By Aida Sevilla-Mendoza
Philippine Daily Inquirer
IN THE PHILIPPINE car industry, there are two groups: the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the non-Campi. The non-Campi are considered mavericks or upstarts that, for one reason or another, dropped out of Campi or have not joined the Campi establishment.
Early this month, the non-Campi showcased their products at the 4th Manila International Auto Show (MIAS) at the World Trade Center. The new wrinkle in the 4th MIAS was the participation of two Chinese car manufacturers—Chery Automobile Co. Ltd. and Chana. The newest kids on the block occupied large pavilions and unveiled cute minicars that are priced to grab market share from the Suzuki Alto, Chevrolet Spark and Kia Picanto.
Many people have heard of Chery, which entered the Philippine market last year and now has 28 dealerships all over the country. Geely, another Chinese brand, set up a distribution hub in the Subic Freeport in 2007. But Chana?
Precisely why Chana chose MIAS 2008 for the Philippine debut of several new models led by the 1.3-liter, SOHC, 16-valve Benni De Luxe MT. Priced at P438,000, the Benni delivers 84 hp, has power steering, power windows, airbag, ABS, fog lamps, engine immobilizer and, surprise!—it is Euro III compliant. The other cars Chana displayed were the Star II (P450,000) and CM8 (P495,000), both of which are 1.3-liter, 7-seater, Euro III-compliant multipurpose vans with manual transmission.
Chery began manufacturing motor vehicles 40 years later than Chana, yet it has forged ahead to become China’s biggest independent car company. Established in March 1997 with government money in Anhui, one of China’s poorest provinces, Chery produced its millionth car last August and turns out 400,000 cars and engines a year. The state-owned Chery exported more than 100,000 cars last year and targets selling one million cars annually by 2010 as it aspires to compete globally.
The latest feather in Chery’s cap is the deal it signed last July with American automaker Chrysler to produce subcompacts that Chrysler will start selling under the Dodge brand in Latin America and other developing countries late this year and in the United States and Europe by 2009. Last month, the Chery QQ was the only Chinese marque to make the list of China’s five top-selling passenger car models. The QQ ranked fifth after the Volkswagen Santana, Honda Accord, VW Jetta and Buick Excelle.
At MIAS 2008, the Chery exhibit included an apple green QQ 1.1-liter MT (P349,000), the 2.0-liter Tiggo sport utility vehicle AT (P799,000) and the 1.3-liter V2 minivan MT (P489,000). The centerpiece was the A1, which was unveiled by top brass from Asia Pacific Chery International and Iseway Motors, the exclusive Philippine distributor of Chery cars.
Assembled at Chery’s high-tech factory in the Yangtze River port city of Wuhu, the A1 was designed with assistance from Italian auto design studio Bertone, is powered by a 1.3-liter engine developed with help from the Austrian engineering consultancy firm AVI that specializes in internal combustion engines, and outfitted with parts from Honeywell International and Visteon. Since 2003, Chery has been bringing foreign technology and expertise to Wuhu as it aims to compete in the United States and Europe with bigger, more sophisticated engines. Its plant in Wuhu is equipped with state-of-the-art machinery imported from Europe such as German precision-milling machines, Italian robots and a paint shop project from Germany.
The A1 is the subcompact that Chrysler plans to export around the world under its Dodge brand. Chrysler will modify the A1 and models based on it to meet each market’s safety and environmental rules. A Wall Street Journal reporter who drove the A1 over 3,700 kilometers across Xinjiang last August wrote that the car performed admirably for a small car in city traffic, on highways, up and down hills, off-road and in the desert. Since it has a 1.3-liter engine, the A1 accelerated sluggishly, more so when there were four adults on board. But it was surprisingly smooth and quiet even at high speeds (160 kph) and the aircon kept its cool even in the desert. However, the WSJ reporter said that the fit-and-finish of the interior was somewhat below par.
Given the wariness toward Chinese products following the US recalls of some products from China due to defects or toxic contents, it may take years for Chinese cars to attract buyers in the First World. They will have to convince consumers that an inexpensive new Chinese-made car is a better value than a used Japanese or American car. But as an industry analyst in the United States pointed out, the learning curve for the Chinese automakers will be much, much faster than that of the Korean and the Japanese automakers.
* * *
TODAY’S BUMPER STICKER: If only you drove as perfect as me.
