Chinese Tainjin automobile factory hopes for American market

A vessel of export freight for the USA was shipped from the Chinese port of Tianjin. The vessel is carrying 252 brand new Xiali cars of the local production. These baby cars are manufactured by the Tainjin automobile factory, which was built with Toyota’s participation. Chinese people liked Xiali cars, they are widely used as cabs in China with the lowest passenger fee – 1.2 yuans (which is equal to 15 American cents) per one kilometer of driving.

Nevertheless, the Tianjin factory found itself in a difficult situation due to China’s incorporation in the WTO: “a war of prices” broke out because of the sudden reduction of car tariffs. Xiali producers suffered losses in the sum of 31.4 million yuans (almost 3.8 million American dollars), whereas they had this sum as a profit a year ago. So the transaction with American Automobile Network Holdings Inc., which took up to sell 25 thousand Xiali cars on the American market within five years, was perceived at the Tianjin factory as a big hope for improvement.

As it is supposed, Chinese cars will be sold in America for ten thousand dollars per car, whereas they cost twice as less in China, and Xiali brand is expected to become the most prestigious car brand among the Americans of Chinese origin.

Andrey Krushinsky PRAVDA.Ru Beijing

Translated by Dmitry Sudakov