If it goes according to the plans of two competing car dealers, Des Moines, Iowa, will become the center of the Chinese car export revolution. The Chinese car invasion has been long feared, but so far has not materialized. Two guys in Des Moines are on a Chinese trade mission …
According to the Des Moines Register, Gene Gabus, a “second-generation patriarch of a family that’s dominated Iowa auto sales for years, believes his team may be ready to offer cheap, fuel-efficient Shuanghuan Nobles early next year.” They plan to sell between 20,000 and 25,000 of the depicted Noble G4s in America in 2010. Gabus may also sell Made in India- Mahindra pickups, and possibly Made in China Brilliance cars.
Neighboring Max Holmes, a Hyundai and Chevrolet dealer, has similar plans. He also thinks Gabus has his work cut out for him. Holmes spent four years chasing Chinese cars, so far without success. All that Holmes received was an expensive education: “It takes a long time to get these vehicles certified.” Mum’s the word from which Chinese company Holmes plans to buy the Made in China automobiles.
Gabus has similar certification problems. For instance, he had to make Shuanghuan switch the engine for a Suzuki engine that already had passed U.S. certification.
Gabus, who is a victim of the Chrysler dealer cull, may invite bigger problems: Both Daimler and BMW have painted a big bull’s-eye on his supplier Shuanghuan. Mercedes sued Shuanghuan for copying the Smart fortwo. BMW also sued, claiming that the Shuanghuan CEO is a facsimile of the BMW X5. BMW lost the case in China (not surprisingly) and in Munich (very surprisingly.) Then, Italian importer Martin Motors mounted a counter-attack against Mercedes and sued for €100m in lost sales of the Smart lookalike. Last we heard from Automotive News [sub] was that Daimler is seeking a settlement with Martin Motors. That was January this year, after that, it became eerily quiet. Gabus better make sure that the legal matters are settled once and for all. In a jury trial in the US, both Mercedes and BMW could stand much better chances.
Any Chinese car exports would be more than welcome in the Middle Kingdom. In September, the alleged export powerhouse registered another bid drop in car exports. China exported 30,500 vehicles in September, down 36.74 percent from a year earlier, Gasgoo writes.
From January to August, China exported only 221,100 vehicles, down 57.17 percent from a year earlier.