Visionary Vehicles pushes back Chery's U.S. launch
Malcolm Bricklin's Visionary Vehicles announced Wednesday another delay in his plans to import Chinese-built cars to the U.S., this time to late 2008 or early 2009. Bricklin originally planned a U.S. launch of Chery automobiles in January 2007.
Even the joint venture between Chery Automobile and Visionary Vehicles is behind schedule, with a definitive agreement between the two companies now expected later this year.
Bricklin has only signed 50 of the 250 dealers targeted for launching the Chery brand in the U.S., and with a $2 million sign-up fee, the remaining 200 aren't exactly breaking down the doors.
Originally aiming at the low end of the market, the "vision" (couldn't resist) is now to bring in models to compete with the likes of BMW and Mercedes-Benz, priced from $15,000 to $45,000. A total of 20 models are planned, with a new car launched every 3 months after the first model rolls into dealerships.
[Source: Reuters]
Reader Comments (Page 1 of 1)
Erik 10:03AM (9/14/2006)
HAAAAA!!!! Compete with BMW and Mercedes!!! HAAAAHAAA LOL. Oh that's funny. Good luck buddy.
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Leo 10:19AM (9/14/2006)
they must be on some sort of Chinese wackers weed to think they will go up against MB and BMW
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Jay Tee 10:20AM (9/14/2006)
Why am I not surprised at all? I'm actually surprised that there ARE 50 "business people" who took the bait.
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AnonymousInsights 10:30AM (9/14/2006)
Ahhhhhh...and now they've come to the realization of just how hard it is to not only launch a brand in the world's most competitive market, but let's see them survive!!! Even good vehicles like Mitsubishi are struggling. This group better have some quality wheels at discount prices if they are going to make it. I seriously respect Hyundai for not only surviving but thriving(98,000 in 1998 to over 500,000 this year) and becoming the 4th largest import in North America. What they have accomplished should not be underestimated.
PS: I don't own a Hyundai but my brother just bought a Sonata. Impressed!
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Fragmaster170 1:07PM (9/14/2006)
"priced from $15,000 to $45,000. A total of 20 models are planned, with a new car launched every 3 months after the first model rolls into dealerships."
Why do I have a feeling that 3 months is the R&D period and that the sticker price exceeds the budget used for that.
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Chris 11:34AM (9/14/2006)
I thought Bricklin was out since Soros bought in to Chery? On the luxury note, I don't see that happening. I studied in China this past spring and have seen alot of the Chery cars including the QQ. This has to be the most bare bones car made and very cheap thus making it the most popular car for the 20-30 year old crowd in China.
Take a look:
http://www.cheryglobal.com/qq.html
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Bob 11:59AM (9/14/2006)
I give a lot of companies the benefit of the doubt when they start out here in the U.S...even when they say they're trying to compete with BMW. (I know they won't, but still, fine, whatever.) But come on. 20 total models, a new one every 3 months? There's just no frickin' way.
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Steve 12:04PM (9/14/2006)
I am not sure about the germans, but the koreans and the japanese will be wiped out in next 10 years. Including Lexus.
The chinese ogre will consume everybody. The Japanese will have to fight till death. The chinese will use a vicious strategy to soften the anglo-american consumer.
Cunning chinese will use british brands like MG and Rover with devastating effectiveness.
The anglo-american consumer will be tricked into believing that he/she is buying the old nostalgic MG/Rover cars when in fact it will be an extremely cunning and deceptive, and naturally a highly effective move to quickly gain foothold in america.
The chinese monster will give the world auto-markets such deep shock that I am not sure if it will be able to recover.
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Will Wheeler 11:22PM (9/14/2006)
A few things to consider;
First off, I am totally against importing cars from China. I would much rather trade with countries that have similar standards of living for their workers, and citizens. Such as Germany, Japan, South Korea, and so on.
Korean cars were a laughing stock when they first hit our shores. Now, they are a viable choice at a good price.
People who can afford a BMW or Mercedes will still buy them, but what about the people who want all of the cool features of those cars, but don't want to pay for the premium for a real luxury car? Which is that attitude of most people.
I would not worry so much about the Chinese cars, but rather the effect they will have on the market. The Big 2 (or 3) will likely use this as an excuse to outsource the production of their cars to China. Citing the fact that they can no longer compete against such low wages of the companies that build their cars in China. If you think this is far fetched, look how far China has come in only 20 years. They were a third world country only a few years ago. ( I know large portions still are) But know they have an economy and a military that is on track to surpass the US in 10-25 years.
