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What happened: China’s top car exporter, Chery, says it’s “very open” to partnering with US automakers to enter the American market.
Why it matters: A partnership could be a way around the tariffs and data rules keeping Chinese brands out.
What to do: Watch Canada, where Chery launches early next year, for a preview of what could come next.
On today’s show, Michael Cirillo floated a scenario: what if a Chinese automaker partnered with an American brand and brought an entry-level car down to around $20,000? That would be a tough offer for a lot of shoppers to pass up.
It’s not an idle question. Chery, the company behind the Jaecoo 7 that topped Britain’s sales charts in September, just said it’s open to exactly that kind of partnership.
The brand that conquered Britain is now looking for a way into America.
Chery’s Plans for North America
Chery is China’s top car exporter and sells the Omoda and Jaecoo brands, according to Reuters.
Where Chery stands:
Europe: It’s growing fast. Earlier this month, we reported that its UK sales had more than tripled through September.
Canada: It’s preparing a brand launch early next year.
The US: Chinese automakers remain effectively locked out by tariffs of more than 100% and data security regulations.
The workaround: Vice President Charlie Zhang says Chery could build a car without Chinese hardware or software.
“We’re very open to different options, even a potential partnership with American automakers.” Charlie Zhang, Chery
Zhang didn’t share specifics about what kind of partnership he envisions. But he was confident about the technology. “Definitely from a technical point of view, we will be able to find a China-free solution in terms of hardware and software,” he said.
Chery has come a long way. Its first car rolled off the line in 1999, and it originally billed itself as a cheerful, low-cost brand. Today, it says it sees itself in the mold of Toyota for quality and Tesla for innovation.
What a Chery Partnership Could Mean for US Dealers
For now, it’s just an interview, and plenty of hurdles would stand in the way of any deal. But dealers should keep an eye on Canada. If Chery succeeds there, it’ll have a working playbook just across the border.
So we’ll pass Michael’s question along to you: if a $20,000 car built through a partnership like this showed up at a dealership in your town, would you sell it? Would your customers buy it?
The question isn’t just whether Chinese brands come to America. It’s what they’d look like when they do.
Hear the full conversation on today’s episode of the Automotive State of the Union.
