ChinaCars

Geely Auto rolls a pioneering engine off its assembly line

chinacars — Thu, 10 Aug 2006 17:46:00 +0000

Jin Jing
2006-08-09
GEELY Automobile Co Ltd began mass production yesterday of the country's first domestically developed engine using high-power valve technology, a key step on the road toward a fully Chinese-made auto.

Geely, which specializes in producing small vehicles and is China's leading private carmaker, has invested more than 100 million yuan (US$12.5 million) to develop the new engine. It is the first domestic automaker to apply the highly advanced CVVT - continuously variable valve timing - technology, the company said.

The 1.8-liter aluminum engine, which meets Euro 3 emission standard, will be able to produce a 140 horsepower, equaling Toyota's new CVVT engine, according to Geely.

Geely's Ningbo plant in Zhejiang Province will be in charge of engine production and is expected to turn out 50,000 units a year.

Zhejiang-based Geely said it has no immediate plans for exports.

The advanced engine will be used to power Geely's upcoming FC-1 sedan as well as its Formula One cars, helping it to break into the mid- to high-end car segments.

"The advance self-developed engine could clear the way for Geely to offer more price-competitive models and save a lot on costs," said Zhang Xin, an analyst at Guotai Jun'an Securities Co Ltd.

Chinese carmakers, which must spend heavily to buy engines from foreign rivals, have traditionally lagged in making core auto components.

The lack of ability in this area has been the main hurdle for Chinese car producers to develop autos using their own technology, which is a target as outlined in the central governments latest five-year plan.

An increasing number of Chinese automakers, including Brilliance China Automotive Holding Ltd and Chery Automobile Co Ltd, have stepped up efforts to make their own engines - and their own cars.

Brilliance China, the domestic partner of BMW, used part of its HK$1.5 billion (US$193 million) bond sale to produce its own 1.8-liter turbocharged engine, which generates 10 percent more power and consumes less fuel than current engines. And Chery Automobile Corp teamed up with an Austrian engine design company to jointly develop 18 aluminum gasoline and diesel engines.

Tags: chery geely nanjing hafei zhonghua SAIC lifan

Chinese Cars Gain Foothold in Venezuela

chinacars — Mon, 31 Jul 2006 04:53:00 +0000

CARACAS, Venezuela — Chinese automobile manufacturers are seeking a share of Venezuela's car market, which has grown with the help of an oil-fueled consumption boom.

President Hugo Chavez has long been trying to foster greater economic ties with the Asian giant. On top of greater energy and mining sector cooperation, Chavez has also pursued Chinese development of a computer assembly line in the Andean nation.

Two Chinese car dealers have recently set up showrooms across Venezuela to try to compete with more established brands.

Great Wall Motors, China's largest car maker, is offering large utility vehicles.

The second, Cinascar, a Chinese automobile dealership owned by GM Daewoo Auto & Technology Co., a unit of General Motors Corp. based in South Korea, began selling vehicles in March and now has 17 showrooms across the country.

The company offers vehicles from six different Chinese car makers, including cars by Chery Automobile Co., a state-owned Chinese company that specializes in economy cars.

"We just started, but we sold 300 vehicles just last month," said Karen Frances, head of sales for Cinascar's main distribution center.

Chery's QQ model, has made up almost 50 percent of the cars sold, Frances noted.

The QQ, a four cylinder, four-door compact vehicle, sells for as little as 19 million bolivars ($8,800), cheaper than Chevrolet's Spark, its nearest competitor.

U.S. car manufacturers including GM and Ford Motors Co. assemble vehicles in Venezuela and make up the bulk of the vehicles sold every month.

Venezuela's economy soared 9.4 percent in the first quarter of 2006. Economists estimate economic growth will run between 6 percent and 8 percent this year.

Tags: chery geely nanjing hafei zhonghua SAIC lifan

Chinese cars target US auto show

chinacars — Thu, 13 Jul 2006 03:47:00 +0000

At least four Chinese automakers are expected to take display space at the 2007 North American International Auto Show in Detroit, US media reported.
In January 2006, China's Geely Automobile made debut by a Chinese carmaker at the US auto show. It exhibited a $10,000 small sedan to reporters only in a booth outside the show's main hall. This year, Geely will come back.

