Chery’s mini model called the QQ

At the beginning of this year, The Columbia Star listed ten priorities for the next 12 months. Number five on the list was to open a sister city relationship with China, something like Greenville established last year.

The sixth priority is to encourage a local dealership for the Chinese made Chery automobile. After all, a lot of American cars are sold in China, and free trade should allow from some reciprocation around here. Textiles and garments are in a one–way trading direction, from China to here, but automobiles should work both ways. We have similar exchanges with Germany, Italy, and Japan, to name the most obvious three.

China is the world’s fastest–growing major automobile market. In 2002 and 2003, China’s car sales grew at a rate faster than 50%. For 2004, the growth rate was 15%, comparably slower, but a fast pace among major markets. Recently the Chinese government has tightened bank loans and cut credit for auto dealerships.

In the next few years, China’s light–vehicle sales are set to surpass those of Japan. In another ten years, it is entirely possible China could pass those in the US.

MG Rover, Britain’s last major independent carmaker, has extended an invitation to Shanghai Automotive Industry Corp. (SAIC) to take over Rover.

General Motors is rolling out 20 new vehicles in China, part of its plan to invest $3 billion over three years. Last year GM sales in China, driven by the tony Buick saloon and the cheaper Excelle sedan, rose by 27% to almost 500,000. Ford just scored approval to build a $400 million passenger–car plant in Nanjing.

With the American presence in China automobile manufacturing, the export of the Chinese Chery to the US is a natural in trade language. The Chery Automobile Company is in with Visionary Vehicles of New York to export cars to the US by 2007. Looking for 250 US dealers, Chery will offer a 10–year, 100,000–mile warranty in a car priced 30% less than comparable vehicles.

Chery Automobile is enlisting outside suppliers to help create vehicles that meet Western standards, and those suppliers can include SC plants, strengthening our local automobile parts cluster.

This will be in a market well below the BMW class and thereby well below the concerns of SC’s BMW operation, so Columbia should set up connections for a dealership.