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Malcolm Bricklin, the entrepreneur who brought the Yugo car to the United
States in the 1980s, said he has lined up the first six dealers to sell
mainland cars there beginning in 2007.
Bricklin, who plans to sell 250,000 vehicles in the first year, outlined to the
dealers last week his plan to offer high-quality mainland vehicles that
``redefine the price of luxury.''
China's Chery Automobile, which will make the cars, has been accused of pirating
a compact car sold on the mainland by General Motors known as the Chevrolet
Spark. But Bricklin said the cars they will make for him will offer quality as
good as Toyota Motor's Lexus luxury brand. According to the plan, the
mainland-built vehicles sold on the US market will cost about 30 percent less
than comparable cars.
``We talked to our first six [dealers] last week, and our first six said
`yes','' Bricklin said Tuesday during a speech to the Society of Automotive
Analysts in Southfield, outside Detroit.
The dealers agreed to put US$2 million (HK$15.6 million) in escrow to invest in
Bricklin's company, Visionary Vehicles, and in a Chery factory in China to
build the cars for the US market, said Pierre Gagnon, chief operating officer
of North American sales and distribution for Visionary.
Gagnon, a former chief executive officer of Mitsubishi Motors' North American
operations, declined to name the dealers. But they will travel to China to
visit Chery facilities next month, then finalize plans to join Bricklin's
company, said Gagnon, who joined Bricklin earlier this month.
Within the next 30 days, Visionary expects to have 25 dealers, with 250 on board
within 120 days, Gagnon said.
Analysts have said Chery will have difficulty accelerating its output, while
also meeting US government safety and environmental standards, consumer demands
for quality and desire for original designs. But Bricklin believes the cars
will be able to compete with Lexus and other top-quality brands.
Rather than try to compete against the billions that leading automakers spend on
advertising and marketing, Bricklin said dealerships will sell the vehicles
themselves, by luring customers with showrooms that have all the excitement of
an auto show.
The dealerships will offer valet parking, free child care, a test track to drive
the vehicles, free car wash and indoor and outdoor video screens to learn more
about the Chery vehicles, Bricklin said.
Visionary will spend up to US$250 million on advertising the launch. REUTERS
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