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Old 07-27-2007, 01:57 PM   #19
windtrader   windtrader is offline
 
Join Date: Jun 2007
Location: SF Bay Area
Posts: 6
Not for me now

There are several huge issues facing Chinese auto coming here. Americans depend on their cars and they must start up and get one to work, school, shop, wherever. There is very little tolerance for undependable vehicles and I honestly think you would have a hard time getting most folks to make an unproven Chinese car their primary auto, no matter how cheap.

A buyer has many options on spending x dollars for transportation. No matter how cheap a new Chinese car will be, one can buy a number of used car for the same money. They will not be as reliable as a new car but I'd argue that a smart buyer could certainly find one that can be depended on for daily transportation and know that if it breaks, parts and knowledgeable service are readily available.

Given the recent trend of high gas prices, the Big car manufacturers are bringing to market some amazingly cheap and high gas mileage cars. These will certainly cost more than a Chinese brand but come with are backed by a know entity. They are not going to give in easily to the Chinese and I am certain they are building sources with Chines suppliers who will build to their standards, processes, and QC, further driving prices down and closer to Chinese brands.

Getting a loan on a Chinese car is going to be difficult and many folks need auto financing, especially at the lower end of the market. Wealthy folks have many ways to get funds to purchase a vehicle and can avoid traditional auto financing.

Chinese autos entering the US market is completely different than the recreational market. The risks are far too high for the smart money, even those with higher tolerance for risk. On the other hand, I'm sure there are plenty of gamblers willing to place a bet.

There are many obvious reasons why the US is flooded with nearly every possible consumable product from China except cars. What is going to happen in the US is the major players will start adding more and more Chinese parts to vehicles sold here, then later invest/partner with Chinese manufacturing once there is confidence that American process and QC can be achieved within the operating Chinese business environment.


 
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