Posted on 05/16/2004 8:03:00 AM PDT by Dog Gone
Their names are Solo, Deer, Leopard, Safe and Sing, and thousands of them are on a boat headed this way.
U.S. car buyers will soon have a new option: very-low-priced Chinese cars, trucks and SUVs.
Four Houston partners will be exclusive dealers for two major manufacturers of Chinese cars for the entire state of Texas, with the first dealership scheduled to open in the city this summer.
China Motors of Texas will import automobiles made by Geely and trucks and SUVs made by Great Wall, China's leading manufacturer of such vehicles.
Cars will sell in the range of $7,000 to $11,000.
The manufacturers and dealers are hoping Americans will embrace these new import brands like they did the Toyota — as opposed to, say, the Yugo, a Yugoslavian import that came to the United States in 1985 with high hopes but flopped so badly it became the butt of jokes.
Auto industry observers say that any consumer love affair with these Chinese products will not develop overnight, no matter how good the vehicles are.
But Ken Rams, CEO of China Motors of Texas, is optimistic.
"We feel the timing is perfect for this," he said.
"Most of the other manufacturers have abandoned the low, entry level of the price market," said Rams, noting: "Chinese car makers are committed to becoming a world force."
Geely and Great Wall are privately owned companies in mainland China.
There will be 24 other China Motors dealers in 13 states.
Rams gave some speculation on pricing. The Geely sports sedan, called Solo, will cost $10,888 fully equipped with leather seats, power windows, a remote control entry system, CD player and wood trim. A fully-equipped Solo sedan is $8,888.
Some pickup trucks sell for $7,900, and subcompacts cost $6,900. The prices for the SUVs have not been announced.
Geely offers 3-cylinder and 4-cylinder engines, made in China, as well as a V-6.
Like a charming immigrant still learning the culture, the Web site for Geely USA offers some delightful car descriptions.
For example, it notes that the Solo gives its drivers a special feeling, "making you relaxed and happy. Uneasy no! Lost, no! Fashionable life, and fashionable car!"
As for the Geely sports car, the Leopard: "The infinite vital force and the excellent driving feeling heats up your endless enthusiasm in your blood vessels."
Geely's U.S. operation is so new that the English version of the company's Web site still identifies the cars by their Chinese names: The Leopard is called the "Beauty Leopard," and the Solo goes by "Merrie" and "Haoging."
How enthusiastic will Americans be for these Chinese vehicles?
"There have been many successful foreign car arrivals in the U.S., but we also remember the Yugo," said Paul Taylor, chief economist for the National Automobile Dealers Association.
The ability to inspire confidence in the durability of the vehicle and the availability of service networks are the keys to winning acceptance among American consumers, Taylor said.
"The Koreans) dealt with it by giving very long-term warranties and low pricing," he said.
Low-priced Korean vehicles like Kia and Hyundai compete mostly with used cars, Taylor noted.
China Motors vehicles should appeal to consumers who want a new car and warranty at "a low, low price," said Brian Moody, road-test editor at Edmunds.com, a Web site for car buyers and sellers.
The Chinese vehicles won't be competing with Japanese products because manufacturers like Toyota and Honda have moved up-market: "The Civic and Corolla were once bargain-basement priced, but they're not cheap anymore," Moody said.
"Now it's Kias, Hyundais and the Dodge Neon that are among the very inexpensive products. That should be where the turf war is with the Chinese cars."
Winning over car buyers will be an uphill battle for China Motors, Moody said.
Their vehicles may be first-rate, he said, but they'll be entering a U.S. market where they're unproven, and car buying is greatly based on reputation.
"Just ask people at Kia. The Kia Optima is a great value," Moody said, "but the public's perception of the car lags far behind the actual quality of the product."
China Motors cars and trucks are made in China at new plants using state of the art technology, Rams said.
All vehicles come with a free 36-month or 36,000-mile bumper-to-bumper warranty. For $495 the buyer can get 36 more months, Rams said.
China Motors will have a service department, and any auto shop that repairs Japanese cars will be able to fix Chinese vehicles, said China Motors partner Ted Jonick.
After opening the Houston dealership, most likely near The Woodlands, the partners plan to open a San Antonio operation, followed by the simultaneous openings of two more Houston dealerships and one Dallas showroom.
Rams is a 42-year veteran of the car business. His Ford and Dodge dealerships were in California and Michigan.
In 1985, he gave up cars for greeting card distribution and consulting.
Over the past few years he'd been wanting to get back into the auto trade but said he could not find anything that had significant potential.
