Chinese carmakers are moving into the Western market, and they plan to hit it hard, writes Clifford Coonan, in Beijing
Brilliance, Chery or the Shuanghuan Noble microcar may not feature high on the wishlist of car connoisseurs in the West yet, but watch this space as China's carmakers begin their assault on coveted European and American car markets.
Among other Chinese names you should get used to hearing are Geely, Great Wall, Nanjing, Hafei, Zhongxing, Zhonghua and Shanghai Automotive. And don't forget MG Rover.
There is little fanfare to accompany the arrival of China's best and brightest on the streets of Europe and lingering safety and quality headaches means their path will not be smooth initially.
But they are thousands of euro cheaper than local competitors in Europe, and that's ultimately what worked for the Japanese and the Koreans in times of yore.
"It used to seem as if European consumers were resistant to imported cars. But in the early 1990s, Japan and Korea's open market share had risen to 30 or 40 per cent in Ireland, Austria and Denmark. So if Chinese cars can meet the taste of European consumers, they could build major market share," said a spokesman for Brilliance Auto.
Low labour costs and years of training and technology transfer from big Western brands such as VW and GM means China's car-makers are chomping at the bit to get into the European market and further afield.
Brilliance began its attack on the European market with a co-operation with HSO in Germany in 2006 and is targeting annual exports of 35,500 cars worth €260 million.
Just as Japanese cars in the early days were accused of ripping off technology and designs from the West, so too are Chinese cars facing the heat for intellectual property theft and illegal copying of design.
Mercedes-Benz is reportedly furious about the Shuanghuan Noble microcar, which China Automobile Deutschland plans to launch soon after showing it at the IAA show in Frankfurt next month, because of similarities between it and the Smart ForTwo. Even though the Noble has four seats, Mercedes believes the design is too similar and is threatening legal action. China Automobile Deutschland shrugs off the comparisons, saying it's superficially similar but a very different car in terms of both its class and the market it is chasing.
You can see why the established car brands are annoyed - China Automobile Deutschland says it will sell the car in Germany at a price of around €7,000. That can knocks spots off any other car in the European market.
Another big name to watch is Chery. When written in pinyin translation, this Wuhu-based company is called "Qirui", and it should have been called "Cheery". However, a mistake in the English transliteration process meant it became "Chery" and the company decided to keep it that way.
Despite the spelling mistake, Chery is no slouch in the car market. It is expected to export 130,000 cars this year, which is well above its target of 80,000 and double last year's figure. Next year it wants exports to rise to 230,000. The company recently made its one-millionth car and has factories in Russia, Ukraine, Iran, Egypt, Indonesia and Uruguay, with plans to set up 14 more factories by 2010.
Chrysler has picked Chery as its partner to develop a range of small cars for sale in the US. Chrysler has vowed to work with the Chinese to improve vehicle safety. Fiat has also announced a joint venture with Chery to make cars in China.
But it's not going to be smooth sailing for Chinese cars. A report in the Russian car magazine AvtoRevu couldn't have come at a worse time. In a crash test of the Chery Amulet, the saloon's nose crumpled like a paper bag on hitting a metal crash barrier at 64 kilometres an hour.
AvtoRevu said it was one of the worst performances it had ever seen - technicians had to cut the test dummy out of the car and the journal urged Chery to pull the car. Chery blamed the Russians, saying it had been carried out at the laboratory of one of Chery's biggest competitors, Russian carmaker OAO Avtovaz.
Chery organised a spoiler test, in China, under the supervision of the British government's Vehicle Certification Agency. The test, which took place under easier conditions, showed the car meeting European safety standards.
Safety concerns hang over Chinese cars like a dark and threatening cloud. Germany's biggest motoring assocation, the ADAC, produced "catastrophic" results when it tested a Brilliance BS6 sedan last month, with the car yielding one star out of a possible five.
The Chinese concede their vehicles still have a way to go before they meet Western standards, arguing that they are still new to the game.
Chinese state media insists that home-brand models are proving more reliable, with enhanced ratings in the latest domestic crash tests at the country's official vehicle laboratory, the China Automotive Technology and Research Centre.
Tests in July gave four stars to the Besturn sedan, China's first self-branded model made by First Automotive Works (FAW) Group. "It's quite encouraging that Chinese-branded models are improving their safety standards after increased investment," auto industry commentator Jia Xinguang told the Shanghai Daily.
But a lot remains to be done. In the same round of tests, Nissan's Teana and the Ford Focus each received five stars, while the Honda Civic got four.
Once the safety issues are fixed, they should do well in Europe and even now, despite poor test results, Chery is recording massive growth in Russia.