Chinese Cars to Conquer the US via Mexico
For those of you who haven't heard of GS Motors, and we're sure only a few people actually know a thing about this company, it is a Mexico-based manufacturer that sells three models provided by China's First Auto Works, also know as FAW, in its domestic market. Nearly 4,000 units were sold in Mexico last year, the aforementioned source wrote.
GS Motors wants to bring Chinese models into the United States via Mexico. And Kathleen Ligocki, company CEO, expressed her confidence that these cars would pretty much attract Americans. The catch? GS Motors currently sells car in Mexico through Costco and Wal-Mart stores which attracts thousands of visitors per day. This way, the cars are fairly well advertised at very reduced costs. And the company says a similar strategy could also be adopted in the United States.
The FAW brand, which is currently one of the largest Chinese car manufacturer, is currently cooperating with Volkswagen in China. As part of the company's expansion plans, FAW will build a new production facility in Michoacan, Mexico with GS Motors in order to produce and launch the F1 Hatchback, a low-cost model sold for around $5,500.
While we're not sure such a vehicle would be able to encourage Americans to turn their eyes to Chinese models, it's fairly clear that General Motors, Chrysler and Ford just got a new and apparently powerful rival.