Report: China’s Chery Considers U.S. Market Yet Again

Chinese state-owned automaker Chery is reportedly still looking to the United States as a possible point of expansion. But this isn’t the first time the brand has said so.

Chery had plans to break into our market back in 2005 and supposedly had things lined up to import a limited supply of its Exeed crossover in 2020 before the world went haywire. Things have been left intentionally vague this time around, with the company only saying that it would like to move product here eventually.

"[The U.S. market] is very important for us. We already have a roadmap of how to enter the U.S., but frankly speaking I can't say much more about our strategy," Brian Wu, executive vice president of Chery Mexico, told MotorTrend in a recent interview.

 "I don't want to repeat the same story," Wu added. "Today is not like before. Not like it was 20 years ago."

From MotorTrend:

Wu said it's too early for Chery to talk about its new plan for the U.S. market, but added that the company is putting together a product portfolio and determining which brands could enter. "Is it Chery first, or Exeed first? Frankly speaking, we haven't decided. But we have a rough road map of the products we want to have," he said.

Chery's global brands include Chery, Exeed, Omoda, and Jetour, the latter two destined for international markets. Exeed is a luxury brand that intends to compete with Audi, BMW, and Mercedes-Benz. All brands have electric, plug-in hybrid, and internal combustion powertrains, and have expanded into markets outside of China.

While he declined to say what products are expected on U.S. soil, Wu said there would be a mix of EVs and PHEVs. "Mainly [our focus] is with new energy vehicles, but maybe some models will be ICE," he added.

While quality and safety standards are much higher in the U.S., Wu said Chery's products are on par with customer's expectations. "I do believe that these models [we have in Mexico], we can put them in the U.S. market. No quality issues, or anything. But whether a customer likes it or not, it's a different case," he noted.

I’ve been writing about the automotive industry for years and, before that, I was doing research on behalf of automakers. Chinese brands have been saying they’ll be coming to America since the mid-2000s. Back then, the companies were relegated to trade show basements — situated next to amateur design contests intended for children and collegiate conceptual engineering projects.

As insulting as it was to put the Chinese brands downstairs while established automakers enjoyed the limelight, there was a noticeable disparity between vehicles. Early Chinese models were derivative to a point that warranted harsh criticism. Even when they finally did move up to the main stage, we found improved products that were still poorly suited to American tastes. They were sized all wrong, often underpowered, and featured things like fake exhaust tips.

But the world has continued to change. Strict emissions regulations in Europe and intercontinental partnerships with Western brands have allowed Chinese-made vehicles to break into the market. We’ve even started seeing them in the United States wearing American badges. Both the Lincoln Nautilus and Buick Envision are now assembled in China. Meanwhile, just about every vehicle on the planet is at least partially reliant on a supply chain that swings through Central Asia.

Chery has only been in the Mexican market since 2022. But it’s making noticeable progress with its new “Chirey” brand and has already started outselling some of the more established nameplates. Vehicles are competitively priced and frequently feature all the latest trends and technologies (e.g. touch controls), especially where the interior is concerned. Some of those inclusions still seem to be lifted from other models. Granted, the cars are still a little rough around the edges. But Chery has continued making headway in terms of overall refinement, clearly hoping to present itself as a company focused on entry-level luxury.

However, its emblem still looks like something lifted directly off an Infiniti model.

If things continue going well for the brand, the plan is to break ground on a sizable vehicle plant in Mexico by 2024. Wu said the factory will likely focus on plug-in hybrids and all-electric vehicles. While we’ve no clue whether those models will ever make their way onto our roads, simply having a production facility in North America sets Chery up to dodge some of the regulatory hurdles associated with the revised, indefinite, EV incentive scheme and places it in a much better position in regard to USMCA regulations.

[Image: Chery]

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