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Wild-Ass Rumor Of The Day: Brilliance Buying Dealers, Saturn Brand For US Launch?
by
Edward Niedermeyer
(IC: employee)
Published: November 20th, 2009
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The long-rumored Chinese invasion may be coming sooner than we expected. Automotive World reports that Chinese automaker Brilliance has signed letters of intent with 36 US dealers in preparation for a US market launch. According to the report, Brilliance intends to launch products in the US as soon as it acquires 100 dealers. Apparently Brilliance’s US distributor is targeting former Saturn dealers, Roger Penske’s US network, Hummer dealers and the Galpin group. Rumors are even swirling that Brilliance could buy the Saturn name to re-brand its US-market products.
Edward Niedermeyer
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Published November 20th, 2009 12:40 PM
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I think the most interesting aspect of this would be the Chinese dealings with potential U.S. unions. They're really not accustomed to strikes and threats and might not react well.
I don't think they'll be building the cars in the USA with or without union labor, seschub. The only time any union guys might see these cars is at the docks. But Brilliance could be smarter than the average bear, and simply import them through low-wage Mexico, put up a cheap "factory" and add mud flaps, and a few do-dads in Mexico, then ship them across the border as "assembled in Mexico" through NAFTA. In fact, one of Brilliance's competitors, FAW, had plans to do JUST that (but were initially going to sell cars built in Mexico in Mexico and South/Central America, first). GM has no reason to sell the Saturn brand and set a competitor up, which is why I suspect they were relieved when the Penske deal fell apart.