ZXAUTO pickup

[haven]

It looks like the Ford Ranger will have competition in the compact half-ton pickup market by the end of 2008.

China America Cooperative Automotive Inc (CHAMCO Auto) is a US importer of vehicles made in China. CHAMCO has plans to introduce an SUV and pickup truck made by Hebei Zhongxing Automobile Company, Ltd. in China, also known as ZXAUTO.

ZXAUTO makes all sorts of vehicles, from economy cars to heavy trucks, and sells them in more than 50 countries around the world. In 2007, ZXAUTO was the second largest manufacturer of pickup trucks in China (Great Wall was first).

The pickup, which may be named the Grand Tiger, is expected to look something like this

The four door pickup is supposed to have a base price of $13,500. It will be powered by a 4 cylinder gasoline engine, a variation on a Mitsubishi design. Four wheel drive is one of several options. ZXAUTO makes a diesel powered pickup for other markets, but no plans to import the diesel to North America have been announced.

Here's the 4x4 version of the truck, as sold in Russia as the "Admiral."

An interesting wrinkle in this story is that Steve Saleen, who became famous building aftermarket upgrades for Ford Mustangs and the Saleen S7 supercar, is now CEO of ZX Automobile Co. of North America (ZXNA), a subsidiary of CHAMCO. ZXNA is charged with the task of setting up CHAMCO's dealer network. CHAMCO says that ZXNA will also produce a new line of performance vehicles for sale through its dealers in the coming years.

Chip Haven

 

[Scott Brady]

Actually this truck will be all alone with the Mahindra. The Ranger has been scraped for 08 or 09 (don't recall which).

 

[haven]

more on Pickuptruck.com

Pickuptruck.com has more information about the ZXAUTO truck:
http://www.pickuptruck.com/html/autoshows/naias2008/chamco/page1.html

The truck at the Detroit Auto Show had a 2.7-liter four-cylinder gas engine rated at 150-horsepower and 180 lb-ft of torque.

 

[Redline]

Bring it on, along with the Mahindra diesel.

 

[Martinjmpr]

I remain skeptical. AFAIK all imported trucks still face a 25% tariff (I've heard it called "the chicken tax" because it arose over some dispute involving chickens.)

To me that means one of three things: Either

(a) The trucks will be very cheaply and poorly built in order to sell them at the $13k price. IOW, it won't be a $13k truck, it will be $9750 truck with a $3250 tariff.

(b) It will not be a $13k truck at all but will be a $17-$18k truck which will put it in the same market as the existing trucks. Given that reliability and dealer support are unknown quantities, are buyers likely to spend $17k on this truck when for $1k more they can get a Toyota, Nissan or Chevy?

Or,

(c) They find a way to "assemble" the trucks in the US so they can say they were not imported as whole units. This is what the Japanese have been doing as far back as the 1970's.

As with Mahindra, I wish them luck but I think they'll have a tough time breaking through to the US market. They really have to offer something the other guys don't, either economy, low price, or style/panache. Since I don't see them having the latter, it's only the first two that they can possibly offer. And they would face the prospect of having one of the other "big boys" knock them out by bringing a cheaper product into their already established dealer networks.

Actually, that last would be a great development for most of us. Think about it: Either Mahindra or the Chinese start selling a low-priced, stripped down, economical truck in the US. Sales take off. So, Toyota, Nissan, Mistubishi or possibly even Ford (which sells small, economical Rangers and Couriers in other parts of the world) decides to start selling a simple, stripped down truck at a bargain price. Now, maybe a ZXAuto or a Mahindra 4x4 crew cab for $14k would be a great bargain, but if you could get a stripped Toyota Hilux or Ford Ranger 4 door with a base-model engine, 5 speed for maybe $2k more, wouldn't you pay more for the "known" name? I would.

 

[Redline]

Amen. That's what I'm hoping for.

...........
Actually, that last would be a great development for most of us. Think about it: Either Mahindra or the Chinese start selling a low-priced, stripped down, economical truck in the US. Sales take off. So, Toyota, Nissan, Mistubishi or possibly even Ford (which sells small, economical Rangers and Couriers in other parts of the world) decides to start selling a simple, stripped down truck at a bargain price. Now, maybe a ZXAuto or a Mahindra 4x4 crew cab for $14k would be a great bargain, but if you could get a stripped Toyota Hilux or Ford Ranger 4 door with a base-model engine, 5 speed for maybe $2k more, wouldn't you pay more for the "known" name? I would.

 

[24HOURSOFNEVADA]

Come on hi-lux!!!

 

[haven]

import

The CHAMCO web pages talk about plans to build a manufacturing facility in Mexico starting sometime this year. At first, the plant will produce vehicles for the Mexican market, while vehicles for USA and Canada will be imported from China.

Hebei Zhongxing is a huge company in China, and I have no doubt that they have pockets deep enough to set prices that undercut other brands by 25%.

I think it's too early to say that a $13,500 Chinese vehicle designed for USA sale will be poorly made. They have every reason to try to present a competitive product. It took Toyota 20 years to get established as an auto brand here. Hyundai took maybe 10 years. I expect the Chinese vehicles might take 5 years

Time will tell if these plans will proceed. My guess is that in 20 to 30 years, there will be no mainstream auto production in USA. The work will be outsourced to countries where the cost of production is lower.

Chip Haven

 

[cruiser guy]

ZX Auto vehicles are sold here in Guatemala but even the Guatemalans, who generally have a far lower disposable income than North Americans still prefer a used Toyota over a ZX Auto.

Here where I work we have a Wuling van, made by GM of Shanghai (that's a General Motors subsidiary), which has had a complete engine AND tranny rebuild at 10,000kms that's LESS than 6,000 miles!?!?!?

I will NOT be lining up for the chance to buy a Chinese built vehicle for at least 5 years. I don't think they have the quality standards worked out yet.

 

[haven]

Here's another look at the Chamco pickup and SUV. They're about as big as the 4Runner and Tacoma, circa 2000.

Winding Road magazine says they are hoping to have a small diesel
engine available for 2010.

 

[Gurkha]

I would take this over junk from Mahindra any day. The engine has better heritage than Mahindra's.

 

[CA-RJ]

I work for a company who imports Chinese utility vehicles and they have a very poor build quality. There's no way I would ever buy a vehicle made from there. I'd rather shell out $5k or more to get a better quality vehicle.