By Jeffrey A. Newman Esq. MBA
The Wall Street Journal has an important article in today’s paper which reveals that Chinese cars are being sold to Americans at Mexican car dealers located just south of the border in Mexico. One salesman, who works at a Geely dealership in Ciudad Juárez, Mexico, features an ell electric EX2 compact that starts at $20,000.
The Geely salesman is quoted as saying that Americans are attracted to the affordable prices and Chinese technology. Presently, the Chinese cars are banned from the United States, and some Senators are asking that the Chinese cars, which are sold in Mexico and Canada, be banned from entering the U.S. as they might damage the US auto makers.
Chinese electric vehicles are technically on par with American counterparts, according to the WSJ writer. BYD, Geely, and Great Wall Motor, the Chinese car makers, are now among the biggest in the world. Canada is about to receive 49,000 Chinese EV’s.
About 30% of American car buyers would consider buy a car from China. Federal law allows Mexican residents and those with dual citizenship to drive their cars into the U.S., even if their vehicles aren’t compliant with applicable standards.
Importantly, the WSJ article states: “Despite the current barriers keeping Chinese cars out of the U.S., there is resignation in the industry that they will eventually come.” One critical question is: will U.S. carmakers come around to meeting this difficult challenge?
Jeffrey Newman, JD, MBA, is a whistleblower lawyer whose firm represents physicians who become whistleblowers in healthcare fraud cases, as well as individuals reporting violations of export controls, tariff evasion, and money laundering. Whistleblower laws in the U.S. allow individuals with information about export control violations or tariff fraud to report it under the False Claims Act. The Firm’s website is www.JeffNewmanLaw.com. Attorney Newman can be reached at Jeff@Jeffnewmanlaw.com or at 978-880-4758. For other blogs, see: http://JeffNewmanLaw.com
