Chery Automobile Exports to U.S. China Manufacturers

China's state-owned Chery Automobile Co. will start exporting cars to the U.S. market with an initial target of selling 250,000 cars in 2007. Zou Zhengfang, a professor at Renmin University of China, stated that the overcapacity in the Chinese auto industry is bound to move toward the international market, but the timing of exports to Europe and the United States remains to be examined. In particular, he reminded enterprises that price weapons must be used with caution, or else they might trigger “anti-dumping” or be “restricted” by the U.S. government. He said that prices may not be the top priority in automotive products. Safety, performance, and appearance considerations will affect consumers. The United States, as a major automobile country, has very mature consumers. If you blindly use price weapons, you may hurt your brand. In order to enter the U.S. market, China-made cars need to compete with foreign cars of the same class in addition to the competition of some used cars. Because you spend 10,000 US dollars, you can buy a very good used car. Moreover, many auto manufacturers now offer fairly good used-car after-sales services and warranty items.

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