Automakers in China eye U.S. market

Many auto industry observers have been expecting this: The Chinese are coming!

They already have come — to this year's Auto Show in Detroit. Geely, one of China's largest independent carmakers, and Changfeng Motor Co. are returning for the second time. In addition, three other Chinese companies are appearing for the first time.

The question is, why? These relatively small auto manufacturers are coming from a country with the greatest sales potential in the world but are looking us over.

Established global car producers are flocking to China, a country of more than 1 billion inhabitants, which is emerging as a large consumer products market with fabulous prospects for success.

Instead of penetrating this huge marketplace, apparently they are bent on establishing a base in the U.S. It is said they are showcasing their products in order to find out America's tastes, what Americans demand in an automobile.

This is what they will find out: Americans remember the Yugo. Low price, but that was all there was to it. To be successful here, they must produce appealing cars with high quality and low price. In short, value.

Marketing 101 would dictate that the best way to achieve these fundamentals would be to establish yourself in the home market first.

Because of space limitations at the Detroit Show on the main floor, the five Chinese makes are relegated to the lower level. Here is a brief rundown on each of the exhibitors:

--Geely Automobile Group: This carmaker is becoming known in China as a low-price competitor, short on quality. The first 10 months last year, this company sold only 150,000 cars, up 9 percent over the previous year. The industry sales were up 26 percent.

--Changfeng Motor Co.: It claims to be the sport utility sales leader in China, yet sold only 33,000 units last year. The SUV is a former Mitsubishi model known as the Fajero outside the U.S.

--LiShi Guang Ming Auto Design Co.: The Tang Hua electric car is on display for the first time in America. Automotive News says this company is showing "the quirkiest car from China, a four-seat amphibious vehicle with a propeller."

--BYD Auto Co.: This company makes several models: the Flyer, the F3, F6 and F8. Sales grew from 11,000 in 2005 to 60,000 in 2006. Using knowledge from its battery-making experience, BYD is devoted to researching, developing and manufacturing vehicles, such as hybrids, that use batteries in the future.

--Zhongxing Automobile Co.: This company already has a U.S. distributor, the New Jersey-based China America Cooperative Automotive Inc. It is a small carmaker in China, selling only 31,000 pickups and sport utilities in 2006.