uxojerry

Ive worked in Asia for the last five years. Asia is not quite ready for an explosion of performance cars. Many people who have wealth arent into toys yet. I dont see a lot of jet skis, powerboats, etc. I would guess it may be a few more years before performance cars get really popular. There are a handful of sports cars, probably owned by people who have lived and worked abroad. Asians have ideas of success that are difficult for westerners to fathom. Here is the standard vehicle progression in my country:

1. Moto - everyone age 14 and up has or wants a moto.
2. Toyota Camry - The only acceptable sedan.
3. Toyota Rav 4 or Honda CRV.
4. Lexus Midsize SUV.
5. Lexus Large SUV.

All cars of any particular year sell for the same price. Mileage is immaterial. Black cars sell for more, and the next most popular color is beige. Most used cars are from the US and are probably salvage cars brought in as parts to escape import duty.

New car dealerships are just now on the scene in force. Light trucks have 1/3 the import duty of cars/SUVs. A brand new small Chevy SUV is just under $50k and a Ford Escape about the same price. Diesels are a few $k less than gas.

A new Corvette will have $60k in import duty and the Chevy dealer will not support repairs. I decided to build a custom C2 and will have to pay $12k in duty because it is a 1965. Im bringing in all the repair parts with the car and will get maintenance from a mechanic school. I may have my car builder visit the school for a week of classes.

My foreign counter part got promoted and wanted to borrow money from me. When I asked why, he said he had to buy the big Lexus to go with his promotion, lol. Bank finance is largely unheard of. Informal finance is very common. That is changing but most bank finance requires 50% down and maybe a two year loan on the balance. Even finance for houses/homes are rare.

If GM wants to sell Corvettes in China, they will have to relocate some of their Kentucky boys to Beijing. A car assembled in China has no duty. Talk about fair trade, lol!!

LS1LT1

Hmm, perhaps the U.S. needs to tax/tariff/put duties on ANY/ALL Chinese manufactured (Japan does this as well I believe?) vehicles being sold here in the States as well.

How does the saying go again?
Do unto others as you'd have them do unto you.

uxojerry

I picked up the brochure today for a Chevy Suburban 4wd. The vehicle is decently equipped and has a 5.3l V8. In SE Asia this Suburban is priced at $137,999. The only financing offered is $55k down and a 1yr or 2yr pay off. What a bargain, I may buy two of them, lol.

BlueOx

Where in Asia? Doing what?

jackhall99

Marc, been that way for years. We let the crap roll in for no to little cost (from any country) and they (any country) tax the **** out of our goods.

SCM_Crash

I can't think of any roads in China that would be good for a fast car. (Then again I've never been there.)

I agree.

Seriously, you don't see the racism there? I'm not politically correct outside this forum, so I saw it really fast, and actually thought it was funny for a different reason. But there's no need for that here on the forums.

LS1LT1

True, unfortunately.
And I find that so ironic in a nation that is usually so PROUD and dignified with a 'we take no unfair crap from anybody' type of mentality when it comes to other areas such as sports or even the military.
For example, go to a sports bar and tell a guy that his favorite baseball team sucks and that he's an idiot for following them so passionately and he might punch you in the face.
Then that very same 'ultra proud/take no crap' guy heads out to the parking lot and gets into his (built in Japan) ES350 all the while not even acknowledging that Toyota is laughing at him all the way to the bank because his fellow Americans can't even sell their own products in Japan for the same price that they sell for here, yet they still choose to buy their cars in droves.
Not much pride or dignity their in my opinion.

Your kid goes to the neighbor's house to sell candy for his soccer team's new uniforms and their son says "no!" as he slams the door in your kid's face.
Are you really going to want to buy from that same neighbor's kid when he comes calling at your door trying to peddle raffle tickets for his little league team?

You buy from me and I'll buy from you, very simple actually.

SCM_Crash

Honestly, the Chinese just keep getting American products and stamping out cheaper clones of it made out of pot-metal and farts. There's no way to stop them from getting a Vette over there and doing the same thing with a Vette. Why make it easier for them?

LS1LT1

Good point.

jb_va2001

I expect GM will prep several more practical cars for China long before giving Corvette a thought.

uxojerry

What is kind of humorous is Asians will pay a premium for American made products. Asians generally dont want counterfeit, copy cat products. Apple for example could produce a premium Apple line, made in America, and charge for the higher production costs. Most Asians would pay the premium, for the Made in the USA item.

Most Asians I know, are not consumers. They shop like my parents did. They hope to buy something once and it last for a lifetime. Think Craftsman Tools?

A pair of my original Levi's required replacement. I could not find one pair of genuine Levis in the country I live in. I had to buy them on a trip to the US. Instead of crying about counterfeit products, Americans need to get over here an open genuine stores. They will flourish if they come.

