US auto makers in for tough challenge at home from Chinese competition: experts news
13 January 2010

After a disastrous year for the auto industry, carmakers are brimming with optimism and confidence at this year's Detroit auto show.

Executives for BYD Auto of China said they were confident of the electric e6 meeting stringent US regulations. According to auto industry analysts, that may be reason enough for the Chinese company BYD Auto to emerge as the first company to sell Chinese-made vehicles in the US.

The company announced its plans to start selling an electric car in California by the end of this year, creating something of a stir.

But experts point out that the company would first need to clear numerous hurdles including crash and emissions testing that can sometimes take years, not to mention arranging a network of dealers.

However BYD, established seven years ago, is not new to setting ambitious goals. The company intends to become the largest automaker in the world by 2025, said itsintroductory video being played at the venue before the company made its announcement.

General Motors, Ford and others consider it only a matter of time before Chinese companies start challenging them on home turf. In a development that could possible happen later this year, Geely, China's biggest automaker, may be able to buy the Volvo brand from Ford, and additionally a Chinese industrial equipment maker picking up GM's brand.





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US auto makers in for tough challenge at home from Chinese competition: experts