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SAIC: No “Short Term” Plans to Sell Cars in U.S.

China's SAIC Motor Corp. opened an office in Birmingham, Mich., this summer but says it doesn't intend to produce or sell its cars in North America in the next several years.

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China's SAIC Motor Corp. opened an office in Birmingham, Mich., this summer but says it doesn't intend to produce or sell its cars in North America in the next several years.

Yi Lu, president of SAIC USA, tells an industry conference at the University of Michigan Transportation Research Institute that the company wants to build its reputation in the American auto industry. Currently, SAIC's only market outside China is the U.K., where it builds cars under the MG brand.

Some staffers at the new facility will work on engineering and technology, Yi says. Others will focus on purchasing and logistics for the import and export of parts for General Motors Co.'s joint venture with SAIC.

Bruce Belzowski, an UMTRI research scientist, tells WardsAuto that quality concerns will keep Chinese carmakers from entering the U.S. market anytime soon unless they develop excess domestic production capacity and need new export markets.

Gardner Business Media - Strategic Business Solutions