China Sets Sights On U.S. Car Market
Family Sedan Priced Under $10,000 Planned By 2008
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Li Shu Fu, Chairman of Geely stands next to the Geely 7151 CK sedan at the North American International Auto Show in Detroit, Tuesday, Jan. 10, 2006. (AP)
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A worker welds the interior of a car at Geely Group factory earlier this year in Ningbo, China. (AP)
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The company also acknowledged that the 7151 CK sedan it is displaying this week at the North American International Auto Show in Detroit does not meet U.S. safety and emissions standards. But Geely (JEE'-lee) said it was confident it could meet those standards.
Li Shufu, chairman and founder of privately-held Geely, on Tuesday announced plans to sell a future version of the 7151 CK, a small sedan, for less than $10,000 in the United States by 2008. CBS News correspondent Anthony Mason reports the model destined for the United States is spartan, with a bare bones interior, no sun roof or heated seats.
At a news conference at the auto show, John Harmer, vice president of Geely-USA Inc., said the company aimed to sell 25,000 vehicles in its first full year on the U.S. market and to reach 100,000 vehicles by its fifth full year. Harmer said the sedan will first be sold only in Puerto Rico before it is brought to the states.
Harmer said company engineers have determined what they need to do to bring the vehicle in compliance with U.S. standards and will be able to make the necessary changes within 18 months.
A more difficult problem may be convincing U.S. consumers to buy a Chinese car.
"The question I get asked most frequently is, `John, do you think the Chinese can really produce a quality automobile?"' Harmer said. "This automobile, or rather its grandson, which will be the car that will come into the U.S. market, will not be put out to consumers until we are absolutely certain that it is not just of adequate quality, but superior quality."
General Motors Corp.'s Rick Wagoner said Tuesday that Geely's sedan is not an immediate concern for U.S. automakers.
"Long term you'd be crazy not to be looking at what could China do given what others have done," he said. "Short-term it's not an issue. The product won't be competitive."
Li said the car was in its third generation and that the vehicle will be in its fifth generation when it is sold on the U.S. market. The name also is likely to change, he said.
©MMVI, CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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