Chinese car manufacturer Brilliance to export 158,000 cars to Europe

1 December 2006

Beijing, China, 01 Dec – Chinese car manufacturer, Brilliance, one of the biggest in the country, is to sell 158,000 vehicles to Europe over the next five years, according to a statement on the company’s Internet site.

Brilliance signed a contract to deliver the cars with HSO Motors Europe, a German importer, which is the biggest export contract ever signed by a Chinese car manufacturer under its own brand.

Brilliance has a partnership agreement with Volkswagen to produce the German brand’s vehicles for the Chinese market.

China exports cars mainly to the Southeast Asian market, the Middle East, Africa and South America, but Chinese vehicles have the reputation of being cheap and of mediocre quality.

Of the total cars produced by China this year, 77 percent had defects due to the price wars that have made producers to save on the quality of parts, according to a recent study by China’s Quality Association.

The study concluded that for every 100 new Chinese cars on the road, there was an average of 338 factory faults.

Despite having a reputation for poor quality, Chinese car manufacturers want to focus more on exports in order to move away from the price wars on the domestic market, which have led to the profits of the manufacturers becoming increasingly small.

In the last two years, according to the China Quality Association, the prices of Chinese cars have fallen by over 10,000 yuan.

Geely Automobile, the largest private car manufacturer in China, already has cars certified for the Portuguese market, sold by Santogal and by Sociedade Hispanica de Automoveis. (macauhub)