DETROIT — Amid all the futuristic vehicles, "green cars" and much-hyped "crossovers" being unveiled this week at the Detroit auto show, one of the biggest game changers coming to the American automotive market may be a simple price sticker.
How's this for innovation: $14,000 for a fully loaded, mid-size sport utility vehicle with a leather interior.
The catch: It's made in China.
Four Chinese automakers and an American importer of Chinese cars showed off their wares here Monday, with one promising to bring vehicles -- including the SUV -- to the U.S. as soon as the end of the year. It was a torrent of activity from an industry that made its debut at the Michigan big boys' party only two years ago.
Their plans to sell cars in the world's largest auto market are nothing if not ambitious, considering the mountain of regulatory and marketing challenges, not to mention a recent history of postponed and canceled attempts to come stateside. And then there's the skepticism of U.S. consumers, who have endured recalls of pet food containing Chinese-made ingredients, hazardous toys and other tainted products.
Still, it's hard to ignore the ability of these manufacturers to supply an exploding Chinese market. (Nearly 8.8 million vehicles were sold in China last year, a 22% rise that put its market at more than half the size of that in the U.S.) And thanks to joint operating agreements required of U.S. and European companies selling cars in China, Chinese manufacturers have gained exposure to some of the latest Western technology, which could be a significant leg up.
"There are a number of very aggressive car companies in China," said John Parker, who as Ford Motor Co.'s vice president overseeing its Asia Pacific and African operations works closely with a Chinese carmaker through a joint operating agreement. "Their cars are progressively getting better. I think it will be a very significant industry in terms of size and scale."
Probably coming to U.S. roads soonest are cars from China America Cooperative Automotive Inc., a U.S. company with an exclusive contract to sell 600,000 pickups and SUVs, including the $14,000 model, over five years. Chamco Chairman William Pollack says the cars will go on sale at the end of this year or early 2009 in nine states, including California.
The vehicles are made by Heibei Zhang Xing, or ZX Auto, and Chamco says they are going through the engineering changes required to pass U.S. safety and emissions regulations.
