Posted on 06/28/2004 10:58:24 AM PDT by Willie Green
For education and discussion only. Not for commercial use.
DETROIT—An Arizona car dealer is gearing up to become the first to sell a full line of Chinese-made vehicles in the United States at prices starting below $10,000 (U.S.).
Analysts, however, are skeptical, pointing out that most China-built cars have far inferior quality, that U.S. standards for pollution and safety are rigorous, and that even established automakers have trouble in the U.S. market.
David Shelburg and his privately held company, China Motor Corp., want to cash in on China's fast-growing auto industry and cheap labour costs by establishing a network of 100 dealers to sell vehicles from a trio of Chinese manufacturers across the U.S. by the fall — establishing himself as an automobile discount king.
"It is going to happen," Shelburg's wife, Paula Shelburg, a corporate officer and board member of China Motor.
While Shelburg compares China Motor to some of the Japanese car giants, others liken it to the Yugo, the inexpensive but problem-plagued Yugoslav car sold in North America in the 1980s.
"I think we've got another example of the Yugo here," Erich Merkle, senior analyst with IRN Inc. said, adding that Shelburg's chances of success were slim.
Analysts said the firm's 60,000 sales target for the last four months of the year, roughly equivalent to the pace of U.S. sales for household brands such as Subaru and Mercedes, is far too optimistic. Other global automakers, such as Italy's Fiat, France's Renault and Korea's Daewoo Motor, have pulled out of the U.S. in recent years when sales plunged due to poor quality.
"We're seeing horrendous quality coming out of China, especially from the local manufacturers," said Denton Dance, an analyst with J.D. Power & Associates, a Westlake Village, Calif.-based research firm that specializes in the Asian market.
According to a J.D. Power & Associates survey, the quality of compact cars built in China was four times worse than those built in the U.S., Dance said.
Furthermore, David Shelburg has been barred from selling vehicles in Texas after a plan to sell Chinese cars there in the 1990s fell through, leaving some dealers empty-handed, a Texas official said.
Mexican trucks having free access to our roads and illegals grabbing a Chinese made car.
Makes me shudder!
I saw a simliar article on a dealer in Houston. I think the cars will be crap but they will seel to the poor. But they will most likely give the Yugo's a run for their money when it comes to quality.
good point
Here in Houston you will occasionally see a Mexican chevy or ford on the roads. There are a few models sold only in Mexico they are real small and cheap looking. One is called the Chevrolet CHEVY, it makes a geo metro look roomy.
Yugo II ?
That is a horrid, baseless insult, to the the yugos.
Rush will have to have an all new parody for this one.
Honda's and Toyotas and VW's had the same inferior image when first brought over.....
Matter of fact Carroll Shelby (The Ford racing guy) was offered the Toyota contract for 5 western states when they were first introduced and turned it down back then because he thought Toyotas would never sell.
I do not underestimate the Chinese.
I bought a 50cc Chinese scooter, which proceeded to fall apart within months. Worst purchase I ever made. The scooter is made by one of China's biggest auto manufacturers, Qinqi (sp?). If their Vespa-like scooters are any indication of their car's overall quality, expect to see bumpers flying off on the highway and engines burning out after a thousand miles or so.
I shoulda boughta Vespa.
Well I can personally attest to the Honda's indestructability, after three major accidents and 200,000 miles *LOL* You're right about the Chinese in light everything else around the world.
Will they come in Happy Meals?
If some car dealer does this in my town, I will be FReeping them every day.
Replacing the Yugo with the Yalu??
This is just the beginning of the Wal-Martization of the auto industry. I wouldn't be surprised if China pumps out cars that retail new for $5 grand and undercut the major auto makers. After all, some people can't afford a new car in the $15K to $25K and a $5K new car with low quality would be better than a used, $5K beater. This year, GM announced plans to open factories in China. The big worry would be high end cars made with cheap labor in China. The industrial mid-west would take a severe beating.
I don't think Taco Bell serves "Happy Meals",
but they probably have something similar.
In the early 1960s, a Toyota was an awful thing to behold.
One other popint. If Kerry gets elected, he'll push like crazy for these things if they get motorcycle-like mileage, too.
I also wanted to add the Honda's and Toyotas were really junk when they first came over.
Probably. But he can't use it as a campaign promise,
Robert Zoellick has given Dubya a firm lock on that position.
If it's like the Yugo, when it runs out of gas, just throw it away. Sorta like a BIC lighter.
More trade and job deficits. Do we export any product made here [other than factories]?
I hope they will start selling cheap Chinese gas here soon!
(25 cents a gallon!)
"In the early 1960s, a Toyota was an awful thing to behold."
STILL IS!
BUY AMERICAN!!
