Chinese carmakers pull up to U.S. market

DETROIT — Chinese automakers looking to make the jump to the key U.S. market are facing increasingly strong headwinds, including a global financial crisis that has slowed growth where they already sell cars and sapped the potential for partnerships that would help expansion.

But BYD Auto and Brilliance Auto are making China's most prominent appearance yet at this year's North American International Auto Show — sandwiched between General Motors and Ford's displays, instead of tucked away in the basement or outside the main exhibits.

And they remain interested in selling in the U.S., although that looks to be years away.

"We will start to develop sales and distribution networks in North America," Wang Chua-Fu, chairman and president of BYD, said at a news conference Monday. He said plans call for U.S. manufacturing facilities "when it is appropriate."

Henry Li, general manager of BYD's auto-export trade division, said the company has set a target of 2011 to sell two models that it's showing in Detroit — the e6, which is an all-electric crossover with a 250-mile range, and the F6DM, a plug-in hybrid sedan.

By then, he said, BYD hopes to sell the Chinese-built vehicles in a market that's recovered.

"I think the most important thing for us is to bring the right product, and that product can prove itself," Li said.

U.S. auto sales tumbled to 13.2 million in 2008, down 18 percent from 16.1 million in 2007. Some analysts predict this year's sales will hit 10.5 million, making the prospect of bringing new lines of Chinese vehicles into that market much more daunting.

Jesse Toprak, executive director of industry analysis for the Edmunds.com automotive Web site, said he sees potential for Chinese automakers to sell in the U.S., especially those looking to market relatively inexpensive, smaller vehicles. But the Chinese will face a skeptical public.

"In this time of economic uncertainty, consumers tend to make safer choices. They don't know about the quality of the Chinese vehicles," Toprak said. "Initially, I think it's going to be an uphill battle for them."

BYD's foray into electric-car manufacturing drew attention last year when MidAmerican Energy Holdings, which is majority-owned by billionaire investor Warren Buffett's Berkshire Hathaway, bought a 9.9 percent stake in the company.

Truck sales

pick up

DETROIT — AutoNation Chief Executive Mike Jackson said the company reduced vehicle orders this month by 60 percent, but orders for trucks are up as gas prices fell dramatically from their 2008 highs.

"The vehicles we are reordering are more on the truck side than the fuel-efficient side," he said Monday at the 2009 North American Auto Show. "With gas prices declining ... we are overstocked with fuel-efficient vehicles, with consumers beginning to migrate back to vehicles that have higher performance and more towing capacity."

Fort Lauderdale, Fla.-based AutoNation is the largest auto retailer in the U.S., with about 245 used- and new-car dealerships across 16 states, representing both U.S. and foreign automakers.