Zhongxing holds its own show

A few blocks from the North American International Auto Show, the main event in town, a New Jersey firm held its own display of a pair of Chinese-built cars.
China America Cooperative Automotive Inc. (Chamco), whose management includes executives who quit U.S. entrepreneur Malcolm Bricklin's venture to import Chinese cars, is making its own plans to sell cars built in China in the United States.
The Parsippany, N.J., firm displayed two sedans built by Hebei Zhongxing Automobile Co. Ltd., a privately-owned Chinese automaker, at the Renaissance Center in downtown Detroit.
Those, however, are not the vehicles that Chamco plans to sell here. Chamco Chief Executive Veechwin Li told The Detroit News that the company planned to sell a compact pickup truck and a midsize sport utility vehicle built by Hebei Zhongxing in Mexico later this year and in the United States by mid-2008.
More Chinese autos in U.S.
Chamco is the latest in a series of companies, ranging from established global automakers to fledgling ventures, seeking to bring Chinese cars to the U.S. market.
A Chinese automaker called Changfeng Group Co. is displaying five vehicles in its exhibit at the Detroit auto show, which opens to the public on Saturday.
A year ago, Geely Automobile Co. showed a sedan in the hallway outside the main display areas at Cobo -- although U.S.-based Geely executives acknowledged that it did not meet U.S. safety and emission standards.
Last month, DaimlerChrysler AG's Chrysler Group announced plans to bring subcompacts built by China's Chery Automobile Co. to North America and other markets.
Bricklin, an American entrepreneur best known for bringing Yugo cars to the United States, initially planned to sell premium cars in the United States built by Chery, a fast-growing Chinese automaker viewed as having potential to become a big player. But the venture unraveled, with Bricklin expressing disappointment in Chery's capabilities.
He told The Detroit News this week that he was in talks with more than a dozen Chinese automakers, including Changfeng, and hoped to select three of them to build hybrid cars that he would sell in the United States. "We'll build only the electric, plug-in hybrid," he said.
The current craze for Chinese cars recalls the rash of Japanese automakers and U.S. importers that scrambled in the 1950s and 1960s to bring low-cost Japanese cars to the United States. Ultimately, however, only a handful of Japanese brands succeeded.
"The Chinese situation is probably unique," said James Hossack, senior consultant at AutoPacific in Tustin, Calif. "There appear to be far more Chinese companies than any of us could have conceived -- dozens, possibly hundreds."
Chinese can't market globally
Most analysts say the Chinese still have a long way to go before they are capable of producing vehicles that can compete globally. "The U.S. market isn't easy to crack, and only a few will succeed," Hossack said.
Chamco's executive vice president for sales Richard Kalika said the pickup would be priced around $13,250 and the SUV around $13,750.
Chamco wants to line up 150 U.S. dealers. It has 13 who have put down deposits to become partners and sell the vehicles and verbal commitments from 15 to 20 others, a company spokesman said.
Li expects annual sales of 75,000 vehicles in the early years of the business. He hopes to add a Zhongxing-built sedan and crossover to the range later on.
The business faces crucial hurdles, however. The vehicles don't meet U.S. emissions and safety standards -- and Chamco hasn't settled yet on a brand name.

Inexpensive Chinese cars on way soon?

An Arizona businessman hopes to begin distributing inexpensive Chinese-built cars and trucks to U.S. dealers by this fall.
David Shelburg, 75, of Scottsdale, Ariz., says his company, China Motor, has signed up dealers in California and Arizona to sell the vehicles. He wants to distribute a lineup that includes two sport-utility vehicles, two pickups and two cars.

But Shelburg has been trying to sell Chinese-built cars in the USA for 10 years and has been sued by unhappy dealers who say they never got vehicles to sell and lost thousands of dollars. Texas officials say Shelburg's last attempt, in 1997, went so badly that he is barred from selling any vehicles in Texas.

"A lot of dealers sought enforcement action against Mr. Shelburg, and in 2002 he agreed not to do any business in the state of Texas," says Bret Bray, director of the motor vehicle division of the Texas Department of Transportation.

Shelburg says his attempt to sell Chinese cars in the late '90s fell victim to government delays, "crooks and bandits," and unfair news reports that damaged his reputation and business potential.

