Chery is making it clear that it wants to enter the U.S. market, even as opposition to Chinese vehicles being sold in the country intensifies.
The details: Chery CEO Zhang Guibing said the company is exploring various options to navigate U.S. laws, regulations, and other requirements needed to enter the market, while pointing to several strategies already in play that could work to its advantage, Reuters reported.
Chery, which recently agreed to invest $75 million in KG Mobility Corp., is open to partnerships, including distribution channels and brand-related collaborations, said Zhang.
The automaker, China's largest vehicle exporter, is also open to sharing global production capacity and collaborating across various aspects of manufacturing, he added.
What they’re saying: "One of our key objectives is, of course, to strengthen our presence in overseas markets," said Zhang.
Chery's interest in entering the U.S. could eventually introduce another major competitor for dealers and automakers, particularly if partnerships or other strategies allow the Chinese automaker to navigate existing barriers to entry.
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Between the lines: News of Chery's U.S. ambitions comes as opposition to Chinese vehicles being sold in the country continues to grow across the industry.
The American International Automobile Dealers Association (AIADA) has called for banning Chinese brands from selling or manufacturing vehicles in the U.S.
AIADA is also backing legislation that would strengthen existing measures aimed at barring Chinese automakers and related entities, which could also prohibit Mercedes-Benz from selling vehicles in the U.S.
What they’re saying: “They’re out there to gain total market domination, and that would result in unfair competition and ultimately a market share decline of the other manufacturers that dealers currently represent,” said AIADA Chairman Mike Darrow, according to an AIADA report.
Bottom line: Chery's U.S. ambitions highlight the growing tension between Chinese automakers seeking access to the world's major vehicle markets and efforts to keep them out of the U.S., with the outcome potentially reshaping competition for established brands and their dealer networks.
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