The Chinese are coming, but will the USA accept them, only time will tell.

How much does a Chinese brand need to discount its cars to make it in America? Wu Song, general manager of aspiring U.S. entrant Guangzhou Automobile Group Co., says he has that magic number: His cars have to be 30 percent cheaper.

The company's top executive already is on the prowl for U.S. dealers, importers and distributors. And if everything goes his way, Wu says he'll be testing his basement bargain pricing strategy with the U.S. launch of GAC Motor's GS4 crossover sometime in 2017.

"We are confident. It could be popular in the market," Wu told Automotive News at the Shanghai motor show. "Considering the low price, it should be competitive."

GAC is the latest China automaker to float plans to sell made-in-China cars in the U.S., following similar pronouncements by Great Wall and BYD. Skeptics often titter at such goals, noting the many Chinese brands that have pledged to be Stateside in two or three years. But GAC's disclosure shines a light on the pricing calculus they are working with.

With no true bargain brands left in the United States, Chinese brands see room to underprice the competition and gain a niche below rivals such as Kia, Mitsubishi and Dodge.

GAC's goal will be sticker prices that are 30 percent lower than competitors in the same segment, Wu said.

The GS4 represents the latest that GAC has to offer. On April 18, it was launched in China with prices ranging from 99,000 to 146,800 yuan ($16,200 to $24,100). GAC aims to sell 120,000 units a year.

In the United States, the compact crossover would go up against such entries as the Toyota RAV-4. Toyota's nameplate starts at $24,565 including shipping, just above the GS4's upper limit.

But Wu says his offering boasts better fuel efficiency, more power and a roomier interior. It consumes 6.3 liters per 100 kilometers under China's testing cycle, Wu said. While that can't be directly converted to an EPA rating, it equates to about 37 mpg. The RAV-4 gets a combined 26 miles per gallon.

"This car bears no relation to Toyota," Wu said. "Only the assembly technology is similar."

Wu said he is "90 percent confident" that GAC will bring the GS4 to the United States, but first the company needs to sign on dealers and importers. "The most important thing is finding a partner," he said.

It will be difficult for any unknown brand, no matter where it is from, to crack the U.S. market because it is saturated with so many established brands, said James Chao, managing director for Asia Pacific at IHS Automotive.

Meanwhile, a 30 percent "China discount" is smaller than the markdowns of up to 40 percent that China brands are already relegated to against global brands in their home market, he said.

"My initial reaction to the 30 percent is that it's way too small," Chao said. "I'm not optimistic. It's a real challenge for an unknown brand with an unknown track record."

Still, some U.S. dealers might roll the dice on the brand, possibly putting GAC's car up against used vehicles with a deep discount and warranty, Chao said.

A better U.S. entry strategy, he added, might be that of China's Zhejiang Geely Holding Group Co.

In 2010, Geely acquired Volvo Car Corp. and now plans to export a Chinese-made long-wheelbase version of the Volvo S60 sedan in the U.S. this year. Geely then might be able to steal into the U.S. market under Volvo's premium mantle, without going the cheap route, Chao said.

GAC has had its eye on the U.S. for awhile, with exhibits at the Detroit auto show in 2013 and 2015. This year, it showed the GS4 and an autonomous hybrid concept.

A major state-owned automaker, GAC operates manufacturing and sales joint ventures with Toyota Motor Corp., Honda Motor Co., Fiat Chrysler Automobiles and others.

In December, a company press said it "hopes to seek tie-up and cooperation with international counterparts at the Detroit auto show to fine-tune its production and research capabilities to make better energy-efficient cars in the future."

Hans Greimel

REPORT HERE

IRELAND - New 2015 Great Wall Steed, gets improved dynamics and better kit.

