Chinese trucks soon to be on the American menu

Of the roughly 100 different manufacturers currently building cars in China, Bill Pollack predicts somewhere between three and five will be peddling their low-cost wares in the U.S. within five years. The New Jersey-based entrepreneur has no problem with that; he just wants his company to be first.

Pollack is CEO of China America Cooperative Automotive (aka Chamco), an organization with ambitious plans to import Chinese vehicles to North America. Speaking at a recent New York City press lunch, he showed photographs of the company's first two models, an SUV and a four-door pickup. Chamco is planning to be selling both vehicles in Mexico within a few months, followed by an introduction to U.S. customers at the 2008 New York Auto Show in April, and appearing in showrooms throughout the country within a year from now. And--drum roll please--both are going to be priced around $13,500--a number Pollack says will be 20 percent less than competing models already on sale here.   

Chamco faces myriad hurtles to accomplishing these goals, such as ensuring the vehicles meet U.S. emissions and safety requirements, establishing dealer networks, and competing with well-established car brands. Adding to the challenges is the fact that Pollack has no prior experience in the automotive biz. Maybe that's a bad thing. But, maybe not.

Certainly, the two-pronged launch strategy defies expectations. While the intent may be to import cars directly to the States, Chamco seeks to build a factory in Mexico. This south-of-the-border plant would supply Mexico and South America. Should Chamco face cost-prohibitive tariffs on its Chinese imports, U.S.-market models could be sourced from Mexico. Prior to the factory being completed later this decade, the company is looking to bring in 50,000 units duty free to Mexico to start sales, according to Pollack in an Automotive News report reproduced on the company Web site.

Looking slightly rumpled on a humid New York summer afternoon in a Chinese suit he said he bought on a recent trip when his luggage got lost, Pollack is something of a refreshing alternative to the polished, media-trained talking heads normally introducing cars. He didn't use the word "robust" once during his spiel--always a plus in my book. Pollack's presentation was certainly a sign that this won't be car business as usual.

As for Chamco's first two offerings, they're, well, familiar. If not groundbreaking, at least they don't have the clown-car look we've seen from some other prospective Chinese importers lately, and they don't look like they were constructed in somebody's basement. However, the headlights, rooflines, creases, and other styling cues all look like we've seen them before--whether on a Mitsubishi or a Toyota. Even the logo looks like it was more-than-inspired by Opel.

Already on sale in some 50 countries around the world--none of which have the safety and emissions standards, to say nothing of customer quality expectations--of the United States or Europe, Chamco has a thing or two to do before making it big in Peoria.

To help ready the cars for U.S. sale, Pollack & Co. have enlisted the help of Mustang tuner and car builder Steve Saleen, who reportedly signed on after tearing around Chamco's parking lot in a non-U.S.-certified model. While no plans for a Stage 1,2, or 3 hot-rodded version of the Chinese SUV have been announced, Chamco hopes to tap into Mr. Saleen's entrepreneurial experience making his own specialty cars street legal.

Once the first two models roll out, plans call for bringing over a sedan, a "crossover" SUV, a sports car, and even a hybrid model within a few years. And rather than partnering with a single manufacturer to do this, Bill plans to call on a number of different carmakers from the 100 or so at his disposal, cherry picking (or is that Cherypicking?) from their myriad offerings.

But how the logistics of branding and servicing a line of cars from different makers will work remains to be seen, with parts inventories and service technician training yet to be worked out. Frankly, a lot of stuff is yet to be worked out, from crash testing to what engines will be under the hood when the first Chamcos land on U.S. soil. For now, Bill has some 40-plus dealers signed up, and he's busying himself getting his first two models ready.

Can he do it? We'll see. But one thing is certain, even if he can't, somebody will.    

--Jim Travers

Read "Everybody Changfeng tonight." 

Comments

[David]

This is great news. It's about time car prices come down.

[Alberto]

Another communist car in the tradition of the Yugo, Trabant, and Dacia? Will it be a bargain or will it be cheap and worth every penny?

[Jack Payne]

The import of Chinese cars is going to put huge competitive pressure on domestic car markers. With their big breakfast-in-bed labor contracts, it's hard to see how they will manage. They already are having much diffulty with Japanese and Korean products. And, con man rip-offs are almost surely to evolve from these imports.

--Jack Payne

[mschamberg]

Begining of the end. China can make great stuff fast and for less. Very scary for Detroit.

[Rich]

You've got to be kidding, lead based cars?? How in the world are we going to carry around our kids?? Ah but maybe Walmart will become the biggest auto giant in the universe.

[Kenny Stevens]

What's new ,the americans will sell their sole just to make a dollar,this country is going backwards more everyday.If they would bust these big automotive unions,we could afford to buy more US.cars and trucks.

[Bob]

"This is great news. It's about time car prices come down."
- U.S. Fool

"The capitalists will sell us the rope with which we will hang them."
- Lenin

Better than that, we'll close our rope factories, rope engineering centers and (eventually) rope design studios after we become accustomed to importing finished products from a hostile nation. In the future, insolvent US homeowners will rely on the Chinese using their exchange surplus to purchase the mortgages they're falling behind on ... and hoping they can still finance another car at Wal-Mart Motors.

But hey, buying Chinese means you can afford one with leather seats, sunroof, and automatic refrigerated Slurpee holder for the same price as something made at least partly in the US. Yeah, go for it!

[Samuel]

Folks, it is for real. If you do not think Chinese made car works, just tear apart your car and see how many parts are made in China. UAW's won't like it. But their certain % of their pay check is also out of China. GM China's sale count for less then 10% of the global sales, but the profit from China is 1/3 of the GM. Go figure.....