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News reports over the past several months have featured the coming “invasion” of Chinese cars to the North American market. What has gotten the attention of many car buffs is the very low prices at which each model will be sold. Prices as low as $6600 have been quoted for one model with a handful of other models also expected to retail for well under $10,000. If Chinese cars do arrive as expected, look for a massive change in the way entry level model cars are built and sold in the U.S. and Canada. Consumers stand to gain with the increased competition, although exactly what they will be getting for the price is not yet known.

The Chevrolet Aveo, a compact car built by GM’s Korean unit, Daewoo, is currently the lowest priced car sold in the U.S. retailing for as low as $9300 after all discounts have been applied [MSRP is currently set at $9890 for the “Special Value” models]. A 16 valve 1.6L I4 mated to a 5 speed transmission is standard and Chevy kicks in an AM/FM radio for good measure. Beyond that, the car is truly stripped.

On the other hand, two Chinese automakers are preparing to enter the U.S. market, likely as soon as summer 2007. Selling 2008 model year cars, both the Geely Automobile Company and the Chery Automobile Company are working with U.S. representatives to build nationwide dealer networks. Chery, which will have to change its name after losing to General Motors in a court decision over their name [too close to Chevy], has a model currently called the “QQ” based on the Daewoo Spark which they would like to bring to the U.S. Along with as many as four other models, the cars will range in price from just under $7,000 to as high as $20,000. Geely has similarly priced cars that they plan on marketing too.

So, what does this mean to the market? Plenty. Besides the Aveo, numerous other small cars are marketed in the U.S. including Toyota’s Scion brand, the Honda Fit, Nissan Versa, Saturn ION, and offerings from Kia and Hyundai. Some of these vehicles come better equipped than the base Aveo, but for the most part comparably equipped entry level models with air conditioning are each retailing for about $12,000.

Even after air conditioning and certain safety measures [like air bags and better fenders] are added to entry level Chinese vehicles, it is expected that comparably equipped Geely and Chery models will still retail for between $8-8500. This translates into a price drop of as much as 30% compared to competing models.

Naturally, the quality of Chinese cars may be a big concern. Not noted for building much of anything that is of superb quality China, much like Japan of more than 40 years ago, must bring quality levels up. Still, for even $1000 more per vehicle an extended warranty similar to the 100,000 mile warranty offered by Hyundai and Kia could allay consumer’s concerns. Simply add the cost of the warranty to the price and a $9000 fully warranted Geely could be very attractive.

So, how will competing manufacturers react? By dropping their prices accordingly. Look for specially equipped Scions, Kias, and Hyundais to appear in U.S. showrooms priced below $10,000. Soon, look for Mexican built Scion fighters from Ford and Dodge also to show up and be sold at unthinkably low prices. By 2010, the base price for many entry level models in the U.S. will be below $10,000; if they are not priced accordingly then they many not sell.

Long term, prices across the board for all vehicles may begin to drop, especially as Chinese manufacturers start to market vehicles that are larger and better equipped than base models. Mentioned earlier was a vehicle in the $20,000 range. This particular Chery model strongly resembles the Chrysler Pacifica and could be imported to compete against it and other crossover vehicles.

Naturally, the effect on the U.S. manufacturing industry could be devastating and not just to GM, Ford, and DaimlerChrysler. Toyota, Honda, Nissan, and Hyundai all build cars here. Will they compete in price or will consumers see the sharp differences in quality and stick with the trusted brands?

A revolution is coming to the auto industry — one which is certain to completely redefine the market.

Copyright 2006 - Matt Keegan is The Auto Writer covering a wide variety of topics including industry trends, new models, replacement automobile parts, accessories, and more. You can get OEM quality Discount Auto Parts right online.

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Automakers are clamoring to build and market cars to the Generation “Y” crowd which, loosely defined, and encompasses new drivers and mostly everyone who is under 30. Toyota threw the gauntlet down in 2003 when they introduced a line of cars under the Scion brand. Now, Nissan is responding and the Versa - to be released during the summer of 2006 - is their answer. Will the Versa compete successfully or be lost in a sea of Gen “Y” vehicles soon to flood the market? All of that is too early to determine, so let’s take a look at the Versa and what the car has to offer to motorists.