He says the government took too long to approve the SUV he wanted to sell, then said it would need updated emissions equipment, which the manufacturer wouldn't pay for.

This time, Shelburg has partnered with Chinese automakers Great Wall Automobile Holding, China Zhejiang Geely Group and Hebei Zhongxing Automobile Manufacturing.

He wants to sell subcompact sedans called Solo and Merrie, compact pickups called Sailor and Deer and compact SUVs called Safe and Sing. All are currently built and sold in China.

Their appeal is price. They sell for $9,000 to $15,000.

Federal officials say Shelburg has yet to supply the necessary documents to begin importing and selling the vehicles, including proof that they meet emissions standards and have safety equipment required in the USA, and legal contacts if a vehicle is recalled.

"It's a complicated thing and not an easy process," says Tim Hurd, a spokesman for the National Highway Traffic Safety Administration. "We have not received the things from them that a manufacturer or distributor has to give us to sell cars."

But Shelburg says he has started the process. He says he has five vehicles in Arizona going through the required federal emissions testing. He expects the tests, which are required by the EPA, to be completed in July.

"Once we're cleared, we can bring in 15,000 in the first batch." One of the dealers currently signed with Shelburg says he realizes getting the necessary approvals could be time consuming. "This is a long-term commitment," says Tim Southwick Jr., who, with his dad, runs one of the top Toyota dealerships in California. "It would surprise me if it takes less than two or three years to get all the approvals to sell them."

Southwick admits the enterprise is a gamble. "It is a little bit of rolling the dice." But, he says, "Sooner or later, Chinese cars will be in the marketplace. It's just a matter of time."

He says he's not concerned about previous legal challenges faced by Shelburg because "our financial exposure is limited."

The Chinese government requires automakers wanting to sell vehicles in the country to partner with a Chinese company.

And some automakers have complained that Chinese companies have stolen parts and patented ideas to make knockoff cars, some of which, they say, are among those Shelburg wants to import.

Nissan says the front design of the Sing SUV, built by Great Wall, was stolen from the Nissan Paladin, which is built and sold in China.

Chinese officials rejected a lawsuit by Toyota claiming that Geely's logo was copied from the Toyota "T" logo design.

The front end of Geely's Solo and Merrie look similar to the front of a Mercedes-Benz C-class. And Honda has filed a lawsuit against Hebei Shuanghuan Auto claiming it produced an SUV called the RABO S-RV that is a dead-on copy of the Honda CR-V.

Shelburg says his attempt to sell Chinese cars in the USA is questioned because "I'm a threat to the industry. When they see my product and the price, they want to stop me."

Zhongxing Auto - ZXAUTO

Intro: Hebei Zhongxing Automobile Manufacturing Co. Ltd, is a joint venture approved by Chinese government and established in 1991 with a planned annual output of 60,000. It was set up by China Brilliance Holding Co. Ltd. and Hebei Tianye Automobile Group Ltd. China Brilliance has now been replaced by Taiwan Unite Leading Co. and Ningbo Huaxiang Group Co.
The company now has a combined capacity of 90,000 units with a staff of 3500 including productions at two other subsidiares.
Toyota-inspired pick-ups and RVs are being produced in great variety.

Chinese Car Maunfacturer Signs Deal with Russian Company

The Chinese automobile manufacturer Chery Automotive Co. (CAC) has signed a partnership agreement with the Russian-based Avtotor to assemble cars in Russia.

Details on the joint-venture are still under discussion, reports Wednesday's Economic Information Daily, quoting a manager from Chery.

Russian media sources confirmed that the news and said Chery also plans to establish a factory with Avtotor if Chery cars are sold successfully in Russia.

Chery estimates that the investment in the new factory will total 200 million US dollars.

Besides Chery, Avtotor also became the partner of Nanjing Yuejin and Zhongxing, two Chinese truck and SUV manufacturers, in July 2005.

Based in East China's Anhui Province, Chery was ranked number one in China for car sales last year, with total sales hitting 185,000 units, 118 percent more than the previous year.

In 2005, Chery exported a record 18,000 cars, the most among China's car manufacturers. Currently, Chery cars are sold in 38 countries outside China.

Welcome to this blog on Zhongxing auto based in China