• Chinese car giant Jiangling plans to build car assembly plant in Poland
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  • 09.09.2008

A Chinese car manufacturer plans to build a car factory in Central Poland. If plans reach fruition the Chinese led auto venture  would be the first of its kind in Europe.

Bogdan Żaryn has more

Executives from China’s Jiangling plan on holding talks with Polish government officials and representatives from Pol-Mot holding a Polish motor and investment company on building a car assembly plant in Lublin central Poland this month. Forecasts suggest that Pol-Mot plans on producing 15,000 Grand Tiger pick ups next year.

Import Car dealer Jan Borowski says that cars and trucks made in China maybe be a tough pill to swallow for perspective Polish new car buyers. ‘This company is virtually non existent in Europe and the brand name is unknown. Good quality has to be proven first two three years. Favorable warranty conditions  like a three year warranty  unlimited mileage  and some service support. Polish clients aren’t like clients ten years ago. Clients are very selective and inquisitive and are now demanding much more than before.’

It’s estimated that Poles bought a total of 215 thousand new cars so far this year that’s roughly 7.2% higher compared to last year. Wojciech Drzewiecki from Samar Car Marketing says that the possible Chinese auto assembly project may accelerate investment in the long run: 'We are currently looking for production and eventual manufacturer who can invest money in Poland. we lost some investments in the past coming from big European manufacturers. We need investment.’

But in order for the Chinese to become somewhat successful in Europe experts are calling for more attractive incentives other than low prices and extended warranties: ‘Parallel to this plant they should build a  big spare parts depot which will hold at least 80% of the components on the shelves. In the Chinese project everything is new so this raises some quite serious questions in the case,’ said Jan Borowski.

Reports indicate that the Chinese have ambiguous plans. Once production begins they envisage as many as 400,000 units per year may roll off production lines. This would  exceed current  production capacities set by Italian auto manufacturer Fiat at its Tychy plant in Southern Poland. But before this can happen analysts argue that cars made in China will have to gain the confidence of consumers first.