Austin American-Statesman

Chinese automaker plans to enter U.S. market in ’19

- By Frederic Tomesco and Jamie Butters

Guangzhou Automobile Group Co. said it may try to collaborat­e with the existing dealer network of a carmaker such as Fiat Chrysler Automobile­s NV as it seeks a path to sell its made-in-China vehicles in the U.S.

The Chinese manufactur­er plans to enter the U.S. in 2019 and is examining a range of options to do so, Yu Jun, general manager of GAC Motor, said Wednesday in an interview at a mobility conference in Montreal sponsored by tiremaker Michelin & Cie.

“GAC has a joint venture with Fiat Chrysler in China. We will not rule out a cooperatio­n in the future with Fiat Chrysler in the U.S. market,” Yu said. “Not only to share the sales channel but also in other work in the future — it is possible.”

Fiat Chrysler didn’t immediatel­y respond to a request for comment.

GAC aims to increase the size of its display at the Detroit auto show in January and said it was invited to the National Automobile Dealers Associatio­n annual convention, where it can recruit retailers. If it pulls it all off, it will be the first Chinese carmaker to crack the lucrative U.S. market with a new brand — an uphill battle after President Donald Trump’s comments on trade and alleged currency manipulati­on raised tensions between the world’s two biggest economies. GAC will also have to meet tough American regulatory standards and consumer expectatio­ns.

The company is working with consultant­s to select a brand name for the U.S., which it aims to do this year. The Trumpchi brand it displayed in Detroit in January — its third year at the show — is a phonetic rendering of the brand’s Chinese name and a play on “China’s trump card,” not a nod to the U.S. president.

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