• Full spec. revamp for Ireland’s best value 4x4 double cab pick-up
• Industry leading enhanced six-year / 200,000 km. warranty
• Towing capacity 2,500kg. braked

Great Wall, the Manufacturer reputed for highly specified trucks that represent uncompromising value for money, has announced a full equipment upgrade for New Steed. Already Ireland’s best value 4x4 double-cab pick up, the Great Wall Steed gains an array of upgrades, including the following:

• Improved galvanisation and additional rust proofing
• Introduction of a Diesel Particulate Filter and a new exhaust system (Euro 5)
• Introduction of a Tyre Pressure Monitoring System, with display integrated into the new Multifunction rear view mirror, which also includes auto-dimming
• Repeater indicators incorporated into the door mirrors
• New instrument cluster, with clearer layout and premium feel
• New foldable key, with remote central locking function incorporated into the key fob
• Rear disc brakes replacing previous drum brakes
• Newly refined transmission
• Upgraded Sound System: Alpine Double DIN stereo with Bluetooth, CD/USB/RDS and MP3 capability
• Improved leather upholstery - softer and more durable 

As well as all of the foregoing, Steed SE gains further additional benefits:

• Improved canopy, more stylish and aerodynamic
• Side steps, more substantial and modern in appearance
• Chrome trim to rear lights, to match the front daytime running lights

Steed’s class-leading extended six-year warranty comprises the 3 year/100,000 km. manufacturer warranty plus a further 3 year/100,000 km. powertrain extended warranty provided by Great Wall Ireland.  

As well as the new six-year / 200,000 km. extended warranty, all Great Wall Steeds benefit from a six-year anti-perforation warranty, three-year paint warranty and three-year roadside assistance.

Great Wall’s entry-level Steed S is the most affordable 4x4 double-cab pick up, with a purchase price of just €23,666 (excl. VAT, delivery and related charges.). Features standard to all Steeds include 5 16-inch alloy wheels, daytime running lights, remote central locking, a Thatcham-approved Category 1 alarm, electric front and rear windows, an Alpine CD/radio with USB/MP3 and Bluetooth connectivity, steering-wheel-mounted audio controls, air-conditioning, heated fronted seats and a full leather interior.

The SE Accessory Pack, (hard-top canopy with roof-rails, loadliner, sidesteps, and reversing sensors), adds €2,506, plus VAT. (€3,000 inc. VAT & VRT)

All Steeds feature Great Wall’s 2.0-litre 16-valve turbocharged diesel powerplant that delivers class-leading fuel economy (30.1 mpg urban; 37.7mpg extra urban; 34.0 mpg combined), as well as a low-range gearbox and an ‘on-demand’ four-wheel-drive system that can be selected by the driver when the terrain becomes challenging. Generously equipped, keenly priced, the Steed S simply gives you more pick-up for your money.

Latest Great Wall "Steed" gets improved quality, better spec and better value for money.

• Latest generation Steed offers better value and higher specification
• Improved quality throughout  
• Three models in UK line-up
• Euro 5 compliant
• Six year / 125,000 mile warranty
• On sale 1 October 2014, priced from £14,998 (CVOTR)

Two years after commencing volume vehicle sales in Britain with its value for money Steed pick-up, Great Wall Motors is launching the latest generation of the 4x4 double-cab onto the UK market, promising improved quality, a higher specification and even better value.

As before, the updated Steed blends style and practicality while retaining its position as the best value pick-up on the market.

One of China’s most successful car manufacturers and exporters, the company boasts impressive credentials in the production of pick-ups. Great Wall has manufactured the best-selling pick-up in China every year since 1998 while globally the Brand has sold nearly one million vehicles.

Prices for the new Great Wall Steed start at just £14,998 (CVOTR) for the generously-equipped Steed S model – the lowest price for any double-cab 4x4 pick-up in the UK – increasing to £16,998 for the top-of-the-range SE. Despite carrying a premium of only £1,000 over the old model, the 2015 Steed is packed with even more practical, standard features.

On sale from 1 October, the new Steed will be available through a carefully selected network of fifty dealers, many appointed in 2012 at the launch of the franchise in the UK. The dealers are mainly small, privately owned enterprises, hand-picked by Great Wall’s franchising team to reflect the brand’s values and philosophy and their ability to deliver the promised standards of customer service that will break new ground in the segment.

Typically Steed

The vehicle retains its chunky looks, amplified by muscular wheel-arches and high ground clearance, but now with a slightly sleeker profile with the side indicators incorporated into the door mirrors instead of the front wing. The Steed is available in Titanium White and three metallic colours (optional at extra cost) – Pearl Black, Sky Silver and Noble Grey. The Tracker special edition will be available in Titanium White and Noble Grey.

