Wednesday, February 11, 2009

US consumer may buy Chinese car at Wal-Mart

For years, we’ve been hearing that Chinese cars are on their way, and despite fair skepticism there have been in-roads. Chinese companies like BYD (Build Your Dreams) have debuted plug-in vehicles at American auto shows, while the Mexican company GS Motors has imported Chinese cars to sell in Mexico.

Now the industry must brace for the next big idea, which is to sell low-cost Chinese vehicles at big-box retailers like Wal-Mart and Costco. This is how GS Motors plans to sell the F1 Hatchback in Mexico (for a bargain price of $5,500).

BYD wants to bring over the plug-in model it showed off at the Detroit auto show as early as next year, and GS CEO Kathleen Ligocki said she believes that within five years consumers will be able to buy a Chinese vehicle at their local Wal-Mart.

The global economic crisis may slow some of this down (and many of China’s 80-plus auto companies are bound to go under), but the plan has been laid as far as many of the major players are concerned.

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