Study Pinpoints Who Would Most Likely Buy Chinese Cars, And The Answer Isn't Who You Think It Is

I've been to two presentations by two Chinese brands looking for dealers to sign on. My impression is that the Chinese companies want to understand the American context but they also don't understand it at the same time.

For example, someone said that "GAC" would be pronounced as "gaak" which sounds like someone vomiting and that establishing a brand with a name so easy to make fun of to the detriment of the brand is one NOT to use.

Geely clearly has listened to what Volvo knows, but Volvo being as marginally successful as it is in the US market is hardly a bead to follow.

In both cases, the brands wanted stand-alone dealers and that was met with a resounding "nope" because the gamble is just too big.

Geely had planned to co-brand with Volvo at one point until they realized that Volvo's dealer network is tiny and in some cases already co-branded.

I had heard that GAC tried really hard to use FCA's dealerships for its cars but that FCA warmed than suddenly cooled to the idea.

Chinese brands will have to demonstrate a clear price advantage, their cars will have to be in the hunt with segment expectations, the mother of all warranties is vitally important, they have to bird dog reliability, and support customers like these are premium cars.

They will have one shot and if they stumble, any chance for momentum is lost. We need only look to the stumbling launch of the Giulia that torched momentum before it started to see how tricky launching a new brand is.

Not sure who would call them Gaak. Any time I've seen the name, my head always just says the letters G-A-C, same as we do with GMC or BMW. Sure, some people will look for ways to make it sound bad, same as the do for other brands (Fiat: Fix It Again Tony, etc.)

The Chinese brands will need to walk a thin line b/t being polarizing & being mainstream. GAC & Geely need designs that both "fit in" with US tastes but aren't too "wacky or gimmicky" that they become stand-outs for negative reasons. Think Nissan Juke or Kia Soul. If they want to compete in the midsize & large CUV market, they only need to make something similar to the segment-leader. But try hard not to be so-much-of-a-copycat that becomes what they're known for.

Hint: Blatantly copying design elements will not work well & easily kill brand acceptance, especially in the US.

That was said in both cases rather sharply and directly.

Geely had a small crossover that was to be its spearhead. Google Emgrand GS.

Someone made the point that "Geely" sounds like a failed movie.

...that sad-azz Ben Aflack/Jen Lopez movie? Omg....totally forgot, but Twitter & FB would decimate the brand on that mixup alone. lol.

Actually Chinese Buicks and Volvos are "OK" in the minds of buyers because they aren't "Chinese" just made in China. That is the perception of customers of the Buick Envision at least.

So a Chinese Volvo is OK because it's a Volvo, but a mechanically identical Geely would be a Chinese car and looked at askance by buyers.

THAT is what Chinese companies are up against.

I remember when KIA launched here there was some backlash from people offended by the fact that this name also stood for Killed in Action.

But here we are years later and they are selling these things in shopping malls next to the Dr. Scholl's kiosk.

At least in MY area - THe Kia and Hyundai dealers advertise HUGE rebates - and sell most of these cars at monstrous discounts to MSRP and to competition - and still people still buy Camrys.

For existing Brands - most people do not even know where their car is assembled anyway - and that is unlikely to be an issue.

However - just like HYUNDAI- and Yugo - and the Japanese before them - The first buyers of the chinese cars will be those who cannot afford a Hyundai. IF Chinese makers overprice their cars - a lot of them will be sitting on the lots forever.