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REPORT: Chinese expect to build cars in Mexico in 2010, may sell cars at big-box retailers

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There seems to be little doubt that Chinese cars will hit the U.S. market some soon - the big question is when. At least one automaker is suggesting that Chinese cars will enter America by way of Mexico, with production starting in 2010 and sales in the United States by 2015 after first making the rounds in Latin America and Canada. That date may have been sooner had we not hit such a nasty global economic crisis.

Perhaps the most interesting part of this scenario would be the distribution chain. Instead of using franchised dealerships, Mexican-built Chinese cars could be sold at large retail chains like CostCo and Walmart. GS Motors, the Mexican distributor for China's FAW brand, is already trialing this strategy in Mexico and would likely do the same in the States, assuming the program proves successful in smaller markets.

[Source: Gasgoo]

REPORT: Chinese expect to build cars in Mexico in 2010, may sell cars at big-box retailers originally appeared on Autoblog on Mon, 09 Feb 2009 17:57:00 EST. Please see our terms for use of feeds.

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VIDEO: Drifting on a budget the Chang'an Motors way

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Click above to watch video after the jump

A few years ago, drifting took the motorsports world by storm... and while its momentum seems to have cooled a bit, virtually everyone can appreciate the knife-edged balance of throttle and steering needed to execute a yawning slide. That appreciation has extended all the way to China, where a young man has converted his knock-kneed, skinny-tired Chang'an delivery truck into a purpose-built machine.

And why not? It's rear-drive, light weight, cheap, and reasonably robust. We dig the owner's enthusiasm, as well as his ingenuity and driving skill on China's slick mountain roads and in-town roundabouts. Check out the video after the jump (complete with a nod to Japan's Initial D anime series in the soundtrack), but remember: Kids, don't try this at home with Dad's new F-150.

[Chinasmack via China Car Times]

Continue reading VIDEO: Drifting on a budget the Chang'an Motors way

VIDEO: Drifting on a budget the Chang'an Motors way originally appeared on Autoblog on Mon, 16 Mar 2009 16:58:00 EST. Please see our terms for use of feeds.

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REPORT: China rolls out 89 new models in six months - that's one every two days

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Geely GE - Click above for high-res image gallery

We've been hearing Chinese officials say for quite some time now that there are far too many automakers in the country for a healthy market in the long-term, but we didn't realize until today just how out-of-hand it may be. According to state-run Chinese news agency Xinhua, China has seen an unprecedented 89 new automobile launches so far this year.

That's surely a big number, but it doesn't really hit home until you consider that 89 vehicles in the first half of 2009 averages out to a new or heavily revised vehicle appearing in China once every two days. Of those new designs, 73 were cars, nine were SUVs, six were MPVs and - in contrast to typical American vehicle launches over the same period - only one was a crossover.

As you're surely aware, 2009 is only half over, and there are reportedly some 50 new vehicles still slated for introduction before the end of the year, equaling about 140 new models introduced in 2009. The good news, at least as far the bottom line goes, is that the new releases have translated into sales. The 4.96 million vehicles sold between January and May of this year represent a 14.29-percent increase over the same period in 2008. Still, considering the glut of new models hitting the market, one has to figure that a goodly number of those vehicles will go begging.


Gallery: Geely GE


[Source: Gasgoo]

REPORT: China rolls out 89 new models in six months - that's one every two days originally appeared on Autoblog on Fri, 03 Jul 2009 16:44:00 EST. Please see our terms for use of feeds.

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U.S. Volvo dealers interested in selling Geely models?

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Volvo's pending sale to Chinese automaker Zhejiang Geely Holding Group could lead to big changes (or not) for the Swedish automaker and its thousands of employees, but what about its hundreds of Volvo dealerships here in the States? Could Volvo dealers be granted Geely franchises? Will the Chinese automaker utilize its new sales channels to slowly introduce low-cost Chinese vehicles to the U.S. market? Automotive News asked dealers from around the country if they would be interested in selling Geely models, and the responses were mixed at best.

