Motor giant heads to US market

China's GAC Motor said on Monday that the company plans to begin selling vehicles in the United States by the fourth quarter of 2019.

Zhang Fan, vice-president of engineering at GAC, a unit of Guangzhou Automobile Group Co Ltd, said at the 2018 North American International Auto Show in Detroit, that the model to be sold in the US will probably be one of the company's sport-utility vehicles, or SUVs.

One potential candidate could be the Trumpchi GS7, a midsize SUV that seats five and was unveiled at last year's show. GAC has marketed vehicles under the Trumpchi brand in China since 2010.

GAC lacks the infrastructure to distribute its products in the US market through a dealership network. But Feng Xingya, chairman of GAC Group, noted that the company has a joint venture in China with Fiat Chrysler Automobiles NV.

"Over the years, we have enjoyed our collaboration with FCA," Feng said. "It is our hope to work with FCA in the North American market."

Asked about potential interest from GAC, FCA Chief Executive Sergio Marchionne said the Chinese company had helped FCA bring Jeep to the Chinese market through their joint venture, and FCA was in turn trying to help GAC expand in the US, the Associated Press reported on Monday.

"They have global ambitions, they want to come to the US ... we are talking to them about if and how we can help them to accomplish this," the AP quoted Marchionne as saying.

Yu Jun, the general manager of GAC Motor, said the company has been working since 2016 to have its products meet US safety and emissions requirements.

"We have conducted a study of US laws and regulations. We will ensure that we can meet all the US regulations," he said.

Amid trade tensions between the US and China, it's noteworthy that GAC chose Detroit and the state of Michigan to announce its US ambitions. While the city, state and their most important industry are recovering from the 2008 financial crisis, there is some sensitivity over trade that was fanned by US President Donald Trump in the 2016 presidential election.

Despite that, Michigan Governor Rick Snyder posed for pictures on the NAIAS stage with GAC officials. Meanwhile, Ryan LaFontaine, chairman of the 2018 NAIAS, praised GAC.

"It is truly an honor to have you here and watch you grow. We can't wait to see your vehicles on our streets," he said.

GAC also presented two new models in Detroit. The company unveiled an electric concept SUV called the Enverge and a midsize sedan named the GA4. The Enverge has a driving range of 597 km and will eventually be sold in the US as well as China. The GA4 will initially be targeted at the mainland market.