Chinese Cars

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I have marked a few paragraphs with ~~~ to highlight the frenetic pace of development. The business model is affordable modern cars for third world markets including China herself. The American car market may be the biggest in the world. But it is a mature market with cutthroat competition even the big three Detroit Iron has trouble surviving in. Chinese car manufacturers would be silly to want to enter this market as an independent. But with Detroit three seeking China made cars to fill out their low end models it is possible that this will be a very profitable partnership. When they hit US roads the US importer will have to be responsible for quality and consumer issues since there cars will be rebadged and sold under the aegis of a Detroit three company.
A website with pictures is at http://www.worldstyling.com/web/product_detail.php?id%12 http://archive.cardesignnews.com/autoshows/2005/shanghai/highlights/index.php The cars will look good on any road. Since the car market in China itself is open to imports a crappy domestic design car that cannot match Japanese or German models for example won't sell. The Chinese made cars are of good quality. While you may bicker on the small details the fact remains that they sell like hot cakes and they are not breaking down on the roads.
Chery's millionth car 'just the beginning' August 24, 2007 http://www.atimes.com/atimes/China_Business/IH24Cb03.html
WUHU, China - China's Chery Automobile Co produced its millionth car on Wednesday, becoming the first wholly Chinese auto maker to reach that milestone.
~~~The company, established in 1997, started production in 1999 and made its first million cars in seven years and nine months, said a statement from the company. It took Chery about six years to make its first 500,000 vehicles, and only 17 months to complete the second half-million.
The millionth car is an A3 four-door hatchback, which made its debut at last year's Beijing auto show and is expected to go on the market this year.
The compact model, equipped with Chery's own-brand engine, was designed to meet environmental and safety standards in the US and European markets, despite some industry analysts claiming that Chinese producers lack the technology to meet the standards on their own.
In contrast with Chery, Sino-German auto maker FAW Volkswagen took 13 years to make its first million cars, while it took more than eight years for Shanghai GM and Guangzhou Honda to build their first million cars.
Chery, the ambitious flag-bearer of Chinese indigenous brands, is capable of producing 400,000 cars, 400,000 engines and 300,000 transmission cases a year. Chery, now the biggest Chinese passenger-car brand by unit sales, plans to raise its annual output to a million cars by 2010.
A new plant, which will begin production in October, will increase capacity by 250,000-300,000 cars a year. China has 30 sedan manufacturers, nine of which produce more than 200,000 vehicles a year.
Chery, based in Wuhu, Anhui province, sold 232,785 cars in the first seven months of the year, maintaining its position as the country's seventh-largest auto manufacturer and the fourth-largest sedan producer.
With sales on the home market dominated by foreign auto makers such as General Motors, Volkswagen and Toyota, Chery is eager to expand on the global markets. Since 2001, it has exported 153,694 cars to 56 countries, making it the biggest Chinese sedan exporter for four consecutive years. It plans to raise annual exports by 800% from last year to 400,000 by 2010.
~~~Chery plans to have 14 overseas factories by 2010 to assemble its own-brand cars. It now has seven plants in six foreign countries - Iran, Russia, Ukraine, Indonesia, Egypt and Uruguay. The top Chinese car exporter is planning new plants in other countries such as India and Argentina, it said.
Producing autos abroad will enable Chery to avoid foreign nations' tariffs on cars shipped from China and will allow it to source spare parts in these countries. It said the move will help it cut costs overseas to "reap more profits and improve price competitiveness".
~~~This month, Chery established ties with Italy's Fiat to supply 100,000 engines a year for Fiat cars made in China and abroad. Chery has also signed a deal with Chrysler to export Chinese-made cars to the United States and Europe. The two companies will jointly develop new products based on Chery's small-car platforms.
Cooperating with foreign auto makers was no barrier to developing Chery's own-brand products, said president Yin Tongyao. "It will help Chery build indigenous cars with international competitiveness."
In his congratulatory letter to the auto maker, Chinese Vice Premier Zeng Peiyan said Chery had distinguished itself as China's self-developed auto brand at home and abroad.
"Taking the millionth car as a new starting point, Chery should further innovation on technologies and management and upgrade its products and service," Zeng said.
