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China automakers gear up to go overseas
(Agencies)
Updated: 2005-07-20 07:26

Geely confirmed last month that it was in preliminary talks to acquire molds and production equipment from MG Rover, though it said it had no intention of buying into the bankrupt British automaker.

The company also signed a memorandum of understanding this month with the Hong Kong Productivity Council, a government-run business promotion body, to begin research on development of a new car model in Hong Kong.

Geely’s two mainland Chinese auto companies — Zhejiang Geely Automobile Co. and Shanghai Maple Guorun Automobile — sold 96,683 sedans in 2004, up 27 percent from 2003. It claims just over a 4 percent share of China’s market for passenger cars. Geely models retail for between $3,600 and $9,600. Its top model, the Beauty Leopard sports car, sells for up to $17,000.

Until recently, China’s vehicle exports were limited mainly to buses, trucks and farm vehicles sold to developing countries. But that is fast changing as automakers upgrade technology and expand production in hopes of competing internationally.

Geely exported 5,200 cars in 2004 and plans to more than double its exports this year to 12,000 units, An said. The company aims to eventually have two-thirds of its sales outside China.

Chery Automotive, whose base is further north in east China’s Anhui province, has announced plans with auto importer Visionary Vehicles — run by entrepreneur Malcolm Bricklin, best known as the man who brought the Yugo to the U.S. — to eventually sell 2 million Chery model cars in the United States. The company plans to begin offering five models in the U.S., ranging from a compact sedan to an SUV, starting in 2007.

Analysts have expressed doubts, given that Chery only made 80,000 cars and exported about 10,000 last year, mainly to developing markets.
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