The Chinese car industry is thriving while the GM Transmission plant in Warren, Michigan, is closing one of its two shifts. Since November, GM has dropped shifts in Michigan and Ohio at the cost of 5,000 jobs. The recent cut will result in the loss of hundreds of jobs.
While GM closes a shift with significant job losses in response to its need to reduce production of passenger vehicles, the Chinese car industry is much more active. The Guangzhou Automobile Group (GAC) is busy manufacturing high-quality SUVs which will eventually be intended for the American market. Around 60 vehicles are being completed roughly every hour, and they are destined to be on the US marketplace by 2019.
The name of this vehicle is the Trumpchi, a name given it in 2010, likely before Donald Trump even considered standing for the presidency. This car is the fastest-growing auto brand in China, and has had significant success in the Chinese car market. So much so, that the company believes that it can break into the American market – something no other Chinese car manufacturer has achieved in the past.
The name is no gimmick and is not a play on President Trump’s name. It was decided long before the presidential campaign and is claimed to have nothing whatsoever to do with the president. It is one of these coincidences that can happen now again – but a suspiciously successful one!
However, the Trumpchi is no cheap Chinese knock-off. It has been designed and constructed for a sophisticate market that understands and demands luxury. It uses top quality materials specifically for the US car market.
This Chinese SUV is spacious, big and luxurious – just what the Chinese believe that American drivers want. The Chinese have never been genuinely successful in the global car industry. They have been successful in emerging markets for a while, but never in a longer-term export market to the US.
Americans are very patriotic when it comes to purchasing automobiles. While some European brands have seen some success in the US, Asian vehicles have largely struggled – with the notable exception of a few Japanese brands.
The term ‘Made in China’ had connotations of quality issues at one time, and for many it still does. Time will tell if higher quality goods, such as Trumpchi cars, can reverse this. The US car market is being used as a yardstick by the company.
If this Chinese car makes it in America then it can be successful worldwide. The company will initially export, but ultimately plans to partner with a US car manufacturer to fabricate the vehicles locally. The Chinese car industry is getting there.
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