Buzz Hargrove, President of the Canadian Auto Workers union, said that Canada's big three automakers will be hard hit should Chinese cheap imports flood the market. According to Hargrove, China does not allow fair trade of vehicles as it places strict restrictions on imports. This means that Chrysler, Ford and GM would not be able to sell their vehicles in China while Chinese-made cars would be easy to import into Canada and the United States.
Canada does not have any special trade restrictions on the import of cars and trucks from China. Industry Minister Jim Prentice stated in an interview with The Canadian Press that it is in the consumers best interest to allow low-cost imports and not restrict competition. In this way the consumer wins. Prentice sympathizes with the fact that Canadian auto manufacturers have already suffered due to the rising Canadian dollar and a weakening of the US economy.
This year's American International Auto Show held in Detroit witnessed the presence of four Chinese auto makers and one importer. This is the largest representation of Chinese cars ever at this auto show. It seems that Chinese auto makers are getting ready to start shipping their cars and trucks into the US and Canada. One of the auto makers, China America Co-operative Automobile Inc., is set to start importing Chinese cars into the US this year and into Canada by the end of next year. The company hopes to sell 13,500 vehicles in North America next year at an average price of US $13,500.
If China begins to sell cars in North America then it may not be long before India also tries to enter the North American market with its cheap autos.
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