Chinese Cars Arrive in America - More to Follow

Since about 2006 rumors that the first Chinese cars would arrive in America have surfaced time and again. Initially, analysts expected that Geely would be one of the first Chinese manufacturers to sell cars state side, but those plans have not materialized. As of 2011, no Chinese car company has established dealer franchises in the United States, but that doesn't mean that Chinese derived vehicles aren't being sold in America. Let's take a look at the car market in 2011 and what we can expect to see in 2013, 2015 and beyond from China.

Chinese Manufacturers

The Chinese are coming! Or are they? Talk that Chinese cars, costing as little as $6,000 was the hot talk back in 2006, but as the months and years passed it became evident that China wasn't ready for prime time or at least prepared to market its cars in the United States. Those cars were perceived as poorly constructed and unable to meet stringent U.S. crashworthiness tests. An example of a BYD Autos model miserably failing a crash test in 2008 was posted to YouTube, giving everyone a glimpse of why Chinese made cars have a lot of work to do before they can be sold in America.

The first Chinese cars hit the market in April 2011 when the Wheego LiFe went on sale. This electric car features a body imported from China with final assembly taking place in the United States. Another manufacturer, Coda Automotive, will also source car "bodies" from China, assembling its $45,000 Coda Sedan in California.

Both brands feature cars that are partially made in China, but constructed in the United States. What about cars built in China and sold in the United States -- when will we see these vehicles?

New Imports

The very first models built from the ground up in China and exported to the United States will likely appear late in 2011 when BYD Autos jumps in. This company which counts Berkshire Hathaway as one of its investors has been displaying its vehicles at auto shows in the United States for several years, dating back to 2008 when its cars were put on display at the North American International Auto Show in Detroit.

Geely hasn't committed itself to the U.S. market yet and it seems likely that its $6,000 car will never happen. Instead, a compact model costing about $10,000 may be sold, but that doesn't seem likely before 2013.

Chinese Market

By 2015, the Chinese auto market is expected to mature to the point where Chinese build quality rivals the American manufacturers which means that a host of new models may become available in the United States. When that happens, a shift to Chinese cars could become possible particularly if these cars are priced below market average and offer the quality consumers demand. That will put pressure on American manufacturers and could spark a trade war if accusations of product "dumping" are raised.

Source: http://ezinearticles.com/6256801

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