The first Chinese automobile manufactured in North America will be a three-wheeled vehicle made in a factory on the outskirts of Tijuana.
Chamco Automotive, a company set up to import Chinese vehicles to the United States, will open a $300 million Tijuana assembly plant in 2009 that will
produce the vehicles of Hebei Zhongxing Automobile.
Hebei Zhongxing, a small, employee-owned company, is a leading Chinese pickup truck and SUV manufacturer located in Baoding, Hebei Province, which
surrounds Beijing.
The long-rumored deal was revealed Wednesday by Chamco affiliate ZX Auto, which will import and distribute the Zhongxing vehicles.
Chamco planned to show off two of the vehicles yesterday at the Tijuana Grand Hotel, where Chinese officials met with Baja California Gov. Eugenio
Elorduy Walther to demonstrate their appreciation for his recent trade mission to China. But the announcement was put off, said a source close to the
deal.
The vehicles, which cleared customs Tuesday, now are scheduled to be displayed next week at the Las Vegas Auto Show and at a media event in Tijuana,
the source said.
Chamco reportedly plans to start selling four-cylinder, $13,000 Chinese-made SUVs and pickups in August, then follow with the Mexican-made three-wheel
vehicle two years later. All three vehicles will be sold first in Mexico, probably under the name Jhong or Jhong Auto.
Eventually, 3,000 workers will be employed at the factory in Tijuana's new Las Palmas neighborhood. The factory will do supplemental work on the SUVs
and pickups from China.
Chamco – so called after the common name for the Chinese automaker's partner, China American Cooperative Automotive of Parsippany, N.J. – has
established a distribution network with a Mexican domestic megadealer that will offer the vehicles at 25 to 30 showrooms throughout Mexico, according
to a statement by chief executive officer Bill Pollack. The target is to sell 20,000 vehicles a year.
“By starting in Mexico, we have an opportunity to test all of our systems – transportation, services, warranty and all processes – at a low volume a
year before we go to the U.S.,” Pollack said.
The SUV and pickup are expected to be made to meet environmental and safety standards for the U.S. and Canadian markets by mid-2008. A sedan and a
crossover vehicle will be introduced a year later in those markets.
More than 30 U.S. dealers have been signed up to distribute the vehicles, but the company wants an agreement with as many as 150 dealers in the United
States and one megadealer in Canada with 30 outlets.
In its first full year in the United States, Chamco wants to sell 75,000 vehicles, according to an article in Automotive News.
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Diane Lindquist: (619) 293-1812; diane.lindquist@uniontrib.comBruce R Leech - 6-15-2007 at 01:55 PM
three wheels got to get me one of thosebajamigo - 6-15-2007 at 02:15 PM
Remember the Toyopet?Martyman - 6-15-2007 at 02:31 PM
I remember the pet rock. What's a toyopet?
Something's screwy
Dave - 6-15-2007 at 02:35 PM
Why would China abandon dependable slave labor in favor of Mexican workers?bancoduo - 6-15-2007 at 03:56 PM
Quote:
Originally posted by Dave
Why would China abandon dependable slave labor in favor of Mexican workers?
Because of NAFTA they
will be imported to the US duty free. They will only be assembled in Mexico, all the parts will be made in China. Once again our government has our
best interests in mind.DENNIS - 6-15-2007 at 06:17 PM
Oh good. A rolling fortune coolie. You know what has to done to a fortune cookie to really appreciate them.........Bajafun777 - 6-15-2007 at 09:01 PM
Yea, here we go again letting a country that will not revalue their yen at the correct level it should be and thus our own dollar suffers. China has
America businesses and governments figured out as greedy self- serving and it's all about me me me. Forget that this type of misuse of NAFTA which
stands for "Not A Friendly Thing America" it is a joke that only hurts small businesses in the United States. Imperial and San Diego Counties are
sending their Board of Supervisors and City Council persons (politically correct here) to China begging them to come and do any kind of business in
these Counties. We will see how this will affect our economy as they are doing just what they are doing in T.J., using their raw materials and parts
to have the assembly happen in Mexico and Bam Bam we buy this crap hurting our car makers. Sad but America just how stupid do our politicians want to
keep making us. Makes me just shake my head and want to pop two colds to cool down the thoughts that this nonesense caused me. Later===bajafun777dean miller - 6-15-2007 at 09:24 PM
Remember when Perot said we'd hear that great sucking sound after NAFTA??? It's getting louder.
There is an interesting article in the London Times if you are interested in checking it out on the web:
TIMESONLINE
Why we must break with the American Crazies
by Anatole Kaletsky
SDMoldhippie - 6-16-2007 at 07:04 AM
Good, more jobs for the people of Tijuana and perhaps cheaper cars too! How can this be a bad thing? Isn't competition THE essential ingredient of
capitalism? Aren't blue collar, manufacturing jobs exactly what Mexico needs? If you're worried about GM and Ford, well they're going to have to adapt
to the situation. As will Volkswagon, Toyota, Honda, Nissan, and Hyundai.jerry - 6-16-2007 at 08:38 AM
in that light old hippie perhaps you should get on the your band wagon and protest shutt it down try to put them out of bussness they must be doing
something bad keep digging or put your spinn on what ever you find to fit what ever outcome you want
The Old Sad Story
MrBillM - 6-17-2007 at 06:07 PM
The BIG guys on each side of the border are the ones who benefit from NAFTA. The little guys on both sides get screwed as usual. One of the supposed
benefits to Mexico was going to be the provision that allowed Mexican trucks into the U.S. beyond the border area. However, the provisions required
of the truckers was such that only the BIG Firms could afford the trucks required. The same thing has happened with Cars, Corn, Sugar, Electronics,
whatever.
It was remarked once that a Free Trade Agreement could be covered in one page. NAFTA was over a thousand pages and is probably a lot bigger now.oldhippie - 6-18-2007 at 10:19 AM
Isn't the reformation of the Mexican banking system a result of NAFTA? Foreign banks from Spain and the US and maybe other places I don't know about
have purchased and/or made partnerships with Mexcian banks since NAFTA was implemented. This has resulted in the modernization of the system with the
appropriate checks and balances (jeez another pun) and the increase of lines of credit to private individuals and businesses alike. The transparency
in Mexican government practices initiative I think also conforms to the NAFTA terms and conditions
I don't know who remarked that the free trade agreement between 3 significant countries could be "covered" on one page. Probably someone who doesn't
like to read.oldhippie - 6-18-2007 at 10:25 AM
So if you're looking for a benefit of NAFTA south of the border, how about the stabilization of the peso? That's a major good thing!
got to get me one of those