Moreover, three other companies, including Hunan Chang Feng Group, Great Wall Motor Company and Hebei Zhongxing Automobile Company, are also in talks for display space in Cobo Hall of the January 2007 show, said the Detroit News.
US show officials said it's a prelude for the entry of Chinese-made cars to the United States.
Though still a small player compared to the world's biggest auto manufacturers, Chinese carmakers are considering measures to boost their overseas sales. The Chinese government also hope that automobiles will become an increasingly important component of the country's exports, according to earlier report. Geely, the Chinese mainland's largest private automaker, last year sold about 7,000 sedans in more than 30 countries and regions, mostly in the Middle East, Africa and Central America. It announced plans to begin exporting cars to the US mainland in 2008. Zhongxing wants to sell 40,000 vehicles in the United States annually starting next year, including a pickup and an SUV.
The Chery Automobile, an independent Chinese carmaker based in East China's Anhui Province, hopes to enter the US market in 2008, the newspaper said

Tags: chery geely nanjing hafei zhonghua SAIC lifan

Geely eyes Malaysian sales

chinacars — Thu, 08 Jun 2006 03:01:00 +0000

By Gong Zhengzheng (China Daily)
Updated: 2006-05-26 08:55

Independent Chinese carmaker Geely Automobile expects Malaysia to further relax sales restrictions on vehicles it will build in the Southeast Asian nation, according to a top company executive.

In an interview with China Daily, Yang Jian, Geely's executive vice-president, said he hoped Malaysia would allow the carmaker to sell a bigger ratio of its locally-made vehicles in the country.

Under the current rules, the firm will be able to sell just 20 per cent of locally-produced vehicles in the country.

Geely will start producing cars in Malaysia from September with an annual capacity of 30,000 units, Yang said.

Geely, which is based in East China's Zhejiang Province and listed in Hong Kong, last May agreed with a Malaysian partner to assemble own-brand cars in the country.

However, Malaysia last November said it would require the carmaker to sell all of its locally-built vehicles abroad.

In March this year, Geely was informed it would be permitted to sell 20 per cent of its made-in-Malaysia cars in Southeast Asia's No 2 car market.

"The restrictions are unfair and discriminatory as they are only imposed on Geely. We hope Malaysia will raise the quota," Yang said.

Regulators from China and Malaysia will discuss the matter soon, he said.

At present, nearly 20 foreign automakers are assembling vehicles in Malaysia. In 2005, car sales in the nation jumped by 38 per cent year-on-year to 522,000 units. The country's top two home-grown brands, Proton and Perodua, control three-fifths of the market.

Benjamin Asher, a Bangkok-based analyst with consultancy Automotive Resources Asia Ltd, told China Daily that Malaysia wanted to protect its national car programme.

"Having only recently opened its doors to international brands, the market share for Proton and Perodua has plummeted.

"Although the quality of Protons and Peroduas are lower than international, mostly Japanese, brands, Chinese vehicles are still lower than that (the quality of Protons and Peroduas)," Asher said.

"But the Malaysian Government may still be concerned that Chinese makers will snatch up too much of the lower end of the market, thus reducing the domestics' share further."
However, many Chinese carmakers still want to assemble cars in Malaysia in a bid to branch out into the Southeast Asian market.

Earlier this week, Chery Automobile, another independent Chinese car producer, agreed with Proton to jointly study plans to make and sell each other's cars in China and Malaysia, and elsewhere in Southeast Asia.

Hafei Automobile and Chang'an Motor are also planning to build cars in Malaysia.
Hafei is a partner of Mitsubishi Motors. Chang'an runs car ventures with Ford Motor and Suzuki Motors in China.

Geely's Yang said the carmaker is also negotiating to assemble cars in Viet Nam and Russia.

The carmaker aims to sell 1.3 million cars overseas annually by 2015, accounting for two-thirds of its overall sales.

Last year, it exported 7,000 cars, up from 5,000 in 2004.

Meanwhile, the company's overall sales surged by half to 150,000 units.

Geely Automobile ended at 0.79 Hong Kong dollars (10.18 US cents) yesterday, down 1.25 per cent.

