[photopress:China_trucks.jpg,full,alignright]Of the roughly 100 different manufacturers currently building cars in China, an estimate is that between three and five will be peddling their low-cost wares in the U.S. within five years.
The estimate was made by Bill Pollack who has a vested interest in this. He is CEO of China America Cooperative Automotive (Chamco), which plans to import Chinese vehicles to North America.
Speaking at a recent New York City press lunch, he showed photographs of the company’s first two models, an SUV and a four-door pickup. Pricing will be about 20% less than competing models already on sale here. To succeed the quality must be at least as high, possibly higher, then competing vehicles.
Chamco faces myriad hurdles to accomplishing these goals, such as ensuring the vehicles meet U.S. emissions and safety requirements, establishing dealer networks, and competing with well-established car brands.
Chamco also wants to build a factory in Mexico. This plant would supply Mexico and South America.
Then if Chamco should face cost-prohibitive tariffs on its Chinese imports — and that is a possibility to be considered — U.S.-market models could be sourced from Mexico. Prior to the factory being completed the company is looking to bring in 50,000 units duty free to Mexico to start sales.
Already on sale in some 50 countries around the world — none of which have the safety and emissions standards, to say nothing of customer quality expectations — of the United States or Europe, Chamco has some changes to make before it becomes a major force in the United States.
The article ended on a very true note: ‘Can he do it? We’ll see. But one thing is certain, even if he can’t, somebody will.’
Source: Consumer Reports
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