely similar towards the Daewoo Spark [GM? Korean division], as well as several sedans and a tight SUV. Indeed, recent charges produced by Toyota, GM, and Honda have all alleged that Chery mimicked or outright stole designs from at least one of every automaker?s vehicles including the Honda CR-V. For the record, the Toyota case was rejected, Honda is still wanting to work out a fix with their case, and GM recently dropped its suit after the Chinese automaker agreed to not sell their cars in the US underneath the Chery name which GM claims is too close for the Chevy name. Chinese courts have ruled that the Daewoo Spark design has not been registered in China, so GM dropped its suit.

At present, the Chery vehicle make includes the little QQ; a compressed SUV built jointly with Mitsubishi referred to as the Tiggo; and three sedans: the Oriental Son, the Flagcloud, as well as the Windcloud. Recently, Chery unveiled a newly designed crossover vehicle like the Chrysler Pacifica. With an introductory MSRP of under $20,000 the Chery crossover will seat up to seven passengers and are available equipped with both four and six cylinder engines. As you might guess the Chery crossover, if equipped similarly on the Pacifica, might be priced some ten thousand dollars under the Chrysler model.

Current prices on the other instrument models have not yet been set, but published reports earlier this summer indicated that a fundamental Chery could retail at as low as $6995 in the US, which could be some 3,000 dollars below the next most inexpensive car, the Chevy Aveo [from GM?s Daewoo unit, naturally]. Of course, this kind of pricing strategy has raised all kinds of alarms from the automobile industry, chiefly the way to counter a flood of low priced cars invading the U.S. market. As some have pointed out, similar to Hyundai?s introduction on the North America market throughout the 1980s, the Chinese cars are supposed to initially only have a fixed appeal primarily on account of expected substandard quality levels. Still, it only took Hyundai under one decade to begin to generate cars which consistently matched the quality amounts of many American and Asian models. So, Purchase dvd it could be just a matter of a few years before Chinese cars get the positive press now provided to many other Asian automakers, resulting in a sharp surge in sales.

While the Chery dealer network inside US has not yet been established, it's under development; a small version in the dealer network is anticipated 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 become planned in the ensuing many although Chery name will not be found in the US, you can expect that whatever name is selected these cars will impact just how many Americans buy their cars from that point forward. Oh, by the best way, two other Chinese automakers -- Shuanghuan Automobile Manufacturing, LTD and Geely Automotive -- may also be supposed to export cars towards the North American market just after Chery makes its debut.

While it is just too early to express, the opening with the lucrative North American automobile sell to cheap Chinese vehicles might actually shake the American economy in manners never anticipated. I, for starters, shudder to think just how all of this might unfold.