Although not as well-known outside China as some of its larger competitors, Chang'an nevertheless is a force in its home market, with annual sales, including minicars, of around 900,000 units. It has ambitious plans to boost global sales to 2 million units a year by 2010, more than half of them wearing the company's own Chana brand.
Chang'an joins a long list of mostly smaller Chinese automakers that already have outlined plans either to enter the U.S. market or launch production in Mexico.
Thus far, though, only FAW, China's second-largest automaker, has announced a specific project, partnering last year with Grupo Elektra (a subsidiary of Grupo Salinas) to assemble cars in Mexico from kits imported from China. The two companies have said they plan to assemble up to 100,000 cars a year, at a plant in the southern state of Michoacan. But with only miniscule sales to date, indications are that full-scale production may be delayed.
In addition, the Mexican government has said that FAW is the only Chinese automaker that has fulfilled the requirements to invest at least $100 million and schedule annual production of at least 50,000 vehicles.
Chang'an executives said they plan initially to assemble 50,000 cars a year in Mexico, beginning in late 2009 or early 2010. They declined to name the company's Mexican partner.
At the Detroit auto show last January, Geely said it also planned to build a Mexican plant, but Chairman Li Shufu in recent weeks has said those plans are on hold.
Executives at Chery said earlier this month that the company's plan to export its A1 compact to Mexico, in partnership with Chrysler, may be shelved.
Inside Line says: Is Chang'an the real thing — or just another big dreamer? — Loriana Marietta, Correspondent
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