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Friday, September 15, 2006

The Chinese On Ice: Some Relief For Detroit, GM, Ford

Late word comes from Reuters that the Chinese car manufacturers are finding it hard to set up dealer networks in the US. The quality of the auto that would be imported from the world's most populated country seems to be the issue.

Detroit gets a break. The Chinese cars would almost certainly be priced well below most other vehicles sold in the US. Most are also small, which means they are fuel efficient, the bane of Detroit's current affection for building SUVs and pick-ups.

Chinese car companies Chery Auto, Geely Auto, and Nanjing Auto are still hoping to be in the US by 2009, but at recent auto shows, the schedule was for some of these cars to be sold here as early as next year.

Perhaps by then, Detroit will be in a position to take on another set of competitors.

Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in companies that he writes about.
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