I have no fear that China will do what it needs to make some compelling rides. Already some of these Chinese manufacturers are spending more per car on R&D than most of the major car companies. And over time, as these companies advance their manufacturing, engineering and design skills, these cars will compete with the best.

And they’re coming to America…

Granted, these Chinese companies still have to work for a few more years to really hone in on their manufacturing and production skills. That means making cars that will pass all crash tests, cars that won’t break quickly, and cars that people generally like.

After they do those things, they’ll have to find a way to compete against the big boys. And they’ll do that the Hyundai way: By going cheaper!

You see, up until recently Hyundai and Kia were the ‘cheap’ cars. But that’s changing.

Hyundai is hell bent on starting a luxury division. And the base price of their four-cylinder Sonata is actually more than a four-cylinder Camry!

In just two to three more years, nearly every Hyundai will be just as much as a Toyota. And that leaves a big opening for Chinese car companies.

If they can compete on price while constantly improving quality, they’ll make out well. In fact, they’ve already hinted at releasing a four-door $10,000 car.

And since these are all small companies, even selling 100,000 to 200,000 cars a year in the U.S. is enough to boost profits substantially.

There are a few Chinese car companies out there, but I still need to do some research to feel good about giving you a few names. Look for that in the next few weeks.

In the end, China will be huge in the automotive world. Now we have a chance to make some money off of it.

To your success,

Charles

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