BRICKLIN WANTS ONLY CONTENT-HEAVY CHERYS FOR U.S.

A possible Chery hardtop convertible

February 11, 2006—Chinese-built Chery cars will have luxury content, said importer Malcolm Bricklin at the NADA convention. Speaking at a CFO/CEO forum sponsored by AutoTeam America, Bricklin said the mid-priced Cherys will compete with high-end makes—such as Audi, BMW, and Mercedes—and will redefine "the price of luxury." A sedan, coupe, crossover, SUV, and hardtop convertible—all priced at $19,000 to $25,000—are planned for Chery's 2007 U.S. launch.

Bricklin, CEO and chairman of Chery importer Visionary Vehicles, said he worked with dealers to shape the Chery cars' design and content. He demanded standard 3.6-liter V6 engines and six-speed transmissions. The factory's job is to build the best-quality cars possible, Bricklin said, not to make design "decisions they're not equipped to make."

With an apparent 35 dealers so far, Bricklin hopes to reach 100. He expects Chery to sell some 250,000 here the first year and 1 million by 2011. Then, he said, Chery will follow the lead of other import makers and start building cars in the U.S. A hybrid may be in the future, Brickin noted, but only if Chery can match his demands: 50 miles per gallon and 0 to 60 in five seconds.

Chinese cars were big at the AutoTeam America forum. Prudential senior analyst Michael Bruynesteyn said the cars are a serious long-term threat to the Big Three. If vehicle quality improves before they hit U.S. shores, Chinese cars could follow Hyundai's precedent, with sales rising quickly after launch. Bruynesteyn said imports in general will continue to eat away at the domestics, and in 10 years the Detroit brands' share could level off at 15 to 20 percent.