China's GAC Still Plans 2019 U.S. Sales, Unveils Sedan, EV Concept
CARS.COM — China’s GAC Motor reiterated its goal of getting into the U.S. market by 2019 as it made its fourth North American International Auto Show appearance in Detroit, unveiling a new sedan as well as an electric concept.
Related: More 2018 Detroit Auto Show Coverage
Chinese automakers selling directly here — rather than with such current products under other brands as the Buick Envision SUV — is a question of when, not if. GAC is not the first to vow to do so, though, and details of how it will establish a dealer network and get complex regulatory approvals in time to sell cars next year were not clear.
But though you might never have heard of GAC, its parent company ranks in the top half of the Fortune Global 500. It does have a joint venture in China with Fiat Chrysler Automobiles, and last year, GAC opened a research and development facility in California. “GAC Motor aspires to take an active part in integrating China into the tide of the global auto industry,” said Yu Jun, GAC Motor president, in a statement.
GAC’s efforts to enter the U.S. may face an additional hurdle in bipartisan unhappiness from Washington over China’s automotive trade policies. Reuters reported that the top Democrat in the U.S. Senate and President Donald Trump this week each criticized Chinese trade practices, which include a 25 percent tariff on U.S.-built cars for sale in China compared with a U.S. tariff of just 2.5 percent on Chinese-built cars sent here. Sen. Chuck Schumer, D-N.Y., called China’s automotive trade policy “manifestly unfair.” Trump, in an interview with Reuters, also cited the tariff disparity, saying, “That’s not fair.”
GAC says it already sells cars in 14 countries. And with each year here, the products it has shown have been looking better. In addition to the new cars, the company is displaying a three-row SUV, large luxury sedan and minivan from its current lineup.
Logos in the headlights and taillights read Trumpchi, the brand under which GAC sells cars in China but does not plan to use here. Still, the little Easter eggs in the lighting attracted a lot of photo interest.
The new GA4 sedan unveiled goes on sale in China this week. The electric concept, called Enverge, is a small electric SUV aimed at a young buyer and incorporates such show-car features as virtual reality screens in the side windows, a charging dock, and storage for drones and small Segways on the roof and front lights that detach for portable use.
Editor’s note: This story was updated Jan. 19, 2018, with Washington’s reaction to potential direct U.S. car sales by Chinese companies.
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