Friday, April 27, 2018

Do Americans still buy Chinese cars BBC News

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Image copyright Getty Images Image Caption US consumers react to Chinese automakers, as the Changan CS35.
Although the focus at the Detroit auto show this year was on the three major US automakers, foreign manufacturers are also feeling.
But the country most vehicles of all consumer - China - is significantly off the ground here.
For the first time since 2006, no Chinese carmaker has an exhibition stand at the Cobo Center in downtown Detroit.
This absence is particularly striking that the Chinese auto market continues to grow rapidly last year, Chinese consumers bought a record number 17 9 million vehicles in 2013, 15 July increase in the previous year.
But consumption booming Chinese car did not help Chinese automakers.



While Chinese car companies could be just dipping their toes in the waters of Lake Michigan, the Detroit Chinese investors have embraced wholeheartedly.
Many eyebrows were raised when Dongdu International Group based in Shanghai bought two skyscrapers here in October.
The company paid 7 9 5 4 m m for David Stott Building 38 floors and 4 2m Building Detroit Free Press.
While this may seem a hefty price for the buildings in a city that can barely keep her lit streets, Evonne Yu, a lawyer working with Chinese investors here, said that art is a very good deal.



You could not even buy a luxury home in Shanghai for that price, said Ms. Yu, who notes that there are several other buildings - including the Cadillac tower 40 floors and baroque Wayne County complex - on the market for less than 10 m.
Paradoxically, the highly publicized bankruptcy of Detroit - the largest in the history of the United States - has only helped things.
There was a lot of media coverage in China of how the property is cheap Detroit because of bankruptcy, which has generated much interest, she said.
Their total market share in China fell from 1 to 6 percentage points to 40 3 in 2013 and exports declined, according to the China Association of Automobile Manufacturers.


There is a lot of interest for major Chinese automakers in setting up shop here in Michigan, said Nigel Francis, newly appointed car czar Michigan.
I would probably say within five years or more, it is not out of the question that a Chinese automaker would end the US market, said Greg Anderson, a consultant in China and author of How Foot Patrol China plans to dominate the automotive industry .
In preparation, two of the so-called big four Chinese automakers - SAIC and Changan - have quietly expanded their facilities here in Detroit.
China needs expertise - you need expertise for the design, engineering and manufacture of complex product we see as the car today and Michigan is the home of the expertise, said M. Francis.



Changan has recently opened a research and development center about 30 minutes from downtown Detroit, to help the company improve its ability to design attractive vehicles.
The outpost - one of four institutions overseas company - focuses on the design of the chassis, especially for medium to high range cars and SUVs SUVs.
It was difficult for Hyundai - US consumers recognize the name didn t they could not even pronounce Greg Anderson, consultant in China.
Already, some Chinese models Changan car - OCAD and the SUV CS35 - benefited from the expertise of Detroit.



We believe that if we needed to develop a vehicle in the US, we had to be in Detroit, said Changan American Council Chairman Wei Li through a translator, Zhiwei Frank Zhong, general manager of the facility.
Detroit has many possibilities and they have skilled and very rich resources here, he added.
Although the company says it has no plans to sell cars to US consumers in the short term, it develops here.
Just this year, the office has doubled in size to 30 employees, and Changan said he wants the staff to double again by 2015.



But while Chinese automaker looking to expand in the US, there will be lots of challenges, such as the security of the United States and the transition to regulatory standards, get the brand recognition and the establishment of dealer networks in the United States.
While this may seem a long way to travel, expansion of Chinese companies will at least be able to study what Asian participants did before, like South Korean automaker Hyundai, which recently celebrated 29 years on the US market.
Hyundai came to the United States in the 1980s and it was difficult for them - US consumers recognize the name didn t they could not even pronounce it, says Mr Anderson.
Legend of the picture Hyundai celebrated nearly 30 years in the US market with the launch of its new Genesis luxury sedan.
To access, Hyundai was forced to heavily discount its cars.
And to convince American consumers that the cars were safe, Hyundai offered a warranty 161 000 km 100 000 mile to coax buyers flicker.



Although the US market share of Hyundai recently slipped 4 7 North American head newly installed David Zuchowski said Monday that the company had a goal of reaching 5.
For now, exports of Chinese cars continue to focus on emerging markets such as Latin America and Russia.
But when they finally seek to do great in a developed market like the United States, the bankruptcy of Detroit is ready to welcome the Chinese with open arms.
Michigan currently hosts more than 100 Chinese companies, and since 2005, the region has received more than 1 billion of Chinese investment 610m.
Unsurprisingly our message to China is that we got the know-how, we would like to share for you to come, said M. Francis.



And maybe sooner than later BYD, a Chinese carmaker in which Warren Buffett invested, said recently that he intends to bring four models in the United States by the end of 2015.







Do Americans still buy Chinese cars BBC News, ever Chinese cars.