Chery Automobiles: China’s Auto War Begins
China is laying plans at this very moment to begin shipment of passenger vehicles to the North American market by mid 2007. Chinese automobile manufacturer, Chery, yes read that again?the company sounds strangely like Chevy, is looking at bringing not just one, but a whole fleet of low cost production vehicles to our shores. Proposed prices will astound you and could potentially bring the U.S. auto market to its knees. Don’t think for even one moment that Japanese and Korean automakers will be immune from this flood of low cost cars. Chery vehicles have been designed ? some say stolen ? from current Asian models and will compete directly against the likes of Toyota, Honda, Nissan, and Hyundai. China’s long awaited war with the US ? at one time expected to begin with a Red Army attack on Taiwan — may be fought on an economic front instead.
Chery, a state-owned car producer formed in China’s eastern Anhui Province, is currently building a number of cars in China including the QQ ? a compact car strangely similar to the Daewoo Spark GM' Korean division, as well as several sedans and a compact SUV. Indeed, recent charges made by Toyota, GM, and Honda have all alleged that Chery mimicked or outright stole designs from at least one of each automaker’s vehicles including the Honda CR-V. For the record, the Toyota case was rejected, Honda is still attempting to work out a solution with their case, and GM recently dropped its suit after the Chinese automaker agreed not to sell their cars in the US under the Chery name which GM has stated is too close to the Chevy name. Chinese courts have also ruled that the Daewoo Spark design was not registered in China, so GM dropped its suit.
At present, the Chery vehicle line up includes the tiny QQ; a compact SUV built jointly with Mitsubishi called the Tiggo; and three sedans: the Oriental Son, the Flagcloud, and the Windcloud. Recently, Chery unveiled a newly designed crossover vehicle along the lines of the Chrysler Pacifica. With an introductory MSRP of under $20,000 the Chery crossover will seat up to seven passengers and come equipped with both four and six cylinder engines. As you might guess the Chery crossover, if equipped similarly to the Pacifica, could be priced some ten thousand dollars less than the Chrysler model.
Current prices on the other models have not yet been set, but published reports this past summer indicated that a basic Chery could retail for as low as $6995 in the US, which would be some three thousand dollars less than the next lowest priced car, the Chevy Aveo naturally. Of course, this particular pricing strategy has raised all sorts of alarms within the automobile industry, chiefly how to counter a flood of low cost cars invading the U.S. market. As some have pointed out, much like Hyundai’s introduction to the North America market during the 1980s, the Chinese cars are expected to initially have only a limited appeal primarily due to expected low quality levels. Still, it only took Hyundai less than one decade to begin to produce cars which consistently matched the quality levels of many American and Asian models. So, it could be just a matter of a few years before Chinese cars receive the positive press now given to many other Asian automakers, resulting in a sharp surge in sales.
While the Chery dealer network within the US has yet to be established, it is under development; a limited version of the dealer network is expected to be in place by Summer 2007 when the first Chinese vehicles arrive. A rapid expansion of this same network across the US and Canada has been planned over the ensuing years and although the Chery name will not be used in the US, you can expect that whatever name is selected these cars will impact the way many Americans buy their cars from that point forward. Oh, by the way, two other Chinese automakers — Shuanghuan Automobile Manufacturing, LTD and Geely Automotive — are also expected to export cars to the North American market soon after Chery makes its debut.
While it is too early to say, the opening of the lucrative North American automobile market to cheap Chinese vehicles could possibly shake the American economy in ways never anticipated. I, for one, shudder to think just how all of this might unfold.
Related items
Buying An Automotive Extended Service Contract
Should You Buy An Automotive Extended Service Contract?
The decision to purchase an extended service contract or mechanical break down policy as they are sometimes called is a decision that has many variables. Depending on the age of the vehicle, the usage, how long do you plan on keeping the vehicle for are just a few questions that need to be considered.
If you look online, some of these so called guru’s who write scam pieces will tell you-Don’t Buy-it’s a scam. I whole heartily disagree with their opinions, I question if they have real world knowledge and experience to begin with. If they did, then I firmly believe their opinion would be other wise.
