Chang’an slows down North American entry, but still committed!
Is it that Chang’an are not yet ready for North American, or is it that North Americans are not yet ready for Chang’an?
Reuters tells us like it is:
GUANGZHOU (Reuters) – Changan Automobile Group, China’s No. 3 automaker, said on Monday it had slowed down plans to set up a Mexican plant but remained committed to breaking into the North American market.
“We are still doing market research there. There won’t be any big investment for the time being,” Zhu Huarong, head of Changan’s research and development division, told Reuters.
“We have slowed down the pace of the plant a bit because of the financial crisis, but our plan is unchanged,” Zhu said in an interview.
The company said the Mexico plan would secure a foothold to North America.
Changan, a Ford Motor (F.N) China partner, signed a deal last year to set up in Mexico.
Changan is among a growing group of Chinese automakers, including its top player SAIC Motor Corp, hoping to emulate the global success of Japanese carmakers like Toyota Motor (7203.T).
SAIC, which bought MG Rover’s 10,000-unit Longbridge plant in Britain in 2007, wants to start making its MG 6 sedan in the UK, its president Chen Hong told reporters on Sunday.
GOING HIGHER END
Chinese automakers are mostly focused on the lower end of the domestic market, leaving the lucrative higher end to foreign brands, such as General Motors GM.UL and Volkswagen (VOWG.DE).
But as wealth grows in what is now the world’s top auto market, many Chinese manufacturers are looking to boost their patriotic profile by offering higher-end models.
Chery Automobile, whose QQ sells for as little as 30,000 yuan ($4,394), unveiled its first premier car G6 under the Riich brand in April, followed by G5 six months later.
Changan, which currently makes small cars, such as Yuexiang and BenBen, is also working hard to tap the upper end of the market, Zhu said.
“We have been investing heavily in research and development. We will not stay at the lower end forever. If fact, you can see our first self-made saloon within months,” he said, declining to provide further details.
When asked why Changan did not acquire western brands to raise its own profile like some of its peers, Zhu said: “We had some initial contacts with some foreign brands but decided to give up in the end.”
“After all, it’s still a foreign brand even after you take it over. We want to make expensive cars on our own.”
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What Reuters doesn’t tell us is that the Poteau, Oklahoma plant keeps crankin out the Chang’an Tiger trucks, for the feds and others. And that that apparently doesn’t qualify as a foothold.
Are they road legal? I remember someone telling me that they are mostly employed in factory grounds and warehouses due to their non road legal status, although this is likely to be incorrect information as the person telling me was Tiger trucks direct competitor.
You are right CCT they are mostly classified as NEVs and can’t be used on roads with speed limits exceeding 30mph(50kph). But last I heard Oklahoma was pushing legislation to allow them on all but expressways.
Any idea what their yearly production is? I cant see their being a massive demand for a kei truck that cant reach much more 30mph in Oklahoma.
Yes, only 7500 a year at start up, and 80% of these were slated for export. But I believe Tiger also continues to import from China, just don’t know how many.
They now have competition in the U.S. from DYMAC, Mag International, Zap, GreenGo Tek, and Hytric.