First Chinese import coming to the US: Will the Chery be a lemon?
Results so far:
| Yes | 60% | 207 votes | Total: 344 votes | |
| No | 40% | 137 votes |
Yes
by Jonte Rhodes
Created on: November 04, 2007
The Chinese as a nation in the field of car manufacturing aren't as well established as a lot of other Asian countries such as Japan for example. They also have a reputation within a lot of countries as a producer of although cheap, somewhat unreliable electronic goods, which a lot of people see as being made as a result of people being exploited as well. This together with the fact that the massive amount of patriotism in America is still prevalent and thriving meaning that a lot of Americans always prefer to buy American made good if they can, means that the Chery is very likely to be a flop in terms of sales and demand.
The name Chery for a start is also a bad move, as it appears and will undoubtedly be thought of sub-consciously as just a misspelling of the English word cherry, which from the start undermines the Chinese craftsmanship as being a cheap replica of the American models. The fact that the majority of Americans are very patriotic towards their own countries goods and services as well will likely mean there is very little demand for the Chery unless it offers something that all the car manufacturers already in the country can't already offer, which is very unlikely in itself. Another issue arose recently as well when the producers of the cherry illegally copied some of General Motors car designs, meaning any intrusion into the US market will almost certainly be met with extreme hostility by GM, and as the biggest car company in the world as well, they certainly have the power and inclination to make it as hard as they can for the Chery to enter the US market successfully.
The image of the Chinese government as well can only harm the Chery as an import in the United States, because there is still a strong image of China as being a communist controlled country, even though now they have started to become more westernized and democratic. The fact that a lot of bad feeling still exists towards Japan and Russia in the united states today also likely means there will be a lot of suspicion towards the Chinese because of their proximity and similarities to japan, as well as their communist ties and image.
Throughout history there have also been a lot of precedents of imports that have fallen short in new markets, particularly when coming from rival countries. The first example that springs to mind is the Sinclair c5 in the late 80s, which was a kind of electric tricycle that was massively hyped prior to its release, only to sink without a trace upon its launch. Another example particularly relevant to this situation is the soviet built Yugo again from the 80s, which was intended to provide cheap cars for the messes, but which quickly garnered a reputation as being low quality and unreliable.
I can honestly see a similar fate befalling the Chery soon after its release, as with the cheap labor that China can produce, the quality is always the first thing to suffer. And the more established manufacturers already in the united states will certainly make the most of this supposed view as foreign imports as being inferior to boost their own sales, whilst demand for the Chery suffers.
Learn more about this author, Jonte Rhodes.
Click here to send this author comments or questions.
No
by Vince Capece
Created on: November 11, 2008
When the first Chinese car or truck arrives in the US, it'll be adequate. Americans want to hear that China will dump awful vehicles on these shores and that the American consumers will turn their noses up at how awful these vehicles will be, but that just won't be the case.
The first US-legal Chinese vehicles won't be competing with Lexus at the top of quality surveys either. As a matter of fact, they will most likely fall near the bottom of every quality survey ranking down with such lowly brands as Mini and Land Rover. Yes, these two prestigious brands are among the lowest in quality measured in the first few months of ownership, but for some reason few people call them "lemons."
Currently, there are about five or six Chinese manufacturers vying for the honor of being the first to crack the US market. Among the leaders are Chery, BYD, Great Wall, Brilliance, and Geely. They're all small compared to the big boys in the Chinese market who make vehicles designed by Volkswagen and General Motors and Peugeot. And it's because of those alliances that the large players probably won't be among the first wave in the US market.
If you study the history of the US automotive marketplace, every time a new country enters the US market they've been labeled as "less than adequate." Initially it was Germany's Volkswagen in 1949 selling tiny, underpowered cars against two and three ton chromed behemoths; in the late 1960s, the "Beetle" was still on the market and among the top selling nameplates in the US. The Japanese followed in the late 1950s and by the early 1980s they, too, were vying for the top places among cars sold in the US. Korean automakers followed in the 1980s and 1990s and today Hyundai sells over half a million cars and trucks in the US.
The participants in each of these waves learned from the prior ones. Japan introduced cars larger and more mainstream than the Volkswagen. Korean learned from Japan's early quality mistakes and launched entry-level vehicles with great success. And China will learn from Hyundai's early problems to further improve their chances.
By assuming that Chery, or any other Chinese car maker, will foist lemons on the US market is missing the point. With history as a guide, the Chinese will make inroads and will become honest competition within 10 years. Toyota built its first car in the 1930s and became a force in the US by the 1980s; Hyundai introduced its first Korean-developed car in the early 1970s and by the late 1990s were quite competitive; there's no reason why the Chinese couldn't follow this pattern.
Chery, among others, is using the global automotive supply chain to create its own vehicles. Harnessing the power of designers from Italy and engineers from Europe and Australia, the company is already utilizing the best that the world's largest players have at their fingertips. These sources already know the needs for the automotive marketplace in Europe and North America, which helps companies like Chery hit the ground running.
Sure, they're not going to burn up the quality reports. They're going to have their problems at the start., but these aren't going to be Yugos. They're going to be better than Toyota's first cars when they met with the American market. Underestimating the competition worked to Volkswagen's advantage 40 years ago and Toyota's advantage 30 years ago and will work to the advantage of the Chinese automakers and to the disadvantage of everyone else.
Learn more about this author, Vince Capece.
Click here to send this author comments or questions.
Write and get published
Share with other writers
Polish your freelancing skills
Quality articles from proven freelancers
Exclusive rights, fast turnaround
Brand engagement, business blogging -- our writers do it all
INFORMATION
Copyright © 2002-2012 Helium, Inc. All rights reserved.
Helium.com: A Service of RR Donnelley