According to AN, many dealers were "receptive" to selling low-cost Geely models; a seemingly expected answer for any good business type. Mark O'Steen of O'Steen Volvo in Jacksonville, Florida reportedly called the possibility of selling Geely models "appealing," adding "it is just another niche that we don't cover, and hopefully they do have some potential in the United States." Mike DiChristofano, vice president of Volvo of Tucson in Arizona had perhaps the best answer of all, pointing to the inability of General Motors to selll off Saab (at least to this point), adding "until this deal goes down, I'm not even thinking about selling a Geely car."

Even if Geely does plan to begin selling Chinese vehicles to the U.S. market by using Volvo dealers, the plan will likely take a lot of time to materialize. Geely reportedly has a lot of work to do to improve safety and quality before being ready for the U.S. market. Global Insight analyst Lin Huaibin told AN that Geely is at least five years away from having products ready for American showrooms.

[Source: Automotive News - sub. req. | Image: David McNew/Getty]

U.S. Volvo dealers interested in selling Geely models? originally appeared on Autoblog on Mon, 04 Jan 2010 11:29:00 EST. Please see our terms for use of feeds.

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Report: Chinese car quality complaints on the rise

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Just when we thought China's automotive industry had made some headway in the quality department, we get word that complaints about new car quality in the country have risen significantly over the past few months. During the first quarter of this year, complains on vehicles purchased within the last six months climbed 15 percent over last year's figures. Those numbers come courtesy of the China Association for Quality.

Even more surprising, the increase marks a nine-percent jump over the number of complaints filed during the fourth quarter of 2009. By and large, the defects concerned engine issues as well as small parts. A total of 94.6 percent of the complaints were lodged against cars costing less than $44,000.

[Source: Gasgoo]

Report: Chinese car quality complaints on the rise originally appeared on Autoblog on Thu, 29 Apr 2010 18:59:00 EST. Please see our terms for use of feeds.

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WikiLeaks reveals disturbing business practices of Buffett's BYD

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BYD F3DM
2009 BYD F3DM - Click above for high-res image gallery

Are Chinese cars nothing more than cheap copies of other automaker's products in other parts of the world? That's a question that's been asked rather widely for the last several years as the numbers of large Chinese automakers has risen dramatically, and even more so as they have shown their wares at major auto shows outside their home country.

There is certainly no doubt that many, if not most, cars rolling out of factories in China bear a striking exterior resemblance to popular models from Japan, Europe and the United States. But do those exterior facsimiles go more than skin deep, and if so, does it matter? What about the actual guts of the vehicles - are Chinese automakers creating their own important new technologies, especially in the burgeoning eco-friendly segment?

These are the questions bandied about in a special report from Reuters, targeted specifically in the direction of BYD, the Chinese automaker that has been buoyed by major investments and backed by Warren Buffett. The big draw for Buffett and his money was BYD's proprietary battery technology, which it uses on its own branded electric cars, some of which are supposedly coming to America.

Reuters, though, citing documents it received by a third party from WikiLeaks, charges that BYD's battery tech may not be all its cracked up to be, and that sales of its EVs are painfully slow. Further, officials such as Guanzhou Consul-General Brian Goldbeck reportedly said two years ago that BYD's vehicles may pass China's lax copyright laws, but aren't likely to in other countries.

Just as damningly, unnamed consultants claim BYD's vehicles are very unlikely to pass U.S. safety standards, saying of one of BYD's models, "If you shut the doors too hard, they fall off." Removable doors... not good. Some automakers polled by Reuters claim that BYD requests just enough parts from reputable suppliers to reverse engineer the designs and then assemble them itself using inferior materials.

What all of this means for BYD and for Warren Buffett's billion-dollar investment into the company remains to be seen, but it can hardly bode well for the brand's chances in such competitive markets as the United States.



[Source: Reuters]

WikiLeaks reveals disturbing business practices of Buffett's BYD originally appeared on Autoblog on Thu, 10 Mar 2011 15:30:00 EST. Please see our terms for use of feeds.

