Is America Ready for Cheap Chinese Cars?

Washington DC July 9, 2007; The AIADA newletter reported that last week Chrysler announced that it will sell a small, inexpensive car built by Chinese automaker in the U.S. by 2009. The car is expected to cost about $10,000.

The question is when, and to what degree American consumers will accept cars made in China. In a recent BusinessWeek article it was reported that the recent spate of recalls and tainted products from China has dealt a serious setback to the image of goods made in China.

TNS Automotive of Marlborough, Mass., recently surveyed 2,500 American consumers on attitudes about Chinese cars. According to the survey, one approach that stands out as a no-no is emphasizing anything about Chinese heritage or origin. Fifty-four percent said "do not emphasize" Chinese heritage, while 29 percent said "emphasize only a little."

"Consumers are expecting Chinese cars to be fuel-efficient and inexpensive," said Lincoln Merrihew, senior vice-president at TNS. "If those key expectations are not met, it will be a big problem."