China to move into American auto market

Reported The Wall Street Journal (Jan 3, 2007), five Chengfeng Group Company's vehicles, two sport-utility vehicles, two pick-up trucks and a concept cqar, are on display at Detrioit Auto Show. A year ago, a lone Geely Automobile Co. sedan sitting outside the main exhibit halls marked the first time a Chinese automaker displayed at the North American International Auto Show. This year, Geely was absent from the Detroit show. But another Chinese automaker -- Hunan Changfeng Motor Co. Ltd. -- was showing its cars in a more polished display, albeit one in a basement exhibit hall. Changfeng's Liebao brand cars, including a pair of small sport utility vehicles, are being built for the growing Chinese market. But the company is looking for a way to get them on U.S. roads.

Obstacles remain for selling Chinese cars, such as the cost of getting them here and consumer worries about their quality. Some of them could be avoided through partnerships with companies that already have a significant share of the U.S. market. And because of that, the first Chinese-made cars for the United States might not be sold under Chinese nameplates.
Last month, DaimlerChrysler AG's Chrysler Group and China's Chery Automobile Co. announced that they agreed on a plan for the Chinese manufacturer to build small cars to be sold worldwide. They will be sold at Chrysler dealerships including those in the United States under the Dodge, Chrysler or Jeep names. (Source: David Runk, AP, Jan 9, 2007).



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