WORLD> Industrial Shake-up
Chinese cars at the European market gates
By Markus Wanzeck and Li Fangfang (China Daily)
Updated: 2009-05-06 17:07

Chinese cars at the European market gates
A Mercedes-Benz Smart car is shown at the Shanghai International Auto Show April 23, 2009. [Agencies]

"It was an unfair crash test for Brilliance. We feel regrets over the ADAC result," said Hao Yongxin, director of overseas sales and marketing with Shenyang Brilliance Jinbei Automobile Co Ltd.

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Brilliance importer HSO also expressed its concern on the differing test interpretations. "It is hard to shake off the impression that a card with political dimensions is being played here," HSO said in an official statement in reply to ADAC's zero star press release.

Sachs believes that some European automakers have developed "strong concerns" about Brilliance entering their home market. Ironically for Sachs the present situation is similar to the one he faced 17 years back when introducing Hyundai cars from Korea in Europe. "Like Hyundai back then, now Brilliance is being taken seriously," he said.

While Brilliance is trying its luck in Europe with upper and middle class cars, Dudenhoffer reckons that other Chinese carmakers are more likely to pose a threat to the likes of Volkswagen or Mercedes. He is convinced that the Chinese road to success will be built upon "small, budget-priced cars with reasonable security and quality standards". Dudenhoffer regards Geely or FAW as the more serious contenders in the European market. "Their prospects in the small car segment are quite bright."

Michael Bnning, sales and marketing director of BLG Automobile Logistics, HSO's Brilliance business transportation partner, is convinced that there will also be a niche in the upper class market for Chinese automakers: "We believe in Brilliance and in their future plans of selling cars in Europe." He added that his company and HSO are willing to further collaborate with Chinese automakers to improve the performance in future European crash tests.

The European car market is dominated by Volkswagen (Volkswagen, Audi), with a 2008 market share of 18.8 percent and sales of around 3 million units. PSA (Citroen, Peugeot) from France and US automaker Ford (Ford, Volvo) achieved market shares of 13.5 percent and 10 percent respectively.

 

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