From China Daily

Chinese carmaker Geely Automotive Holding has denied reports that it delayed its ambitious plan to sell cars to the U.S. market because it failed to pass vehicle tests.

"Our plan has not changed yet," said Geely Chairman Li Shufu, who owns 60 percent of the company.

Geely has only conducted rollover tests so far in the U.S. and has passed them, said Li. A rollover test is required in the U.S. to check vehicle safety.

Over the weekend, a Beijing-based newspaper quoted John Harmer, vice-president and chief operating officer of Geely-USA Inc, as saying the company failed to pass U.S. emissions examination due to problems with Geely's engines.

"The report is groundless. We have not even begun this kind of test there," Li told China Daily.

But he said it is difficult to predict when Geely's vehicles will be shipped to the U.S., as the company plans to conduct further market research and make vehicle improvements to suit the market demand.

In January, Geely estimated it would sell 25,000 cars in its first year in the U.S.

Geely aims to raise its exports to two-thirds of its total production by 2015 when his company is expected to produce 2 million cars a year.

By then, Geely's market share in China will be around 10 percent, said Li. The company hopes to also capture at least 2 percent of the markets outside of China.

In addition to the U.S. market, the company is also conducting market research in Europe for possible overseas opportunities.

Geely recently began exporting to countries in the Middle East and Africa. Geely's first overseas assembly plant in Asia is expected to start operation soon in Malaysia.

Last May, Geely signed a deal with Malaysian manufacturers Information Gateway Corporation (IGC) to produce Geely vehicles in IGC's plant.

Geely hit a few obstacles before the Malaysian Government agreed to allow the carmaker to sell a "very small" portion of its vehicles in Malaysia.

The first Geely car to be produced in Malaysia will be the 1.6-liter Freedom Cruiser.

Two new models, larger than the Freedom Cruiser, will be introduced at the Malaysian plant later, according to Geely sources.

In Hong Kong, plans to establish an auto development and research center and develop a new sedan series are going on smoothly, Li said.

Last year, the Zhejiang-based company, which entered the auto sector in 1997, sold more than 140,000 cars.

Copyright 2006 China Daily. All Rights Reserved.

_______________________________________

Click here to view the rest of today's headlines.