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Fabulo 12:47PM (9/14/2006)
If you have a car that 'competes' with BMW and Mercedes, it should sell for as much as one (or just undercut it by a smidgen)
When you have a car that is just as good as a $50,000 car, you don't sell it for half the price (otherwise you are an idiot)
Then again, when you have a car whose asking price is $15,000 you are competing with Kia Spectra and Ford Focus.
I have little faith in Bricklin's ability to pull that one off. It'll get delayed and delayed until it goes back to oblivion.
Also, $2,000,000 of commitment for a dealership is not that much. Think about commercial real estate cost, installation, staffing, car stock. at 25/pop, $2M = 80 cars. My chevy dealer has more Silverado and Suburbans on their lots.
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Ben 1:28PM (9/14/2006)
This is gonna be interesting.
although they are shooting for BMW and MB. Eventually I think they'll be competing with Acura and infiniti.
Frankly I like some of their designs, if they can back that up with quality, I might even buy one.
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Greg 1:44PM (9/14/2006)
The first 500 000 people to buy these cars are going to have them fall to peices. And if these Chinese companies offer a long warranty, they will definately be asking for bankruptcy. Unfortunately, all emerging companies have a "learning curve" and I have a feeling these Chinese companies are trying to do too much too fast.
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David 2:00PM (9/14/2006)
In order to compete and survive they will have to bring quality right out of the box. The current market already has too much unused production capacity. Anybody who comes in now will get one chance to make a good impression because no one has years to make up for poor quality in their initial offerings. Hyundai got away with it but Chery won't, Alfa won't, the domestics can't anymore, even the Germans are taking hits lately. And quality comes in part from trial and error, from creating and improving a system from design and engineering to parts fabrication and assembly that works. No one gets it right the first time but that's the pressure these days. Chery won't simply compete with other manufacturers of new cars, they will compete in a market that's increasingly flooded with high quality used cars and they'll have to offer product that sells for less than the new cars from their competitors while having better quality than three year old off lease vehicles. They may get it done, but it's tough to be a newcomer in a mature industry. I simply hope that our government doesn't bend over for the Chinese government if the Chinese government sudsidizes its auto industry in order to allow it to compete here, while continuing to make it hard for American companies to compete there.
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EGS 2:29PM (9/14/2006)
stop smoking crack and give us the cheap, well built and fuel efficient cars we want.
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AnonymousInsights 2:58PM (9/14/2006)
Everyone talks about the 'poor qualty' of Hyundai(compared to who). I owned a 1990 Sonata and drove it 100,000 miles with an electrical repair(under warranty) and a exhaust system (under warranty). I traded it and a man down the street bought it and drove it another 100,000. I bought a 1995 Sonata which I drove 180,000 miles and traded it. I did a tranny at 110,000 miles (which was the life of the Mitsu designed tranny in that Sonata. My brother owns a 1996 Elantra SWagon with 120,000 miles and no repairs. I am not buying the poor quality. I saw many Ford's, GM's and Chryslers on my street with much more down time in the garage than my Hyundai's.
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Andy 3:39PM (9/14/2006)
Bricklin has another disaster on his hands. The man behind the deadly Subaru compacts of the 1960s, the SV-1, and Yugo America is way off. The Chinese designs are not bad (if not unoriginal), but Bricklin is being too bold for his sake. I look forward to seeing Chinese cars stateside, but I do not expect to see Mercedes luxury for $23,000.
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Brian 3:42PM (9/14/2006)
Keep in mind that the WHOLE country of Korea basically drives these cars. THEY HAVE TO BE RELIABLE or else think about the consequences for the Korean economy. I think the "myth" of extremely poor quality Hyundais was created by those who resisted another upstart Asian brand becoming mainstream. But in fact, Hyundai cars in the 90's were pretty reliable, they were just maybe 1-2 generations behind in technology.
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.T 7:51PM (9/14/2006)
What a shock! The vaporware's been pushed back! I'll never buy a Chinese car. Ever. It's bad enough everything else is made in China already.
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Greg A. 12:47AM (9/15/2006)
"...a new car launched every 3 months after the first model rolls into dealerships."
That *has* to be an error. I think it's much more likely that they'll SELL a new car every three months.
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Newt 9:58PM (9/15/2006)
Wow, some rants a few anti-Chinese racist assholes. What a bunch of losers and virgins.
Yin Tongyao is a classic entrepreneur. He founded Chery from nothing and created a highly modern and technological advanced company. Chery does not compete on labor cost, there are lower cost manufacturers in Brazil, Mexico, and Eastern Europe. Chery’s well known quality control mindsets are studies in MBA classrooms around the world.
So for you racist assholes out there, Chery will succeed because they are a quality focus manufacturer building beautifully designed cars and because Yin stands for what’s good in the world, he is an example to entrepreneurs everywhere. You assholes stand for what’s bad in this world
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