Chinese companies beginning to carve out a niche in America’s Motor City.
China’s Geely Automobile, which owns Swedish carmaker Volvo, has announced it will partner with Detroit Electric, a Michigan-based start-up electric carmaker, to develop Electric Vehicles for the Chinese market. Detroit Electric had recently unveiled its latest battery power sports car for the US market, priced at $135,000.
Geely and Detroit Electric are working together to develop a pure electric version of the popular Geely Emgrand EC7, which will become available in the first quarter of 2014. The project is Geely’s second EV venture this year; in March, Geely formed a $160m electric car joint venture with China’s Candi Technologies Group.
In an effort to curb pollution, the Chinese government have set tough targets for EV ownership, planning to put five million vehicles on the road by 2020, although the policies have gained very little traction to date. Furthermore, as the majority of China’s electricity comes from coal, the reduction in car emissions may well be negated by heavy-polluting power plants.
Geely is not the only Chinese firm to gain a foothold in the Motor City. Many Chinese automotive companies seeking foreign talent are also setting up in Detroit. The Detroit Chinese Business Association counts its membership at over 100 Chinese-owned businesses, most of which are in the auto industry.
Last year, China exported around $13bn in automotive goods to the US, including tyres, wheels and radios that are sold as replacement parts – according to consultants, Alix Partners.