Changan Auto Posts First Profit Growth in 7 Quarters
April 15 (Bloomberg) -- Chongqing Changan Automobile Co., a Chinese partner of Ford Motor Co. and Suzuki Motor Corp., had its first profit growth in seven quarters after its sales of minivans and passenger cars increased.

Net income rose 8.6 percent to 76 million yuan ($9.5 million) in the quarter ending Dec. 31, from 70 million yuan a year earlier, according to calculations by Bloomberg News. Sales rose to 6 billion yuan from 5 billion yuan a year earlier. The figures were derived from the company's full-year earnings, which were provided to the Shenzhen stock exchange today using China's accounting standards.

Changan, a publicly traded unit of the country's fourth biggest automaker, has benefited from rising demand for smaller cars in China, which is being driven by higher gasoline prices and government policies.

Sales of cars with engines of less than 1 liter rose 76 percent last year to 325,402 units, according to the China Association of Automobile Manufacturers.

The Chinese government has increased gasoline prices four times within a year. Beijing's city government on April 1 lifted an eight-year ban against small cars, such as the 0.8 liter- engine Changan Auto, using main roads in the capital.

Changan Automobile Group Co., the parent of Chongqing Changan, aims to raise sales 20 percent this year to 750,000 units by selling more Focus and Swift cars with partners Ford and Suzuki.

http://www.bloomberg.com/apps/news?pid=10000080&sid=a_4HNzKpxkHU&refer=asia

BEIJING, June 30 (Reuters) - Ford Motor Co.'s
Chinese partner, Changan Auto Co. Ltd., is looking to expand overseas with its own-brand vehicles, said the China Daily on Friday.
Changan Auto China's fourth-largest vehicle maker, said sales overseas -- including sales with foreign joint venture partners -- could be 15-20 percent of total sales by 2010, the paper quoted Chief Executive Officer Xu Liuping as saying.
The company's overseas sales accounted for only 3 percent of total sales last year, said the paper.
Xu said overseas markets are expected to account for 25-30 percent of its own-brand sales by 2010, as overall sales more than double to 1.5 million units over the same period.


The company could sell 25,000 vehicles overseas this year, up sharply from 15,000 in 2005.
The report comes after domestic rivals have announced similar plans. Zhongxing Automobile said earlier this year it could become the first Chinese firm to make large volume exports to the United States, the world's biggest auto market, in 2007.
Great Wall Motor Co. Ltd. Geely Automobile Holdings Ltd. and Chery Automobile are also keen to move beyond their competitive home market. (US$=8.00 yuan)

source:http://today.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?view=CN&storyID=2006-06-30T040612Z_01_PEK140454_RTRIDST_0_AUTOS-CHINA-CHANGAN.XML&rpc=66

SHANGHAI -(Dow Jones)- Chongqing Changan Automobile Co. (000625.SZ), a Chinese auto maker which has a joint venture with Ford Motor Co. (F), said Thursday its first half net profit would have risen around 45% from the same period last year.
In a statement, Changan auto attributed the earnings growth to strong sales in Changan Ford Mazda Automobile Co., its joint venture with Ford and Japanese affiliate Mazda Motor Corp. (7261.TO).
Changan auto is scheduled to disclose its first half results on Aug. 10.
The company posted a net profit of CNY293.78 million for the first half in 2005.
-Zheng Jin contributed to this story; Dow Jones Newswires; 8621 6120-1200

Chongqing-based Changan Auto, China's fourth-largest vehicle manufacturer, managed a 48% increase in first-half net profit, powered by robust sales at its joint venture with Ford.

Changan sold 287,514 vehicles durtinig the January-June period, up 15.8% from a year earlier. Sales at the Ford venture, which contributed about half of total volume, jumped 163%. Higher unit sales led to a 48% surge in net profit to 435 million yuan ($54.7 million) as turnover rose by a third to CNY12.58 billion. Changan and Ford are busy expanding their Chongqing plant to 200,000 units per year and, in collaboration with Mazda, they are building a 160,000-unit facility in Nanjing.

Changan expects profit up 146.32%
(Shenzhen Daily)
Updated: 2006-10-19 14:11

Chongqing Changan Automobile Co., which makes vehicles in China with Ford Motor Co. and Suzuki Motor Corp., said Wednesday it expected a 146.32 percent jump in third quarter net profit from a year earlier.
Net profit for the period is estimated at 533.33 million yuan (67.44 million U.S. dollars) compared with 216.52 million yuan a year earlier, Shenzhen-listed Changan Auto said in a statement.

