"Chinese Automakers Face Hurdles in U.S. Market"

ROBERT SIEGEL, host:

From NPR News, this is ALL THINGS CONSIDERED. I'm Robert Siegel.

MELISSA BLOCK, host:

And I'm Melissa Block.

If Chinese automakers have their way, in a few years, you might be able to get a good deal on a Grand Tiger, a Strip of Cloud, or perhaps a Liebao. Those are cars all on display at this year's North American International Auto Show. It's the second year in a row that Chinese automakers have brought their cars to Detroit, and that sends a clear signal that China is setting its sights on the lucrative American market.

NPR's Anthony Brooks reports.

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ANTHONY BROOKS: Coming soon to Automile or AutoNation or to a showroom near you, Chinese SUVs, sedans, and minivans. Well, maybe not so soon. But here at this year's big auto show in Detroit, five Chinese car companies are displaying some 20 different vehicles, clearly aiming for the U.S. market.

Unidentified Man #1: Please give a warm welcome to Chairman Li, the CEO of Chang Feng.

BROOKS: The presentation by the chairman of Chang Feng Motors showed both a promise and a challenge facing Chinese automakers. Chairman Jianxin Li had the attention of hundreds of journalists. But his English was so poor, nobody had a clue what he was saying.

Mr. JIANXIN LI (Chairman, Chang Feng Motor): In this spending(ph) they sought challenger. I've been able - Chang Feng market see that (unintelligible)…

BROOKS: Even so, the presentation signaled Chang Feng's clear intention to enter the U.S. Market. Here's Chairman Li making that point more clearly to an interpreter.

Mr. LI: (Through translator) This is the second time Chang Feng Group came to this auto show. That shows our interest to get in to this market.

BROOKS: Should American automakers be worried about Chinese competition?

Mr. LI: (Through translator) Oh, I feel no threat to GM, Ford, the Chrysler cars in Chinese market. So, it's normal there's some Chinese cars in North America. Yeah.

BROOKS: Sounds fair to me.

Mr. LI: (Chinese spoken)

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BROOKS: Detroit automakers understand it's only a question of time before the Chinese and their rapidly growing economy represents serious competition.

Mr. ROBERT A. LUTZ (Vice Chairman, General Motors): Well, I don't think it's just Detroit automakers. I think it's the entire United States - U.S. Incorporated.

BROOKS: But Bob Lutz, vice chairman of General Motors, says nobody is panicked by this. That's because U.S. automakers already have a huge presence in China, where they're selling cars and setting up joint ventures.

Mr. LUTZ: So we are an integral part of the Chinese automobile industry. So, as China grows, we will benefit.

BROOKS: But Chinese automakers still face some big hurdles before they can penetrate the U.S. market. With relatively cheap labor, they can produce affordable vehicles, but their cars still lack many of the basic features and comfort that American consumers now demand. And Paul Eisenstein, publisher of TheCarConnection.com says the Chinese face other more serious challenges.

Mr. PAUL EISENSTEIN (Publisher, TheCarConnection.com): We saw some tests out of Europe just a few months ago. The Europeans ran a crash test, and their car folded up like an accordion. One of the comments made by an executive was, well, we sell our cars to people who drive safely. I don't think that's going to fly. I don't think it's going to meet federal mandates, whether in Europe or the U.S.

BROOKS: The Chinese say they hope to be selling cars here within two or three years, but they understand the challenge. Here's Waping Jong, the chief designer of Chang Feng's new diesel SUV.

Mr. WAPING JONG (Chief Designer, Chang Feng): We are not sure whether we can pass the qualification test or safety test in the United States. We haven't…

BROOKS: I see. So, there's still some work to do?

Mr. JONG: Yeah. We have a lot of work to do for the qualification.

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BROOKS: So, don't expect to see Chang Feng vehicles for sale in the U.S. anytime soon. But the company's presence here at this year's North American International Auto Show is making quite a splash, and it's serving notice that China is on its way to becoming a major player in the global auto industry.

Anthony Brooks, NPR News, Detroit.