Through the Internet he learned that Geely and Great Wall were headed this way, and he contacted the distributor.
His other two partners are Randy Fernandez and Bill Kesler.
David Shelburg, 75, is an executive the North American division of China Motors, based in Phoenix. His son David Shelburg Jr. is president of the company.
The elder Shelburg was previously a dealer for American Motors, and going back much further, the Kaiser. He also helped bring the Subaru to the United States.
Shelburg has visited the Great Wall and Geely factories, and he noted that at the plants, only women do fitting and finishing work on interiors because in China, he said, it is believed that women are more precise than men.
Ping to #59
I have the rendezvous which has US engineering(unless that got outsourced to india, I don't know), profits GM which mostly goes to fund it 11 billion dollar pension fund deficit and is made in mexico. I looked at the Ranier (made near dayton I think) , but it was too expensive, got worse gas, had smaller space, was about 10k more and did not handle as well (it's a truck, the vous is more like a car). The ranier does have better off road abiltiy, but I don't go off road.
Great observation!
right! thanks, i caught that.....time will tell if theyre as foolish to use poor quality alloy in their engines (otoh, detroit's doing it.....)
I've been seeing a Yugo on my way to work each day. Yes, it's moving. No rust, no smoke and it keeps up with the traffic. I was just amazed.
Chicago Tribune | Foreign automakers drive jobs back to U.S.
http://www.chicagotribune.com/business/careers/chi-0403020224mar02,1,1157717.story?coll=chi-navrailbusiness-nav
"Nissan's Smyrna, Tenn., plant was the most productive, requiring 17 labor hours per vehicle. Toyota averaged 22 hours per vehicle, with Honda close behind. GM averaged 24 hours, Ford 26 and Chrysler 28."
We may pay more to the EPA, OHSA, and other government mandates then labor in the cost of a US made car.
LoL!
Nope, everything in the world that's bad is because of union workers...< /sarcasm >
Duh.....let me think. Could it possibly be because my taxes pay their salaries????
Inquiring minds want to know.
"These chi-comobiles will cost more than financing in repairs and towing. Not to mention safety issues."
Think again, almost every car repair part I buy is made in China. Before they were made in the USA, then Mexico, today China, and these parts are excellent being made on automated computer controlled tooling.
In my opinion these will sell very well indeed, China has too much riding on their reputation to put out crap. The SUV will from their military linage of vehicles, and it will be good.
I remember the 50's when the V W was ridiculed and scoffed at, I remember the 60's when it was said, "those little toys will never go over well here", Japanese vehicles were treated with the same doubt, no different then these.
And with Toyota now the # uno selling carmaker in the US of A, we all know the result of those know nothing little Nips trying to sell cars here.
"I have to agree here... american companies are hamstrung by the unions into being less than competetive. Now competition from foreign automakers is driving their unemployment rates like a skyrocket, and they are shocked.
Im not."
Me neither...Nissan beats the Union...looks like another is coming...look out Unions..you might have to start working for you money!
Planned obsolescence is as alive and well in the U.S. today as when you first learned about it in school.
Anything is possible, but with financing as low as it is, and the economy doing as well as it is, there's less incentive than ever to get a cheapie.
'spodefly' ?
It is an urban sport car. Its pure ardor appears before you boldly. With perfect and smooth lines, it looks wild and sexy. The decorating tail wing and the integrated crystal headlamp, all match your enthusiasm and ardor. Dancing and exciting air contains your romantic disposition, your wisdom and your elegance.
The infinite vital force and the excellent driving feeling heats up your endless enthusiasm in your blood vessels. It adopts MR479QA inline four-cylinder engine, manual 5-shift transmission, as well as hydraulic power steering unit, letting you enjoy quicker acceleration and accurate steering.
We make every effort to create the fine product, and what you need to do is to feel it with your heart. The double-color luxury instrument panel, adjustable genuine leather power seat, high quality sound system, beautiful dance and wonderful music will accompany you while you are driving on the road.
We integrate the freedom and security in the sport car. The braking system is composed of front braking discs and rear braking drums. It also has ABS system to make brake more quick and stable with good effect. Safety airbag is in front of the driver; the reverse radar and side bumpers let you demonstrate your individuality easily.
People tend to forget that when Toyota first came to the USA, the car, called the Toyopet, was so bad it had to be withdrawn from the market and Toyota did not sell cars in American until years later.
What a country. The GM/Ford/Chrysler accountants and management are doing us dirty and the poor saps that get hired to assemble the crappy, deliberately deficient components into the finished product that's sold get all the blame. Go figure.
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