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June 16, 2007

China cars, first Mexico then USA

Chamco Auto, based in New Jersey, will begin importing Chinese pickups and SUVs to Mexico this year, as a first move towards their final goal of selling in the U.S.

Chamco is the U.S. distributor for Chinese automaker Zhongxing Automobile.

Step 1. Chinese carmaker Zhongxing Automobile has received a nice benefit from the Mexican government, and will export 50,000 vehicles duty-free to that country this year. The SUVs will sell for $12,000 in Mexico.

Step 2. Zhongxing Automobile will build a manufacturing plant in Tijuana where they will assemble models for export to the U.S.

Step 3. Under North American free trade rules, these vehicles can be exported to the United States duty free. Chamco says their vehicles meet European and Mexican safety and emissions standards, and that the new ones made in Mexico will meet U.S. standards.

Bill Pollack, chairman Chamco, says, “Our plan is to average 20 percent below comparably equipped brand-name competitors.”

More at Autoweek.

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