(Asia Pulse/Xinhua Informati
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PaPaPeng wrote: ...

Just don't chew on the lead paint... :) --
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of some GM designs ever work out? Easy to save on engineers when all you are doing is reverse-engineering somebody else's product.
Bad enough I gotta buy their computer hardware, due to lack of alternatives. Cold day in hell before I buy their cars.
aem sends.....
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aemeijers wrote:

Well, wasn't it Toyota that based their engine designs off an old Benz straight six? And today Toyota makes a decent product.
Oh, I see what you mean.
nate
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elsewhere- under license, in most cases. IIRC, the postwar Toyota truck engine was based on GM stovebolt six design- already old at the time, but simple enough for a still-crippled country to build. US govt was trying to get the Japanese industrial base up and running ASAP, so they encouraged Detroit to be kind to the Japanese companies.
But the morality of bootleging designs aside (since car companies in general have become as bad as the fashion industry in ripping each other off), even if they made and sold a perfect copy of a western design for half the money, with good reliability and parts support, I <still> wouldn't buy it, at least not until they get better on how they treat their people.
aem sends....
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A valid point, but mine was more along the lines of if you're going to bootleg a design, you should at least have the discrimination to pick a GOOD one and not a POS GM product to copy. The old VW 1.6/1.7/1.8 would be an excellent choice for a developing country - simple, small, reliable, durable. But GM?!?!?!?!?! That doesn't speak well to the abilities of their engineers if they can't tell a good product from a shitty one.
The Koreans bootlegged off of the Japanese for a while, and while Daewoo made an ungraceful exit, Kia and Hyundai seem to be doing all right, especially Hyundai who I have to admit I'm somewhat impressed with. If I didn't have a taste for truly good cars and just wanted some basic transportation, I would be seriously considering a low-end Hyundai.
nate
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Sorry Guy, but China and Quality just don't belong in the same sentence.....
-paul
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snipped-for-privacy@aol.com wrote:

I just wonder how much LEAD they have in their cars. :-0
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On Fri, 24 Aug 2007 12:50:22 -0400, snipped-for-privacy@aol.com wrote Re Re: Chinese Cars:

There is no "if" about it, just a matter of time.
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Buy a "foreign car" put an American out of work
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Rudy wrote:

want, and refusing to make cars people do want, are the ones who put Americans out of work.
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I don't think they "insisted." I think they were just WRONG. Which is LOTS worse.
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It was the same as "Buy a better mousetrap." Why couldn't we make the best cars in the world???
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When you are buying an American car, you are paying 80% for the union and 20% for the car.
To compete, the American car companies need to cut back someplace. Since the union has the pay scale locked down the only other place to cheap out is the quality of the cars.
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The biggest expense for companies like GM is the retired workers, not the ones working. When the rest of the boomers hit the system most US companies will be in that boat although "early outs" have already put a lot of them in the system.
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Rudy wrote:

USA. And, don't think, "Well, the parts are mostly foreign." because so are those in "American" cars. But then you say, "The profits go to the foreigners." Look at company ownership and you will see US companies have a stake in them.
I buy what is best for me.
Frank
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on 8/25/2007 7:44 AM Frank said the following:

i.e. Ford. http://www.ford.com/en/default.htm Check the 'Great Products - Our family of brands' bar.

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willshak wrote:

Mercury Lynx(probably manufactured in Mexico) threw a piston before 2 year drive train warranty was up. Dealer replaced piston and head but rest of engine was bad and block finally had to be replaced. Said it was part my fault and would only pay half so I sued and won from dealer and Ford to pay whole bill. This was about 20 years ago but I will never consider buying another Ford because of poor product with shabby treatment by dealer and Ford.
We had a Mazda that ran like a top for 95,000 miles when it was stolen and stripped. My wife refused to consider buying another because in the meantime, as your reference points out, Ford bought part of Mazda.
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Rudy wrote:

Sigh.
Adam Smith settled this silliness in the 18th century with his "Wealth of Nations."
It's amazing that people STILL believe we should be doing what others can do better instead of concentrating on what we do best.
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wrote Re Re: Chinese Cars:

Exactly. We need to stick to borrowing money and passing the bill to future generations.
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