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Chinese cars, made in Bulgaria

Source:March 04, 2012 | GlobalPost Release Date:2012-03-05 583
Metalworking
China's first car plant in Europe just revved up. Can it succeed in a recession?

Jodi Hilton

SOFIA, Bulgaria -- There was an unusual display outside the city’s National Palace of Culture recently: a brand-new silver SUV, encased in a glass box and stamped with the words "Made in Lovech" — Bulgaria. 

The Great Wall Hover was one of the first cars to roll off the assembly line at a new plant built by Great Wall Motors, one of China’s major car manufacturers, in association with the Bulgarian firm Litex. A celebration was held last week for the opening of the assembly plant about 90 miles east of Sofia.

This is China’s first major foray into car manufacturing in Europe. If Great Wall Motors succeeds, it will gain a much-coveted foothold in the European market.

Chinese auto manufacturers have been trying for the last several years to break into the European market. As the debt crisis pushes the euro zone into recession, Chinese auto manufacturers see an opportunity to market their relatively inexpensive vehicles.

Other Chinese companies in the past have failed to meet stringent European safety standards. Great Wall Motors is the first Chinese auto manufacturer to have passed the European NCAP safety test, according to Bill Russo, a China auto-industry expert and former executive for Chrysler’s North East Asia division.

More from GlobalPost: US beats China in vehicle sales growth in 2011

By assembling cars in the poorest EU countries, Great Wall Motors can ensure a ready and cheap labor supply while avoidingKobe AD EP Shoes

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