Tags: chery geely nanjing hafei zhonghua SAIC lifan

Chinese Automakers face inventory woes

chinacars — Thu, 08 Jun 2006 02:56:00 +0000

Jin Jing
2006-06-07
AUTOMAKERS in China face a difficult question of how to survive in a market that is oversupplied. Domestic sales expanded by double-digits in the past five year, yet auto manufacturers face tough decisions on whether to cut production in the world's most promising auto market as regulators are drafting rules to curb excessive investment in the sector. "China produced 2 million vehicles more than needed last year," said Ma Kai, the director of the National Development and Reform Commission early this year. "About 2.2 million units were being built while future plants will be capable of producing more than 8 million additional units." That potential production might be far beyond market demand as domestic vehicle sales were estimated to reach 9 million units by the end of 2010. Massive stockpiles would force carmakers to launch endless price wars to maintain competitiveness and in the process shrink profit margins. Not surprisingly, many domestic auto producers have shifted focus to exports, second-tier cities and niche markets to sell excess vehicles. China's auto exports are growing faster year on year and are expected to be a driving force in helping carmakers reduce inventories. With a cheap labor force domestic automakers have an advantage in bringing products under their own brand to overseas markets. Chinese models were 50 percent cheaper than those produced in Europe and 30 percent cheaper than Japanese and South Korean models. China's auto exports exceeded imports for the first time last year. The country exported 11,031 units more than it imported. Exports more than doubled from 2004 to 172,639 while imports dropped 8 percent, according to the Ministry of Commerce. Top exporters Last year, First Automotive Works Corp, Greatwall Automobile Corp and Jiangling Automobile Co Ltd were the top three exporters. Chang'an Automobile Corp, Chery Automobile Co Ltd and Geely Automobile Holdings Co also export vehicles. Growing exports could be a good way to not only help domestic automakers reduce inventories, but also build a strong international brand awareness of Chinese-made vehicles. So far, export vehicles were dominated by sports utility vehicles, trucks and minibuses. However, more and more companies were taking measures to bring sedans to foreign markets. Geely, one of China's leading private automakers, has aggressive plans to export two-thirds of its cars by 2010. Chery also aims to sell its cars on the US market as the first Chinese car to tap the largest car market. Geely, Chery and Great Wall - China's largest truck exporters - were building up sales channels and after sale networks to better support ambitious plans. Chinese companies also need to improve technology to meet higher standards for safety and emissions in developed nations. Chinese car manufacturers export most vehicles to developing nations. According to a drafted blueprint for China's auto industry in the 11th Five Year plan, exports of auto products are expected to increase 40 percent and volume is expected to reach US$7 million by 2010. The strategy calls for Chinese-made vehicles to account for 10 percent of the global auto trade in the following 10 to 15 years.

Tags: chery geely

More Chinese cars coming

chinacars — Sun, 28 May 2006 06:31:00 +0000

Following on the heels of McCarthy, another local company plans to import cars from China and sell them at entry level prices.
TJM Holdings intends to start selling entry-level Chinese-made cars in South Africa next year, hoping to price them at below R70 000, reports Business Day.
"The move will enhance vehicle affordability but upset established car makers," the report reads.
"We are on the verge of a new wave of new Chinese vehicles coming into SA," TJM business development manager, Jason Bygate, told the paper.
China plans to become a large global car exporter, resulting in the deals with McCarthy and the two-year-old TJM.
The company plans to import the CK1 sedan from manufacturer Geely and is currently being tested in South Africa to determine its suitability.
TJM could expand the range at a later date, Bygate said.

Tags: china auto

‘Japanese car makers’ China drive leaves Europeans behind’

chinacars — Sun, 28 May 2006 06:30:00 +0000

TOKYO, MAY 25: Toyota Motor Corp, Nissan Motor Co, Honda Motor Co and other Japanese carmakers overtook Volkswagen AG and other European automakers in combined market share in China last year, Fitch Ratings Ltd said on Thursday.
Japanese automakers had about 27% of the Chinese automobile market last year while the share of European automakers fell to about 22%, Matthew Kwong, associate director of Fitch Ratings said in an interview in Beijing.

