[YesAuto News] Affected by the Sino-US trade conflict, GAC Passenger Cars may postpone its plan to enter the US market. Recently, General Manager Yu Jun of GAC Passenger Vehicle Co., Ltd. told reporters during the Paris Motor Show that GAC’s sales of cars in the United States did “may be delayed” and may have to wait until the first half of 2020 before entering the US market.
This also makes Guangzhou Automobile one of the representatives of automakers affected by the trade between the two sides. As early as August of this year, Ford Motor announced that it would cancel its plan to sell Fox Active models produced in China in the United States due to a substantial increase in tariffs; GM also believes that if the Trump administration does not approve GM’s tariff exemption, GM may Withdrawal of the Chinese-made Buick Encore from the US market; Volvo has also stated that it has begun to transfer the production of the XC60 sold in the US market from China to Europe to avoid taxation.
As early as January 2015, GAC Group entered the Detroit Auto Show as the only Chinese self-owned brand. Entering the US market is also a big step in GAC Trumpchi’s internationalization strategy. For this reason, GAC has spent more than three years studying relevant laws and regulations in North America. . In November 2017, GAC announced that it would promote Trumpchi sales to the United States at the end of 2019. Yu Jun also mentioned that the English LOGO of Trumpchi “Trumpchi” has the same name as the current US President Trump (Trump), which makes many Foreign visitors are curious about the relationship between this car brand and Trump, so GAC is considering whether to change the name of Trumpchi.
On March 25, 2018, GAC Passenger Car officially reported the news of “GAC Trumpchi's participation in the 2018 National Automobile Dealers Conference (NADA)”, and displayed a product matrix composed of GS8, GM8, GA4, and GS4 at the conference site. And communicate with more than 150 North American dealer representatives. However, as Sino-US trade has cooled down, this plan has gradually become low-key.
Yu Jun said that GAC has a design studio in Los Angeles and R&D centers in Silicon Valley and Detroit. Although the distribution strategy in the United States has not yet been determined, GAC is considering establishing a dealer network and making the right decision under the current tariff situation between China and the United States.
On October 2, the all-new GAC Trumpchi GS5 made its debut at the Paris Motor Show that opened on October 2. As GAC plans to take the lead in entering the European market with electric vehicles (the timing is uncertain), Trumpchi GE3 530 and other models will also be unveiled. According to Zhang Fan, deputy dean of GAC Research Institute, Trumpchi GE3 530 has a range of up to 410 kilometers under comprehensive working conditions and has received more than 5,000 orders. However, due to battery supply problems, it can only provide 1,500 vehicles per month. (Source: Automotive News; Text/Car Home Cai Liyuan)