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Report: China tells foreign automakers they must build low-cost local brands

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Chinese flagIf you want to do business in the Chinese market, you have to play by the rules set out by the Chinese government... and those rules are subject to change. Such is the case in the automotive segment, where officials from China are reportedly set to add some requirements for automakers that wish to update any contracts in an effort to build more vehicles in China.

Apparently, as much as 30 percent of any additional production capacity over what has already been agreed upon will be earmarked for the Chinese market, and that percentage of vehicles would have to be sold under a new Chinese brand name at a "low cost."

It's not necessarily more brands China wants, it's intellectual property. "During 10 years of trying, China has become a big factory for foreign companies, and their Chinese partners didn't get advanced technology. Through this industrial policy they would like Chinese carmakers to get IP in order to own this market," said Lang Xuehong, automotive analyst with Sinotrust, quoted by Financial Times.

Will the scales fall in favor of more access to the lucrative Chinese market or will the desire to keep valuable intellectual property under the roof of the company that actually earned it through actual research and development triumph? We'll see.

[Source: Financial Times - sub. req.]

Report: China tells foreign automakers they must build low-cost local brands originally appeared on Autoblog on Mon, 21 Mar 2011 17:31:00 EST. Please see our terms for use of feeds.

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Muller says Saab could sell $10,000 Chinese autos in States

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spyker ceo victor muller

Saab has been in the news quite a bit lately, and mostly for the wrong reasons. But now that the Swedish automaker appears to have secured loans and buy-in from Hawtai Motors in China, Victor Muller and company are looking to go on the offensive.

Automotive News reports that the Spyker CEO is still talking China, but now he's entertaining the possibility of partnering with a Chinese company to distribute low-cost autos in the U.S. Muller reportedly says that Saab could utilize its dealer networks in the U.S. and Europe to sell $10,000 Chinese vehicles in two or three years. And just because Saab struck a deal with Hawtai doesn't mean that the Swedish automaker is restricting its plans to its newest strategic partner. Muller pointed out during an interview in Washington, D.C. that there are 120 companies in China, and that Saab is interested in "the one with a strategy."

There are many hurdles for Chinese automakers to overcome to finally breach the U.S. market, not the least of which is passing federal safety standards. Muller acknowledges that a five-star-rated Chinese vehicle likely won't happen any time soon, but he says that made-in-China SUVs can be had with tons of features for about $10,000, adding "Do you really worry about a five-star rating? They Look good."

Hmmm. We're guessing there will be plenty of buyers who don't want to drive a vehicle with compromised safety capabilities, but a low price tag could cure those fears. Of course, we also can't help but wonder how many luxury car shoppers will want to pay premium prices for Saab automobiles if they share showroom space with discount Chinese offerings - the Swedish automaker's residual values have been problematic enough as-is.

Muller says Saab could sell $10,000 Chinese autos in States originally appeared on Autoblog on Wed, 11 May 2011 14:31:00 EST. Please see our terms for use of feeds.

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Half of America's young willing to try Chinese cars, 41% would consider Indian [w/poll]

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Cars from China's BYD

Foreign manufacturers have had a strong presence in the United States' new car market for decades now. Germany, Japan and Korea produce vehicles that many consumers find as appealing as our domestic offerings, if not more so. Those countries have had lots of time to win favor among American consumers, while other countries have yet to make a dent on our car-buying radar. That could change more quickly than one might think, however, as a new study by GfK Automotive shows that younger car shoppers are willing to explore cars made in countries other than the ones previously mentioned.

According to GfK, only 38 percent of U.S. car shoppers are open to a Chinese brand. That figure drops to 30 percent for a vehicle from an Indian manufacturer. However, looking at younger consumers, 52 percent of Gen Y car shoppers say they would be willing to take a look at a Chinese automobile, and 41 percent would consider an Indian-made vehicle. Conversely, America's Baby Boomers are less likely to give a chance to vehicle made in India or China, with 22 and 29 percent (respectively) giving those countries a thumbs up.

Still, those are more promising figures for Chinese and Indian automakers than we might've expected. Built and priced correctly and given the right marketing, China and India could have a waiting group of shoppers ready to take a chance on a new face in America's car park. Click past the jump to read the full press release and let us know if you think you'd be ready to go Chinese or Indian in our poll below.