Inside the new Steed is where some of the more significant improvements are to be found. Higher quality materials, such as that used on the seat facings and a sharper, more contemporary design of instrument cluster, creates a more comfortable and ergonomic feel to the cabin. New technologies have been added to improve convenience and enhance the ownership experience, including a multi-function rear view mirror with automatic dimming and an outside temperature display. A tyre pressure monitoring system is also incorporated which will display the working pressure for each tyre.

Carrying capacity compares very well with established pick-up rivals as the cargo bed measures 1,380 mm x 1,460 mm x 480 mm (length, width, depth). The Steed has a maximum payload of 1,050 kg and is now certified in the UK to tow 2.5 tonnes with a ‘braked’ trailer. The increase in towing from 2.0 tonnes followed independent tests at the Millbrook Proving Ground in 2013 where it was put through stringent tests by an independent team of engineers and consultants, subsequently resulting in the Steed being fully validated by the Vehicle and Operator Services Agency (VOSA).

The Steed’s capabilities as a durable and versatile load-lugger, both on- and off-road, is impressive. Under the galvanised steel skin lies a separate, rust-proofed ladder-frame chassis, strengthened and braced by reinforced centre cross-members, an impact-resistant rear beam and a reinforced cargo bed.

The Steed is fitted with an ‘on-demand’ part-time, four-wheel-drive system that delivers numerous customer benefits. When slippery conditions are encountered on-road – or an all-terrain capability is required off-road – the driver can select all-wheel-drive simply by pressing a button on the dashboard, up to speeds of 12mph.

The advanced transmission system, manufactured for Great Wall by BorgWarner, is the dual-range type seen in other serious off-road vehicles. To further aid its usability, the Steed has selectable low-range ratio gears for when serious off-roading is encountered.

For 2015, the Steed is also equipped with rear disc brakes replacing the old drum units to increase stopping power and stability.

Engine

The 2015 Steed uses the same free-spinning 2.0 Litre diesel as the previous model, now certified to comply with Euro 5 emission regulations. The water-cooled 1,996 cc power plant is fitted with a CAC (charge air cooled) intercooler system, state-of-the-art glow plug technology and a variable-geometry turbocharger (VGT). The variable geometry turbocharger features turbine blades that alter their pitch according to engine speed – to provide the Steed with high levels of pulling power throughout the rev range, and maximum torque from as low as 1,800 rpm.

With a long-stroke design for optimum torque generation, the Steed engine features an 83.1 mm bore and a 92.0 mm stroke, with a rigid block structure and direct injection fuel system to reduce noise and vibration while on the move. The Steed engine produces maximum power of 139PS at 4,000 rpm with maximum torque of 305Nm spread over a rev range of 1800 to 2,800 rpm. 

Steed Equipment and ownership promise

The Steed will come with a host of standard features typically offered only as high-cost options on competitor models, including 16-inch alloy wheels, daytime running lights, remote central locking, a Thatcham-approved Category 1 alarm, electric windows all round, air-conditioning, heated front seats and for the 2015 model, the addition of a double-din Alpine CD/radio with USB/MP3 and Bluetooth connectivity and steering wheel mounted audio controls. An auto dimming rear view mirror is also now standard.

To make the Steed ownership proposition even more attractive, Great Wall Motor makes a highly-attractive, six-point promise to all its customers.

This comprehensive care package includes a six year / 125,000 mile mechanical warranty, a six-year anti-perforation warranty, three-year paint warranty and three years of roadside recovery and assistance. However, going over and above the industry expectations, it also includes inflation-proof fixed-price monthly service payments, and the policy of only invoicing for work previously agreed with the customer. 

Further promises ensure customer convenience: test drives at the location of the enquirer’s choice (if they live or work within 20 miles of a Great Wall dealer), and free service pick-up and drop-off for customers up to 20 miles away from the dealer.

Keeping ownership costs down yet further, the Steed boasts the lowest insurance ratings (from 7A for the S, and 8A for the SE models) of any vehicle in the pick-up segment.

