Tuesday, December 16, 2008
Chinese Car poised to invade the U.S
The crises is Detroit is about to face further competition from abroad, as Chery looks to gain U.S auto market shares. Chery Auto, base in Wuhu Anhui province had won a $1.5 billion deal from the Export-Import Bank of China, in the $4 trillion government stimulus plan. Chery is looking to enter into the U.S market through buying assets from the Chrysler. Chana another car maker from China whom has been a partner of Ford is looking to purchase Ford's Volvo division. Detroit beware!!! it looks like the Big Three are starting to face more and more competitions as they loose their market shares and giving rise to newer and possibly more efficient car companies.
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2 comments:
I think this is a good move by Chery, buying assets from Chrysler, that is. Chrysler may be struggling right now, but they were recently acquired by Cerberus Capital Management, a private equity firm known for bringing companies back to life. This could pan out well for Chery Auto.
I don't really think that Detroit should beware. I mean the divisions that were mentioned happened to be problematic to Detroit and actually where already being placed up for sale. I think that this might actually help the U.S. auto-industry by streamlining companies to make them more efficient. As they are, the big three are TOO big to handle themselves in the good economic conditions, let alone the bad situation we are in right now.
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