A visit to Nissan’s website reveals much about the Versa. Unlike a certain Scion vehicle that takes its styling cues from a toaster, the Versa is aerodynamic and reminds me of the Toyota Matrix. Available as a four door sedan or five door hatchback, the Versa is expected to retail for around $12,000, the same price range as Scion vehicles. Like Scion, the Versa will be fairly well equipped to give motorists a value packed experience without having to add on several thousands more to the base sticker price in order to achieve a satisfactory and comfortable driving experience.

Along with a 1.8L I4 engine, here is what you can expect to be included with base models:

AM/FM/CD audio system
Air Conditioning
Power side mirrors and automatic trunk release
6 speed manual transmission [4 speed automatic is optional]
Split folding 60/40 seat with the hatchback

Not a bad standard equipment list for the price. For $2,000 more, SL versions will come with aluminum alloy wheels, cruise control, power windows/doors/locks, remote keyless entry, a souped up sound system, and more.

The car will have a 102 inch wheel base which is long for a vehicle of its type. The result is more interior room, with four adults having ample knee and leg room to weather long trips.

Pictures of the interior reveal a car that is well though out and not cheap looking. I especially like the dashboard with its overlapping circular instrument panel and easy to reach audio and air conditioning controls. A generation ago, entry level cars would have looked and felt cheap. Today’s drivers expect more and the Versa delivers in the form of a decent level of standard equipment and attention to style.

The Versa replaces the Sentra as the entry level Nissan. Nissan has restyled the Sentra and “promoted” it up a notch much like Honda has done with the Civic and Toyota with the Corolla.

Although more expensive than Chevy’s Aveo and Kia’s Rio, the car has more flair and style than either one. Still, one has to wonder how the Versa will compete against Toyota’s soon to be released Yaris and the all new Honda Fit. Throw in new models expected from Dodge and Ford and add Chinese cars to the mix and the whole entry level market becomes saturated.

Ultimately, the Versa is a step in the right direction and a nice alternative to some of its boxy competitors. Gen “Y” drivers have another choice in the Versa and an alternative to Scion, Toyota’s youth-oriented brand.

Copyright 2006 - Matt Keegan is The Auto Writer who blogs and writes on a variety of car related topics. Matt invites Nissan enthusiasts to visit the Discount Nissan Parts site to find the best selection of parts for your Sentra, 350Z, Titan, or other fine Nissan vehicle.

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I mentioned in a related article that the first batch of Chinese built cars to be imported to the U.S. is only a few years away. In that article, I discussed Chery Automobiles and how the company has its designs on the American market, particularly in the entry level category. Well, now a second manufacturer - Geely Automotive Company - is also planning on bringing at least one model to the U.S. by 2008. Changes are in the wind, but lest you think that Detroit is the only one quivering don’t be fooled: Japan’s automakers and Korea’s automakers all must take notice of what is about to happen.

For certain, the U.S. automobile market is the most lucrative one in the world. It is also the largest with more than 17 million new vehicles sold annually. All automakers know that if you have a piece of the American market, you have a piece of big profits as long as what you are selling is what consumers want [Ford and GM, take notice].

The Chinese automakers sense that Americans want low cost vehicles. With Korean cars improving sharply in quality and with their prices remaining very low there is room for more cars in the sub $20,000 category. As it stands now, both Geely and Chery have several models that fit the bill including a few that will likely retail for well under $10K! Chalk it up to extremely low wages and cheap components, even much lower than what Hyundai, Toyota, and Honda can produce at that.

Quality is certain to be another thing, but if the Chinese automakers emulate Hyundai - originally known for selling cheaply built and cheaply made cars when first imported to the US in 1986 - this will only be a temporary phenomenon.

Of course, getting each Chinese model to pass stringent U.S. safety and pollution control requirements will take timeand money. Still, should Geely and Chery overcome these obstacles American streets may be filled with cars bearing several Chinese name plates.

The U.S. automotive industry is taking notice even as the Detroit auto show features its first Chinese built cars. For all automakers, the new makes are worth taking notice and for consumers each model will have to pass scrutiny and compare favorably with other budget brands.

Copyright 2006 - For additional information regarding Matt Keegan, The Article Writer, please visit his blog for wit, quips, and freelance writing tips.

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