"In January 2006, we will show the US public the Chinese-made cars here." January 9th, the opening of the US Detroit International Automobiles, the visionary vehicle company (Visionary Vehicles LLC, also translated dream car company) executive director Brooklyn Once again, their cooperation with China's Chery Automobile Corp. has made a high profile. For a long time, a small amount of Chinese auto companies represented by Chery have concentrated their exports in developing countries. Chery’s target for targeting the US market is undoubtedly a “bold†plan for the car industry. The international dream earlier, Vision Company has released its news of Chery’s exclusive sales agency rights in the North American market, and said that it will introduce Chery’s five new models next year and Chery Automobile will be sold in the US in 2007. According to Vision Motors, they will invest 200 million U.S. dollars in the sales of Chery Automobile in the North American market, and establish 250 sales outlets in the U.S. and Canada. Allen & Co. in New York will be responsible for financing. According to the plan, Chery’s sales target in the US market in 2007 was 250,000 vehicles. Chery CEO Yin Tongyao frequently mentioned the following sentence: “To look beyond the globe, China accounts for only 7.5% of the global automotive market. The remaining 92.5% of the markets are also open to us.†Back in 2001 In 2006, Chery began to export cars to the Middle East. In 2003, Chery took the lead in setting up a CKD plant in Iran through technical cooperation. In November last year, Chery signed a contract with ALADO of Malaysia to authorize the other party to manufacture, assemble, distribute and import the Chery brand sedan. In addition, Chery has signed contracts for the export of whole vehicles or CKD (parts in bulk) with 23 countries around the world. The next step is to set up CKD factories in many countries and regions such as Eastern Europe. "The United States is a very important market. If it is not prepared, we will not go," said a person in charge of Chery told reporters. In addition to his targeted research on the US market, his so-called preparation includes two aspects: First, the technical preparations for models. Chery’s five American cars that are exported to the United States are all new cars that have not yet been introduced, including compact cars and mid-size cars. The newcrossover sedan, sports deluxe sports car, and an SUV that had been unveiled at the Beijing Auto Show last year are all in line with U.S. standards. The second is the accumulation of overseas market experience. Chery has exported tens of thousands of cars in 2004. According to the view of the car company, Chery's price will be 30% lower than similar models on the US market. “We will not only concentrate on the low-end car market, but we will not only focus on competition in the low-end car market.†Chery’s sources told reporters that Chery will introduce the highest level of warranty in the industry: 10 years per 100,000 miles. If Vision Automotive's stated goal of selling 250,000 vehicles per year can be achieved, only this one item of sales will amount to approximately $2 billion, which will completely change Chery's market structure. Another news that Chery does not want to confirm at the moment is that Chery will set up a joint venture automobile production plant in the United States in the next step, and Chery will hold 60% of the shares. Toyota second? In the US market, Japanese cars represented by Toyota have created a myth. According to the latest statistics, the market shares of GM and Ford, the two largest US auto companies, have continued to decline in the domestic market, while the share of Toyota and other Japanese and Korean auto companies has been steadily increasing. As of November 2004, Toyota has occupied the United States. .2% market share. Now Brooklyn declares to the outside world that he "see Chery as the second Toyota." However, the reality is that Chery’s message to enter the American automobile market has been heard and it has led to doubts in the American automotive industry. The most representative suspicion is that Chery’s total sales volume in 2004 was only about 90,000 units. After two years, it had to sell 250,000 units in the United States. This goal is obviously too high. In fact, when Honda entered the US market, it had faced such questions. Although Toyota is the biggest winner in the American market for Japanese auto companies, the first to open the door to the American market was Honda, who had just entered the auto industry. Honda Motors was able to open the U.S. market that year, and in addition to its influence on motorcycles, there were two most powerful weapons: First, CVCC low-pollution engines at the world's advanced level; Second, Honda engineers and technicians shortened their assembly lines. Sexual improvement. In comparison, Chery’s embarrassment has begun to show up, because Chery can’t really get any effective weapons comparable to the Honda technology of the year. The first question Chery is now facing is whether its products can pass US safety and emission standards. Chery's people stressed: "Chery's engine is designed in cooperation with Australia's AVL company, in terms of safety and environmental protection; the design of the design hired the Italian design company Pininfarina - Pininfari-na? And Broadcom? Bertone is doing.†The idea of ​​integrating global resources is good, but just as Gu Chujun, chairman of Greencool’s board of directors, once said, foreign design companies are not your R&D department and may have a lot of specific needs when designing them. Not considered. From this point of view, Chery's ability to export cars to the United States is more based on the low-cost advantages embodied in its low-price strategy. Whether Chery’s low-price strategy can work in the US market is still hard to say. Deng Shuhui, president of the Guangzhou Nanling Motor Group, who has lived in the United States for many years, reminded that low-price strategies in the United States may have a great impact on used cars. The used car market in the United States is well developed. Buying a good used car for a thousand or two thousand dollars will largely eliminate the effect of the low-price strategy. Brooklyn’s previous experience with Yugoslavia’s low-priced “YUGO†may have been a lesson.
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