Stuck in traffic and can't get home? Buy a motor home

Source: Global Times
[08:17 January 25 2011]
Comments

By Sun Zhe

A Chinese company inked a deal over the weekend to import 30,000 motor homes from the US, according to a report by the Los Angeles Times.

Winston Global Energy, a Shenzhen, Guangdong Province-based auto-battery maker, settled on a deal in Chicago Saturday with California-based recreational vehicle maker MVP RV to build and export 30,000 RVs to China.

As per the agreement, Winston Global Energy will provide $310m in capital to MVP RV to promote the export of motor homes to China.

Winston Chung, owner of Winston Global Energy and also majority owner of MVP RV, will manufacture $5 billion worth of the vehicles to be sold to China over the next three to four years, including 10,000 bus-sized vehicles and 20,000 van-sized vehicles, said the report. The deal was one of 70 announced during Chinese President Hu Jintao's state visit to the US.

The Chinese market for recreational vehicles is yet to be tapped, said Scott Degnan, vice president of sales and marketing for MVP RV, as quoted by Los Angeles Times.

So far the country has only less than 10,000 motor homes, most of which are used in the entertainment business for mobile dressing rooms, said Shangguan Zhoudong, a Beijing-based independent auto analyst.

"People rarely use RVs as a way to travel long distances in China, because Chinese culture does not nurture a spirit of adventure, as most people value stability."

The Chinese are more accustomed to driving sedans or SUVs and staying overnight at hotels while traveling, said Cui Dongshu, deputy secretary-general of the National Passenger Car Association.