October 3, 2007
Will Chinese cars make it in the U.S. market?
Although most of us can’t remember, there was a time when U.S. automakers and consumers alike would have scoffed at the idea of Japanese companies taking market share from the Big Three. But by the mid-1980s, one in five cars on American roads was a Japanese model.
More recently the Korean cars have been making inroads. Just six or seven years ago, the Korean vehicles lacked the features of American and Japanese vehicles. But I recently took a Hyundai Sonata for a test drive, and the Korean cars have come a long way. With their competitive pricing, Korean cars are now luring consumers in significant numbers. One of my friends told me that he had originally set out to buy a Toyota Camry--- but he opted for a Sonata instead.
Chinese cars are coming next. Chinese vehicles are already making inroads in the European market. As is the case with the Korean cars, value and competitive pricing are major factors. Here is one European consumer’s reaction to his Chinese made car:
"I've got air conditioning, ABS brakes, and air bags," said Carlo Scalvini, describing his Hover, a big and boxy sport utility vehicle built by the Great Wall Motor Co., with headquarters in Baoding in eastern China. "And the price is competitive: You pay 10,000 euros less in the end," more than $13,000. ---- Boston.com
I think that the U.S. market will be more difficult for the Chinese companies to crack in large numbers. The U.S. auto market is presently over-saturated with choices for consumers. It is difficult to believe that there is room for a whole group of new automakers. But similar predictions have been proven wrong in the past.
---posted at 5:27 a.m. by Ed Trimnell
