Great Wall SA220 News

Chinese cars were tipped to dominate the budget-car class and challenge established brands in half the time it took Japanese and South Korean companies - but the bubble has burst before it's properly inflated. After some early success since becoming the first Chinese brand to go on sale in Australia, Great Wall Motors has hit reverse and its Chinese peers are struggling to get into first gear.Official figures for the first five months of the year show Great Wall Motors deliveries are down by 35 per cent compared with the same period the previous year in a record market that is up by 4.5 per cent.Other Chinese brands such as Foton have also had a stalled start. After announcing big plans two years ago Foton has sold fewer than 300 pick-ups in that time.Budget brand Geely has still restricted its sales to Western Australia and Chery's small cars have been stymied by newer competition from established brands. Chery sales are also down by 35 per cent.The Chery J1 hatchback was the cheapest car in Australia in almost two decades when it went on sale with a $9990 drive-away price in 2011, and is now available with a "pay half now, half later'' deal.But it too has failed to rock the sales charts. ''Sales have slowed for now but they will recover,'' says Daniel Cotterill, the spokesman for Ateco, distributor of Great Wall Motors and Chery passenger cars and the Foton truck range.''It's been frustrating for us and the dealers to not have more new models available to us as quickly as we would like."'The other challenge for Chinese car brands is that mainstream marques such as Suzuki, Nissan and Volkswagen have all responded with quality cut-price contenders priced from $11,990 to $13,990 drive-away. "In some ways we are a victim of our initial success,'' said Cotterill. "Other mainstream brands have had to come down in price to compete with us.''Other hurdles: more than 20,000 Great Wall Motors and Chery vehicles were recalled in August 2012 for having asbestos components in their engines. Chinese cars tend to earn poor to scores in crash tests (between two and four stars when the modern industry norm is five stars).But the companies hope to have a reversal of fortunes with a number of new generation Chinese vehicles made to international standards due in local showrooms in the next two years.''There are new models in the pipeline,'' said Cotterill.''We are confident in the ability of the Chinese to respond the Australian car market and boost sales.''This reporter is on Twitter: @JoshuaDowling 

...we go electric.More specifically we investigate the promise of electric cars.We are starting to hear that they are close to arriving on our streets but you know what I think there is one thing we are forgetting. Not everyone drives their car into a garage every night were there is a power point and extension cord standing by.Most people, especially in city areas where you would think electric cars will be more popular to start with, park their cars on the street at night.So how do they recharge their batteries? Well there is a new scheme being planned for Canberra that will see recharging stations installed in car parks and other public places.Plus...in the old days tradies and farmers pretty much had the choice of just a couple of manufacturers when it came to their vehicles.Now a days however the range of commercial vehicles available is huge. There is about to be even more competition with the introduction of Chinese made Great Wall Motors utes.Mahindra Australia has also unveiled a brand new model of their pik up range.For all this and much more, listen to the podcast above. 

A pair of Great Wall Utes are the spearhead of what is predicted to be a growing tide of Chinese-made vehicles heading into the Australian market.However, neither of the Great Wall models have electronic stability control. The base model SA220 also goes without airbags or anti-lock brakes.When the Indian-built Mahindra Pik-Up gets its suite of airbags and anti-lock brakes in July and the Toyota LandCruiser Troopie follows suit in August (if industry rumours are correct) it will leave the SA220 as the only car available for sale in Australia without a single airbag.Neither of the Chinese models has been crashed tested for an ANCAP safety rating. A Great Wall Motors spokesman yesterday said the car had been crash-tested in China. However, he said: "We are assured that the company's own crash testing is to the same standard as ANCAP."The company will offer the V240 in 4x2 and 4x4 configurations, while the SA220 will be a 4x2 proposition only, but the brand's Australian importer, Ateco Automotive, claims both vehicles offer value for money workhorses for Australian buyers.A network of 45 dealers will back the vehicles with a three-year 100,000km warranty and sell the V240 4x2 for $23,990, with the 4x4 variant an extra $3000; the SA220 will retail for $19,990. The features list includes power windows, alloy wheels, leather trimmed seats and air conditioning.Ateco Automotive managing director Ric Hull says Great Wall is one of China's leading car makers. "It has been consistently at the top of its domestic car market with its Ute and SUV models."Hull says every mainstream car and component manufacturer is represented in China and the car industry there has come a long way in a very short time. "From day one we have been thoroughly impressed with Great Wall. World-class production facilities are becoming commonplace in China and there is no doubt that Great Wall has set a production benchmark.Hull says the company's culture is impressive - with a motto of "improving little by little every day ... We targeted Great Wall for our Chinese plans because they are highly disciplined, organised and well-led," he says.

However, Ateco Automotive chief, Ric Hull, is confident Chinese cars and light commercial vehicles will be in local showrooms by June.Ateco had originally aimed to launch some Chinese cars into our market last month.Hull says the delay "is purely a function of exchange rates at the moment".He's hoping the Australian dollar will recover or "market pricing levels will adjust to the exchange rates".For Ateco, the first cab off the rank will be four vehicles from Great Wall Motors.The lineup is tipped to be two light commercial pickups with 2.2 and 2.4-litre engines, a small 1.3-litre hatch and a 2.4-litre four-wheel drive off-roader.GWM has right-hand drive versions of the Wingle and Sailor pickups ready to go, as well as the stylish Hover off-roader."In tough times the light commercial segment is not a bad place to be," Hull says.In the third quarter, once its cars meet tough Australian Design Rules, the Chery brand will follow.Ateco has previously expressed interest in the Chery Tiggo off-roader A1 hatch and A5 sedan.News that China cars are still on the local agenda is worrying for marginal importers like Proton, SsangYong and recently launched Mahindra, all fighting for market share.Hull has a proven track record with start-ups, having been behind Hyundai, Daewoo and Kia in Australia.He is heading to China in April for the Shanghai Motor Show to meet with both GWM and Chery executives."Great Wall is talking about launching several new models this year, so we'll be interested in talking to them about those," he says.Like GWM, Chery will concentrate on the volume hatch and sedan small car segment, as well as the compact four-wheel drive segment.Hull says Ateco's strategy will aim at the rival Korean brands but add more equipment in the Chinese cars.This means buyers can expect safety and comfort features normally found on more expensive cars.Things like electronic stability control, anti-skid brakes, curtain airbags, a full suite of in-car electronics and high-end stereos are likely to be standard."The Koreans are an uncertain benchmark at the moment because the Won is one of the least affected currencies by the depreciation in the Australian dollar," Hull says.By comparison the Australian dollar has lost 40 per cent against the Japanese Yen.Ateco has signed 60 dealers, mostly metropolitan, to sell GWM cars."They are quite unperturbed by the delays; they understand completely," Hull says.