The scam comes when you are charged outrageous and inflated prices for an extended service contract, they are not cheap to begin with, but those who exasperate the cost are the ones who are taking advantage of unsuspecting consumers. Or perhaps even requiring you to purchase as a condition of buying the vehicle, you should never be forced to buy under any circumstances.
With automotive repair labor rates ranging easily up to $100.00 per hour or more, it doesn’t take a huge repair to cost you major bucks, and with the electronics and technologies of today’s automobiles, parts prices are equally as expensive.
During my 26 years in the automotive service industry, I can recall countless and numerous times where customers wished that they had purchased, and those that did were glad they made such a sound financial decision.
Consider the following examples of repair cost:
Air Conditioner Repairs can easily cost $1500.00 for compressor replacements.
Transmission Overhaul or Replacements–$3000.00
Water Pump replacements–$600.00
Power Steering Pumps and Steering Gears–$600-$2000.00
However, don’t be mislead into believing a mechanical break down policy covers every nut and bolt on the vehicle, there are variables and different kinds of policies as well. Some cover seals and gaskets, wear and tear items, consequential damages etc and others don’t. Be aware of what it does and does not cover before buying, this will save you a lot of grief in the event you have a mechanical failure.
It is a major decision, and one that requires weighing the advantages and disadvantages.
My personal and professional opinion is that if you are going to use the vehicle on a daily basis, you plan on keeping for 2 years or more after the original factory warranty has expired, then you should purchase the extra protection.
It is after all, like an insurance policy, you hope that you don’t have to use it, but it will give you some peace of mind in the event that you have to have an expensive repair.
Related items
Sell Your Car Online: Step 3, Using the Right Information to Help Sell Your Automobile
Posting your automobile for sale online is a great way to attract potential buyers. In step 2 of this series, titled “Sell Your Car Online: Step 2, Using Pictures of Your Automobile Correctly “, you learned how to select the right pictures of your vehicle for display in the classified ad.
The third step in placing an ad is selecting what information you want to use in your listing. Most auto classified web sites have information fields that are either checkboxes or blank textboxes for short answers. Here’s the danger. If you don’t give enough information, you may lose potential buyers. They may think that the missing information is an attempt to hide what’s wrong with your car or truck. The solution is to answer ALL information fields that are applicable to your vehicle.
So, what type of information do you display with your listing? The most important information that must be included in your listing is: make, model, year, mileage, engine type, and transmission type. When searching for a car or truck to buy, especially a used car or truck, this is the information that the potential buyer must know before taking the next step, contacting the seller. This information will determine whether the buyer is even interested in the vehicle to begin with.
Secondary information which should be included in your listing is: body style, drive train, and VIN number. You should always include the body style (2dr, 4dr, SUV, truck, etc.) and drive train (FWD, RWD, 4WD, etc.) in your listings. It is a great idea to also include the VIN number. A growing percentage of buyers and dealers are using CarFax.com to gain information about vehicles. If the buyer is serious about purchasing your car, he/she can research the VIN number through CarFax.com without the added inconvenience of calling you first.
Next in the line of important information are the accessories or options your vehicle has. This is the information that can separate your vehicle from the rest of the pack. List all the options your vehicle has. Whether it has power windows, CD player, ABS brakes, DVD player, or a power sun roof, the buyer needs to know the accessories or options on your vehicle. List them all. Even if the classified ad system you use doesn’t list the accessories in a selectable list, include them in the description field.
You must not forget to include your contact information. List your address as well as your phone number. If the buyer is interested in your vehicle, he/she could call or drop by for a test drive if close enough.
As a summary, you should include the following in your classified ad (listed in order of importance):
- Contact address and phone number
- Make
- Model
- Year
- Mileage
- Engine type
- Transmission type
- Body style
- Drive train
- VIN number
- Accessories or options
There’s no such thing as listing too much information about your vehicle, so type away and tell as much about your car or truck as possible. The worst thing that can happen is that the potential buyer will spend more time viewing your listing and less time viewing someone else’s listing. Isn’t that what you want?
Choosing the right information for your classified ad can set your automobile apart from the rest of the pack, at least in the buyer’s mind. Look for the next installment titled “Sell Your Car Online: Step 4, Writing a Compelling Description of Your Automobile.” Happy selling.
Related items