Turnover could rise 36.08 percent to 18.23 billion yuan in the third quarter, it said, without elaborating.

Changan Auto, China's fourth-largest vehicle maker, is scheduled to release its quarterly results Oct. 28.

In a separate statement, Changan said a previously-announced recall of 52,838 Focus sedans by Changan Ford Mazda Automobile, its tie-up with Mazda Motor Corp. and Ford, will cost 28.68 million yuan. It did not say how the cost will be shared.

The mid-range Focus is the venture's best-selling car model.

Changan has benefited from Ford's investment of more than 1 billion U.S. dollars in the country since 2003. China's total vehicle sales rose to 5.17 million in the first nine months, 25 percent more than a year earlier, the China Association of Automobile Manufacturers said Oct 13.

"Changan Automobile Co's president Xu Liuping said the company has set its 2010 auto production and sales targets at two million units, making it the second Chinese automaker after First Automobile Works Corp setting the same ambitious goal.

Changan-brand vehicles with independent intellectual property rights are expected to reach 1.2 million units by 2010, 60 percent of the total. To achieve this goal, the company will build 12 vehicle development platforms, seven for sedans and five for economy cars, and five engine development platforms.

By 2010, Changan will release 31 Changan-brand vehicles including sport utility vehicles and sports cars, 60 percent of which will be sedans. These vehicles will be 3.3 to five meters long, and their displacements will range from 0.8 to 2.2 liters."


- China Daily -

Changan Auto, a Chinese partner of Ford and Suzuki, says its net income for the first half of fiscal 2007 climbed 27.7% due to higher sales and investment returns.

Net income for the 1 January-30 June period increased to Yuan 433.17m (US$57.29m)

The Chongqing based Changan Automobile will deliver 10 hybrid vehicles to Beijing Olympic Games next year, Xu Liuping, the president of Changan Automobile said earlier this week.

"The means Changan automobile will start mass production of hybrid vehicles next year," Xu told Chinese media.

The hybrid vehicles to be made by Changan will cut energy consumption by 16-20 percent and emissions by 20 percent, Xu said.

The first hybrid vehicle in China was Toyota Prius, which started production in Changchun-based FAW-Toyota by the end of 2005. But the sales of this hybrid vehicle are abysmally small.

ChangAn Auto Group sales revenue up 24.5%

January 2 - ChangAn Automobile Group, one of China's,biggest automaker, announced today that the group's revenue has exceeded 57.4 billion yuan (7.851 billion in U.S. dollars) in 2007, up 24.5 percent from one year earlier.

The Chongqing-based automaker is China’s largest compact cars and small displacement engine maker. Its products lineups cover all segments of compact cars, sedans, SUV, MPV and commercial vehicles.

In 2007, the group sold 850,000 vehicles, up over 20 percent from last year, according to the announcement.

ChangAn Group has a joint venture company with Ford Motor Co and Mazda Motor in Chongqing, where Ford vehicles, including Focus, Festiva, Mondeo, Volvo S40, Mazda 3 are produced.

The automaker also has a partnership company with Japanese automaker Suzuki in Chongqing, where four Suzuki model are produced.

In the second half of 2007, ChangAn Ford Mazda opened a second plant in Nanjing, where Mazda 2 and redesigned Festiva are produced.

The Nanjing plant will have an annual capacity of 160,000 units and use Mazda's production system.

The Nanjing facility will give the ChangAn Ford an annual output capacity of 410,000 units in China. The plant will help Mazda achieve its annual sales target of 300,000 units in China, one of its mid-term goals to be achieved by 2010.

source: Gasgoo.com

Changan enters Chilean market.

http://es.autoblog.com/2008/02/19/changan-hace-su-llegada-a-chile-con-el-citycar-benni/

Translation in English by Google Translate.
And as was announced last November, a new brand joins car of Chinese origin who already offered in Chile, and already reaches five. This time it is Changan, a company with private capital and state, 11 plants and 30,000 employees last year produced 700,000 units.

