Chinese cars to be launched in the US by 2008 end

21 January, 2008

BY OUR AUTOMOBILE CORRESPONDENT

By the end of 2008, Chinese cars will be launched in the US, for the first time.

A pick-up van and an SUV by Chinese manufacturer Hebei Zhongxing will be imported into the United States by the country’s distribution company Chamco.

Chamco has been launched with a workable business model that helps Chinese manufacturers meet US homologation standards as well as offering sales through a network of 400 dealers. Though end 2008 launch is planned, the company has not finalized what brand name it will give for the vehicles as they reach the US.

Hebei Zhongxing had hoped to use the ZXAuto name, but it cannot secure the global rights to this brand, so a different name will be used, it said. As the vehicles get ready for launch, the company has said that they will meet current emissions and crash testing standards, and will be priced below equivalent Korean or Japanese models.

The company has begun selecting dealers in the US already and it is said that many of the 150 initial dealers were Ford dealers looking to add other franchises. It has also been reported that Toyota dealers have also expressed interest.

The company is also planning to bring in other Chinese franchises too, and they will be selling other non-competing models.