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Contact this writerThe answer's a lemon.
Once upon a time, Britain was "The Workshop of the World". We made all sorts of things, from steam engines to spinning jennies, and our produce was the envy of the world.
All that has changed now, of course. With the advent of industrial legislation, numerous currency devaluations and general incompetence at both a macro- and micro-managerial level, all we seem to be good for now is the odd financial service and a few nuts. If we have any manufacturing companies at all, they seem to have most of their production facilities abroad - eastern Europe, India and the far east. This is because the going rate for labour is what the British worker would struggle to subsist on.
Indeed, many of our once proud manufacturing companies have closed down - one most famous recent example being the once-great Rover Group, late of Longbridge, Birmingham. This was perhaps more famously snapped up by the Chinese, after much prevarocation caused the shape of the deal to go pretty-much of the pear as far as British interests were concerned. Now, I don't know what Shanghai Automotive's newly relaunched MG is going to be like, but judging by the shoddy quality of some of the other products to come from the land of the panda, it doesn't bode well. At all.
You see, it isn't just the panda China is famous for. When Chairman Mao started the cultural revolution, branding his country with a communism even Stalin would have blanched at, he started a trend which, even though there have been outbursts of sanity since, still haunts the Chinese political state. And whilst it nowadays wears the sober blue pin-stripe of capitalism, China is still red in tooth and claw beneath. And no seriously good car has ever come from a communist country.
You may argue that the likes of Lada, Moskvich, Skoda et al. were owned by the state, and the state is to business what Guy the gorilla was to needlepoint; but what of the likes of FSO Polski-Fiat, Zastava Yugo and so on which were in nominally private hands? And you can't tell me that the totally unsuitable lead-painted toys which come from China and the sandals which hideously disfigure people's feet due to the toxicity of the materials used bode well for a people who aspire to manufacture something so complicated as a car. Especially as the cars they sell will have to pass rigorous tests if they are to be allowed to be sold, let alone be good enough to compete with the likes of Volkswagen, Mercedes and General Motors.
It is possible I'm being alarmist. Somehow, though, I fear not.
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No
by LaMont L Troupe
The first Chinese made vehicles coming to the U.S. won't be lemons and here are three words why: Wal-mart, Toyota and Cerberus.
For American consumers high quality and low price has always been great for their wallets. In today's society it's the gateway to simply staying in business for a lot companies. Wal-mart has been receiving bad press over the past few years for its labor practices. But also for its early adoption of importing Chinese made goods for sale in its stores. Although vilified in the public, Wal-mart has made billions of dollars in revenue using this business model. I compare the situation to that old saying: talking like a Democrat in public but voting Republican on Election day. While Mom and Dad are protesting in front of their local Wal-mart by day, they are probably shopping the one in the next township at night. With gas prices hovering around $3.00 a gallon, families need to stretch their budgets. Wal-mart provides these families with good deals and we love good deals. Remember this little tidbit: we import much of our food from China. Who's going to gripe about a cheap car they may take in for repairs twice a year.
Cerberus Capital Management recently closed on their deal to purchase Chrysler from the former Daimler-Benz for $7.4 billion. With the ink still drying on the paperwork, Cerberus demoted Chrysler's CEO and placed ex-Home Depot chief executive Robert Nardelli in the driver's seat. This move proves that Chrysler doesn't have any room for error regarding its future products. Especially true is the joint venture Chrysler has embarked on with Chinese based Chery Automotive. The whole industry is watching as the Chinese government has approved the deal and the three companies (Cerberus, Chrysler and Chery) have plans to hit U.S. shores by 2010. Chery will build the vehicles and export them from China to the U.S. as Dodge badged cars. Success won't be measured in only profits but simply acceptance.
When Toyota first arrived in the U.S. about 50 years ago they believed that selling a cheaper alternative than the domestic companies would be enough to gain a foothold in the marketplace. They were wrong and quickly failed. Only after offering not only a cheaper alternative but a quality and fuel efficient one did Toyota gain traction in this market and have continued to have success. Toyota provided and perfected the blueprint for foreign auto companies to prosper in the North American marketplace. Both Honda and Nissan have benefited from Toyota's highly regarded operating system. The Korean auto companies have become profitable on our shores even faster by following the trail that has been blazed by their Japanese rivals. Kia and Hyundai have also added their own wrinkle to the plan by building their manufacturing base far away from the union stronghold in Michigan. Opening assembly plants in rural, southern, right-to-work states has been a profitable formula for these companies. More important than all of these factors are foreign automakers ability to give consumers what the want at the price they want it. Chery Automotive building a small car for Chrysler will provide exactly that in this market at this time.
Simply put, these cars that Chery will manufacture will have the same or better quality standards than any vehicle produced in this country to date. The longer it takes for them to begin their assault on these shores the harder it will be to compete against them once they arrive. Americans are very comfortable buying foreign made goods as long as the quality and price are right. We long ago allowed our textile and steel industries to collapse because foreign companies could produce those goods cheaper. For those skeptics that believe the delays by Chery proves their plan will ultimately fail are wrong. Cerberus is just following a blueprint long ago started by Toyota, upgraded by Wal-mart and now being perfected by the Chery-Chrysler alliance. These cars won't be lemons because these companies won't fail.
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First Chinese import coming to the US: Will the Chery be a lemon?-
1 of 13
The first Chinese made vehicles coming to the U.S. won't be lemons and here are three words why: Wal-mart, Toyota and...read more
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2 of 13
by Tess Ramano
The Chery will fair well if it is built and marketed anything like the other Oriental imports. With an economy depen...read more
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