Plans to Import Chinese Cars Hit Snags - Tire Review Magazine

Plans to Import Chinese Cars Hit Snags

(Akron/Tire Review – USA Today) Problems with everything from money to pollution have disrupted plans to sell Chinese cars in the U.S.

Veteran auto entrepreneur Malcolm Bricklin’s deal with China’s Chery Automotive stalled – just briefly, Bricklin insists – for lack of money. And cars from rival automaker Geely flunked trial runs of U.S. emissions and side-crash tests, so engineers must redesign the cars and engines.

Conventional wisdom is that cheap Chinese cars are inevitable in the USA. But hiccups at Chery (CHAIR-ee) and Geely (JEE-lee) show it won’t be a snap.

"Yes, they will be here. The question is who will be first," said George Peterson, head of consultant AutoPacific. He says Bricklin will be lucky to be selling cars by mid-2008, nearly a year later than planned. Geely "looks as if it is less prepared" and will take longer.

"It took the Japanese 20 years to understand this market and build appropriate cars," Peterson said.

Bricklin had been trying to raise $200 million, $2 million at a time from each dealer who signed up. So far, he says he has only 37 dealers. "We thought we were going to get the money sooner," he said by phone from China last week. He was there reassuring Chery that he now has $225 million from Atlantic-Pacific Capital. That company wouldn’t comment.

"The joint venture (with Bricklin) is not settled yet," Chery spokesman Wang Wei said Friday. "It takes time." Just 30 days or so of paperwork and other formalities, Bricklin says. Then Chery can begin developing vehicles designed by Bricklin’s team specifically for the U.S. Chery wanted to see Bricklin’s cash first.

He hopes to begin selling vehicles in the U.S. by late next year. Unrealistic, says Michael Dunne, veteran of China’s auto industry and now president of China-based consultant Automotive Resources Asia: "We are talking 2008 or 2009; 2007 is very unlikely."

Geely’s problems could be more damaging. "We have a major problem with the current engine," said John Harmer, COO of Geely-USA. It won’t pass U.S. anti-pollution rules and could be difficult to redesign. Buying engines from another maker would boost costs and probably prevent Geely from hitting its goal of a $10,000 U.S. selling price.

The car also failed a side-impact test designed to duplicate the government’s. Geely engineers are traveling to the U.S. in the next few weeks to review the safety tests so they can redo the car, Harmer said.

Harmer forecasts a late 2008 U.S. on-sale date, initially in only a few markets, probably near ports.

Chinese automakers "will face a tremendous amount of consumer resistance, because of their newness, until they prove they can be trusted," said Dan Gorrell, vice president at Strategic Vision research and consulting. In addition to low prices, they’ll probably need long warranties and the kind of kid-glove showroom treatment typical of luxury dealerships, he said.

You May Also Like

Tesla Model 3 TPMS service

Resetting and programming TPMS sensors for a Tesla is a lot like any other vehicle, and the challenge is still the same: keeping the light off.

bendpakEVgarageTPMS-1400

One of the first items to be replaced on any Tesla model are the tires. This is due to tire wear from the instant torque of the electric motor. When replacing the tires, you will have to service the TPMS sensors. Tesla has used Baolong (from 2012 to 2014), Continental (from 2014 to 2020) and a proprietary sensor that uses Bluetooth. For 2021, the Model Y started to use a sensor that communicates using Bluetooth protocols. Not much is known about the new system except that the sensors are currently available only through Tesla.

TIA’s Advanced Farm Tire Service training to take place in June

The training class for technicians in the agricultural and farm tire industries is set to take place June 11-14.

TIA_training-
Three spark plug service and replacement tips

How to avoid and overcome roadblocks that may come up during the removal or installation of spark plugs.

Continental-sparkplug
Maxxis-sponsored athletes make podium, overall top 10 at Mint 400

Maxxis athletes Michael McFayden, Ethan Ebert and Trey Gibbs had podium finishes at the Mint 400 on Maxxis RAZR XT tires.

2024-mint400-maxxis
Sun Auto Tire reveals winner of Ford Bronco Sport giveaway

Lowell Anderson entered the giveaway at his local Sun Auto Tire & Service store while receiving a routine oil change.

Sun-Auto-Bronco-giveaway

Other Posts

Nokian Tyres holds bracket challenge on worst roads in North America

In 2023, the tiremaker’s audience voted Quebec as the province or state with the worst road conditions on the continent.

Pothole-Protection-from-Nokian-Tyres
Hankook to display its iON tire lineup at this year’s Electrify Expo

Hankook will also sponsor Electrify Expo’s Demo District, designed to provide hands-on experiences with EVs.

Hankook-iON-Electrify-Expo
Gallery: 2024 Big O Tires conference and convention

Highlights from this year’s Big O Tires conference and convention, featuring a general session, trade show and breakout sessions.

Gary-Skidmore
Bridgestone’s Firestone Liberia rubber farm receives ISCC Plus recognition

According to Bridgestone, its Liberia facility earned the ISCC Plus certification for its efforts in reducing environmental impacts.

Firestone_Liberia