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 Business News | June 2007 
Chinese Cars First in Mexico, Then U.S?
 AutoWeek
| | Assembling the Zhongxing vehicles in Tijuana will make them Mexican under North American free trade rules, so they can be exported to the United States duty free. |
We’ve been hearing stories that Chinese automakers are ready to sell in the US for years, so here goes: A Chinese automaker will begin exporting pickups and sport/utility vehicles to Mexico this year, the first step in an attempt to enter the U.S. market. The plan calls for the SUVs to sell for $12,000 in Mexico and will be the first Chinese vehicles to sell in U.S. showrooms.
That’s the claim of Bill Pollack, chairman of New Jersey-based Chamco Auto. According to Automotive News, Pollack has done a deal allowing China’s Zhongxing Automobile to export 50,000 vehicles duty-free to Mexico, and then build a plant in the border city Tijuana to assemble models for export to the US.
“Our plan is to average 20 percent below comparably equipped brand-name competitors,” Pollack told Reuters.
Assembling the Zhongxing vehicles in Tijuana will make them Mexican under North American free trade rules, so they can be exported to the United States duty free, Pollack said. His company is Zhongxing’s dealer in the US.
Zhongxing is located in the northern province of Hebei near Beijing. It sells almost a third of its vehicles to customers in 50 developing nations but has little experience in wealthier markets.
Pollack said its models meet European and Mexican safety and emissions standards and vehicles produced in Mexico will meet US regs. |
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