For The Transit Fans: Industry Perspectives: US Market Re-Entry Pt. 2
Continued.....
BYD: The only Chinese Auto Manufacturer to successfully enter the United States is seeking to sell cars in the very near future. Currently BYD manufactures the BYD K9 Fully Electric Transit Bus and has received orders from several transit authorities.
Demand: Automotive Journalists have commented that Americans would be receptive to Chinese cars on sale in the US if the Chinese Manufacturers would improve design, safety and overall build quality. Currently BYD's major markets outside of China are in Southeast Asia, Europe and Australia. BYD was one of the first Chinese companies to attempt to improve safety by sending test vehicles to Germany to be crash tested. Previously its vehicles would not achieve higher than a 3 star safety rating.
Profit: BYD is aware being the first Chinese manufacturer to sell a car in the United States would be a great boost to its profits and it would put itself ahead of any other Chinese car company. However BYD would struggle to find its niche as direct competition with Japanese and Korean giants like Toyota and Hyundai.
Ease of Entrance: BYD is heavily invested with attempting to build models which would be road legal in the US and it is expensive. BYD currently has the financial backing of American Businessman and Investor Warren Buffett who suggested to BYD that it should consider hiring new designers.
The BYD Qin is the company's response to Warren Buffetts suggestion that it should build a small, cheap Hybrid to base its new line up.
Samsung: The Korean Mega Conglomerate builds everything from Mobile Phones to Construction Equipment has considered considered selling its cars not only just in the United States but globally as well.
Demand: .Most Americans are unaware that Samsung even builds cars until a trip to South Korea reveals this fact. Samsung's real issue is that many Americans are polarized to the issue of having a phone and a car built by the same company. Samsung is aware it would either be a great success or a terrible investment.
Profit: Because of the fact that a Samsung branded line up could either positively or negatively affect its electronics sales, Samsung has resisted taking steps to compete with the "Korean Two" Hyundai and Kia Motors and has instead invested in both equally. Samsung's Automotive branch is largely geared as a Luxury Brand and it would directly compete with the "German Three" Mercedes Benz, BMW and Audi. The Korean brands are also pushing out Luxury Vehicles such as the Hyundai Genesis and the Kia K900 making competition even tighter.
Ease of Entrance: Samsung's Automotive division its largely controlled by the French automotive company Renault which purchased it from its alliance with Nissan in the late 2000's during an economic downturn in Asia. Renault controls 80% of the company and has no plans to expand the brand into the US. It uses its alliance with Samsung to sell cars in Asia. Because Renault has no presence in the US it would be expensive to venture into the market.
The Samsung SM7 would compete with the Mercedes Benz E class and BMW 5 Series if it entered the US Market.
Citroen: Founded by Andre Citroen who built weapons for France shifted the direction of his company much like Henry Ford to produce cars. Citroen left the US market in the late 70's but its newer models have caught the attention of Americans in recent years.
Demand: Citroen is possibly best known for its success in producing "hot hatchbacks" which have always sold well in the United States. Currently many manufacturers are shifting away from Hatchbacks and leaving many enthusiasts disappointed. (Subaru WRX no longer comes as a wagon, Honda has abandoned its Civic Hatchback as well) This could potentially be the niche with which Citroen could insert itself into the US market.
Profit: In the economic downturn of the mid 1970's the French Government feared large job losses in the automotive sector and decided to merge Citroen and Peugeot into one company PSA Peugeot Citroen which has made its intentions to stay clear of the US market very public. Some have urged PSA Peugeot Citroen to reconsider and potentially base its North American operations in Quebec, the French Speaking Province of Canada.
Ease of Entrance: Potentially spending millions to research and develop models for the US or re configuring current models and engines to be US compliant is only half of the battle facing the company. No dealer network and no manufacturing base would make it a logistical nightmare to launch US operations.
Citroen's involvement in Rallying would certainly generate a following in the US. The Citroen DS3 would compete with the Volkswagen Golf, Ford Focus and Mini Cooper
Tata: The Indian Automotive giant currently has aspirations to enter the US as a budget manufacturer competing with other manufacturers solely in the compact and Budget under $10,000 buyer range.
Demand: Cars in the US are as expensive as ever and even American manufacturers are finding ways to make small budget cars which can sell for under $10,000 to attract new buyers and teenage buyers. General Motors does this by re badging smaller Daewoo models from Korea as Chevrolet's in the US. Tata Motors is primed to enter the US market as this is the primary type of vehicle its known for building in India.
Profit: Tata Motors is part of Tata Group one of the largest companies in India which manufacturers everything from Steel to Power Plants and even owns a hotel group. Tata entering the US market at a time when many new cars being sold in the US are currently smaller budget cars would be wise decision. As evidenced by the success of the Fiat 500 and the redesigned Smart Car. Tata announced it had intentions to sell its Tata Nano in the United States.
Ease of Entrance: Unknown to most Americans, Tata Motors based in India currently owns two of the largest British luxury manufacturers Land Rover and Jaguar which it acquired from Ford in the late 2000s. Tata merged its new companies into a new one called JaguarLandrover Group. Land Rover does have manufacturing plants in the Southern United States in Georgia and this would be Tata's means of entering the US producing its budget cars in the same factory as Range Rovers which are 4 times as expensive. Also having access to the Jaguar and Land Rover dealer network would also decrease the cost of bringing the brand to the United States.
The Tata Zica would compete with subcompact models in the budget car range such as the Chevrolet Spark, Ford Fiesta, Mitsubishi Mirage, Nissan Versa and the Toyota Yaris. Tata has promised to rename the Zica due to its similarity with the Zika virus currently plaguing South America.
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