Chery Auto is prematurely ending its dreams of entering the North American market after 7 years. This is after its would-be distributor, HAAH Automotive Holdings announced that they would be filing for bankruptcy.
In a report published by Automotive News, the California-based startup “didn’t see a way forward” for their proposed Vantas and T-GO brands. These brands are based off Chery’s higher-end Exceed and Tiggo SUV line-up.
Before this announcement, plans were in place to bring in Chery by late 2022 or early 2023.
While investors initially expressed interest in plans to bring Chery into the North American market, that interest dried up in recent months due to the continued trade tensions between the U.S. and China including stiff auto tariffs and negative US public sentiment towards China’s role in the on-going pandemic.
The U.S. auto tariff on Chinese vehicles was 2.5 percent in the mid-2010s, and several Chinese automakers were looking at the U.S. market. However, trade relations deteriorated during the Trump administration which imposed an extra 25 percent tariff on a variety of Chinese goods, including cars.
The trade situation worsened with the onset of the coronavirus pandemic. And now under the Biden administration, the U.S. has pressed China on human rights concerns and security matters while maintaining the Trump tariffs.
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