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Continue reading Half of America's young willing to try Chinese cars, 41% would consider Indian [w/poll]

Half of America's young willing to try Chinese cars, 41% would consider Indian [w/poll] originally appeared on Autoblog on Wed, 24 Aug 2011 19:01:00 EST. Please see our terms for use of feeds.

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China announces new, more stringent crash standards

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There are innumerable design and engineering hurdles to clear if you're an automaker intent on selling your wares worldwide, but few are more core to the business than safety. China knows this all too well. For years now, we've been hearing how the nation was planning to go global with its vehicles - several companies have even gone so far as to hold press conferences at U.S. auto shows.

And while there are many reasons why you don't have a Chery or BYD dealer down the street yet, China's expansionist efforts have been hampered by the persistent perception of poor automotive safety standards, an impression not helped by the viral spread of a number of frightening crash-test videos on the internet (like the 2007 Brilliance BS6 shown above and after the jump). But that may be about to change. According to new reports, the China New Car Assessment Program (C-NCAP) is coming in for a comprehensive overhaul.

A raft of changes are expected to go into effect in July of 2012, and the revised standards are expected to include new low-speed crash testing and whiplash standards. In addition, the safety of rear seat occupants will be considered for the first time (previously, only the safety of front seat occupants was measured). The more stringent crash test standards will reportedly also weigh the presence of other safety systems, including electronic nannies like stability control. Overall, the new standards are expected to more closely mimic the standards of other markets (namely Europe's NCAP), including tougher scenarios like the 40 mph offset frontal crash test.

China Car Times reports that only 59 new models have been awarded five-star ratings under current C-NCAP standards - about 43 percent of those models tested since 2006. As Chinese automakers are already having a tough time meeting current crash test regulations, meeting the new standards that go into effect next year will likely pose a very serious challenge. But while any Chinese automaker looking to play in established markets like North America or Europe will still have to pass local crash test standards, they'll almost certainly have a better shot at good results - and better public perception - if the regulations in their home country are similar.

Continue reading China announces new, more stringent crash standards

China announces new, more stringent crash standards originally appeared on Autoblog on Fri, 14 Oct 2011 14:16:00 EST. Please see our terms for use of feeds.

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First Chinese car imported to North America built by... Honda?

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2012 Honda Fit Sport

The very first production car from China has made it to North America, though it's not what you might think. In an effort to move more of its production out of Japan, Honda has begun manufacturing Fit models in the People's Republic and importing them to Canada. There's no indication that the vehicles will make their way to the U.S. in the future, however. While there are plenty of automakers who operate plants in China, only a fraction of the vehicles built there are made for export. Last year, only three percent were sent outside of the country's borders.

Honda and other Japanese manufacturers have begun investigating production facilities outside of the U.S. to combat the rising Yen, and Honda says that the company will begin producing Fit models in Mexico for U.S. customers soon. According to The New York Times, Honda may be reticent to test the American waters with a Chinese-built vehicle for fear of risking the company's reputation for quality and reliability. That's despite the fact that the company says Chinese-built Fit models are held to the same production quality standards as any Honda vehicle built elsewhere in the world.

First Chinese car imported to North America built by... Honda? originally appeared on Autoblog on Thu, 22 Dec 2011 09:00:00 EST. Please see our terms for use of feeds.

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Fortune asks, "Is the party in China over?"

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Buick dealership in China

Though many may not realize the extent of it, the auto business has been booming in China for a while now. General Motors actually sells more vehicles there than they do in the States, and huge market growth in China has been crucial to the bottom lines of all the carmakers that do business there. But according to Fortune, these boon times may be coming to an end.

LMC Automotive predicts that the 2012 vehicle market in China will only be growing at a 9.2-percent rate, less than half of last year's rate, according to the report. Perhaps more chilling is that the Chinese government wants to keep foreign automakers from expanding, in an effort to shield it's own domestic industry. While GM and Ford are already established in China, Chrysler - which does not build cars in the country yet - might be shut out given the new policies, Fortune says.

