Guangzhou Automobile Group, better known as GAC Motor, has delayed plans to commence sales of Chinese-branded cars in the United States. Apparently, there’s some kind of trade dispute between the the two countries that influenced the company’s decision.
However, back in 2018, GAC Motor was at the North American International Auto Show telling yours truly that it planned to ship product to the U.S. as early as the following year (as PR reps simultaneously requested we stop commenting on the faux tailpipes we noticed on several models).
Months later, GAC revised its business plan. The entry into the America market would come closer to 2020, it said. Now, the automaker claims the trade war has forced it to postpone things even further. This time, there’s no target.
Chinese car brand Guangzhou Automobile Group’s showing at the North American International Auto Show made it pretty clear that the manufacturer wants to get into the U.S. market. But, with its earlier deadlines to do so having gone unmet, there is skepticism that it won’t happen by 2019. Is it really possible?
Well, sure, anything is possible. But GAC has a laundry list of obstacles to overcome if it wants to sell cars to Americans in earnest and the clock is ticking. For starters, politicians are starting to get a little testy when it comes to Chinese trade policies, and GAC now finds itself as a focal point on the issue. More importantly, the brand needs a clear-cut path to victory — and we’ve yet to hear one.
At this very moment, Chinese-based automaker GAC has a massive booth in the very center of the North American International Auto Show in Detroit. The company has expressed its intent to start importing its vehicles into the United States in 2019. However, 536 miles away (by car), Washington is bemoaning Chinese trade practices — a topic which might be extremely relevant for Guangzhou Automobile Group in the coming years.
On Wednesday, Democratic U.S. Senator Chuck Schumer and President Donald Trump separately criticized China’s trade policy. For automobiles, this translates into Chinese-built cars incurring a maximum 2.5 percent import tariff upon entering the United States, while U.S.-built cars sent East are hit with an average 25 percent tax.
Seven years ago, Fiat Chrysler Automobiles and China’s Guangzhou Automobile Group entered into a joint venture, forming a 50/50 partnership between the companies. Currently selling three locally produced Jeep models – the Cherokee, Renegade, and Compass – the JV also imports the Grand Cherokee and Wrangler. Last year, sales tripled to nearly 150,000 units.
Now, according to Automotive News, the parent companies are in discussions to deepen their tie-up in China. Talks are apparently focusing on models, production, and sales targets.
It’s no use continuing with the idealistic notion that North America will reject advances from Chinese-made cars on our shores. The Buick Envision is Fabrique en Chine, as well as the long-wheelbase Volvo S60, and more recently the Volvo S90. Yesterday, Steph Willems reported on a patent filing from the Guangzhou Automobile Company for its largest SUV offering, the GS8.
You don’t have to like the upcoming Chinese onslaught, but it’s necessary to accept it as reality. So, today we’re asking you to twist your mind and wring from it your thoughts on what it would take for a Chinese auto manufacturer to be successful in North America on a large scale.
It may look like a strange amalgam of Ford and General Motors styling cues, maybe with a dash of something else (Nissan?), but the model in the image you see above is no mystery. And it’s certainly not domestic.
The United States Patent and Trademark Office bestowed a design patent on a certain automaker today and, while the model isn’t named, we know exactly what it is. Does this Trumpchi get your vote?
First it was Geely. Then Dongfeng. Now add Guangzhou Automobile Group to the list of Chinese automakers that have denied interest in acquiring Fiat Chrysler Automobiles (FCA).
FCA has seemingly been seeking a dance partner for a merger or acquisition for a year or two now, and the company’s stock rose earlier this week when Automotive News reported that a “well-known Chinese automaker” had made an offer to acquire FCA. The company has a market value close to $20 billion. Automotive News reported that the offer was rejected for not being enough.
With the return of two storied nameplates like the Ford GT and Acura NSX, it’s easy to understand why the only Chinese automaker with a display at the North American International Auto Show last month in Detroit, Guangzhou Automobile Group Co., didn’t get much attention. For the past decade or so, a number of Chinese car companies have had displays and press conferences at the media previews to the Detroit show, some of them with plans to export cars to North America, but so far little or nothing of substance has come to fruition from those plans. Whether or not they end up selling Chinese cars here, it does make a little bit of sense to take advantage of the presence at the NAIAS of thousands of members of the international press. That’s probably why GAC used the 2015 NAIAS to have the world premiere of their GS4 compact SUV. In addition to the GS4, which appears to be more of a car based crossover than a serious SUV, GAC also showed their GA6 sedan (which they say was developed for “the higher end market”) and the WITSTAR concept (that included it’s own built in aquarium between the back seats).
Fiat debuted the Ottimo at the 2013 Guangzhou Auto show. The five-door hatchback is based on the same platform as the Dodge Dart and Fiat Viaggio sedan and it will be assembled alongside the Viaggio by the joint venture between Fiat and Guangzhou Automobile Group, doubling production at that plant in southern China.
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