Americans are creative and have cost management down to a science. These are two commodities in short supply. The average Asian store is run inefficiently with too many underpaid, under trained and most importantly under empowered workers. An Apple Iphone has a 24hr warranty or none at all, and yet everyone wants one. Apple has no stores so all phones are grey market resales. Instead of Apple employees jumping off the roof of the factory in China, the products should be made in the USA or at least a premium line. Stock holders should demand it!

American business created globalization, we need to start making more stuff at home and really start enforcing fair trade. A new Suburban sold in Asia, should cost $65k, not $138k. If the US govt allowed our corporations to bring home their cash tax free, but required them to open more US manufacturing, we could get rolling tomorrow. Sorry to hijack a thread. This subject really pisses me off!!!

LS1LT1

100%

DCQT

Long time lurker . First time posting. I will have to respectively disagree with some of the comments on this post. One of the reasons that we are able to maintain a comfortable and relatively cheap standard of living is because we are a global economy. As such our american companies are able to exploit the relatively cheap labor in other countries. GM and and other multinational corporations are in the business to make a profit. They will produce a product at the lowest expense that will meet their target market expectations. Trade tariffs are designed to encourage domestic consumptions. Most, if not all countries use it in one form or another. Some countries do have a free trade zone (NAFTA). I'm quite positive that neighboring countries in other parts of the world adopt the same strategy.

bterwilliger

I've been working in China for about 6 months now. I haven't seen a single Corvette, though at the hotels where I stay there are routinely a handful of Porches, Ferraris, Maseratis, Lambos, Rolls, Aston Martins, and more parked out front (every night). For whatever reason, the Vette is either not sold or not bought here.

BlueOx

Yet...that is the whole point of my thread...it has to sell there to keep up globally, IMHO. It is just too big a market (or will soon be too big a market) to ignore.

uxojerry

Buick is doing well in China, Cadillac soon to follow. You dont see many sports cars in the ZR1 price range yet. You see many of the high end sports cars, purchased by the children of the rich. Mom and dad usually have an L type sedan with a driver. My guess is two to three years from now, you'll start seeing more 911s, GTRs and maybe Corvettes, if GM markets them properly. The upper middle class are probably more interested in buying a $1 million apartment than a sports car right now. Once they have an apartment with two parking spaces, mid range sports cars may take off.

Vehicles are taxed by engine displacement, making a 911 or GTR much more affordable than a Corvette. Just food for thought!

BluegrassMotorsport

The Chinese are rich at the moment. They are buying anything and everything. But, in terms of cars, I do not see the Corvette being a success there. Sports cars are selling pretty well, but not near as well as sedans. Here in the States, success is often measured by the size of your SUV, or the sports car you drive. In China, success is measured almost completely in rear legroom. It seems strange to me, as I am sure it does to others as well. But car companies all over are making special models only for China that have extended wheelbases for more legroom. The sports cars are not selling terrible by any means, but the Chinese seem more attracted to the sedans as of now.

mike100

I haven't been back there for a couple of years, but a bunch of guys who work there more or less permanently set off to get Chinese drivers licenses. One of the older guys got shot down because he was too old. Apparently you need to have a driver once you turn 60 because they don't trust you to drive after that. The Corvette isn't marketed as a status brand like Porsche or similar. Corvette isn't really youth marketed either.

I can see the limo/legroom factor. I personally saw the luxury SUV's and such parked out in front of the better hotels in the Inner Mongolian Province where I worked at. The weather and roads were not too great for a sports car of any type. China is the only place where a 740 bimmer will pull up to the red light next to a donkey cart.

uxojerry

China and SE Asia has a lot of first generation wealth. Mom and dad may not know how to drive or are not comfortable driving. Labor is cheap so they have an L sedan and pay for a driver, usually a relative. Sons and daughters grew up with wealth, are a little more sophisticated, and are probably the current market for sports cars.

The advantage in Asia is conformity. 5yrs ago in my country there were no high end Land Rovers. The first was sold to a prominent family. They became acceptable in lieu of the big Lexus SUV. Now they are the hot ticket and the dealership is rolling.

If GM assembled Corvettes in China they would be $60k cheaper than the competition. I personally think a new business plan of low volume, cottage assembly, in local markets would work wonderfully. No import duty, local market experimentation, with contingency plans for success or phase out for failure would work. GM has factories in most of the countries anyway, they have to build nothing. Sorry for bothering people with my opinions.

LS1LT1

At least it looks like South Koreans might be able to buy new Corvettes now?

http://www.corvetteonline.com/news/s...uy-a-corvette/