Then there's the possibility of an economic crisis in China, fueled by a combination of rapid middle class income growth and the expansion of state-owned companies, which some analysts say could happen in just three years. No matter how you look at it, the gold rush in China is likely coming to its inevitable end.

Fortune asks, "Is the party in China over?" originally appeared on Autoblog on Fri, 24 Feb 2012 16:15:00 EST. Please see our terms for use of feeds.

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China issues list of approved vehicles for government purchase, excludes imports for first time

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2012 Audi A6L

A black, Chinese-market Audi A6L is practically the poster-child for Communist Party officials who demand extra legroom rear legroom in a stretched version of standard sedan. The Chinese government reportedly spends 80 million renminbi ($12.7 million U.S.) per year on wheels for its bureaucrats, but according to a report in China Car Times the new list of approved cars available to officials is limited to Chinese models. That not only excludes the Audi - which is built in the country - but also BMW, Mercedes and the coming Infiniti M37 limo.

The list contains 412 models from makers like Great Wall, Brilliance, Roewe, Chery, Geely and SAIC, and the mix includes gas, diesel and electric powertrains for sedans, minivans, pickup trucks and SUVs. Displacements are constrained to 1.8 liters for sedans, 2.4 liters for SUVs.

Expected to be a boon to Chinese makers, the Chinese government also believes the new rules will be a boon to development: it wants the companies selected to reinvest three percent of their newfound gains into research and development. Neither Volvo nor Saab were mentioned in the report, and we wonder if BAIC's previous-generation Saab production and Geely's domestically produced Volvo models may have slipped in.

China issues list of approved vehicles for government purchase, excludes imports for first time originally appeared on Autoblog on Tue, 28 Feb 2012 14:29:00 EST. Please see our terms for use of feeds.

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Lincoln headed to China in 2014

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2013 Lincoln MKZ - live on show stand

Buick has done well for itself in the Chinese auto market, and now Ford Motor Company is hoping it can find a similar success by introducing Lincoln to the growing market. Starting during the second half of 2014, Lincoln will begin selling its cars in China through a dealer network that will deliver a personalized brand experience.

By the end of this decade, Lincoln says that the market for luxury cars in China will not only be larger than that of the United States, but it also expects this segment to account for around 2.7 million sales annually. Aside from Buick, other luxury brands doing well in China include Audi, BMW and Mercedes-Benz, and Lincoln hopes it can attract buyers looking to show off their wealth and enjoy cars specifically tailored to this market. While Lincoln is not elaborating on what kind of tailoring it plans to deliver, it could easily mean that the automaker is expecting to offer market-specific, long-wheelbase models as is the case with other luxury automakers on sale in China.

While it isn't clear which cars will be offered in the Chinese market, we can almost guarantee that the lineup will include the completely redesigned 2013 Lincoln MKZ. In addition to the Lincolns, Ford is also increasing its presence in China with the introduction of 15 new Blue Oval vehicles (and 20 new powertrains) by 2015. Ford is also investing into production facilities in China including five new plants which is expected to help it increase its global sales to eight million total units within the next few years.

Scroll down for Lincoln's official press release.

Continue reading Lincoln headed to China in 2014

Lincoln headed to China in 2014 originally appeared on Autoblog on Tue, 28 Aug 2012 13:44:00 EST. Please see our terms for use of feeds.

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Volvo agrees to transfer tech to new parent Geely

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Volvo emblem on grille

Following the acquisition of Volvo by China's Zhejiang Geely Holding Group in 2010, we definitely saw this news coming. The two companies have signed an agreement that will give Chinese automaker Geely access to key technologies developed by Volvo, and in turn, the deal could help the Swedish automaker lower its production costs.

As a part of the "technological cooperation agreements" signed by both companies, Automotive News China reports that Geely will be able to tap Volvo for three much-needed technologies, including the use of a midsize platform, Volvo's proven safety innovations and interior air quality systems. The latter two technologies are important to improve the crashworthiness of Geely's cars, along with helping isolate vehicle occupants from China's often severe air pollution. The report says that Volvo tech will likely be used on a premium car brand that Geely is expected to create.