The first model to arrive is the citycar Benni, a small model that is available in two versions, both with an engine of 1.3 litres of 85 horses. In his version of entry, Benni SE (4,190,000 pesos) is equipped with air conditioning, tires, Airbag, hotbeds fog, alzavidrios front, radio and power locks. The LX model (4,590,000 pesos) how much further with brakes with ABS and EBD alzavidrios electrical all windows.

Changan will also offer three vehicles and commercial variants pickup truck. In the case of the pickup, we have the S100, a model of a simple cabin with a payload capacity of 500 kilograms (2,990,000 pesos + VAT) and the S200, a double cabin pickup truck with 800 kilograms of cargo capacity ( 3,490,000 pesos + VAT). For its part, the commercial S300, fitted with a 1.0 liter engine and is priced at 3,390,000 pesos + VAT. Derco is the company in charge of the distribution in Chile and hopes to sell about 2,000 units annually.

Changan Auto's net profits rise 28% in 2007.
March 27, 2008 - Chongqing Changan Automobile Co., one of China's major carmakers, recently announced that its net profit in 2007 has reached RMB 667 million, representing a 28% increase over the previous year. Overall revenues grew by 12.9% year-on-year (y/y) to RMB 13.72 billion ($1.95 billion) as the number of vehicles sold leapt 25.2% y/y to 770,546 units.

Last year, profits made by the Chongqing-based Chinese automaker rose by 28.39% y/y to RMB 666.89 million. Profitability at its joint venture with Ford and Mazda rose by 46.7% y/y to RMB 1.92 billion, while its joint venture with Suzuki struggled over the course of the year, its profits having slumped 43.7% to RMB 123.2 million.

Looking toward the future, Changan Auto said that it is aiming to produce 890,000 units during 2008 and to achieve revenues of RMB 16.3 billion, although it added that in order to meet these goals it will need working capital of around RMB 1.25 billion per month and capital expenditure of RMB 2.99 billion.

The car maker is said to have made moves toward an initial public offering (IPO) in the stock market to finance its plans for continued growth, including an optimistic sales target of about 2 million units a year by 2010, coming mostly from its self-developed models.

However, in terms of the increasingly competitive nature of the Chinese auto market, it seems difficult for the automaker to hit such an ambitious target.

Based in China's southwestern city of Chongqing, Changan Auto is the country's largest mini-van maker and fourth-largest vehicle manufacturer.

Changan Auto to launch 30 own brand models by 2010.
March 27, 2008 - Changan Automobile Co has reaffirmed its target to launch 30 own brand models and 12 self-developed engines before 2010, China state news agency Xinhua reported this week.

"Based on our strong R&D abilities and expanded output capacities, we feel confident about developing seven sedan platforms, 5 mini-car platforms and three engine platforms by 2010, a year when 30 new own brand models will already be rolling off the production line," said Xu Liuping, the company's CEO.

The Chongqing-based automaker has now established four R&D centers in Chongqing, Shanghai, Europe and Japan. From 2004 through 2008, Changan has delivered dozens of concept models and complete vehicle products with independent intellectual prosperity rights, including Benben, Jiexun MPV as well as the newly launched CV8.

Changan Auto plans to invest another 1.04 billion yuan ($149 million) to expand its sedan plant and set up a new engine production line. By 2009 the sedan plant will have a capacity of 400,000 units.

Last year, profits made by the Chongqing-based Chinese automaker rose by 28.39% year-on-year (y/y) to RMB 666.89 million. Overall revenues grew by 12.9% y/y to RMB 13.72 billion as the number of vehicles sold leapt 25.2% y/y to 770,546 units.

source: Gasgoo.com

Changan Auto to build 8 plants abroad for global expansion.

April 17, 2008 - On April15, the chairman and president of Changan Auto told Chongqing evening news that the Chinese carmaker has being eyed the overseas market, intending to build eight plants abroad.

It is reported that Changan Auto has already chosen South Africa, Pakistan, Algeria, Brazil and three other overseas markets at present for its global expansion. It plans to construct an assembly facility and to rank Changan the top brand locally. Besides, Changan Auto will also establish the fourth R&D Institute in Japanese city of Yokohama in the near future.

Sources said that Changan Auto will launch CM9, CM10 and some other own-brand new models in 2008. Changan Auto is now researching and developing mid-class and luxury sedans, the MPV vehicles and all-terrain vehicles, with emissions from 0.8 to 2.2 liters. It also aims to expand the production capacity from present 100,000-120,000 units to 400,000 units.

source: Gasgoo.com

the changan brand has been launched here in the Philippines. They have launched the "Benni" hatch and i find it cute.

