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Chamco's in-fighting may hamper Chinese automakers' entry into American market
Shanghai. March 17 (Gasgoo.com) - The recent internal conflict of Chamco Auto, a prospective Chinese automobile importer could hamper a Chinese automaker Zhongxing from entering the North American market, local media Shanghai Business News reports today.
Bill Pollack, Chairman of Chamco Auto, or China America Cooperative Automotive Inc., claimed that the company is still under control of him and other major shareholders. But the CEO and COO of Chamco said they had fired four executives including Pollack.
Led by the newly appointed chairman Mario Ferla and new president Thomas Del Franco, the new management has reportedly brought a suit to a court in New Jersey, accusing the former managing team with corporate frauds, mismanagement and misappropriation of corporate funds.
Chamco Auto hoped to sell its imported Chinese-made trucks through 75 dealers beginning next year, but it's not clear yet whether these vehicles have passed federal regulations.
The company is the exclusive importer and distributor of pickups made by Hebei Zhongxing Automobile Co. in the North American market. Chamco also plans to introduce Geely's vans and SUVs.
The uncertainty future of the company has clearly brought uncertainty to the future of the Chinese automakers that are eager to enter North American market.
"It reminds us of the New York-based Visionary Vehicles LLC's, an American company that failed to bring Chinese cars to American market two years ago," the Chinese newspaper said, warning that it would be highly risky to rely wholly on one distributor to enter the American market.
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