‘‘Toyota and Nissan are both the drivers for Japanese automaker’s growth in China,’’ Kwong said. ‘‘Japanese companies may maintain their position’’ over the next five years.
Japanese automakers, which entered the Chinese market more than a decade after Volkswagen, are accelerating expansion in the world’s third largest vehicle market as they introduce more models and raise production capacity. Toyota, which currently has annual production capacity of 340,000 units, is investing 215 billion yen ($1.9 billion) in China and aims to boost capacity to 690,000 units.
European automakers had about half of China’s vehicle market in 2002. They may regain some share as PSA Peugeot Citroen and Volkswagen introduce new models in China, though they may not regain their leading position, Kwong said.
Chery Automobile Co, Geely Automobile Holdings Ltd and other Chinese automakers had about 25% of their domestic market, Fitch said.
Since the Chinese government opened up its automobile market in early 1980s, all major automakers have established assembly plants in China where automobile production more than doubled to 5.7 million units in 2005, according to China Association of Automobile Manufacturers.
Total automobile production in China accounted for 8.9% of the world’s total in 2005 compared with 3.7% in 2000.
—Bloomberg

Tags: china auto

U.S. automakers push more products; Is it enough to survive?

chinacars — Mon, 24 Apr 2006 02:28:00 +0000

Toyota debuted its 2007 Toyota Tundra full-size pickup in Chicago, while Jeep brought out the first four-door version of its iconic Jeep Wrangler in New York. Ford announced that racing fans will be able to rent a souped-up version of the Ford Mustang - with its fuel-burning V8 - at Hertz this summer.
Design was another area in which brands tried to stand apart. Chrysler, whose recent turnaround has been largely fueled by successful designs including the Chrysler 300 sedan, debuted the Chrysler Imperial, a haughty sedan with the look of a Rolls Royce. Honda unveiled an Element concept redesigned for urban drivers, with larger tires and a carpeted interior. Saab, which is trying to recapture its reputation as a performance brand, showed the Aero X concept, designed to look like a jet fighter.
GM won praise for its updated take on an icon with its Chevrolet Camaro concept as well as its revamped lineup for the Saturn brand, including the Outlook crossover, Aura sedan and Sky coupe. The accolades come at a critical time for the automaker, which is depending on new models to arrest its U.S. sales declines.
"Every time GM gets a new product they sparkle," Sanfilippo said.
But every big automaker has another smaller company nipping at its heels. Hyundai Motor Co. said it will go head-to-head with Toyota and Honda with the redesigned 2007 Elantra sedan, while Mazda Motor Co. added another crossover to its lineup to compete with stodgier versions from other automakers. And in Detroit was likely the biggest threat yet: China's Geely Automobile Co., which showed a small sedan that will go on sale in the United States by 2008.
"The speed at which the markets and products are changing is just remarkable," Sanfilippo said
Tags: china auto

GM expects Chinese sales to rise 20%

chinacars — Mon, 24 Apr 2006 02:26:00 +0000

General Motors is likely to boost its share of the Chinese market further in 2006 with sales growth of at least 20 per cent, a senior executive says.
Kevin Wale, GM's managing director for China, said that the company, which is planning to launch two to three new models a year, is likely to enjoy sales growth higher than the projected 2006 market average of 15 per cent to 20 per cent.
"We're not sure if we'll be able to maintain the same level of growth (as last year) but we're looking forward to a very strong year," Wale told Reuters.
Sales in China jumped 35 per cent last year, catapulting it above Volkswagen AG as the top foreign auto seller.
China is a bright spot for the world's largest auto maker, which has turned in six straight quarters of losses, stemming largely from its troubled North American operations.
"Conservatively, we're looking at 20 per cent as solid growth for the year," Wale said on the sidelines of the Boao Forum, an annual gathering of business and political leaders on Hainan island off China's south coast.
GM's market share, defined as sales of passenger cars and commercial vehicles, including small vans and trucks, rose to 11.2 per cent at the end of 2005 from 9.4 per cent a year earlier.
Helped by the launch of two new car models, market share jumped further in the first quarter to between 13 per cent and 13.5 per cent, Wale said.
But he said GM was unlikely to sustain a share of more than 13 per cent for 2006 as a whole, even though the company plans to launch one or two more entirely new models later this year, as well as several upgrades of existing vehicles.
Apart from aiming to launch two to three new models in China every year, Wale said another objective is to expand the firm's network of about 1,000 dealerships around China.
Wale said GM, which manufactures cars in five cities in China, now had the capacity to ramp up production without building any more greenfield plants.
"We will continue investing in China over the next few years as our volume grows, but it would be in existing facilities primarily," he said.
Asked whether plans by GM's Chinese partner, SAIC Motor Corp, to roll out cars it has developed itself would have any impact on their joint venture, Wale said: "Not at all. We have a very strong relationship with SAIC.

Tags: china auto

Are Chinese cars coming to America?

chinacars — Mon, 10 Apr 2006 16:15:00 +0000

The man who brought Subaru here thinks so
By WARREN BROWNThe Washington Post
here-->April 09. 2006 12:00PM
The automotive industry has its characters. One of the most notable is Malcolm Bricklin, an entrepreneur variously identified as the man who brought Subaru and Yugo to America, a dauntless visionary and an impractical dreamer.
Perhaps he's simply a clever person who sees the inevitable and takes advantage of it before it occurs.
That is what he seems to be doing with Chinese cars. They are coming to America, sooner or later, despite any opposition from American car companies, their unions or the politicians who have sworn to protect their collective interests.
It's a version of the Wal-Mart Effect - the tendency of consumers to ignore nationalism, politics or product origin in pursuit of the best deal. Bricklin understands that motivation, and he sees what he believes is a good deal in the prospective importing of mid-priced cars from Chery Automobile Co., of Wuhu, China, into the United States.
People with money apparently believe that Bricklin is on to something good. He has secured $225 million in initial funding from Atlantic-Pacific Capital Inc., a venture capital company founded in 1995 that has raised, by its own estimate, $21 billion to help startup businesses.

To put it in perspective, $225 million is not much money in the automobile industry. It barely covers the cost of a modest cosmetic change on an existing line of cars, or a marketing campaign for a new model. It certainly is nowhere near enough money to do everything that has to be done - safety and emissions compliances being two of the most important items - to get a little-known foreign car ready for U.S. entry.
But none of that technical stuff is really Bricklin's concern. He is first and foremost a salesman, and his New York-based Visionary Vehicles LLC is primarily a retail operation currently without any known ability to service any cars it might sell.
Bricklin, ever the optimist, sees no obstacle there either. Publicly, at least, he still contends that Visionary can start bringing Chery-made cars to the United States in 2007 - a formidable undertaking, considering all of the things that have to be done to make that a reality.
Ultimately, Bricklin hopes to have 250 Chery dealerships in the United States with annual sales of 250,000 cars. Early planning has those dealerships doing much of the servicing, using parts sourced from overseas, possibly even stocked by general retail outlets such as Wal-Mart, according to several sources.
Clearly, Bricklin recognizes that 250 dealerships are not enough to service several hundred thousand cars being used all over America. So, he is floating the idea of certifying independent repair shops to handle warranty-covered Chery repair work. That could be an interesting and, perhaps, beneficial development for consumers. But the nation's traditional franchised new-car dealerships, nearly 20,000 of them represented by the National Automobile Dealers Association (NADA), are not likely to be amused.
NADA, for the moment, is keeping mum on the entire Bricklin-China venture. But NADA officials privately concede that they will have to deal with him eventually. "If he is successful, we won't be able to ignore him," one NADA official said at a recent national dealers meeting in Orlando, Fla.
Ignoring Bricklin has never been in any rival's best interest, although the man has had more than his share of spectacular, even laughable flops.
Mention of the Yugoslavian-made Yugo, which Bricklin started bringing into the United States in the early 1980s, still brings chuckles. And eyes roll skyward north of the border when anyone talks about the Bricklin SV-1, a dramatically ill-fated, gull-winged sports car backed by the Canadian government and produced in St. John, New Brunswick, from 1974 to 1976.
Some 2,854 Bricklin SV-1 cars were produced before the Canadian business went bankrupt.
But there was also Subaru, an automotive subsidiary of Japan's Fuji Heavy Industries, which Bricklin helped to establish in the United States in the late 1960s and early 1970s. Bricklin is no longer a part of Subaru. But the people who were laughing at him back then are not laughing at the highly successful Subaru of America now.

