Companies, it is said, are plotting a massive invasion of the U.S. with all sorts of automobiles that they hope will capture the imagination of Americans and put a lot of coin into the auto makers’ pockets. No surprise. The American market is the largest automobile market in the entire world and companies both old and new and from rich nations and developing nations understand the ramifications to them if their cars are favored by Americans.
The invasion has already begun. In January, Daimler subsidiary SmartUSA began delivering the Smart fortwo. Indian automaker Mahindra & Mahindra will begin production in India of two pickups and a sports utility vehicle for the U.S. market that is expected to be showrooms by the summer of 2009. Fiat will be re-introducing its Alpha-Romeo through plants probably in Mexico and the European company also plans to offer its Fiat 500. China American Cooperative Automotive Inc. a.k.a. Chamco Auto will be introducing pickups and SUVs in 2009. Chrysler is cooperating with China’s Chery International to bring in small cars constructed by Chery.
The Automotive News, via the Toledo Blade, has reported that 16.2 million vehicles were sold in the U.S. in 2007. One-quarter came from Japan, Europe or Korea.
But some industry pundits think that the plans of such an invasion is just talk. Many point out that some companies are just not ready to compete in the largest market in the world. And there are obstacles that many foreign auto makers may find difficult to hurdle. For example, Chinese made vehicles are being delayed due to quality and emission issues. All foreign made vehicles that come into the U.S. must meet federal government standards of safety and emissions as well as other standards set by the National Highway Traffic Safety Administration and the Environmental Protection Agency.
It is believed that the models that will successfully overcome the obstacles first will be smaller cars, compact pickups and SUVs. Sales of these vehicles may be difficult. For example, domestic auto makers Ford and Chevrolet have seen sales of their Ford Ranger and Chevrolet Colorado drop by 20 percent last year.
Still, they are coming. You can take that to the bank. It may not be this year or next year or even the year after that. But as the Rolling Stones put it, “Time is on their side.”