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Chinese cars in the US: still years away
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The GAC GS4, from China, is unveiled during the North American International Auto Show in Detroit. It made its debut Monday, although auto industry observers say it will likely be years before China starts selling vehicles in the United States.
Associated Press
DETROIT
Another Chinese automaker is showing vehicles this year at the auto show in Detroit, raising the perennial question about when these companies might sell in the United States.
The answer: Years from now, according to carmakers and industry observers alike.
Chinese manufacturers have announced plans over the past decade to export to the U.S. only to postpone them when faced with passing U.S. safety and emissions tests and building a dealer network.
They also must overcome big hurdles in convincing U.S. car buyers that Chinese cars have the quality they demand. Still, Chinese companies remain interested in eventually selling in the prestigious — and potentially profitable — market.
“The fact that they’re showing in Detroit doesn’t really signify that they’re coming soon,” said Michael Robinet, managing director of IHS’s automotive group. “They’re showcasing that they’re in the game, looking to expand beyond the home market.”
Any Chinese-made cars sold in the U.S. likely would come in at the bottom segment of the market for different types of vehicles, Robinet said, where they would compete in the already lively market for used cars.
Buyers would need to decide whether it’s better to buy a used car made by General Motors or Toyota, for example, or a new car from a company that just arrived on American shores.
John Humphrey, senior vice president of global automotive operations at J.D. Power and Associates, said the quality of Chinese-built vehicles has improved, but they still generally lack the fit-and-finish that U.S. car buyers expect.
And consumers’ experience with waves of Chinese-made products that they encounter daily at stores would color their expectations about new cars.
“There’s a general perception of goods coming out of China, being fair or unfair, that they are relatively sub-par,” Humphrey said.
Chinese companies are in their first decade displaying vehicles at the North American International Auto Show. In 2006, a lone Geely Automobile sedan sitting outside the main exhibit halls marked the first time a Chinese automaker showed a car in Detroit. Last year, the Chinese companies skipped Detroit.
This year, Guangzhou Automobile is showing vehicles including a fuel-efficient small SUV that will be sold in China starting in April and parts of the Middle East, Africa, South America and eastern Europe in late 2015.
The company known as GAC, said 2017 is a possible year it would like to enter the U.S. market, but there is no concrete timetable.
Wu Song, GAC Group general manager, said in an interview Tuesday that the company likely would start sales in up to three states, building awareness of its brand and vehicles.