Tags: chery auto

China's SAIC plans 600,000 own-brand vehicles a year by 2010

chinacars — Mon, 10 Apr 2006 06:37:00 +0000

ELAINE KURTENBACH
Associated Press
SHANGHAI, China - SAIC Motor Corp., a partner of both Volkswagen and General Motors Corp. in China, is gearing up to begin making its own brand of cars, with an initial target of 600,000 SAIC vehicles a year by 2010.
The plan is part of the auto group's overall plan to reach an annual production of 2 million units, for both passenger and commercial vehicles, by then, said Zhu Xiangjun, a SAIC spokeswoman.
Most of the cars now made by SAIC are produced in its joint ventures with GM and Germany's Volkswagen AG, and all those cars carry the foreign partners' brands.
State-owned SAIC was due to disclose key details of its plan to develop its own brand vehicles later Monday, part of the Chinese government's push to develop a domestic auto industry able to compete in international markets.
The newly announced target is much more ambitious than SAIC's 2007 annual production target of 50,000 own-brand vehicles.
Earlier this year, SAIC Motor set up SAIC Motor Manufacturing Co. to push ahead with the development of passenger cars with its own brand.
SAIC Motor Manufacturing has begun work on a factory originally meant to be used in its joint venture with VW, but handed over to the Shanghai-based manufacturer after the market slowed, reducing the need for an increase in capacity, executives at VW China Group and SAIC said.
SAIC has said it plans to use technology purchased from the Britain's MG Rover Group Ltd. to manufacture most of the cars. Plans for the company's brand name have not yet been announced.
The Chinese company owns the intellectual property rights to two Rover models, the 25 and 75. However, it does not hold the right to the brand name, which is owned by BMW, said Hawk Huang, an SAIC spokesman.
Rival automaker Nanjing Automobile Group salvaged MG Rover after it declared bankruptcy last year, and it remains unclear exactly what Rover technology it owns, said Hawk Huang, an SAIC spokesman.
Huang credited SAIC's 20-year partnership with VW, and its shorter alliance with GM, for helping it cultivate the managerial skills and talent it needs to compete in an increasingly competitive home market.
The company's debut as a major passenger car maker in its own right comes amid a revival in sales for the industry. Automakers saw sales soar by 75 percent year-on-year in 2003. Growth slowed to 15 percent in 2003 and about 10 percent in 2004, but rebounded to 27 percent for full-year 2005.
However, the newly revived demand coincides with a prolonged decline in profit margins due to price cuts and rising costs for materials.
That pinch has hurt automakers like VW, which is staging its own comeback in China after seeing its market share plummet from over 50 percent in the mid-1990s to about 17 percent now.
"The next couple years are going to be really challenging for all of us," Weiming Soh, VW Group China's executive vice president for sales and marketing, said Sunday in announcing a new mid-size model for the Chinese market, the Sagitar.
Soh said VW supported SAIC's independent push into the market, though he acknowledged it will further boost competition.
"We would consider that we are healthy competitors," Soh said. "We need competitors."

Tags: china saic

China's Sedan Sale Hits Record High in 1Q

chinacars — Sat, 08 Apr 2006 06:36:00 +0000

2006-04-08 10:40:18 Xinhua
China's booming sedan sale hit a record high of 890,000 units in the first quarter, about one thirdof the total sale in 2005, the China Association of Automobile Manufacturers said here Friday.
Jetta, manufactured by Faw Volkswagen, ranked the top in the first quarter with a total sale of 17,500, an increase of 79.57 percent year-on-year. Elantra of Beijing Hyundai followed with a sale of 14,000, up 21.7 percent over last month.
The home-brand Chery also saw a rise of its major models in March, due to its price cuts of auto parts last month. The sale of QQ, one of its flagship autos, hit 1,1700 in March.
In the sector of medium and top grade sedans, Lingyu, a new series of Passat of Shanghai Volkswagen, the joint venture of Germany's Volkswagen in China General Motors, topped with a sale of 10,600, followed by Hongda of Guangzhou Honda Automobile Corporation and Corolla of Faw Toyota Motor.
Experts said that the sedan sale is expected to moderate in the second quarter due to the rise of oil price.
China's growing middle class is expected to make the mainland the world's third largest automobile market by 2008, surpassing France and Germany.
The association also released the sale information of sport-utility vehicles and multi-purpose vehicles last month, which witnessed a cheering rise compared with that of February.
The association attributed the rising sale of SUV and MPV to China's new tax on luxury cars, taking effect on April 1, as well as the anticipative climbing prices of luxury cars.
China has taken various measures to prompt the development of environment-friendly cars nationwide, including new tax on luxury cars and the release of restrictions on cars with low emissions in some large cities.
Tags: china auto

Chinese Cars Coming To A Dealership Near You!

chinacars — Sat, 08 Apr 2006 06:34:00 +0000

The Chinese Cars wont survive in US markets! This is what people have been saying for the past year and continue to say, but are these people really keeping track of Chinese Auto manufacturers. The truth is they are growing fast and making strategic business development decisions to gain international exposure.

