Energy News  
Chinese Dragon Heads For Europe

Landwind at the IAA is marketing a sports utility vehicle (pictured) modeled after an older Opel Frontera. While it might not look and drive like the real Opel, or its big brothers from VW and Mercedes, its price tag settles at $21,000, roughly half of what the competition costs. Saving $20,000 on a four-wheel-drive might win over even the usually conservative Germans.

Kehl Am Rhein, Germany (UPI) Sep 27, 2005
A dangerous Chinese dragon has entered Europe, and analysts warn he might grow bigger, multiply and take over habitat of the domestic animals. The "CD," which is short for China Dragon, isn't a new version of the avian bird flu, but a small sports car produced by Geely, one of three Chinese automobile companies at the 2005 Frankfurt International Auto Show, IAA.

Alongside Geely, comrades Landwind and Brilliance are showing off their models next to established German giants Mercedes, BMW and Volkswagen. They might be only the second tier of Chinese mass producers, like the Shanghai Automotive Industry Corp., but they're determined to enter the European market.

Brilliance has a new sedan out for $22,000. Landwind at the IAA is marketing a sports utility vehicle modeled after an older Opel Frontera. While it might not look and drive like the real Opel, or its big brothers from VW and Mercedes, its price tag settles at $21,000, roughly half of what the competition costs. Saving $20,000 on a four-wheel-drive might win over even the usually conservative Germans.

These days, anything coming from the People's Republic of China, a country with very low wages and an ability to quickly adapt to market fluctuations is likely to create some unrest with producers in Germany. Rattled by rising fuel prices, high non-wage labor costs and declining sales, German carmakers are in somewhat of a crisis. The last thing they need is country with a cheap workforce.

Observers warn Western carmakers to get ready for increased competition from China. Underestimating the East Asians, as happened before the Japanese and Koreans drove their models into Europe, would be a fatal mistake, analysts say.

"We do take them seriously," Eckehardt Rotter, spokesman of the German Union of Automobile Makers, or VDA, told United Press International. "The Chinese have formulated a will to expand their exports. And if they say that, than they'll keep their promise."

The first pressure on the German market will likely come in the budget car sector, which is at the moment dominated by Asian car makers such as Daewoo and Toyota, and by German car giant Volkswagen. While the Chinese price tag might be attractive, there are other factors that are taken into account by customers when purchasing a car, Rotter said.

"A low price is not everything. A car is no commodity, it has emotional value," he said. "What about image, technology, resale value, ecological standards and security?"

The European Union's security standards might be the biggest hurdle for the Landwind SUV to generate sales: It might not even be allowed on the market, experts say. The German Motoring Association, or ADAC, is Germany's and probably the world's best automobile testing group. ADAC specialists carried out a crash test with the Landwind in the ADAC's testing center in Landsberg, Bavaria. The result was catastrophic, the group said.

"That's the most unsafe car we have tested in, well, at least 20 years," Hubert Paulus, security expert at the ADAC, told UPI. "When the Landwind hit the wall, its chassis, especially the driver's cell, deformed so radically, that we had trouble getting out the dummy afterward. Its body and head were pierced by metal parts from the chassis. I mean, what are they thinking, we can't have our death toll on the streets rise."

The ADAC performs its crash tests at 36 mph. In order to get a European Union selling license, the Landwind will have to perform much better to make the cut at the EU's crash test, which is held at 32 mph, he said.

"If you ask me, the Landwind will fail that test as well," Paulus said. "They will likely have to remodel their chassis."

Karsten Gerhardt, car sector analyst at Germay's IKB bank, said the carmakers at the IAA, with their yearly output between 30,000 and 60,000, are not yet a real threat to German carmakers. Rather, they will compete with the "European used cars."

But short-term setbacks like the security shortcomings of the Landwind will likely be overcome in the long run, he said.

"The Chinese have an incredible ability to adapt quickly," he said." If their current models are not up to the standards, then tomorrow or - at the latest -- the day after tomorrow, they'll come with improved ones."

Community
Email This Article
Comment On This Article

Related Links
SpaceDaily
Search SpaceDaily
Subscribe To SpaceDaily Express
China News from SinoDaily.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


China Wants To Expand Sino-US Military Relations
Beijing (AFP) Jan 10, 2006
China is ready to expand its military relations with the United States, Chinese Defense Minister Cao Gangchuan said on Tuesday.







  • Investment In Energy R&D Declines Despite Soaring Prices, Supply Problems
  • Monster Storms Lay Bare US Refinery Crisis
  • Northrop Grumman Teams With Protonex To Develop Portable Power System
  • Prices fall As US Oil Industry Weathers Storm

  • Russia Ready To Join US-Led Uranium Fuel Bank
  • Key Signatories Urged To Ratify Nuclear Test Ban Treaty
  • Scorpene Deal Will Ensure Nuke Supply
  • Russia To Build Nuke Waste Facility

  • Getting To The TOPP Of Houston's Air Pollution
  • Scientists Seek Sprite Light Source



  • Crop Scientists Improve "Supergrain" For Impoverished Farmers
  • Gourmet Space Dinner On Greenland Icecap
  • Sophisticated Forecasts Help India's Farmers Survive Patchy Monsoon
  • Analysis: N.Korea No Longer Wants Food Aid?

  • Solar Cars Driving Towards A Hydrogen Future
  • Mapflow And DTO Announce Dublin Satellite Tolling Study
  • German Car Makers Scramble To Jump On Hybrid Engine Bandwagon
  • Could Katrina Kill The SUV?

  • China's Top Airplane Maker Aims To Become Major Global Player
  • China's Aviation Boom Drives World Market
  • Boeing Projects $213 Billion Market For New Airplanes In China
  • Chinese Airline Signs Deal To Buy Eight Boeing 787 Aircraft

  • NASA plans to send new robot to Jupiter
  • Los Alamos Hopes To Lead New Era Of Nuclear Space Tranportion With Jovian Mission
  • Boeing Selects Leader for Nuclear Space Systems Program
  • Boeing-Led Team to Study Nuclear-Powered Space Systems

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2006 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA PortalReports are copyright European Space Agency. All NASA sourced material is public domain. Additionalcopyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement