Chery E5 Reviews

This week's high-level Federal Government visit to China is already yielding positive results for not only the car component sector but the local industry as a whole. Industry Minister, Senator Kim Carr, says several large Chinese brands, including Chery, JAC, Geely and Dongfeng, are seeking new markets like Australia for technology and investment, particularly in the depressed components sector.Trade Minister, Simon Crean, joined Senator Carr on his lightning visit to the country's leading manufacturers. Carr says that apart from direct investment, there is room for reciprocal agreements between the local supply industry and China. "We've seen with Geely in terms of Drivetrain Systems International transmissions but there are other investments," he says."I'm expecting that there will be increased interest in the components section of the automotive industry," Carr says. "That's likely to be quite an attractive area for future investment from the Chinese motor producers." Some of that investment is already bearing fruit.In March, Chinese carmaker Geely threw a lifeline to the Albury-based DSI transmission company, paying $52 million for the company to secure its future and boost its research and development.Carr says the Chinese are looking for high-quality developed technologies and partnership arrangements. "And they know, I believe there is increasing awareness, that Australia provides the capacity to produce good results in those areas," he says. "Now there are 11 companies operating here at the moment that have come out from Australia."Carr says research organisations like the CSIRO and even Geelong-based Deakin University, are working on technologies that will be very attractive to the Chinese car industry. "In terms of light metals, in terms of composite materials, in terms of fuel systems, there are huge opportunities opening up," he says.Australia's reputation as a mature, respected market is helping too. "We have a mature industry that might well be small in volume but is high in reputation," Carr says.Ultimately, he says the diversification of the local component and car sector will help "strengthen our industry's capacity to ensure its sustainability". The issue of intellectual property rights, a controversial problem between some foreign carmakers and some Chinese brands, was also discussed.

Given the cloying, choking blanket of grey coating the Beijing Olympics, it comes as no great surprise that China is en route to becoming the world's biggest car market.Well within the next decade, China should also overtake the US as the world's biggest maker of cars.It already manufactures more car components than any other nation, and the first Chinese cars to reach Australia will go on sale on November 1.The coming of the Chinese presages a seismic shock to the Australian new car market, of the sort not felt since the arrival of Korean cars in the 1980s.This push is aimed at the market's biggest growth segments. A new, well-equipped Chinese small car will cost about $12,000 and a compact SUV as little as $18,000 — or even less.Ateco Automotive — best known for importing Italian marques from Ferrari to Fiat — will this week announce details of a far humbler vehicle than the members of that prestigious, heritage-rich stable.The functionally named SA230 is a no-nonsense, twin-cab utility made by the altogether more evocatively titled Great Wall Motors (GWM).As the vehicle is known at home by the rather Chinglish model name Sailor, a less flowery moniker was deemed wise.GWM's ute for budget-conscious tradies will be followed by the Peri small car and the Hover compact SUV.The other half of the Sino-Ateco pincer movement is formed by the Chery company, whose budget wares, including the QQ3 small car and the Tiggo compact SUV, arrive next year.The tiny QQ3 has been on sale in South Africa since May, priced at less than $A11,600.Although ultra-cheap, it will be above the sub-$10,000 mark forecast by some more hysterical — not to say tacitly xenophobic — commentators who have sought to present the introduction of Chinese-made cars as a kind of automotive yellow peril that threatens our very way of life.This episode can more reasonably be seen as a delayed sequel to the early 1990s, when Hyundai priced its drive-away-then-throw-away Excel at $13,990 with a five-year warranty.“Strategically, I'm certain that China is the next major source of value-for-money products,” says Ateco managing director Ric Hull, who was previously in charge of the company's imports of Korean brand Kia.“China seems to be the future for everything. Even so, the approach will be gradual.“We're going to launch Great Wall with one product and, if everything goes perfectly to plan, we'll be selling some hundreds a month.“That's minuscule in the overall market. It will take years to earn a market share that affects anyone else.”But, if the strategy is initially more that of an incursion than an invasion, there's little doubt Ateco will achieve five-figure sales of its cheap and cheerful GWMs and Cherys sooner rather than later.Ateco boss Neville Crichton has been outspoken in his belief that Chinese cars are the next massive thing.The formidable New Zealand-born millionaire car salesman — perhaps best known as the owner and successful skipper of the maxi yacht Alfa Romeo — is no more known for backing losers than he is for suffering fools.So the derisive laughter with which adherents of the status quo greeted Ateco's announcement is beginning to sound hollow. And not a little desperate.Hyundai shook local car-makers to the core by turning out a functional new car for less than half the price of a Commodore or a Falcon.Now the ramparts formed by tariffs and multi-billion-dollar government assistance, which Holden and Ford have complacently sheltered behind, have almost crumbled.Among the recommendations in the Federal Government's review of Australia's car industry, which was handed down on Friday, tariffs on imported cars will be reduced to five per cent by 2010. Industry Minister Senator Kim Carr said pointedly that “the industry needs to continue embracing global competition”.In other words, if Australian manufacturers wish to survive, they should expect to do so without the help of taxpayers who long ago lost interest in the big family cars Holden and Ford continue to churn out.These cars rely on fleet and government sales to the tune of more than 75 per cent — and even that source is drying up.According to used-car dealers, a Commodore or Falcon bought new today will retain less than half its value — some $16,000 — after three years' ownership.That's hardly an attractive proposition for the private buyer, especially given the high fuel consumption of this type of car.Australians have never been so burdened by choice: the 50 car brands on sale here come from more than 20 countries.Indeed, in April this year, cars built in Thailand outsold those made locally.In a sense, the Chinese are already here in the form of SsangYong, a Korean car-maker 59 per cent owned by Shanghai Automotive Industries, one of the wealthiest manufacturers in China.“China is hardly a backward, Third World industry,” Ric Hull says. “It makes about 10 million vehicles a year.”But the salient concern remains that the vast majority of these vehicles are simply not of First World standard.In 2005, the Chinese Landwind 4WD earned no stars out of five in independent German testing, as did the unfortunately branded Brilliance BS6.Blood-curdling vision of patently poorly built Chinese cars can be seen on YouTube (enter “Chinese car crash tests”), but so can respectable efforts by more recent models.Nicholas Clarke, of the Australian New Car Assessment Program (ANCAP), which conducts independent crash tests of vehicles on sale here, says test results of the first GWM will be available in November.Chery was to have been Ateco's first Chinese offering, but for the decision to await a new model range from which superior test results are expected.Still, the spectre of safety hasn't dissuaded as many as 1000 buyers a month from Holden's Barina, which achieved only two stars — the least of any new car on sale here.Although the Barina is a rebadged, eight-year-old Daewoo Kalos — described by The Sunday Telegraph's Carsguide as “genuinely appalling” — buyers don't see beyond the price tag.Alex Bombaci, of the pricing authority Redbook, says Australians just won't buy base-model or poverty-pack cars.“That's been proved again and again. It's going to take anyone a long time to establish a presence,” Bombaci says.Predictably, Ric Hull is ready for this. “The state of sophistication of the vehicles that will be coming in from China bears no relationship to the state of sophistication of those that came in from Korea,” he says.“We'll be around Korean pricing, but we'll have a better specification level.“The Chinese may be largely substitutes for used cars, so will create a market in that sense.“The interesting possibility is that the Koreans will no longer be the cheapest cars on the market. What are they going to do with that new-found status?“It was the Koreans who enabled the Japanese to push themselves up in the market.“I wonder if the Chinese will do for the Koreans what the Koreans did for the Japanese?” Impact of importsGREAT WALL MOTORS SA230Price: $16,000 (est.) Due November 1Rivals: Ssangyong Sports DualCab $28,990Toyota HiLux SR 4X2 XTRA CAB $28,470GWM HOVERPrice: $20,000 (est.) Due TBARivals: Kia Sportage $24,990Hyundai Tucson: $24,990CHERY QQ3Price: $12,000 (est.) Due 2009Rivals: Holden Barina $13,690Hyundai Getz $13,990Kia Rio $14,990CHERY TIGGOPrice: $18,000 (est.) Due: 2009/2010Rivals: Suzuki SX4 $19,990 

By anyone's estimate, when one brand launches 16 new cars all at once, it would provide any prospective importer with a huge shopping list of must-have models. However, Ric Hull, chief of Australian importer Ateco, remains firmly grounded on what type of vehicles will be available when the Chery brand arrives early next year. The Chery Automobile Co showed off a huge range of new light and small cars, off-roaders and vans at the Beijing Motor Show but Hull is committed to a “small is best” graduated launch of Chery into the local market. Among the passenger cars launched at Beijing was a family of 45kW 1.3-litre cars called Faira, which included three- and five-door hatches and sedans, curiously named the BB, HH, NN and YY coupe and cabrio, as well as the VW Golf-sized A3 sedan and hatch. “These are the ones that caught our eye,” Hull says. To make the most of the alphabet, Chery also had a chunky small wagon called the JJ. Hull was also impressed by the mid-size Eastar 2.0-litre and V6 sedan range, as well as the Riich8 van and people-mover, which could rival the Toyota HiAce van. However, Ateco remains committed to launching just three Chery models next year, the 1.1-litre and 1.3-litre A1, 1.6-litre and 2.0-litre A5 sedan and Tiggo four-wheel-drive. The Tiggo is expected to be available with a range of petrol engines and possibly a Fiat-sourced 1.9-litre turbo-diesel. “The cars are still to go through a homologation process to comply with Australian Design Rules but we think that won't be a problem. We're still planning for a first quarter next year launch,” Hull says. With a recent focus on the lack of safety features on Chinese-made cars, Hull says Chery is aware of the demands of a mature market such as Australia and the needs of buyers who expect the latest safety gear. “I get a sense we will be close to the Koreans in sticker price but I think we'll offer more, particularly in equipment and safety,” he says, not ruling out features like electronic stability control, anti-skid brakes, curtain airbags, a full suite of in-car electronics and high-end stereos as standard. Hull has a proven track record with start-up car brands, having been a key player in the introduction of the Hyundai, Daewoo and Kia brands in Australia. He says he will follow a similar formula for the Chery introduction, with established dealers and committed growth plans. “We did think about doing something dramatically differently but probably we won't,” he says. “It will probably be a conventional dealer network and conventional launch. “We like the idea of getting established dealers because it gives us some credibility.” Hull won't talk sales numbers but wants to ramp up sales quickly. “Clearly we've got to get the volumes up into the thousands very quickly to make a business out of it,” he says. He expects to launch with about 50 or 60 dealers and eventually see the number grow to about 120 dealers nationally. Although Hull is impressed by the quality of the Faira hatch and A3 hatch and sedan, these cars may be some way off. Chery, the No.4 carmaker in China, and one of China's other top car makers Geely are generally accepted as being two of the most likely Chinese brands to succeed in mature export markets. However, both are concentrating on meeting a demanding Chinese market, where one million people now have licences and are planning to buy a car in the near future, one senior Japanese car executive said. Although analysts believe serious full-scale exports are still three years off, Chery chairman Yin Tongyao says the US market is also firmly in the company's sights. Chery signed up with Chrysler last year to build a low-cost car to be sold through the Dodge brand in North America and this move may free up the availability of other Chery models for the Australian market. “It's become a cliche but what the Koreans did in 10 years the Chinese will do in five,” Hull says.  

With China expanding at a phenomenal rate on the back of increasing capitalist-style ventures and greater market freedom, demand for its goods and services is growing in foreign markets.

In the city of Wuhu, China, on the Yangtze River, more than 25,000 blue-uniformed workers are busy churning out cars for Chery Automobile. As they motor through double shifts using the latest imported technology, they're also helping to change the dynamics of the global car industry.Barely a decade after it was founded, state-owned Chery has emerged as China's largest independent vehicle maker; and one that is determined to compete against the world's automobile giants.“In the beginning, no one had confidence in us,” says Yin Tongyao, Chery's chairman and general manager, in a rare interview. Now, he says, “we are looking globally for markets.”The tale of Chery's improbable rise is in large part the story of China's ballooning domestic car market, which has roughly doubled in size since 2004. Its products; mostly inexpensive cars and SUVs, which are also gaining a following in developing countries hungry for low-cost vehicles.But rapid growth is already taking its toll, as executives strain to manage the company's expansion amid a shortage of experienced workers. “We are still fighting for our survival,” says Mr Yin. “We didn't get to learn from the books. We have to learn everything by doing it.”In July, the company signed a landmark deal with Chrysler to sell a series of small cars made by Chery under the American car maker's Dodge brand.The pact marks the first time that one of Detroit's Big Three has outsourced the production of entire vehicles to a Chinese company. The deal also sends a warning to high-cost workers in the US and Europe that even more of their jobs could be at risk.Chery's arrangement with Chrysler follows years of breakneck expansion. Sales of Chery cars have increased more than tenfold since 2001. This year, Chery expects to sell more than 400,000 compacts, sedans and sport utility vehicles. By 2010, the company says, it will be turning out a million vehicles annually, for markets both at home and abroad.Holding the reins of this galloping enterprise are Mr Yin and a handful of other men who've been with the company since it started as the brainchild of local Communist Party officials in the poor eastern province of Anhui.The corporate culture they spawned is an odd hybrid of communist state enterprise and entrepreneurial start-up. Party propaganda posters hang on factory walls. “Know plain living and hard struggle,” one poster exhorts workers, “do not wallow in luxuries and pleasures.” In another part of the plant, bulletin boards display quality-survey data from JD Power & Associates comparing Chery's cars with those of its rivals.Inside the gates of Chery's sprawling production complex, where few foreign reporters have been allowed before, assembly lines run 16 hours a day. Much of the equipment is state-of-the-art, imported from Europe.Chery this year expects to export more than 110,000 cars, up from 50,000 in 2006, mainly to emerging markets such as Russia, the Middle East and Latin America, where its low prices are helping to win it business. The company is building a car-shipping port on the Yangtze near its plant to send vehicles to China's coast and overseas.Still, Chery remains far smaller than the world's big car makers. Volkswagen, General Motors, Toyota and Honda, which have each outsold Chery in the China market so far this year. World-wide, GM and Toyota both sell nearly 9 million vehicles a year.At Chery's research and development centre, engineers say they are now developing 40 to 50 new car models, at least 10 of which could be ready for production as soon as next year.Chery says it expects to benefit from Chrysler's technical expertise and established sales and service networks. Even though their cars will be sold under the Dodge brand, they expect consumers will know they are made in China by Chery.“People look down on our products. There are many doubts about our safety and quality,” says Mr Yin. Selling under the Dodge name initially will boost buyers' confidence, he says. “If we work together with Chrysler, we can go global faster.”Chery has combined low wages with massive capital investment and other government-backed support. This recipe is powering the latest phase of China's industrial revolution, helping firms in industries from cars to consumer electronics become significant global players.Junior engineers at Chery earn $US6000 ($6850) a year, and many sleep in bunk beds four to a room in company dormitories. Some don't have driver's licences and, like most Chinese people, didn't grow up riding around in a family car. Few workers can afford to buy cars they make.Assembly-line workers earn an average of slightly more than $US1 an hour — far less than their counterparts in Europe or North America but, in Anhui, a sought-after wage.Chery can “offer low-cost platforms with speed,” says Tom LaSorda, president and vice-chairman of Chrysler, which has said it will eliminate 25,000 jobs in North America. Visiting Chery's plants in 2006, he says, he found that “everything was very familiar,” with production processes and equipment very similar to those in top Western factories.Chery started building its first factories in March 1997. It hired a Taiwanese company to help it design its first model, a sedan known as the Fengyun, or Wind Cloud, which was cobbled together mostly using parts from components makers that supplied the China operations of VW and GM. The first cars rolled off the line in December 1999.But Chery wasn't allowed to sell them, since it didn't have a government licence to be in the car business. The red tape was eventually untangled when Chery briefly became part of the much larger Shanghai Automotive Industry Corp, a large state-owned company with partnerships with GM and Volkswagen. The Fengyun hit the market in 2001 and 28,000 were sold.Chery also began work on a four-door hatchback mini-car, which would lead to accusations that the young company was knocking off the designs of its competitors. The car, which went on sale in 2003 and is known as the QQ, is similar to a GM model known as the Chevrolet Spark.GM sued Chery in a Chinese court in 2004, alleging that the company had illegally copied its design for the Spark. The companies settled the lawsuit in 2005 without disclosing the terms of their agreement.Amid the controversy over the QQ, a fundamental shift was happening. In 2003, executives and government planners decided that Chery should go beyond recycling outdated technologies for the local market. They envisaged the company as an international player.Encouraged by sales in Chery's first two years and by signs that China's car market was revving up, the company and its state owners decided to embark on a massive new investment program. Chery also stepped up its efforts to recruit Chinese nationals working for car companies abroad, as well as to bring foreign expertise to Wuhu.“There's no way you can move slowly and catch up,” says Xu Min, a former Chery engineer who is now dean of Shanghai Jiao Tong University's Institute of Automotive Engineering. “It took the Japanese two or three decades. We didn't have that kind of time.”The central goal to acquire and develop technology that would belong to Chery and help it compete even in the US and Europe, with their daunting regulatory hurdles and high customer expectations.In 2003, Chery recruited Mr Xu, the engineer who is now an academic. Mr Xu, who was at the time a specialist in combustion and fuel injection at Delphi Corp in the US, says he got the hard sell from executives seeking to bring him back to Anhui, where he was born.Mr Xu says a lot of his friends questioned his decision to leave a secure job in Detroit for a post at a then unknown Chinese company. But he says he felt he was hitting a wall in the US.“In Detroit, you could spend years on something and never see it commercialised,” he says. “The pace was so slow.”Chery, on the other hand, wanted Mr Xu to oversee a project that would develop three new families of engines within just a few years.The engines are now good enough that Italian car maker Fiat plans to use them in some of its cars as well, buying them directly from Chery.Earlier this year, Chrysler executives visiting Chery could see the rapid progress that occurred over 18 months.“I would say the 'aha' moment for us would be when we subsequently visited Chery (in June),” says Richard Chow-wah, a Chrysler senior vice-president.He adds that the “ability to make decisions quickly without a lot of bureaucracy was what was most impressive.”What are some of the rumours you have heard about Chinese cars? 

Indian company Tata has unveiled plans to build a people's car that will cost $2800 while carmakers Renault and Nissan are seriously looking at a vehicle around $3500.Renault already has the mass-production Logan car, which sells below $10,000 in Europe.Meanwhile, analysts say Toyota, Hyundai and Chinese automaker Chery are also looking to make ultra-cheap cars in India.However, Tata has been criticised by green advocates who say its car would simply add to traffic chaos and carbon emission, a claim Tata chairman Ratan Tata vehemently refutes.He says his company will bring what is billed as “the people's car” to market next year and its price will be on target, despite a sharp rise in the price of steel and other inputs since the project announcement three years ago. Details or pictures of the car have not yet been released.Carmakers from around the world are keenly watching progress in the Tata project, which analysts say could set new price benchmarks and force other manufacturers to follow suit.But environment groups say the low price will bring the car within the reach of millions of Indians, triggering more pollution and burdening the country's crumbling infrastructure.However, Tata says his car will adhere to strict quality norms like any car in the developed world. He adds: “We will have less pollution per vehicle than any other vehicle in the country today”, indicating that pollution levels will be close to that of two-wheelers.He acknowledges there will be more congestion, but says the answer is in building more and better infrastructure rather than asking car makers to roll back production.Meanwhile, David Cole, chairman of the US Centre for Automotive Research, says a small car with a small engine is likely to pollute less than one with a large engine.But a clean car in India likely would not meet US Environmental Protection Agency pollution limits, he says.“Most of the developing countries, their emissions standards are just sort of getting cranked up now. The baseline is not very difficult to surpass,” he says.Tata says he is curious as to why his low-cost car catering to the aspirations of average Indians is being singled out for criticism.Earlier, there was scepticism that the company could stick to the price target and now it is facing “flak for a different set of reasons”, he says.The company plans to make between 250,000 and 500,000 units a year, Tata says. The base model will cost 100,000 rupees ($3000), but there will be two more variants at a higher price with added features.Keeping fuel options flexible, including the use of ethanol, is also being considered, he says.The project has spurred other global carmakers to explore similar ventures. Already, Renault and its partner, Nissan, are trying to determine if they can sell a compact car for around $3500.VW, meanwhile, unveiled its Up! concept at the Frankfurt motor show this year, a van-like Space up! concept at the Tokyo Motor Show and a Blue up! concept at this month's Los Angeles motor show.The up! concepts are aimed at reviving the low-priced people's car philosophy of the original VW Beetle.VW says development of production versions are underway.It is expecting to have up!s on the road within the next three years.German auto consulting firm CSM Worldwide says the new Tata could help Tata Motors emerge as India's largest manufacturer of cars and light trucks by the year 2013.

Ateco governing director Neville Crichton said that the first passenger cars were likely to arrive here late next year.The highly public failure of the Jiangling LandWind and Brilliance BS6 sedan in European NCAP-style crash testing has put Chinese brands and their acceptability in established export markets; such as Europe and Australia under the spotlight.Mr Crichton said Chinese carmakers were working on delivering a five-star car.“Even four stars is OK, but one star is unacceptable,” he said.The LandWind four-wheel-drive was the first vehicle to get a one-star rating from EuroNCAP.In June, the Brilliance also got only one, but had recently been retested in Spain, where it got a three-star rating.Despite the damaging results, Mr Crichton still believes Australians will accept Chinese cars. Ateco plans to model its Chinese line-up on its success in establishing the Kia range when it was the importer. Ateco imports Ferrari, Maserati, Alfa Romeo, Fiat and Citroen, but wants another bread-and-butter brand.“But we don't want to bring in any cars until they're right,” Mr Crichton said.“Pricing will be competitive and under the prices of the South Koreans. A base-entry car has to be about $12,000.”He said the Chinese cars would have three-year warranties, unlike Hyundai, which has an industry-leading five-year warranty. “There's no really good reason to have a five-year warranty,” he said.Ateco has about 300 franchise applications from prospective dealers for the Chinese cars.Ateco is bullish about expected sales, aiming for 5000 in the first year and 20,000 in three years.To help establish the cars, it also plans ultra-competitive finance packages. Australia has about 50 passenger-car brands in a market of one million a year. Mr Crichton said new entrants would find the going tough unless they were priced and marketed properly.But opportunity still knocked for a low-cost Chinese car, he said. Ateco is yet to confirm which brand it will bring into the country.The company also plans to introduce low-cost light commercial Chinese trucks.Speculation surrounds the Yuejin brand, part of Nanjing Automobile, which already has a relationship with Italian carmaker Fiat. Fiat also has a deal in place with the Chery car company.Ateco already imports Fiat cars into Australia so a possible Chery alliance could be on the cards.  Is your life worth risking in a cheap chinese car?    

New cars as cheap as $10,990 are about to zoom into the Australian market.Chinese models will be leading the way and are expected to shake up the local motoring scene, the way Korean cars did in the 1990s and Japanese makes in the 1970s.Budget-priced vehicles are also coming from India, Italy, Slovakia and the Czech Republic.China has hundreds of car makers with names such as Chery, Geely, Great Wall Motors, Nanjing, Hafei, Zhongxing, Zhonghua, Brilliance China and Shanghai Automotive.However, some of the Chinese models have fared poorly in European crash testing.The Brilliance BS6 sedan got only one star out of a possible five when tested last month, while an SUV Landwind made by Jiangling Motors scored a zero.It was the worst result in 20 years of testing.Details of what Chinese makes will be released here are being kept secret by executives of the companies which will join the invasion.The smaller Chinese cars are expected to start at $10,990.Industry observers agree and expect the Chinese strategy will be for cars to be priced under their Korean equivalents, which have recently been as low as $12,990 in order to get a footing in the crowded market.The arrival of the first Chinese-brand cars is being handled by Ateco Automotive, an independent importer which already brings in Alfa Romeo, Fiat, Citroen, Ferrari and Maserati.The deal is being masterminded by Ric Hull, the executive involved in establishing all the major Korean brands including Hyundai, Daewoo and Kia in Australia.Ateco spokesman Edward Rowe said Chinese cars could reach Australian showrooms by mid-2008. “We're still working on it. We're talking to specific companies but there is a confidentiality agreement in place,” he said.Rowe says the plan was to start Chinese imports with small cars, then increase the range. “Ultimately there will be a full range of cars and commercial vehicles,” he said.Chrysler has made a deal with Chery for a Chinese-made small car to be exported to the US and Canada.An Indian brand Mahindra went on sale in NSW last month and plans to open a Queensland dealer network by September.A spokeswoman said: “Talks are under way with a number of dealers. Queensland will be the next market for Mahindra, it's imminent.”The brand is starting with the Pik-Up utility, diesel-engined “one-tonners” from $23,990 but the spokeswoman said they were 'exploring their options' to sell more models.“There are other opportunities there, but we're concentrating on getting launched first.”Czech-made Skoda cars last sold here 25 years ago and will return in October, with a five-seat mini-people-mover called the Roomster, and the Octavia lift-back.Skoda head Matthew Wiesner said prices would be set against their Japanese equivalents, rather than at traditional European levels.

A Chinese link may help Chrysler hatch a plan to bring the Dodge Hornet to Australia. DaimlerChrysler is believed to be close to announcing a joint-venture deal with Chinese carmaker Chery Motors, that will see its hot Hornet hatch concept turn into a production reality.However, Chrysler Australia Group managing director, Gerry Jenkins, says the Chery talks are ongoing and nothing firm has been decided.But he would definitely like to have the Hornet in local showrooms. "We'd love to have it because there is a huge appetite for these B-segment cars," Jenkins says.However, despite having his fingers crossed that the Chery deal will go ahead, he is wary of speculation."Unfortunately there's nothing definitive at this point," he says.Jenkins says Chery's decision to build the car for China could enhance the car's prospects for Australia."But I can't really give you a time-frame," he says. "There isn't anything official at this point. I can only really speculate that it's in the foreseeable future."He says a car the size of the Hornet would be ideal for the Dodge brand, which is still in its infancy here."That sub-$20,000 market is an interesting market and I'd love to be able to play in it," Jenkins says. He also believes the Hornet would present a good value proposition for a first-time Chrysler-Dodge buyer.The Hornet was first shown as a concept at last year's Geneva motor show. Its compact, modern design was specifically tailored to the ultra-competitive European light car segment. The showcar is powered by a rear drive supercharged 1.6-litre four-cylinder engine developing 128kW mated to a six-speed manual. Its size, engine and looks clearly aims the Hornet at the Mini Cooper.Chrysler also has the Demon sports car;  a hit at the Geneva show. Jenkins says the company is now in the process of putting a business case together for production of the car.“I have my fingers crossed on that one as well,” he says.And if the Demon gets the nod, it will be aimed right at the Mazda MX5. 

Ateco Automotive, which already imports Ferrari, Maserati, Alfa Romeo, Citroen and Fiat is deep in negotiations with a leading Chinese carmaker.The importer says it aims to show the first model at the next year's Sydney Motor Show in October, before the brand is officially launched a few months later.Ateco is not providing details, but admits it is working hard on a deal.Ateco won't comment on which Chinese brand — or brands —— it is negotiating with, but points out it needs a deal with a company that can offer a full suite of light commercial vehicles, an all-wheel-drive wagon and passenger cars.Chery Automobile is one of the brands most likely to be on its way to Australia. It has a full range of appropriate models and is keen on exports, though it is not the only contender.Geely Automobile also builds cars and vans, along with Hafei, which could also be in contention.The brand given the green light for Australia will come with bargain prices to offset concerns about sub-standard design and build.Ateco is keen to have another budget brand after importing Kia cars from South Korea from 2000 to the end of last year, when Kia Motors took over Australian distribution.