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Chinese Car Makers Not Ready for U.S. MarketBack

DetroitSafety, emissions standards and dealer networks present steep hurdles to entry

When top executives from the world’s major auto makers descend on Detroit for the U.S.’s largest auto show next week, Chinese auto executive Wang Shunsheng will be attending a table-tennis tournament in Dubai sponsored by his company. “We’re not going to Detroit this year,” said Mr. Wang, head of international business at Guangzhou Automobile Group Motor Co., China’s sixth largest auto maker. Entering the U.S. market “requires a lot of study and investigation and we’re still in the process.” GAC Motor isn’t the only Chinese auto company shunning this year’s U.S. show. For the first time since Chinese auto maker Geely Automobile Holdings Ltd. debuted at the show in 2006, no Chinese car company will hold an exhibit this year. Five years ago, many Chinese auto makers were hatching ambitious plans for going global. While some have been stepping up efforts to build their presence in emerging markets, for the most part they have fallen silent on their ambitions tapping demand in developed economies.

Source: The Wall Street Journal

Posted by Leana Kell on 12/01/2014