Changan Auto to assemble compact cars in Iran

May 31, 2008 - Changan Automobile Co, a China partner of Ford Motor, said on Friday it plans to assemble compact cars in Iran starting next year as it speeds up expansion overseas.

Changan's compact Benni, which it developed in-house, will be assembled at a facility near Tehran beginning in the first half of 2009, targeting the local market, the Chinese company said in a statement.

The facility, to be built by its partner Pars Industrial Development Foundation, will have initial annual capacity of 50,000 units, rising to 250,000 eventually, it said.

Changan, which runs a three way tie-up with Ford and its Japanese affiliate Mazda Motor, is among a growing number of ambitious Chinese automakers hoping to build up a global brand name.

It aims to sell 200,000 vehicles overseas in 2010, up sharply from roughly 50,000 last year, a company spokesman said.

From:Reuters

Chana gets help from Japanese firm to design vehicles

By Ally From:Gasgoo.comJune 06, 2008

Shanghai, June 6 (Gasgoo.com) Chinese automaker Chana Auto Co has reached an agreement with Japanese firm Hivec who will help design a new vehicle Chana is developing, the Nikkei reports Wednesday.

According to the Japanese business publication, Hivec will form a project team of around 15 engineers at its design facility in Hiroshima (Japan) to work on both the body and interior of the vehicle. A separate team will provide support to Chana's own engineers working on car body designs.

Hivec, a joint venture of more than a dozen auto parts and other firms, has designed mostly interior accessories for Mazda Motor Corp and other domestic car and truck makers. The new business with Chana will mark the firm's first time ever to handle a full-sized vehicle, a briefing from Asia Pulse said.

http://www.gasgoo.com/auto-news/6679/Chana-gets-help-from-Japanese-firm-to-design-vehicles.html

Changan Auto June vehicle sales hit 18,053 units.


July 07, 2008 - Chongqing Changan Automobile Co Ltd said it sold 18,053 vehicles in June, with production at 19,423 units.

In a statement filed with the Shenzhen Stock Exchange, the company said that Changan Ford Mazda Automobile Co Ltd, its joint venture with Ford Motor Co, produced 16,811 vehicles in June with sales of 16,880 units.

Chongqing Changan Suzuki, its 51 pct-owned joint venture with Suzuki Motor, sold 11,237 vehicles last month on production of 12,488 units.

Chongqing Changan Automobile, the listed arm of China's fourth-largest automaker Changan Automotive Group, did not provide comparative figures.

From:quamnet.com

Changan Auto July sales hit 13,257 units

August 06, 2008

Chongqing Changan Automobile Co Ltd said it sold 13,257 vehicles in July, with production at 18,650 units.

In a statement filed with the Shenzhen Stock Exchange, the company said that Changan Ford Mazda Automobile Co Ltd, its joint venture with Ford Motor Co, produced 15,405 vehicles in July with sales of 15,170 units.

Chongqing Changan Suzuki, its 51 pct-owned joint venture with Suzuki Motor, sold 8,001 vehicles last month on production of 11,184 units.

Chongqing Changan Automobile, the listed arm of China's fourth-largest automaker Changan Automotive Group, did not provide comparative figures.

http://www.gasgoo.com/auto-news/7324/Changan-Auto-July-sales-hit-13-257-units.html

China Automotive Systems wins Changan Auto deal

September 03, 2008


China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced that its subsidiary, Jingzhou Henglong Automotive Parts Co. ("Henglong"), has signed a supply agreement with ChangAn Auto Co. Ltd. ("ChangAn Auto").

Beginning in February 2007, Henglong started developing prototype power steering systems for ChangAn Auto. After more than a year of development and testing, Henglong has successfully developed 4 different models of hydraulic power steering systems and one model of Electronic Power Steering for ChangAn Auto.

Henglong is now a power steering system supplier to ChangAn Auto’s CV6 model. It is estimated that Henglong will ship steering gears for the other 3 models in late 2008. Total shipments to ChangAn Auto for 2008 will be approximately 30,000 total units.

Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "We view the ChangAn win as an important milestone as ChangAn Group is one of the largest auto manufacturing groups in China with a number of successful joint ventures with global auto makers. We see this as a good opportunity for us to break into another well established network."

http://www.gasgoo.com/auto-news/1007614/China-Automotive-Systems-wins-Changan-Auto-deal.html

Honeywell, Changan to jointly develop turbochargers

October 06, 2008


Shanghai, October 6 (Gasgoo.com) Honeywell and Chinese automaker Changan Group recently signed an agreement to jointly develop technologies for turbochargers used in small-displacement cars, the Xinhua news agency reported today.

The move will help enhance the environmental friendliness and energy efficiency of motor vehicles and at the same time lower the cost. The term of the cooperation will be one year.

"The turbocharger technology allows a vehicle to use a smaller engine (30% smaller in size) while achieving power levels of a much larger engine," said Shane Tedjarati, President of Honeywell (China).

"These turbochargers for small cars will improve upon the size-to-output efficiency of an engine by 10% to 15% and has the potential to yield big revenues," he said.

Honeywell is one of the Fortune 500 Enterprises, with an annual turnover of $37 billion. Its investment in China has exceeded $600 million, with 7,000-plus employees.

http://www.gasgoo.com/auto-news/1007938/Honeywell-Changan-to-jointly-develop-turbochargers.html

Changan, Electrovaya to launch clean car in Canada


November 05, 2008

Changan Automobile Group, Ford Motor's China partner, said on Tuesday it will roll out 30 electric cars developed jointly with Electrovaya in Canada before the end of this year, potentially becoming the first Chinese auto maker to tap the North American market.

Changan and Electrovaya, maker of portable power technology products, started developing electric cars since May, with Changan providing one of its conventional compact models and the Canadian company working on the power train, a company executive told Reuters.

Electrovaya is responsible for the distribution of electric cars, assembled in Canada and developed based on Changan's hot-selling Ben Ben, for the time being, said the executive, who asked not to be identified.

Changan will eventually develop the made-in-China clean energy cars on its own and ship them to the hotly-contested market, he said, without providing a time frame or sales target.

Other Chinese players, such as BYD auto, an automaking unit of Hong Kong-listed rechargeable battery maker BYD Co, are also eager to tap the clean energy vehicle market at home and overseas.

BYD Auto has signed up 10 distributors for its self-made plug-in hybrid car in Europe, well ahead of its targeted entry into that market in 2010, the head of the firm's export arm Henry Li told Reuters last week.

http://www.reuters.com/article/marketsNews/idUSSHA33460720081104

Changan Auto gets $2.9m for hybrid car making

December 01, 2008
Shanghai, December 1 (Gasgoo.com) Chinese automaker Changan Auto has obtained a 20 million yuan ($2.93 million) government grant for its hybrid car subsidiary, Chongqing Changan New Energy Auto, said local media on Friday. The newly founded company will develop several hybrid models and launch them to the market by 2012.

After three years of preparation, the Chongqing Changan New Energy Auto was officially founded on November 27 in western Chinese city of Chongqing. China's technology minister Wan Gang attended the founding ceremony, at which he announced that China will put 60,000 new-energy vehicles into trial service by 2012 to reduce pollution and fuel imports. These vehicles will be used for the public facilities, postal services and others in 11 Chinese cities first.

Chongqing city has granted 20 million yuan to the local Changan New Energy Auto to help fund research into alternative energies for driving future vehicles. The company has registered capital of 29 million yuan, with Changan Auto Group holding 65% stake and the other 35% going to Chong municipality. More investment is expected to be injected into the company if its current talks with venture capital firms are fruitful.

Changan Auto Group started its project of setting up a new-energy auto company in June 2006 and registered this company two years later. Changan Auto joined the national "Project 863" in 1998 and has invested a total of 250 million yuan in the hybrid vehicle research, now leading the Chinese auto technologies from the complete auto to engine to hybrid power system. The new subsidiary will develop several hybrid models and launch them to the market by 2012.

The Chinese government will support automakers' research in the area through financial assistance and preferential policies, sci-tech minister Wan Gang said in Chongqing. The western Chinese city has purchased 10 hybrid cars made by Changan Auto and will buy more than 1,000 units from its new-energy auto maker in the next three years.

http://www.gasgoo.com/auto-news/1008566/Changan-Auto-gets-2-9m-for-hybrid-car-making.html

do chang'an export to timor leste?

