Dutch dealer signs deal to import Europe's first Chinese car

[HenryTo]

Amazing - this (export of Chinese cars into foreign markets) actually came earlier than I think it would.

------------------------------------------------------------------------
A Chinese SUV on the autobahn?
Dutch dealer signs deal to import Europe's first Chinese car.
March 5, 2005: 12:54 PM EST

FRANKFURT (Reuters) - Dutch dealer Peter Bijvelds plans to begin the first European distribution of a Chinese car next month -- a sports utility vehicle made by a unit of China's Jiangling Motors Group, a newspaper reported on Saturday.

"We have signed an exclusive contract for 27 EU countries," Bijvelds told Automotive News Europe in the summary of a story released ahead of publication on Monday.

Bijvelds does not have a dealer network in place, but is negotiating with three large Dutch dealer groups, the paper said.

The Landwind SUV is made by Jiangling Landwind Motor, a subsidiary of the Jiangling Motors Group based in Nanchang. The group is also a partner in JMC, a light commercial vehicle venture 30 percent owned by Ford Motor Co (Research), it said.

Fresh competition from cut-rate Chinese rivals is the last thing Europe's carmakers need at a time of slack demand and excess capacity that is putting pressure on prices and fuelling the spread of U.S.-style incentives that sap margins.

Dutch dealer group Autobinck Holding is also close to signing an import deal with one of two Chinese firms, Chery, which makes sedans, or Geely, a maker of compact cars, the paper added.

It said Chery and at least two European distributors were discussing European distribution contracts for imports of several Chery models.

"The flurry of activity is prompted by an autumn deadline for European Union emission rules," the paper explained. "If foreign carmakers obtain homologation approval for a car design before Oct. 1, they can sell cars meeting current Euro 3 emission levels in the EU until 2008."

Cars certified after October must meet the tighter Euro 4 standards immediately.

Chery is still deciding whether it wants to appoint a single European distributor, national distributors in individual European markets or form joint ventures, the paper quoted Henny van Dijk, vice president of Autobinck, as saying.

It cited an unnamed Chery manager as confirming that Autobinck was one of the European distributors in talks with Chery.

At first, Chery hoped to sign a contract with one of the companies by April or May, the paper reported.

"But now I think we will postpone the plan," the manager said. "We want to concentrate on entry into the U.S. market. We want to wait until we have time to study the European market more, and chose the distributor that is the strongest."

Chery has signed a North America distribution agreement with Malcolm Bricklin's Visionary Vehicles. It plans to export five models to the United States beginning in 2007.

Find this article at:
http://money.cnn.com/2005/03/05/news/international/china_cars.reut/index.htm