State of the art manufacturer

Unlike its predecessor, the latest Steed is built and assembled at Great Wall’s newer manufacturing facility based at the head-office in Baoding City. Utilising the latest vehicle assembly robotics, sourced by Great Wall from around the globe and a new fully automated paint shop, it is anticipated that the Steed will have improved quality levels throughout the vehicle. The plant is capable of designing, developing and building SUV, passenger-car and pick-up model ranges.

Great Wall also has its own purpose-built test centres and laboratories to assesses and optimise the performance and capabilities of its vehicles – encompassing safety tests, emissions, and the management of noise, vibration and harshness (NVH) – with all resulting prototype manufacture being conducted in-house.

Model line-up for the UK

Model	Price CVOTR	CO2 g/km	MPG Combined	Insurance Group
Steed S Steed SE Steed Tracker	£14,998 £16,998 £15,998	222 222 222	32.5 32.5 32.5	7A 8A 8A

Equipment

Steed standard equipment is as follows:

Exterior
16" x7J alloy wheels Body coloured bumpers Chrome door handles Chrome door mirrors	Electric door mirrors Integrated fuel filler cap Tinted glass (including windscreen)  Wing mirror mounted indicators

Seating / Trim

Leather upholstery

Leather gear knob and steering wheel

Individually heated front seats

Reclining front seats

Comfort / Convenience
Adjustable dashboard illumination Air conditioning  Air recirculation system    Accessory power point             Centre console with armrest & cup holder  Cigarette lighter Driver/passenger sun visors Delay courtesy light function Driver/passenger reading lights   Electric selection of 2WD/4WD - high/low	Electric windows front/rear Front seat back map pockets  Front door cup holders Height adjustable front/rear headrests Load liner Low fuel warning light Rear parking sensors Rev counter        Tilt adjustable steering wheel

Entertainment

Four speakers

Alpine double DIN CD/ USB/RDS radio

Bluetooth hands-free mobile phone connectivity

MP3 connection

Steering wheel audio controls

Safety /Security
ABS                                                   EBD                                                  Daytime running lights                      Door open warning light     Driver and passenger airbags Electric window override switch       Height adjustable front seatbelts       High mounted rear brake light       Insurance approved immobiliser	Ignition key reminder warning Locking wheel nuts Lights on reminder warning Radio frequency remote central locking Rear door child proof locks Rear window demister          Security etched glass and components Three 3 point rear seat belts Thatcham approved category 1 alarm

Steed SE additional equipment is as follows:

Black roof rails

Body coloured hardtop canopy

Chrome rear lamp surrounds

Chrome side bars

Chrome trim to daytime running lights

Technical Specifications

Performance
Max output                            Max torque                            Max speed                            Acceleration (0-62mph)	139 ps @ 4,000 rpm 305 Nm @ 1,800-2,800 rpm 87mph 17 seconds

Fuel consumption
Urban                        Extra-urban               Combined	29.1 mpg / 9.7 l/100 km 35.8 mpg / 7.9 1/100 km 32.8 mpg / 8.6 1/100km

CO2 emissions
Urban                        Extra-urban               Combined	250 g/km 206 g/km 222 g/km

Dimensions & weight
Overall length    Overall width   Overall height                        Wheelbase                      Front track                            Rear track                            Minimum road clearance      Seating capacity                   Kerb weight	5,040 mm 1,800 mm 1,730 mm 3,050 mm 1,515 mm 1,525 mm 194mm 5 persons 1,835 kg

Transmission
1st High/Low                         2nd High/Low                        3rd High/Low                         4th High/Low                         5th High/Low                         6th High/Low                         Reverse 1st High/Low	4.179 / 10.363 2.330 / 5.778 1.436 / 3.561 1.000 / 2.480 0.838 / 2.078 0.696 / 1.726 4.220 / 10.471

Chassis
Steering                     Front suspension   Rear suspension       Front brakes      Rear brakes              Tyre / wheel size	Rack and pinion Torsion bar spring dual transverse arm independent suspension Plate spring non-independent suspension  Disc brakes Disc brakes     235/70 R16