Made in China

With its cheap labour force and relaxed environmental regulations, it was only a matter of time until a Chinese manufacturer set its sights on North America. Like the Japanese in the 1970's, and the Koreans in the 1980's, Chinese manufacturers are hoping to introduce new people to their vehicles through a blend of low price and high content. This strategy worked extremely well for Hyundai and Kia.
In fact, it's the success of Kia and Hyundai which has made it possible for Geely and Chery to even think about exporting their vehicles to North America. As Hyundai and Kia march up market chasing bigger profits, the bottom of the market is left lagging allowing hungry competitors to enter and build a customer base.

What will this do for GM, Ford and Chrysler? Not too much initially as they don't rely heavily on small cars for profits. However, long term (assuming Geely and Chery can build a reliable dealer network, meet our demands for high quality, and break through the initial customer hesitation) these manufacturers may build a strong base of customers who, in the future, may demand more vehicles such as SUV's, minivans and large cars.

If this can be accomplished then Detroit is in some serious trouble. Don't think it can happen? Check out this anecdote from the December 1999 issue of Car and Driver magazine.

"It seems Carroll Shelby in 1971 told Lee Iacocca that he might buy a Toyota dealership. Mr. Iacocca told him that would be a big mistake. Mr. Shelby asked why. Mr. Iacocca replied, "Because we're going to kick their asses back into the Pacific Ocean."

How times have changed.....