Chrysler announced Thursday that it will sell a small, inexpensive car built by Chinese automaker in South and Central America as early as next year and in the U.S. by 2009. The car is expected to cost about $10,000. But shortly after the Chinese government approved the deal between the two companies, Chery's president contradicted Chrysler and said the car would sell for about $7,000 and go on sale in the U.S. by next year. Such is life in the Chinese auto industry.
There is no question that Chinese automakers are going to be part of the U.S. auto scene. The question is when, and to what degree American consumers will accept cars made in China.
A recent spate of recalls and tainted products from China has dealt a serious setback to the image of goods made in China, according to some analysts. Tainted pet food, fake pharmaceuticals, and substandard tires have all made headlines in the U.S. And China's own General Administration of Quality Supervision just reported this week that in the first half of 2007, 19.1% of products China manufactured for domestic consumption were found to be substandard. "We can't turn the clock back on importing goods from China, but if the negative headlines persist, it will make it tough for every Chinese brand, and that especially goes for cars," says independent marketing consultant Dennis Keene.
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