Changan Auto launches minicar, MPV in Malaysia.

China's Changan Automotive Co. on Monday launched a minicar and a seven-seater multipurpose-vehicle (MPV) in Malaysia, marking its debut in Southeast Asia.

Changan is the third China carmaker after Chery Auto Group and Geely Automotive to enter Malaysia, which is the region's largest passenger car market.

Tony Khor, Chief Executive of Changan Berjaya Auto, said the Era CV6, an egg-shaped minicar, and the Era CM8 family size multipurpose vehicle are affordable vehicles targeted at first-time buyers and those looking for a second car.

Changan Berjaya, which is part of the Berjaya Group, is the exclusive assembler and distributor of Changan cars in Southeast Asia.

Khor said both cars, priced from 36,000 ringgit (US$10,141) with 1.3 liter engines, have been refined for the Malaysian market to be safer and more attractive.

"Although there is an economic slowdown, we are confident. It's a good time for us to introduce a small and entry-level car because people will downgrade," he said. "There are long term plans for Malaysia, which will become Changan's right hand drive hub for the region."

Khor said Changan Berjaya hopes to sell 3,000 units of the CV6 and 2,000 of the CM8 this year. It also aims to export some 5,000 of the cars to Southeast Asian countries including Singapore, Brunei, Indonesia and Thailand, he said, but gave no details on when this will be.

Changan Auto '08 sales hit 862,000 vehicles.

China's state-run Changan Automobile Co announced it sold 862,000 vehicles in 2008, with Changan mini-bus sales reaching 362,000 units, sina.com said today.

Changan Auto director Xu Liuping announced the result at the company's 2009 marketing and sales conference.

In 2009, Changan Auto aims to sell 500,000 Changan mini buses, up 30% over 2008, Xu disclosed.

Changan Auto reportedly will boost sales of its all-new mini-bus products, such as Changan Star II, Changan Star S460 and Changan Xingguang 4500.
January 20, 2009, Gasgoo.com

Changan Auto plans to invest $80 mln in S. Africa

July 15, 2009
Chinese state-owned automotive manufacturer Chana Auto Company (Changan Auto) has decided to invest US$80m in South Africa over the next five years to set up a production facility in the country.

Business Report, citing Yang Qing, the general manager of Chana International, says this investment will be spread over three phases, with the assembly plant forming the final phase. The location for the plant, however, has not been finalised yet.

The planned facility will have annual output capacity of more than 50,000 vehicles, and will create around 1,000 jobs in all. The plant will, however, be set up only when the OEM has a 4% share of the local automotive market. The company plans to turn the facility into a base for build of its right-hand drive (RHD) models.

Meanwhile, Changan Auto will focus on boosting sales through the establishment of a company to promote sales in South Africa, the report says. It will also establish a vehicle finance company, in association with China Construction Bank, Absa and WesBank.

The economic downturn has had a significantly negative impact on Changan's fortunes in South Africa. Monthly sales at the OEM fell from 400 units mid-2008, down to 100 units at present. The number of its dealers in the country has, as a result, been cut from 50 to 20.

From:Automotive World

http://www.globaltimes.cn/attachment/091030/2d307aca3f.jpg (http://autos.globaltimes.cn/china/2009-10/481601.html)

The output and sales of Chana Auto Co. Ltd (Changan), reached over 1 million units in the first three-quarters of this year, Changan said yesterday. The output and sales of the independent brands of the company made up two-thirds of the total sales.
The figures show that Changan has become the fourth company to reach output and sales of over 1 million units. The other three companies are China FAW Group Corporation (FAW), Shanghai Automotive Industry Corporation (Group) and Dongfeng Motors. The three companies are cooperation companies.
Sales of Changan reached 1.03 million units in the first three-quarters, up 50.14 percent year-on-year, and it is nearly 16 percent higher than...

Changan to make Ford car under own brand

Chongqing Changan Automobile (000625.SZ) is in talks with partner Ford Motor (F.N) to produce a mid-sized car in China using Ford technology but carrying a Changan brand, as they move to take their partnership to a new level, two sources said on Monday.

Changan, one of China's top state auto groups but which lags in its own brand sedans, has been making Focus, Mondeo, Fiesta and other Ford models in a three-way tie-up with the Detroit automaker and Mazda Motor (7261.T).

