GAC China-based motor show car at the Detroit auto show annual and expresses interest in selli
Chinese products, from textiles to tools to toys, have been flooding in America for years, but despite their repeated promises, peaceful Chinese automakers t started to make a dent in the car market in the United States.
For at least half a decade, Chinese manufacturers including Brilliance, Geely, Great Wall and BYD Auto have displayed vehicles at auto shows in Detroit and Los Angeles, often with press releases announcing the plans to sell cars in the near future, but the cars never emerged in dealer showrooms that also remain missing.
The F3DM BYD could become a notable exception BYD says its plug-in hybrid in China car is on track to reach the United States in spring 2012 Even if this is true, it may register as barely a blip in a market increasingly crowded replacement -Power cars, industry analysts say.
Yet just the car market would represent a leap forward for a Chinese manufacturer In 2006, Brilliance said it would start selling its cars in the US by 2009 to date, none arrived and Chery Automobile supported an agreement with Chrysler, which was supposed to provide a foothold in the US market.
In 2006, the Nanjing Automotive Group, which bought the assets of the bankrupt MG Rover, said he wanted to be the first Chinese automaker to build cars in the US, including a new edition of the car MG sports but its plans to open an Oklahoma factory never took place.
Geely, which bought Volvo last year, showed small sedans in 2006 and 2008 auto shows in Detroit, but these cars have not been certified to meet safety standards and American programs.
False starts are the result of Chinese automakers to let their ambitions ahead of the hard work of cracking the American ultracompetitive market, analysts Fueled by financing cheap and domestic demand booming, Chinese automakers have had rapid growth at home that gave them confidence, but not necessarily the tools to start selling to Americans.
This t n computers or cell phones, where you just get in a big box store, said Bill Visnic, senior analyst, you need the dealers, and these things are huge investments of time and resources that they thought it would be much easier than it was.
It has not helped, of course, that the last years have been a terrible time to introduce cars when the housing market plunged, followed by the general economy, consumers hunkered down vehicle sales in the US fell about 40 percent 2005-9, General Motors and Chrysler have received government bailouts, hundreds of concessions were shuttered and auto loans dried Even hybrid sales suffered as oil prices receded .
While the economy has improved somewhat, the Chinese still face great challenges in part, they must determine which part of the market to attack the compact car may be one of the points of entry easier for a new company but competition is fierce and margins are thin.
The Chinese could try to jump the market by selling more advanced hybrids and plug-ins Indeed, Coda Automotive of Santa Monica, California plans to import the body of a Chinese sedan, the Hafei Saibao, in which the company will install electric powertrains But hybrid and electric vehicles account for only 2 2 percent of global sales, according to JD Power Associates.
Because consumers are wary of electric vehicles and their driving range and batteries, they are more likely to go with more established companies like GM and Nissan, said Mike Omotoso, following sales of hybrid and electric vehicles JD Power.
M. Omotoso said the Chinese could buy competitors and use their dealers to reach Americans The most likely candidate for this strategy is Geely, which acquired Volvo last summer Even then, Geely have to spend millions of dollars on marketing and hope US consumers are adventurous enough to try a new brand.
The problem with Chinese automakers, M. Omotoso said, is that they try to run before you walk.
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