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China’s GAC Auto Targets 2019 Debut in U.S.
China’s Guangzhou Automobile Group Co. (GAC Auto) says it intends to enter the U.S. car market in 2019.
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China’s Guangzhou Automobile Group Co. (GAC Auto) says it intends to enter the U.S. car market in 2019.
General Manager Yu Jun tells Bloomberg News the company may attempt to leverage its Chinese partnership with Fiat Chrysler Automobiles NV by tapping FCA’s dealer network in the U.S. Yu says GAC Auto has been invited to next year's National Automobile Dealers Assn. convention in March, where it will be able to recruit dealers.
In the meantime, the company plans to open a U.S. office in Silicon Valley in October. The carmaker also has hired a consultant to come up with a U.S. brand name for its Chinese-made cars and SUVs. GAC's seven-year-old Chinese brand translates phonetically as Trumpchi.
Bloomberg notes that the company faces formidable challenges to meet U.S. safety, emissions and fuel economy regulations. GAC's ability to satisfy U.S. quality expectations also is unknown. But observers note that Volvo Car Corp. has been successfully selling Chinese-made S60 sedans in the U.S. for two years and last month began doing the same in Europe.
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