Foton deal fails

Foton, which planned to have pickups in showrooms next year, could not meet the price point set by WMC Group and the Australian company has severed ties.

WMC says it still intends to have affordable Chinese workhorses in a lineup that currently runs to trucks and buses, with a new partner and distribution plan likely before the end of November.

"We couldn't agree on the pricing so we had to walk. Foton is definitely off with us," says Jason Pecotic, chief executive of the WMC Group. "We were about to order the first cars. But we couldn't come close with the pricing."

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Pecotic will not go into detail, but Foton only wanted to marginally undercut the Toyota HiLux but still charge a premium beyond the Chinese-made Great Wall utes, which would probably have put its P201 ute up against Japanese rivals including the Nissan Navara.

The P201 is larger than the Great Wall and has a truck-sourced engine, but Foton is an unproven brand that's also facing pricing challenges in some other countries including South Africa.

"We're now looking to source another product. I should have one within four to six weeks. We will be making a statement on that," he says.

According to Pecotic, Chinese-made vehicles must have a pricetag that undercuts  Japanese rivals by around 30 per cent and is also better buying than anything from Korea.

WMC has extensive Chinese experience as the Australia distributor for JAC trucks and Higer buses.

Pecotic hints that JAC could be his next target following under a new product plan.

"JAC released news two days ago of a joint venture in China with General Motors to manufacture a pickup. We'll see. There is a lot coming out of China."

He believes Fonton will still come to Australia, but with another agent.

"I think Foton are back in discussions with another party. I think they will come, but it will depend on pricing," Pecotic says. "Maybe we had to walk to have them go back to the drawing board and come back with a better price."