Jump to content
  • Greetings Guest!

    CheersandGears.com was founded in 2001 and is one of the oldest continuously operating automotive forums out there.  Come see why we have users who visit nearly every day for the past 16+ years. Signup is fast and free, or you can opt for a premium subscription to view the site ad-free.

  • William Maley
    William Maley
    Sign in to follow this  

    GAC Goes With The Cheap Car Route for U.S.

      One Chinese Automaker goes with the price leader route for the U.S.

    One day, a Chinese automaker will finally deliver on their promise of selling vehicles in the U.S. But what will bring customers into the showrooms? Yesterday, we reported on Geely positioning itself maker of affordable, high-tech cars with a new plug-in crossover - due out in 2017 in China, followed by Europe and U.S. Automotive News reports that another Chinese automaker who has dreams of coming to the U.S. is going low prices.

    Guangzhou Automobile Group Motor Company (GAC) is planning to be cheaper than its rivals in the U.S. How cheap? Wu Song, general manager of GAC says the 'magic number' is 30 percent cheaper.

    "We are confident. It could be popular in the market. Considering the low price, it should be competitive," said Song.

    If Song gets his way, GAC could put this price cut theory to the test sometime in 2017 when the company plans on launching the GS4 crossover - a compact crossover going up against the likes of the Toyota RAV4 and Honda CR-V. That is the plan at the moment. Currently, GAC is seeking dealers, importers, and distributors in the U.S. Song tells Automotive News that he is "90 percent confident" GAC will bring the GS4 to the U.S.

    But analysts don't fully buy into the price cut. James Chao, managing director for Asia Pacific at IHS Automotive says its difficult for any unknown brand to make it in the U.S. Chao also said 30 percent discount that Song wants to do for U.S. is less than 40 percent markdowns Chinese automakers do to compete with global brands.

    Source: Automotive News (Subscription Required)

    Sign in to follow this  

    User Feedback

    Recommended Comments

    Your content will need to be approved by a moderator

    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets



Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.