by Wilson Kirkendall

Created on: August 07, 2007

Will Chery be a lemon? An interesting question, which will not be answered for a few years yet to come. As an Automotive Engineer with over 20 years experience, I have worked very closely with US and Chinese suppliers for most of my career and offer my opinions in the areas of development, design, manufacturing, marketing and service.

R & D, commonly known as Research and Development has other acrimonious meanings when referring to the Chinese Engineering mentality. Some refer to it as Redraw and Distribute. Daewoo, which is a Korean division of General Motors is suing China's Chery Automobile Co. Ltd, for "copying" Daewoo's design for its small car, sold in China as the Chevrolet Spark. I have also seen photos of the "Chevy Colorado" clone, and have heard from associates of a full size "Toyota Tundra" twin. It has been argued that the sharing of technology has been an acceptable trade off for the monetary benefits of obtaining the lowest cost producers. Now some are singing a different tune, as Intellectual Property, and other outputs of creativity are showing up in Chinese Automotive products.

Initially I would not expect too many shortcomings in Design. It has been my experience that most Chinese suppliers do a very good job fresh out of the gates. Over time, however, design parameters vary, material inconsistencies come apparent and components will wear and fail. The US customer will be the unfortunate guinea pig. The manufacture will be prompt in correcting the defects, and preventing the re occurrence. The emphasis on corrective action, still out weighs preventive action with many Asian suppliers. True product development often determines the limits of a products capabilities, whilst copying an existing product can repeat design shortcomings.

Other than material issues, the manufacturing issues should be minor. Much of the vehicle assembly is automated. The factory equipment is supposed to be top notch. The human content will still be considerable as compared to other vehicle manufacturers. And people will make mistakes.

Marketing. Price, Price, Price.... Thats all Chery has to offer. There will be those whom buy on price alone.

Service will be a tough nut to crack. The infrastructure for replacement parts is not well established in China. Mostly all work is performed by the dealer in China. A different mentality here in the states though, many consumers have their vehicles serviced by independent shops. For Chery to be successful part availability, and service information must be addressed.

So, will Chery be a lemon? It all depends on how sour the Chery owners become.

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