China makes waves at the Detroit auto show

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      Although Indian carmaker Tata Motors grabbed headlines a couple of months back when it announced that it will be mass-producing the world’s cheapest sedan, the Nano, in fact, China is currently the fastest-growing automobile market in the world.

      Many familiar names—such as General Motors, Volkswagen, and Chrysler—have substantial interests in China, but there is also a homegrown domestic industry that produces a variety of SUVs, sedans, trucks, and sports cars. In the next several years, China is expected to overtake the U.S. as the world’s number one automobile market.

      By way of example, at the 2007 North American International Auto Show in Detroit, Chinese automobile manufacturers were represented by just two companies. This year, there were five—the largest contingent of Chinese companies ever to make an appearance at Detroit, with a total of 20 different models on display. Although they still need to make up a lot of ground, you know there will be more to come—and quite frankly, most of the models coming out of China make the Nano look like a home-built jalopy.

      The BYD (Build Your Dreams) Company, for example, brought a range of models to Detroit this year, including the F8 convertible, F6 sedan, and F1 hatchback. Technology is supplied in part by Mitsubishi, which furnishes engines and other components. Based in Shenzhen, BYD was formed in 1995 and has 100,000 employees. Not surprisingly, it manufactures a range of nonautomotive products, including cellphones and computer parts. Of the cars presented at Detroit, the F8 ragtop was the most stylistically palatable. It features a Mitsubishi power plant, a five-speed manual gearbox, and four-wheel disc brakes—all the engineering features needed to compete in today’s market.

      One name already known in North America is Geely, which was also here in 2006 and was the first to get a toehold at the auto show. Geely got its start building refrigerator components, and also manufactures motorcycles (a huge market in China). Like most of its Asian counterparts, Geely’s cars kind of lose something in the translation when it comes to styling and details. The Hifun sedan, for example, featured blue Toronto Maple Leafs–style leaf logos on its hubcaps and grille emblem.

      Nonetheless, Geely brought six cars to the party, including the sporty little Coupe (called the King Kong in China), a London taxi replica, and the CK compact sedan. Geely describes its CK as “Speeding Up Freely” with a “golden” engine displacement of 1.5 litres.

      When asked if his company was owned wholly or in part by another corporation—say, General Motors or Volkswagen—Geely sales director Frank Xu replied, with a shocked look on his face, that Geely is owned “by the state”. In the heart of free-enterprise Michigan, that quieted things down, pronto.

      Chang Feng, meanwhile, drew the biggest crowds, unveiling its new Leibao sport-ute and an MPV–style minivan called the Kylin. Interestingly, the company’s display stand at Detroit was entirely red—red carpeting, red backdrop, red paint, and models wearing red clothing. Chang Feng chair and CEO Li Jianxin stated during the launch that although his country already has a huge customer base, it needs to look outward to compete in the global economy. “We must stray from our comfort zone,” he said. “This is the only way to establish ourselves as a truly global player.” Li added that it was his company’s mandate to produce two new models per year out of its design centre in Beijing. So far, it seems to be on target.

      Also on display in the lower level of the Cobo Center were a pickup truck and an SUV manufactured by Zhongxing, an independent automaker based in Baoding. Chair and CEO Bill Pollack said he was confident that parent company Chamco Auto would be the first to sell a completely Chinese-built car in North America.

      But before that happens, there are plenty of obstacles to overcome, including various crash tests, environmental regulations, government certification, and so on.

      Not to mention fully comprehending North American buyers’ tastes. Two of the more unusual Chinese models on display at Detroit ’08 were “The Book of Songs” and “A Piece of Cloud”. Part golf cart, part oversized lemon, and part baby pram, these concept electric cars were definitely eye grabbers, but they’re unlikely to be runaway successes with North American buyers.

      Chinese manufacturers need to address quality concerns as well. Most of the models brought to the auto show this year don’t stand up well under hard scrutiny. And according to industry observers, the biggest hurdle faced by Chinese manufacturers is not the ability to crank out hundreds of thousands of automobiles—they can already do that—but attracting skilled designers and engineers to perform the crucial research and development needed to compete in today’s sophisticated global market. -

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