At least it's not named the KIA.
The problem with Chinese gasoline is that an hour after you fill up you have to find a gas station and fill up again!......
Nothing wrong with KIA's.. I own two, even tho one has a Ford nameplate (ASPIRE is really a KIA).....
Most of the Japanese cars sold in the U.S. are made in the U.S. They are AMerican cars just like Chevy or Ford.
http://www.thecarconnection.com/index.asp?n=156,173&sid=173&article=7194
Shelburg tries again
David Shelburg, an Arizona businessman, is signing up new dealers and has announced plans to begin selling cars and trucks from China in the U.S. this fall, reports USA Today, *****although the National Highway Traffic Safety Administration reports that his company, China Motor, has not yet even started the complicated safety approval process with the federal government.*** 75-year-old Shelburg, who this time intends to import two SUVs, two pickups, and two cars (possibly supplied by Geely) has tried unsuccessfully several other times in the past ten years to sell Chinese vehicles in this country.
KIA...
Killed In Auto
KIA's are holding up reasonably well. We were skeptical of them at first like we were with the first lightweight Subaru cars. The Chinese cars might be expected to improve rapidly if they are subpar at first, but the price will improve as well.
I think Rush will call this a victory for free trade. He will laud this as a new beginning in American business. Yep. More cheap Chinese crap for America.
Anyone remember the first HONDA auto? It looked like a washing machine on wheels.
How about the first 4 wheel drive Suzuki. It was a two cylinder, two cycle very mini-jeep from about 1974.
Now how did I know someone would say that? *lol*
That information is out there, if you gave a darn.
LMAO!
Yes, capitalism works. Competition of the marketplace will cause the quality to improve or the product will die a quick death. The Chinese have for centuries been quick studies. They will make the necessary improvements until the product is acceptable to the public. Wal-Martization of the global marketplace is inevitable. We cannot continue to delude ourselves into thinking we can continue to compete making $30K compact cars with countries that can make them for less than half that......
Hmmm. Remember Kia? Bet they had questionable quality, but now they're really good cars!
Seen this with Chinsee made copies of the Winchester Model 97 pump action shotgun. The first ones were terrible, the second ones a little better, the third generation was pretty good. They've sold a bunch of 'em to cowboy action shooters. Now they're making an Winchester M87 lever action shotgun that looks great!
It would be a bad idea to underestimate the Chicoms.
Maybe if somebody could put pictures of PRC slave labor in every glove compartment or put "Slave Made in the PRC" on every bumper?
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Bringing the Chinese into the world economy is a giant step towards world peace. The market will decide if their products are worth the price or not. If not they will learn the lesson and become better capitalists. Even as this country slides the wrong way due to isolationist command and control economists.
Who in their world (except for a few hippies, for whom the minivan craze started) would consider a passenger van with a 1.1 litre (66 cid) four-cylinder engine? That is extremely underpowered, and a design based on Asian delivery vans, which has been out-of-style for years. The Germans are taking over the minivan craze, as Daimler-Benz has dominated the market since 1984 with their Dodge and Chrysler brands.
"Other global automakers, such as Italy's Fiat, France's Renault and Korea's Daewoo Motor, have pulled out of the U.S. in recent years when sales plunged due to poor quality."
All three have changed since they pulled out. Fiat, of course, still sells their Ferrari brand, naturally, in the US, while Renault bought 44% of Nissan and is focusing their US market solely on the Nissan brand, which is well-known, and Daewoo Motor went bankrupt, and the courts sold it to Detroit interests. (The new Chevrolet Aveo is built in Korea by Daewoo Motor, now a part of General Motors, which bought the bankrupt company in an auction organised by bankruptcy courts in Korea.)
1. China can't even supply its home market currently.
2.This Shelburg is a charlatan who tried this several years ago - & ripped off potential dealers.
>>those cheap little cars weren't designed for U.S. SDG&E (safety, damageability & emissions) & can't be retro'd for 'em !
>>it can take years & $$$$'s to certify a vehicle for US sale.
Shelburg's just trying to get dealer sign-up $'s from those that don't remember his last scam/trip thru town.
When would you like to combine a commercial vehicle and a passenger one? Not only a faithful partner in your career, but also an intimated friend of your families.
That's what I want, an intimated relationship with my vehicle!
If you're referring to that little appliance that plugs into your cig lighter....
Knock yerself out !
And then, the American William Deming came along, shooed away by the American auto manufacturers and invited in by the Japanese.
Honda, Toyotas, and VW (well Honda and Toyota at least) were not products of slave labor. They were built by people who understood profit and free market wealth, and they had a culture obsessed with perfection. If they were from Taiwan, they'd have a chance. Were talking Yugo, round two.
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