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Its not simple more complex than what meets the eye. Chinese automakers have tried to enter the U.S. market before and failed, crippled by sub par quality, failure to meet tough U.S. safety standards, lack of co.nsumer awareness and ill coeived import partnerships. Overall, Chinese automakers have several hurdles to overcome if theyre going to avail themselves to American co.nsumers. As Toyota North Americas CEO said This is a tough industry in which to start fresh, A . Safety Standards / Emissions In years past, the phrase Made in China was shorthand for cheaply and qutionably made. Previously, regulations of safety and regulatory standards crash ttings and emission ttings were higher than what Chinese car manufactures were able to meet. Chinese car quality is improving, albeit not up the standards of other cars sold either in the U.S. Such an unstable ecosystem some cars meeting regulations, and o others not creates little coidence in a co.nsumers eyes. A car is a significant invtment and safety is among a top priority when purchasing. Here is a piece from a Forbes article While the Chinese brands outpaced the overall industrys initial quality improvements there, the bad news is they still lag their international rivals, suffering more problems reported by owners in the first two to six months of ownership than non Chinese makes. None of the Chinese brands exceeded the industry average there in initial quality. Remember, Hyundai came into the US in the 1980s and it was rough for them US co.nsumers didnt recognise the name, they couldnt even pronounce it. They had to offer massive price rebates and outstanding warranty 100,000 miles or ten year just to get jittery buyers to get a car from the local dealership. B. Athetics/Specifications Chinese manufactures make good cars, especially co.nsidering their recent partnerships and acquisitions of reputable car brands e.g. Geelys share ownership in Volvo. First, theres the deeply ingrained sense of certain brands and types of car as either American and therefore patriotic or exotic and therefore refined and desirable. At present, Chinese auto brands dont fall into either category.. The USA co.nsumer base is used to the Fords, Cadillacs, Buicks, Toyotas and Chinese car seem to be the odd ones out. The current athetics and specifications are not suited to the USA co.nsumer base they are rather unco.nventional. They seem to be overdone or underdone. A few examples Land Winds X7 is knock off of the Land Rover Evoque. Great Walls WEY VV7 sporting 4 exhaust pipes. It is an SUV with a 4 cylnder engine set up pure athetics but 0 sense. Lynk and Cos unco.nventional double head light frontA B have to with Brand and Image let us look at other subtle yet important aspects. Moreover, American car buyers tend to be brand loyal, and it has historically been difficult for newcomers — particularly from overseas. As such, entry to an already saturated market brand loyal, only makes it tougher. Associate this with stigmas from point A and we can already see some writings on the wall of why Chinese cars are not in the USA/ or do not se.ll well in the USA. C. Consumer Choices Long ago I met up with the head manager of GM and he spoke about car purases in China vs USA. In China, people prefer a shinier trim on their vehicle here is a clear example of a 2012 Buick Regal sold in the US vs 2012 Buick Regal sold in China USA China Do you notice the excessive use of plastic in silver colour? Front spotlights, window seals, door handles, side scoops. Well, thats more to do with co.nsumer tastes. Consumer tastes and trends are very different in USA and China, as such Chinese automakers are currently undergoing a so called lea.rning process. Entering the U.S. market is like swimming in water that is too deep. We are scared of drowning, Chery President Yin Tongyue told a Reuters reporter at the time. We need more time to prepare. U.S. technology and U.S. co.nsumer habits are too different. This shift and lea.rning process will take time, it wont be done overnight especially given the recent trends of electrification Tesla, Faraday Future. This creates a more dynamic environment than before. As such, Chinese manufacturers are going into M As with various brands to speed up the process. If you happen to see more Chinese vehicles on US roads, its a sign of progress and greater penetration of Chinese auto manufacturers into the USA. D. Import Tariffs/Taxes Given Trumps recent tirade on imposing tariffs on various imported Chinese goods, this will not go down well for Chinese auto manufacturers. President Trump has made clear his distaste for imported cars. Cars will be much more expensive and co.nsumer will opt for cars that offer greater value i.e. longer warranties or better brand reputation. E. Promotion and Advertising

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