The initiative, if it goes ahead, would mark a breakthrough in their partnership and pave the way for more, mutually beneficial deals in the years to come, sources said.

"Ford CEO Alan Mulally met Changan Chairman Xu Liuping during his trip to China in March. They had in-depth talks on ways to bring their cooperation to the next level," one source with direct knowledge of the matter told Reuters.

One option both partners are seriously considering would see Changan making a mid-sized sedan based on a Ford platform in its own production base in Nanjing, close to Shanghai, said a second source who was briefed on the matter.

The sedan will be sold under Changan's name, but will be priced lower than the comparable Ford model to avoid direct competition. Ford will then get a sizeable share of the proceeds, both sources said.

It is unclear at this stage which of Ford's car models will be made at Changan's Nanjing production base, both sources said.

Changan's spokesman declined to comment, while Ford's China spokesman, Craig Von Essen, said it was "market speculation".

GIVE AND TAKE

The partnership between General Motors [GM.UL] and SAIC Motor (600104.SS) has long been touted as the most successful tie-up in the Chinese auto industry, allowing both to make a breakthrough in China and elsewhere.

Ford, a relatively latecomer to China, now the world's biggest auto market, is also looking at options to expand its partnership with Changan Auto beyond the terms of the current joint venture. [ID:nN24159793]

"The Changan deal may not add much value to Ford's only brand in the short term, but it could be the first step toward a wider and deeper relationship like GM and SAIC," said Huang Zherui, an analyst with global industry consultancy CSM Worldwide.

Currently, Changan has been competing mostly with indigenous players in the lower-end passenger car segment, leaving the more lucrative medium-to-higher market segment to locally-built Buick, Accord, Camry and Passat models.

SAIC is virtually the only local automaker that has made some inroads in that segment with its Roewe and MG sedans.

FAW Group, a Volkswagen (VOWG.DE) and Toyota Motor (7203.T) partner, has also been making mid-size Besturn, based on the Mazda 6 platform.

Access to Ford's technology could raise Changan's profile and put it on par with its domestic rivals, industry observers said.

http://www.reuters.com/article/idUSTOE65606Z20100607

Changan to make own brand high-end car with new logo

August 25, 2010
China's Chang'an Automobile Group revealed to the media that in order to get rid of its low-end brand image for poor quality and low price, Changan Group has decided to make an own brand high-end vehicle.

It is reported that the incoming high-end model is an extension of the current Changan brand, but its operation mode will be different. General manager assistant of Changan Group told the reporter that the high-end model will use a new logo and its market position will be higher than the Benni, Alsvin and even SAIC's Roewe 550.

Xu Liu ping, president of Changan Group said that not only will the high-end brand boost Changan's existing brand image, but will cement its position as the first car camp at home.

Changan Group had a fast expansion last year due to the restructuring of Aviation Industry Corperation of China and a JV with Peugeot Citroen. Despite of which, Changan Group expressed that developing self-owned brand is its first priority.

Changan Motor has established R&D institutions in Chongqing, Shanghai, Beijing, Harbin, Jiangxi, Turin (Italy) and Yokohama (Japan).

Xu said that Changan Motor aims to sell three million vehicles in 2015, and in 2020, that figure will be five million units.

http://autonews.gasgoo.com/china-news/changan-to-make-own-brand-high-end-car-with-new-lo-5-100825.shtml

Changan to establish R&D center in Michigan

Changan Automobile Co. Ltd. – China’s fourth largest automaker – has announced plans for a research and development center in Plymouth Township, Michigan. The projected was spurred by tax incentives provided by the Michigan Economic Growth Authority.

Changan didn’t give a move-in date for its new R&D facility, but the project will create 161 new jobs. The Chinese automaker was considering locations in Ohio, California and China, but the Michigan Economic Growth Authority won Changan over with a tax incentive deal worth $1.7 million over seven years.

“As we work to foster business opportunities across a wide spectrum of sectors, we’re using every tool in our economic development arsenal to leverage the kinds of public-private partnerships — like the ones announced today — that attract investment and create jobs for Michigan workers,” said Michael Finney, president of the Michigan Economic Development Corp.

Changan currently has a joint-partnership in place with Ford.

http://www.leftlanenews.com/chinas-changan-to-establish-rd-center-in-michigan.html