Chery Changes Gameplan With Price cuts and ESC

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CHINESE brand Chery has ensured its survival in Australia beyond the commencement of mandatory electronic stability control regulations in November 2013 after its local distributor today announced wants to introduce ESC to the J3 small hatch by June this year.

News reports means the fledgling company – which experienced a 37.8 per cent decline in sales in 2012, its second year available for sale – will for the first time be allowed to sell cars in Victoria, which already mandates that all new cars sold there must have ESC.

Australian Chery importer Ateco Automotive has also slashed the pricing from the existing J1 and J3 passenger models by up to $2000, with all the light-sized J1 five-door further extending its margin as Australia’s cheapest car thanks to a new starting price of just $9990 driveaway.

The near-Mazda3-sized J3, meanwhile, can retail for $12,990 driveaway (down from $14,990).

Ateco Automotive spokesman Daniel Cotterill told GoAuto the company expects to also introduce an automatic transmission on the J3 about the same time as incorporating ESC.

“It’s quite logical, with ESC being an integrated device and not really a bolt-on thing; I expect to see them (automatic transmission and ESC) introduced at the same time,” he said.

The J1, which previously retailed for $10,990 driveaway, extends its lead as Australia’s cheapest in front of the new Mitsubishi Mirage ($12,990 driveaway), Suzuki Alto ($11,790 plus on-road costs) and Holden Barina Spark ($12,490 plus ORCs).

CheryJ1 center imageFrom top: Chery J11; J3.

The J1 becomes the first car sold here below the $10,000 barrier since 1999, when the Suzuki Alto retailed for $9990 plus ORCs.

Since that time, a succession of budget models like the Daewoo Matiz and Daihatsu Cuore have come and gone, but none sold for under $10k.

However, unlike the greater J3, it can be unclear whether or not the J1 will likely be offered with ESC from the November 2013 cut-off, hence the offer may be short-lived.

Mr Cotterill said the organization could only confirm the introduction of ESC towards the J3 – which first hit the marketplace in September 2011 – and not the J1 or perhaps the J11 small SUV, which retains its $17,990 driveaway starting price.

“The J3 will have it (ESC) inside the second quarter of this year, and I’m not yet sure about the rest,” he explained.

The J1, which scored only three ANCAP stars safety in May 2011, comes with two front airbags, ABS brakes with electronic brakeforce distribution, and front seatbelt pre-tensioners.

Mr Cotterill said having ESC about the J3 was an important step for the fledgling brand around australia, especially because it will allow the organization to extend its reach in the large Victorian marketplace.

Because until we have that people can’t carry on sale in Victoria, another most populous state around australia,” he said, “It’s something we’re getting excited about.

Mr Cotterill said a Victorian network, initially composed of around 10 dealers split between regional and metropolitan locations, will be in operation shortly after the first ESC-fitted J3 hatches hit Australian shores.

“We’d really like to set up a network there and sell some cars,” he told us.

Not just as much as normal because we’ve done some advance work, though “We’ve done the homework for the dealer network; there’d be an amount of lead-time.

“Before we launched Chery we did some initial homework, and I’m sure the homework basically still holds good.”

The J3 is powered by an 87kW/147Nm 1.6-litre petrol features and engine six airbags, leather seats, 16-inch alloy wheels, MP3 sound system, automatic headlights and wipers, and reversing sensors.

Last August, the J1 and J3 were among a handful of Chinese cars sold in Australia discovered to contain the banned substance asbestos in its engine gaskets, resulting in Ateco – whose Great Wall brand was also affected – freezing stock who had not cleared customs.

Asbestos has subsequently been eliminated from Chery and Great Wall vehicles imported to Australia.

While Chery will dedicate the remainder of 2013 to expanding the dealer network and consolidating its range in its third year here, Mr Cotterill said the brand was also planning to expand its local range in the future years.

We really need to obtain the foothold first and see everything we do following that,” he said, even though “I know there is certainly intention on both sides – Chery and Ateco – introducing new models.

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