Zhongxing Automobile

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first Chinese vehicles to sell in U.S. showrooms, said Bill Pollack, chairman of New Jersey-based Chamco Auto.</div> <bR> <div> He said he brokered a deal allowing China's Zhongxing Automobile to export 50,000 vehicles duty-free to Mexico and build a plant in the border city Tijuana to assemble models for export to the United States.</div> <bR> <div> They will be similar to popular models made by U.S. and international companies and will be cheaper.</div> <bR> <div> "Our plan is to average 20 percent below comparably equipped brand-name competitors," Pollack told Reuters.</div> <bR> <div> China's domestic car industry is heating up and is looking to break into the lucrative North American market.</div> <bR> <div> Assembling the Zhongxing vehicles in Tijuana will make them Mexican under North American free trade rules, so they can be exported to the United States duty free, Pollack said.</div> <bR> <div> Zhongxing is among a handful of upstart Chinese automakers, including Great Wall Motor Co. Ltd., Geely Automobile Holdings Ltd. and Chery Automobile.</div> <bR> <div> Chamco, Zhongxing's exclusive dealer in North America, expects to sell as many as 20,000 vehicles in Mexico in its first year and have the Tijuana plant supplying U.S. consumers within two years.</div> <bR> <div> Mexico is already a major auto manufacturer, with Nissan Motor Co. Ltd., Ford Motor Co., Volkswagen AG and other big names exporting a combined 1.5 million cars and trucks to mostly U.S. consumers last year.</div> <bR> <div> In the 1990s, Mexico attracted a wave of foreign manufacturers to Tijuana and other cities along the U.S. border after it joined the North American Free Trade Agreement.</div> <bR> <div> Zhongxing is located in the northern province of Hebei near Beijing. It sells almost a third of its vehicles to customers in around 50 developing nations, but the company, backed by Taiwanese investors, has little experience in wealthier markets.</div> <bR> <div> Its models meet European and Mexican safety and emissions standards and vehicles produced in Mexico will be adapted to U.S. regulations, Pollack said.</div> <bR> <div> Japanese automakers such as Honda Motor Co. Ltd. and Toyota Motor Corp. have steadily grown their share of the U.S. market and China is eager to move in. Its fast- growing and often cheap manufacturing exports are already seen by some as a threat to U.S. job</div> <bR> <div> Ex-racer and performance car builder Steve Saleen will help bring Chinese vehicles to North America.</div> <div> Saleen joins N.J. importer of Chinese cars</div> <div> Diana T. Kurylko</div> <div> You may e-mail Diana T. Kurylko at dkurylko@crain.com</div> <div> Automotive News</div> <div> June 7, 2007</div> <bR> <div> Saleen has joined ZX Automobile Co. of North America Inc., the U.S. subsidiary of Chamco Auto. Chamco plans to launch a Chinese-made pickup and SUV in Mexico this summer and in the United States next year. The company had an exhibit to recruit dealers at the National Automobile Dealers Association convention in Las Vegas in February.</div> <bR> <div> Saleen, 56, is the new CEO of ZXNA, which will run operations and help set up Chamco's dealership network in North America. Chamco, short for China American Cooperative Automotive Inc., has headquarters in Parsippany, N.J.</div> <bR> <div> Saleen will base his operation in Irvine, Calif., where the engineering and sales offices will be.</div> <bR> <div> ZXNA has the exclusive import and distribution contracts for North America from Chinese automaker Hebei Zhongxing Automobile Co.</div> <bR> <div> Last month, Saleen resigned from Saleen Inc., the company he founded in 1984. Saleen Inc. has produced more than 12,000 specialty cars. It makes the Saleen S7, S281 Mustang, S331 Sport Truck and the Saleen/Parnelli Jones limited-edition Mustang. Saleen Inc.'s Michigan plant painted and assembled the Ford GT supercar for Ford Motor Co.</div> <bR> <bR> </td> </tr></table></body>