Lets begin with Nanjing Automobile. Nanjing Automobile creates its own brand of cars in China as well as joint ventures with bigger carmakers from Japan and US. Recently, they actually bought the highly respected MG Rover brand, which is situated in the UK and actually began a manufacturing plant in China for these cars. Another big player is Chery, which recently produced more than a half-million cars independently. They have dealerships all over the Middle East, Africa, Asia and Eastern Europe and currently are in the process of going to Australia.

However, after knowing these basic facts some critics continue to say the chances of these two or three Chinese carmakers meeting US safety standards is quite slim. Well the answer to this is firstly there are many fast growing Chinese carmakers trying to come to the US, for example Geely Automobile, Lifan, Brilliance China Automotive etc (you can view the whole list at http://www.chinacarforums.com). Secondly, many of these companies are new and have recently entered abroad car markets, so it is natural that they need some time to gain capital and work on their home-technologies to meet US standards. But surely you can expect a Chinese car at a dealership near you in the next few years. They are coming!

Tags: china auto

China's SAIC Motor hires former GM designer

chinacars — Fri, 07 Apr 2006 04:02:00 +0000

BEIJING (AFX) - SAIC Motor Corp Ltd, one of China's largest automakers, said it has appointed Wang Dazong, a former chief engineer and design manager at General Motors, as its vice president. Wang will be in charge of technical management and product development at the Chinese automaker, including establishing R&D capabilities for launching its own brand vehicles, said SAIC Motor in a statement. Yale Zhang, head of auto consultancy CSM Worldwide's China operations, told XFN-Asia that there is a growing trend among Chinese automakers to employ more and more overseas professionals to bring in production and management expertise. Zhang said that most Chinese firms, including Chery and Lifan, already have key R&D personnel who have worked for major international automakers. 'But it is hard to measure how much value these personnel can create for the Chinese automakers in developing their own cars,' Zhang added. SAIC Motor Corp Ltd said in February that it has set up a company -- SAIC Motor Manufacturing Co Ltd -- to produce automobiles of its own design with an investment of 3.68 bln yuan. The first model, which was designed based on the Rover 75, is scheduled to be released in the second half of the year. State media reported earlier this year that SAIC Motor may hire GM China's former president Phil Murtaugh to head SAIC Motor Manufacturing Co Ltd.
Tags: gm saic

China exports take aim at Australia

chinacars — Tue, 28 Mar 2006 20:04:00 +0000

CHINA'S car-makers will target Australia as the Chinese auto boom turns bust, a Shanghai-based automotive analyst says.Excess capacity in the auto sector and government pressure to export would see Chinese vehicles sold here within three years, Paul French, founder of business information firm Access Asia, said this week.
"Basically, they've been ordered to export. All China's car-makers have massive overcapacity at the moment and if they can't shift their cars the government's going to slap some limitations on them," he said. "The government has now said that it's going to control output and several new plants have had quite strict limits put on their licences. Prices are falling to silly levels and car-makers are losing a significant amount of money."
He said the lack of barriers to imports meant Australia would become a testbed for Chinese exports to the west.
"From China's perspective you guys look pretty good," Mr French said. "America is a problem because of the unions, Europe is a problem because of the welter of anti-dumping actions and trade sanctions in the European Union. There are nasty rows already around shoes and textiles, and it's broadening."
Last year China became a net vehicle exporter for the first time and two makers, Geely and Chery, have announced ambitious export programs. Geely will begin US sales in 2008 and Chery will start next year. Spy shots of a Chery SUV testing in the UK recently appeared in specialist press overseas.
But Mr French said joint ventures between Chinese and foreign firms were under even greater pressure to export and could sell through the existing sales channels of their Western partners.
Australia's 1 million annual sales made it one of the most significant national markets outside the US and Europe, Mr French said, with similiar levels of buyer affluence and expectations. "Australia would appeal to a lot of people as a good western market test case. For Chinese exporters it's a place to gain experience before taking on the big markets."

Tags: china auto