Chinese automakers are showing increasing interest in cracking the lucrative North American market.

A Chinese model dressed as a guardsman stands next to a new London taxi manufactured by the Chinese company Geely on the opening day for the public of the Auto Shanghai exhibition on April 22, 2007.
(Mark Ralston/AFP/Getty Images)

Over the past year, Chinese companies have worked on the quality and performance of their vehicles but industry experts say they'll need to persuade drivers that an inexpensive, Chinese-made car is a better value than a used car by an established U.S. or Japanese company.

Two years ago, a lone Geely Automobile Co. sedan marked the first time a Chinese automaker displayed at the North American International Auto Show.

Last year, Geely was absent but China's Changfeng Motor Group showed a pair of small sport utility vehicles and two pickups in a more polished display.

This year, four Chinese automakers and an importer have displays. Geely is back with eight vehicles and Changfeng returned with two SUVs, plus two more vehicles that were to be unveiled Monday. Two companies are planning to sell cars in Canada, the Globe and Mail reported.

Geely and the China America Co-operative Automotive Inc. (Chamco) importers said they plan to sell vehicles in Canada in 2009. Chamco said it is planning to sell 15,000. On offer will be a pickup truck and an SUV. Prices will start at about $13,500, company officials said.

Cars to roll out in Canada in 2009

Sales will start in the United States this year and in Canada early in 2009, assuming the vehicles can meet Canadian standards, the company said.

"These are … durable, quality cars," William Pollack, Chamco's chairman and chief executive, said in an interview Sunday.

"I think the consumers will embrace the cars."

Pollack said his company — and the Chinese — recognize the importance of getting it right when selling to U.S. drivers. Chamco has focused on making sure quality is high and prices are low, an estimated 20 per cent less than comparable models. Styling, he noted, follows that of established automakers.

Jack Nerad, executive market analyst for Kelley Blue Book auto guide in Irvine, Calif., said Japanese and South Korean companies faced similar quality concerns in their earlier days as those now facing Chinese automakers. Key, he said, will be how well those first cars stack up against current models in the U.S. market.

"It's an obstacle, but certainly not an insurmountable one. There certainly will be some skepticism about Chinese-built cars," Nerad said.

"They have to hit the ground with high quality. Stumbles early with product quality can be devastating."