Will Chinese Car Brands Be Sold in the U.S.? - PartsTrader (2024)
Some will point out that Volvo and General Motors already sell Chinese made vehicles here, and they would be correct.Since 2015, Volvo (owned by Geely Car Company) has sold Chinese assembled XC60’s in the U.S. Similarly, Buick has sold the Buick Envision here, which has been assembled in China since 2014.But so far, no ‘homegrown’ Chinese car company has entered the U.S. market to sell their own engineered vehicles here.Here are the two most likely companies to start—and they are taking vastly different approaches.
The Geely Car Company was founded in 1997 (Geely is an anglicization of the Chinese word for ‘lucky’).In a very short time, Geelywent from a plucky upstart automaker that scored an embarrassing “zero star” crash test rating in the Latin NCAP car test for its CK model.After realizing they needed to improve their safety rating, they purchased Volvo from Ford Motor Company in 2010.
In 2017, Geely announced plans to sell its own designed and engineered vehicles in the United States by 2020, leveraging the footprint of the existing Volvo dealer base.
In a completely different approach, Duke Hale, of HAAH Automotive Holdings (which unfortunately can be abbreviated as “HAAHHA”) wants to import Chery SUV’s. It’s a Chinese car, an upscale looking SUV—a blend of Range Rover meets Lexus and mercifully, Hale wants to rename the vehicle to Vantas.Hale takes the more historicalapproach of Max Hoffman (original importer of Porsche) and Malcolm Bricklin (original importer of Subaru and the continuation of Fiat products). He finds a product, signs up a dealer base, and begins the U.S. emissions and crash testing.
But, these plans have been delayed because of trade tensions between China and the United States.At the same time, slowing sales in China’s home market may have slowed the energy and resources for U.S. expansion. Also, the COVID pandemic will still influence these plans to an unknown extent.
My belief is that the U.S. market is inevitable for the Chinese car brands to attempt, but it is still likely 2 years or more away. So much can change globally in that time, so for now, it’s just another trend to watch.
No new cars built and sold by Chinese automakers are available in America today. Several automakers serving the American market have deep relationships with China. Volvo, for instance, is owned by Chinese automaker Geely.
Founded in 1997 in Hangzhou, China, Geely has grown rapidly from a manufacturer of entry-level vehicles to a global player in the automobile industry. Geely entered the US market in 2019 when it launched the Geely Atlas crossover SUV.
BYD overtook Volkswagen Group as China's best-selling car brand in 2023, clear evidence its all-in bet on electric vehicles is paying dividends and helping it pass some of the world's biggest legacy names.
When asked why not, Li responded, “It's too complicated.” Although Li called the US “an interesting market,” it's “very complicated if you're talking about EVs.”
Chinese EVs also tend to be cheaper than Western-made cars partly because much of the manufacturing process involved in producing car batteries is carried out by Chinese companies. Although the largest cobalt mine is in the Democratic Republic of Congo, in Africa, Chinese companies process the cobalt in those mines.
There are no cars built by Chinese automakers available in America today. But there are some just across the border in Mexico. And China's automakers are planning to cross that border soon.
In 2018, Trump imposed, and Biden has since continued, a special 25 percent tax on Chinese-made autos, on top of the ordinary 2.5 percent tax on foreign-made cars. That has so far prevented BYD and its Chinese peers from trying to enter the US market.
The Zhejiang Geely Holding Group is based in Hangzhou, which is located in south-east China's Zhejiang Province. The company launched their automotive business in 1997 and eventually took over ownership of the Swedish-made Volvo brand in 2010.
Volvo Cars is owned 78.7% by Zhejiang Geely Holding Group (post Volvo Cars IPO). Zhejiang Geely Holding Group acquired Volvo Cars from Ford Motor Company in 2010.
The Zhejiang Geely Holding Group, based in Hangzhou, agreed to pay $1.8 billion for Volvo, with $1.6 billion in cash and the rest in a note payable to Ford. Ford paid $6 billion in 1999 to acquire Volvo, leaving the company with a substantial loss on its investment.
While Geely cars offer good value for money, sufficient interior space, up-to-date technology features, and good fuel efficiency, they also have their share of problems. However, most of these issues can be prevented or resolved through regular maintenance and prompt repairs.
WEY is the highest-ranked Chinese domestic brand with 180 PP100. Lynk & Co (181 PP100) ranks second, while Chery (182 PP100) and FAW Hongqi (182 PP100) each rank third in a tie. In the 2023 study, 22 models from 14 brands are eligible for awards across 19 segments.
Toyota Motor Corporation (NYSE:TM) retained its title as the world's top-selling automaker in 2022. The company reported sales of over 10 million vehicles worldwide in 2022.
SAIC Motor Corp Ltd, China FAW Group Co Ltd, BAIC Motor Corporation Ltd, BYD Co Ltd, and Dongfeng Motor Group Co Ltd are the largest 5 automotive OEMs in China in 2021 by revenue.
It's possible to import overseas-market cars and trucks to our shores and get them fully legal for use on public roads, provided you learn the regulations. Here's a quick guide to the most important things to know about the process of importing a vehicle to the U.S.
Thanks to the US Import Rule that allows you to legally import a car manufactured 25 years ago, you can now drive Skylines around as your daily car. As the first batch of Nissan Skyline R34 was produced in May 1998, their imports are now street-legal. The same applies to a host of JDM cars that have a lot of fans.
They tend to be among the cheapest and most reliable cars on the market, while the latest EVs from China also top the charts of the most efficient electric cars too.
More than 70% of China's car exports in 2023 were of gasoline-powered vehicles, according to the Ministry of Commerce, noting that new energy vehicle exports were growing rapidly. Many of those gasoline-powered cars went to Russia, said Sarah Tan, economist at Moody's Analytics.
Introduction: My name is Dan Stracke, I am a homely, gleaming, glamorous, inquisitive, homely, gorgeous, light person who loves writing and wants to share my knowledge and understanding with you.
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