Chinese car makers face tough U.S. scrutiny

Chinese car makers face tough U.S. scrutiny
Expert feels most Chinese companies not ready, but one has a plan to bring cars here next year.

NEW YORK (CNNMoney.com) -- Recent recalls of toothpaste, toys, tires and other products have created a marketing nightmare for any company trying to sell Chinese products in the United States. And now they want to sell cars here.

But a J.D. Power and Associates analyst, who spent two years in China studying the automotive industry there, is worried that some of them may be rushing things.
Chrysler is expected to announce late Tuesday a long-term deal with a Chinese car maker to build a small car in China for sale in the U.S. market several years from now.

And several other companies plan to introduce Chinese-made automobiles in the United States with one saying it will begin selling cars here next year.
"None of the Chinese are ready at this point in time," John Humphrey, J.D. Power and Associates' general manager manager for the Asia/Pacific region said.

Chinese car companies are "still 5 to 10 years away from approaching even somewhat competitive levels of quality," he said.

Of all the Chinese auto makers, Chery, whom Chrysler has been courting to build a small car, is probably closest to being ready to face highly competitive Western markets, Humphrey said.

With Chrysler's support, he believes, Chery could be ready sooner than others. But "you're not talking one or two years," he said, "You're sill talking about at least a product generation away."

In the auto industry, a product generation is four or five years.

The chairman and chief executive of a New Jersey-based company that's planning to sell Chinese-made cars here beginning in 2008 says his company will be ready by then with a vehicle that will be competitive with the best U.S. and Asian products now on the market.

The company is already set to begin exporting vehicles from China to Mexico later this year.

William Pollack, chairman and chief executive of Chamco Auto said he and his partners spent nine months in China two years ago choosing a manufacturing partner.

"Our number one priority was quality," he said.
source : money.cnn.com