Volvo, on the other hand, is to benefit from the "local market exploration experience and cost control experience" of Zhejiang Geely Holding Group, which is technical way of saying that Volvo will be able reduce its costs by tapping into Geely's established supply chain.

Volvo agrees to transfer tech to new parent Geely originally appeared on Autoblog on Tue, 11 Dec 2012 18:31:00 EST. Please see our terms for use of feeds.

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Chinese airline preparing to launch in-flight car dealerships

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China Spring Airlines

Better hire an automotive editor, SkyMall. The Chinese are about to one-up you.

Spring Airlines, a Chinese-based budget airline, will soon be adding cars to the slew of goodies that can be purchased via in-flight catalog. According to CNN Travel, passengers will be able to use their credit cards to make payments on the automobile of their choice. At least initially, Chinese-branded cars will be the only ones on offer, with prices averaging around 100,000 yuan (about $16,000).

Of course, this means Spring Airlines' entire cabin crew of 500-plus men and women will now have to be trained on selling cars and learning the specs of the variety of models on sale. And we do think it's a bit strange to buy a car without actually, you know, seeing it, let alone actually taking it for a test drive.

It's unclear exactly how customers who do fork over their credit cards mid-flight will take delivery of the cars they purchase. Furthermore, specific financing details are unavailable at this time - will customers need to pay all at once, or will payment plans also be available in-flight?

Spring Airlines plans to kick off its car-buying initiative in April, starting with flights out of Shanghai. Color us intrigued.

Chinese airline preparing to launch in-flight car dealerships originally appeared on Autoblog on Wed, 13 Mar 2013 14:16:00 EST. Please see our terms for use of feeds.

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GM China President says automaker could export vehicles from China to US

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GM of China executive Bob Socia at 2013 Shanghai Motor Show

At a press conference on Saturday at the Shanghai Motor Show, General Motors announced plans to further expand its presence in the Chinese market. Among those commitments are plans to build four new plants by the end of 2015, giving the automaker the capacity to produce around five million vehicles a year in the country.

In order to make the most of that expansion, GM is adding 400 dealerships in China this year alone (for a total of 4,200 sales points), and it's eyeing 5,100 dealers by 2015. Yet not all of that production will stay in China - GM is planning to increase exports as well. Officials estimate the company will export somewhere between 100,000 and 130,000 Chinese-built vehicles this year - a record. And it's gunning for more.

Autoblog asked GM China president Bob Socia (above) if that means the company might eventually export new vehicles built in China to the United States, and he responded:

"It could very well happen. It could very well happen. You know, I'm not sharing any plans with you, but we try to keep open as to what makes sense. And Tim [Lee - GM's president of international operations] is the right guy to talk about your manufacturing footprint. If it make sense to tool up a vehicle in one location as opposed to two, from an economic perspective, Tim will say that's what we should be doing. We're open to be doing that. There's no reason why we can't be exporting to the States, and obviously the States are exporting here."

Given that the Pan-Asia Technical Automotive Center - GM and Chinese automaker SAIC's joint-venture vehicle engineering and design house - is expanding and increasingly calling the shots with Buick, the Tri-Shield brand is arguably the most likely way that Chinese-built vehicles could find their way to the US. GM has sold more Buicks in China than in the States for some time now, and PATAC has been responsible for a growing amount of work on the brand, from taking the lead on styling and engineering for the current LaCrosse to designing showcars like the just-revealed Riviera Concept shown below.

But are there such export plans in place at this time, we asked? "No."

GM China President says automaker could export vehicles from China to US originally appeared on Autoblog on Sat, 20 Apr 2013 12:44:00 EST. Please see our terms for use of feeds.

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China's Great Wall aiming to sell vehicles in US around 2015

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Great Wall Motor Co. display at 2013 Shanghai Motor Show with pickup and camper

Stop us if you've heard this one before: "The Chinese are coming." According to Automotive News, Great Wall Motor Co. plans to sell its vehicles in the US by around 2015. The Chinese automaker has been researching its planned expansion for the last two years, looking at everything from regulatory hurdles to establishing a dealer network, as well as customer needs and wants.

