Geely Cars: Gotta Get One?
I mentioned in a related article that the first batch of Chinese
built cars to be imported to the U.S. is only a few years away.
In that article, I discussed Chery Automobiles and how the
company has its designs on the American market, particularly in
the entry level category. Well, now a second manufacturer -
Geely Automotive Company - is also planning on bringing at least
one model to the U.S. by 2008. Changes are in the wind, but lest
you think that Detroit is the only one quivering don't be
fooled: Japan's automakers and Korea's automakers all must take
notice of what is about to happen.
For certain, the U.S. automobile market is the most lucrative
one in the world. It is also the largest with more than 17
million new vehicles sold annually. All automakers know that if
you have a piece of the American market, you have a piece of big
profits as long as what you are selling is what consumers want
[Ford and GM, take notice].
The Chinese automakers sense that Americans want low cost
vehicles. With Korean cars improving sharply in quality and with
their prices remaining very low there is room for more cars in
the sub $20,000 category. As it stands now, both Geely and Chery
have several models that fit the bill including a few that will
likely retail for well under $10K! Chalk it up to extremely low
wages and cheap components, even much lower than what Hyundai,
Toyota, and Honda can produce at that.
Quality is certain to be another thing, but if the Chinese
automakers emulate Hyundai - originally known for selling
cheaply built and cheaply made cars when first imported to the
US in 1986 - this will only be a temporary phenomenon.
Of course, getting each Chinese model to pass stringent U.S.
safety and pollution control requirements will take time...and
money. Still, should Geely and Chery overcome these obstacles
American streets may be filled with cars bearing several Chinese
name plates.
The U.S. automotive industry is taking notice even as the
Detroit auto show features its first Chinese built cars. For all
automakers, the new makes are worth taking notice and for
consumers each model will have to pass scrutiny and compare
favorably with other budget brands.
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Copyright 2006 - For additional information regarding
Matt Keegan, The Article
Writer, please visit his blog for
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Written By: Matthew C. Keegan
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