China automaker weighs U.S. plant

DETROIT (Reuters) - Chinese automaker Changfeng Group might consider an assembly plant in the United States if its plan to sell vehicles in America moves forward, the company's chairman said on Monday.

Changfeng Chairman Li Jianxin, through a translator, also told reporters at the North American International Auto Show that the company has its eye on the European market but was not more specific.

Li said Changfeng was not just showing its SUVs and cars at the event but also continuing to develop its game plan to begin U.S. sales in 2009.

"Building an assembly line is one of the options," Li said, adding the company would have more to say at next year's show.

Changfeng is a major SUV and pickup truck maker in the fast-growing Chinese market and has a technology relationship with Japan's Mitsubishi Motors Corp (7211.T).

Changfeng unveiled two trucks oriented to U.S. consumers in its first appearance at the show last year. This year, it is showing five vehicles, including the Liebao CS7 SUV.

Analysts have said Chinese vehicle makers face hurdles in meeting U.S. safety requirements, quality issues, and marketing to consumers in the biggest and most saturated auto market in the world.

Geely Holding Group Co., the largest privately run auto company in China, made a point at the Detroit show of demonstrating to U.S., Asian and European companies that it is innovating on safety and in other areas.

The company produced a video of a stability system designed to keep vehicles from leaving the road or rolling over in the event of a tire blowout. Vehicle stability has been a major safety issue in the United States with systems that control steering and braking in the event of a blowout now appearing as standard equipment on many models.

Geely also plans on bringing cars to the U.S. market but has no time frame. The company, however, plans to build an assembly plant in Mexico.

(Reporting by John Crawley, Editing by Peter Bohan)