Although it isn't immediately clear what models the company plans to market here in the US, it is apparently looking at establishing a factory stateside. The company currently sells its wares in 76 countries and regions around the globe, but has yet to attempt to crack the US or Canada. Great Wall may be China's largest purveyor of SUVs, but it has a full lineup of models to choose from - it brought 26 vehicles to last weekend's press day for the Shanghai Motor Show, including a stand-alone section for its Haval brand of SUVs.

Of course, the Asian nation's automakers have been promising to bring their vehicles to the US market for years now, but to date, not one has made a full-fledged effort. Not Chery, not Changfeng, not anybody. At the moment, the only Chinese-built cars sold in North America are Honda Fit models, and they are only available in Canada (however, General Motors recently opened the door to importing their own Chinese-built models).

Having said all that, Great Wall is one of China's most respected and most financially established automakers, and it has a lot of experience building factories in other markets (admittedly mostly knock-down plants), as well as exporting vehicles. It seems all but inevitable that Chinese automakers will eventually offer vehicles to US consumers in real volume, but for the moment, there's still a lot of debate about how quickly that reality will set in. To wit, a recent study by Bernstein Research suggested that Chinese automakers still have a decade or more of development before they will be able to field globally competitive products.

China's Great Wall aiming to sell vehicles in US around 2015 originally appeared on Autoblog on Wed, 24 Apr 2013 17:29:00 EST. Please see our terms for use of feeds.

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Qoros could finally be the Chinese brand to fear in the west

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Can Qoros Make A Difference Outside The Walls Of China?

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I know of no sober industry executive who fears a Chinese entry into the US.

Qoros is a venture between the Israeli Israel Corp. and state-owned Chinese company Chery. Chery, up to now, has been known mostly for "appropriating" western designs and having an ill-fated, ridiculous and half-baked venture with Malcolm Bricklin to bring Chery vehicles to the United States a few years ago. Bricklin was an original distributor of Subaru and Yugo in the US. The only people to find any success in that venture were the lawyers.

But what gets my attention now with Qoros is that the company seems to be addressing the cultural mistakes and barriers that have bedeviled every other Chinese automaker with aspirations to be successful beyond China. It is using non-Chinese executives - people with legitimate experience in the Western auto industry - in the areas of design, engineering and distribution.

Heretofore, I have been bored silly watching Chinese automakers like Chery, Great Wall and BYD either come to the Detroit Auto Show with a car, or strike some preposterous distribution deal with the hacks and ne'er-do-wells of the western auto retailing space. It's been all for naught. These cars and ventures have been so inept and awful that I know of no sober industry executive who fears a Chinese entry into the US.

Continue reading Qoros could finally be the Chinese brand to fear in the west

Qoros could finally be the Chinese brand to fear in the west originally appeared on Autoblog on Wed, 24 Apr 2013 19:00:00 EST. Please see our terms for use of feeds.

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China continues foreign automotive investment incentives after all

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Buick and China flags fly at dealership

China has reversed a policy that would have nixed incentives for investments from foreign automakers, paving the way for further expansion by General Motors, Volkswagen and others. Legislators had removed automotive manufacturing from the list of industries that would receive government support in the future, but foreign investment fell off significantly in April. The country's National Development and Reform Commission responded by not only reinstating foreign automotive investment but by giving the business "preferential treatment," according to Automotive News. Last year, China's central and western regions attracted $19.2 billion in foreign investment across the board.

With China serving as the world's largest automotive market, manufacturers are keen to make inroads in the region. The local government incentivised foreign-owned manufacturing plants for some seven years before the National Development and Reform Commission removed the industry from its approved list in an attempt to stave off overcapacity. Automotive News reports GM and VW have both invested heavily in the region, with the latter set to begin construction on an all-new facility. The new plant is part of a $13 billion investment in China and will join Volkswagen's 12 other car and component facilities in the region.

China continues foreign automotive investment incentives after all originally appeared on Autoblog on Thu, 23 May 2013 08:45:00 EST. Please see our terms for use of feeds.

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