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China becomes net exporter of cars, trucks
(AP)
Updated: 2005-12-22 15:20

Chery has announced plans with American entrepreneur Malcolm Bricklin's Visionary Vehicles to market cars in the United States and says it hopes eventually to sell 2 million vehicles a year.

The company plans to begin offering five models in the United States starting in 2007, including a compact sedan and an SUV.

Outside of Geely and Chery, China's 2005 exports were "bread box" vehicles 錕斤拷 pickup truck lookalikes made by companies such as Chang An and Hafei, Dunne said.

He said these vehicles have $2,000 to $4,000 price tags at home, where sales are concentrated in relatively poor areas, away from big eastern cities.

"In places like Beijing and Shanghai, they are not considered very attractive," he said.

Dunne said Africa, Asia and the Middle East are the main markets for Chinese exports, with Syria and Algeria the largest of all.

An exception to that trend is Ukraine, where low-priced Chinese models sell well, Dunne said.

China's domestic auto sales now total about 5 million vehicles per year, with most foreign brands manufactured locally or assembled from imported parts.

Imported cars are primarily high-end models such as the Mercedes S-Class, the BMW 7 and the Lexus, which have price tags beginning at around $50,000.


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