Chinese vehicles' drive to America revs up

24 Hour News 8 (of WOOD-TV) broke the story of China's Changfeng Motor Company being in talks with West Michigan auto distributor Peter Cook to try to get his team to help bring the vehicles to the U.S. We were told the company is even interested in operating a plant in Michigan.

But what is taking so long to get Chinese vehicles on American roads?

Safety, emissions, dealerships, warranties and service are the reasons.

China has been making vehicles for decades but not in America, nor are they selling them here.

The car companies wanting to come to America may be as foreign as their names - Changfeng, Chery, Geely, BYD, and Great Wall. But their look is not so different from what is on our streets now.

What is different is their quality and standards, which haven't been up to American regulations or expectations.

"The standards, both from the safety and environmental standpoint, you know, the testing takes time as well," said Marc Shulman, Changfeng Motor Company liaison. "And again, to set up the distribution network here in North America..."

Some of the Chinese companies are trying to forge partnerships with American automakers. Chery, for instance, is reportedly involved with Chrysler. That angered Visionary Vehicles - an American investment company - that claims it had a deal to sell Chery vehicles in the U.S.

Last month in Detroit, Visionary Vehicles filed a lawsuit against Chery for fraud.

"Chinese cars in America will be a tougher sell than most people think," Erich Merkle, an auto analyst with Crowe Chizek and Co. LLC in Grand Rapids, told 24 Hour News 8 Wednesday. "In the 1970s, when the Japanese cars came to the U.S., the market was right for competition. Now it's much more competitive. Establishing a foothold is much more difficult."

Several of the Chinese companies have been saying they will be in business in the U.S. this fall, 2009, or even 2010.

Marc Shulman, who is trying to broker relationships between Michigan companies and Changfeng, says, in reality, it will probably take longer.

"I think you're probably talking, you know, 2012."

If, and when the vehicles do come to the U.S., what will their price tags be? Shulman said they will be very competitive, between $10,000 and $20,000.

As for opening plants in the U.S., will there be unions? According to Shulman, he doesn't know, but says containing labor costs will be critical.