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Four-way tie-up to boost Chinese auto sales in US

Joanne Jiu From Gasgoo.com| September 19 , 2008 17:28 BJT

Shanghai, Sept 19 (Gasgoo.com) - American Automotive, a Greenwich, Conn.-based company, signed a contract today to team with three German technology-supporting companies. The tie-up will offer "professional and one-stop" service that helps Chinese automakers to sell cars in North America and other overseas markets.

Four-way tie-up to boost Chinese auto sales in US
Mr. Roger Berry (first from the right) signs on the tie-up contract with executives from the other three German companies.

The three partners are-TUV Rheinland Group, MBtech Group (China) and Weiss-Voetsch (China). Along with American Automotive, each of the companies has its expertise in offering technology and consulting support for automakers and component suppliers.

"Our one-stop service covers the whole chain-from design and engineering to testing and marketing," said Mr. Roger Berry, chief engineer of powertrain, from American Automotive. "Our project is better than others because we have combined the services together and we're experienced and professional…the Chinese automakers could spend their money more efficiently," he said.

"We may provide funding to them (Chinese automakers), and it's possible to even help them set up local manufacturing facilities in the future," added Mr. Berry.

Actually, American Automotive is not the first or the only vendor that tries to introduce Chinese cars to the American market.

Zhongxing Auto, a Chinese SUV and pickup maker that once partnered with a U.S. distributor Chamco, has ceased their business ties, as the latter was involved with lawsuits. The operation of Chamco was accused of fraud by its former employees. And Visionary Vehicles, another U.S. importer of Chinese vehicles, ended its joint venture with Chery to build and sell vehicles in America two year ago, but now launched legal actions in July against Chery for alleged fraud.

And there're even more Chinese automakers that want to export vehicles to America---Geely, Brilliance, Great Wall, SAIC and so on.

Brilliance Auto has started export of its improved BS6 sedans to Germany in mid-July after a setback from the safety test failure. Beyond the mature markets like Europe and America, the Chinese vehicles have been sold much better in many other countries and regions.

"We worked with Japanese automakers thirty years ago and with the Koran automakers 20 years ago, and there're always problems in the beginning, but now you can see they sell well in the US market," said Mr. Berry. "And we believe we can pave a smooth way for them."

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