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http://www.autoindustry.co.uk/news/23-03-06_2

Second importer promises US buyers cheap Chinese cars

23rd March 2006

A US company called Global Holdings International, Inc. says a full line of Chinese-manufactured vehicles, which include sedans, minis, sports coupés, SUVs, mini-vans, trucks, light trucks, buses, and heavy equipment, “are already on their way to America”, where the firm will marked most of them at prices 30-50% less than comparable vehicles sold in the U.S. today. Until now, the only US firm planning Chinese vehicle imports has been one promoted by entrepreneur Malcolm Bricklin, which announced planned to import the Chery brand last year.

Global says its cars will all carry extended warranties and will hit the U.S. market in 2007, and will include vehicles from Brilliance, Foton Auto and Boading Tianma Auto. Foton also carries a full line of heavy equipment. The Brilliance M1 sedan will begin its tour of the United States in San Francisco, California in June 2006. The first showroom will be completed in early 2006 in Guadalajara, Mexico, with a Las Vegas showroom to follow in the later part of the year.

Jeff Suh, CEO of Global Holdings International, Inc. says distributorships have been sold for certain areas of the U.S. and some other countries, and that its individual dealerships in the US are projected to sell 1,000 vehicles per outlet.

- Xinhua Far East China Ratings has just downgraded the reported supplier of one of Global Holdings, Inc’s models, Brilliance China Automotive Holdings Ltd from BBB+ to BBB-, reflecting the agency’s negative view on Brilliance China’s competitiveness as an independent domestic brand, noting that its saloon car sales have slipped despite solid growth rates in China's market of 15.2% in 2004 and 24.3% in 2005.

Meanwhile, the Dutch paper De Telegraaf yesterday reported that the Chery QQ, a mini strikingly similar to the Chevrolet Matiz, and one of China’s lowest-cost cars, is to follow the Landwind SUV into the Dutch market, where it is expected to sell for around €5,000 (circa £3,500), which is some 30% cheaper than the Matiz starting price.
they're already so cheap and they're competing w/ each other already. :giggle
 

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its only going to get very, very interesting when the chinese actually start settling over here...VERY interesting

for some reason tho...i don't see honda/yoda/nissan getting as hard of a hit as say hyundai or dewoo or kia since those guys are already playing the cheap game where as yoda/honda/nissan stick to their prices and people are still buying them...

not saying no one's gonna get a hit, EVERYONE is gonna get hit one small way or another but i think its the brands thats already selling cheap right now thats gonna get the most competition....
 

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This will bring a new generation of rice involving overnighting parts from China and CDM conversions.
 

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They will have a hard time building brand loyalty if they are crappy cars and will end up like yugo. Plus it's an up hill battle due to patriotic buyers, but... if they are any good and stay really cheap then they will end up like toyota, honda, nissan, and more recently hyundai.

If that happens, then years from now they will maybe start comming up with original designs and can start charging more, but I doubt it.... :bye
 

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I saw that on TV. It's actually going to be a dangerous competitor to Japanese and American car makers. They want to provide cars with the same quality and similar looks as Lexus/Infiniti/Acura level cars but for thousands less. Who wouldn't want that?
 

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phrancis said:
They will have a hard time building brand loyalty if they are crappy cars and will end up like yugo. Plus it's an up hill battle due to patriotic buyers, but... if they are any good and stay really cheap then they will end up like toyota, honda, nissan, and more recently hyundai.

If that happens, then years from now they will maybe start comming up with original designs and can start charging more, but I doubt it.... :bye
Brand loyalty and trusting a new manufacturer's quality may be a hump to get over, but they don't look anything like Yugo's or Kia's. Think Lexus IS 350 in a convertible version and for $20000.
 

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Okay, I couldn't find some prototype photos of the car I saw on TV. But here are some Chery car photos.

This is a existing model which is similar to a GM Chinese-market car that they are going to court over.


This is the front of a prototype cross-over station-wagon.


This is the interior of a prototype cross-over station-wagon.
 

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I do not think Toyota, Nissan, and Honda will have a hard time when Chinese cars arrive. Japan's big three came to America with cars priced about the same as domestics, but with higher quality. This is why we trust them and see them as reliable cars. Kia and Hyundai came to America with cars priced lower than domestics, with very poor reliability. Has anybody seen a 5+ year old Hyundai that still has good clearcoat? Chinese cars seem to be pulling the same game as Korean cars did 15 years ago, and while they might be as reliable as Japanese cars, not many people, including myself, are going to bet $10,00 to $15,000 on it. The only market they will appeal to is people who know nothing about cars, who do not covet before they buy, and do not even care enough to wash their car. In other words, the Korean manufacturers will burn.
 

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