[Streaker]

$1:

China ready to crack North American auto market
Last Updated Mon, 09 Jan 2006 22:29:27 EST
CBC News

The North American car industry - already facing slumping sales and profits, along with increased competition from Japan, South Korea and Europe - will soon have a new worry, China.

More specifically a Chinese automobile that will sell for less than anything built in North America.

This week, the Chinese car company, Geely International Corp., became the first Chinese automaker to show off an automobile at the prestigious Detroit auto show.

John Harmer, the vice-president of the company's U.S. division, says the Detroit show was history-making. "This is the first Chinese automobile to be shown to the American public. There are no Chinese automobiles in the American market," he said.

Geely hopes to have its first model for sale in North America by 2009. The compact will sell for about $13,000.

Some auto industry analysts says they don't believe Chinese cars will come in enough quantity, or with enough quality, to matter in terms of North American sales. But analyst Nick Margetts says the threat should be taken seriously. "It's a massive, massive country with a massive population and massive potential," said Margetts.

Auto analyst Denis Desrosiers agrees that the Big Three should pay attention. "It's very symbolic. It says that Detroit has lost its way, that the future is a global auto sector, it's not a North American based auto sector. That's what it really means."

Chinese car manufacturers, analysts say, are also rapidly improving.

"They're buying engineering from Germany, design from Italy. They're buying what they need around the world," said Jean Jennings, editor-in-chief of Automobile Magazine

A second Chinese venture, Chery Automobile Co., led by Malcolm Bricklin, is hoping to start retailing in the U.S. next year, with other Chinese automakers joining in within the next few years.

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So is anyone up for driving a Geely or a Chery

[bootlegga]

I wonder if they are any good or not. Will they be any better than a Lada? I went to the Auto show back in the 80s and saw a Lada with wood door panelling! And a radio was an option! LMAO

I also remember when the first Hyundais got here and they were fine until winter and pffft! They wouldn't start if it was -10 or so. They have gotten better since then, but they started out as junk.

It sounds like they are trying to build a great car, and if they do, I think people will buy it. That's what the Japanese carmakers did and people buy boatloads of those, so I don't see why Chinese carmakers can't be successful here too.

[ridenrain]

Can anybody say.. Trade Deficit?

How many cars does China buy?
How many refrigerators?
How much maple syrup?

They buy coal and raw logs, make stuff and peddle it back to us.
Trade has to be equal and fair, and China has very far to go.

[Streaker]

My guess is that they will start out as junk, but will improve - just like the Japanese and Korean automakers before them.

I'm just trying to wrap my mind around the idea that Chinese automakers will eventually become competitive with the rest of the world. The impact will be huge...

[ridenrain]

Let's not lable this left or right because a race to the bottom affects everybody.

$1:

The trade deficit with China rose by $3.7 billion last year to a record $17.5 billion. However, our exports to China grew faster than our imports from there, slowing the growth rate of the deficit somewhat.

The deficit with China was larger than with any other single country. If current trade patterns continue, it could outstrip our deficit with the European Union in 2005.

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I also need to draw attention to China's awful record of international pattent protection. The only time they enforce the laws is when it's being done by a rival gang and it's turned into a media event. Ultimately, it's a joke.


I am for free trade but we do not have free trade with China. We sell raw materials to them to make products that they sell back to us. It does not take the vision of Capt. Canada to see that we should be making these value added products.