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."
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."
posted by Smartcar Owner at 2:31 PM
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