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Brilliance China Auto signs deal to export 3,000 sedans to Europe

AFX News Limited
Brilliance China Auto signs deal to export 3,000 sedans to Europe
09.22.2006, 05:13 AM

BEIJING (XFN-ASIA) - Brilliance China Automotive Holding Ltd, the Chinese partner of Bayerische Motoren Werke AG (BMW), said it has signed an agreement with an auto trading unit of Germany's EH Harms GmbH & Co to export 3,000 Zhonghua sedans to Europe.

The Chinese automaker said that the German company is expected to sell around 50,000 Brilliance China cars in Europe in the coming years.

In the first half this year, Brilliance China sold 92,000 units of vehicles, up 62.1 pct year-on-year, with exports up 95 pct at 3,724 units.
 

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Brilliance wants to get it right from the start...

m14 said:
AFX News Limited
Brilliance China Auto
........signed an agreement with an auto trading unit of Germany's EH Harms GmbH & Co to export 3,000 Zhonghua sedans to Europe.
Looks like Euro Motors (Gibralter) Ltd's loss, after signing with Brilliance last year, turned out to be EH Harms' and HSO's gain. Brilliance was not happy with Euro Motors and the switch to another importer was expected. It's a big step for Brilliance, and they obviously didn't want to screw it up.
 

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Brilliance paves path to Europe

Brilliance paves path to Europe
Jin Jing
2006-09-27
BRILLIANCE China Automotive Holdings Ltd, the domestic partner of BMW AG, will expand exports of its self-branded models to the European markets this year.

The Shenyang company plans to export 3000 units of its mid-class Zhonghua sedan after signing agreements with Germany's HSO Co Ltd on Thursday, according to a statement from the company yesterday.

HSO said it was confident it could attract more than 50,000 European customers in the following several years and help Brilliance carry out an overseas developing strategy with a stronger brand awareness.

The move comes after Brilliance broke into more than 23 overseas markets with 33 dealers in Africa, South and North America as well as Middle Eastern regions.

Brilliance exported 3,724 units for the first six months this year, an increase of 95 percent. It generated US$50 million in sales revenue through exports, up 107 percent year on year, the company said.

Chinese carmakers are exporting more models because their high-quality models are price competitive with models made by international giants due to inexpensive labor costs in China.

The company, which lost money on the Chinese market over the past two years, has reported a narrowed profit loss for the first half of this year.

Half-year net losses were recorded at 113.6 million yuan (US$14 million), compared with nearly 300 million yuan from the same period last year, according to a statement filed to the Hong Kong stock market last Friday.
http://www.shanghaidaily.com/art/2006/09/27/293085/Brilliance_paves_path_to_Europe.htm
 

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China's Brilliance Auto to ship 158,000 cars to Europe over next 5 years

AFX News Limited
China's Brilliance Auto to ship 158,000 cars to Europe over next 5 years
11.28.2006, 05:18 AM

BEIJING (XFN-ASIA) - Brilliance China Automotive Holdings plans to ship 158,000 cars to Europe over the next five years, the company said in a statement on its website.

Brilliance has sealed a contract for the delivery of the autos with HSO Motors Europe, a German auto importer, the statement said.

Chinese cars have so far been exported mainly to markets in Southeast Asia, the Middle East, Africa and South America.
 

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I think they have a good chance to suceed in the EU.
As i look at the photo's, the quality doesn't seem to be a problem.
Also some nice models.
The only obstacle will be to build up a dealer-network.
Also the competition is a real pain in the ass.
 

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Having read German reviews then I think they will need to cut prices more agressively to achieve this and improve build quality. Also the NCAP ratings are really bad and more and more buyers in Europe see this as an issue. To give you an idea about 10 years ago Rover stopped selling the Metro/ Rover 100 because its scored badly in NCAP. They did this despite the fact that it was a big seller. The reason they did this was to protect brand integrity. 10 years ago it was less of an issue. Today it's considered really important...
 

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Discussion Starter · #9 ·
i think 5 years is long, thats only 30000 cars a year....but then again..these nations in EU auto growth rate and turnover is quite low..so i guess then reasonable
 

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mgrovernut said:
Having read German reviews then I think they will need to cut prices more agressively to achieve this and improve build quality. Also the NCAP ratings are really bad and more and more buyers in Europe see this as an issue. To give you an idea about 10 years ago Rover stopped selling the Metro/ Rover 100 because its scored badly in NCAP. They did this despite the fact that it was a big seller. The reason they did this was to protect brand integrity. 10 years ago it was less of an issue. Today it's considered really important...
When posting my previous reply i must have overseen that article.
And about NCAP, that's indeed an issue.
An example is the flopped Landwind (other company, i know).
 

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Source: AutoNewsEurope
CZECH REPUBLIC, PORTUGAL AND SPAIN DEALS ARE SIGNED, ITALY NEXT FOR CHINESE AUTOMAKER

China's Brilliance Jinbei Automotive has captured a huge early lead over its Chinese rivals in piecing together a European sales network. It has locked up distribution deals in three of the continent's top four markets. The fourth is pending. The automaker has distributors for its BS6 upper-medium sedan in Germany, France and Spain. And in Italy, talks with a potential partner are in an "advanced stage", says Hans-Ulrich Sachs, managing director of Brilliance's importer, HSO Motors Europe.

HSO recently secured a deal with Portuguese distributor and retailer Grupo Salvador Caetano to distribute Brilliance models in Spain and Portugal and sells vehicles in the Iberian Peninsula and in Angola. In France, HSO has an agreement with Asie Auto, which also has a license to sell Chinese Landwind models. Asie Auto is run by former MG Rover France executive Elisabeth Young and boasts 140 dealers, many of which used to sell the British brand's cars. The backbone of HSO's European operations is a wholly owned subsidiary in Germany, HSO Motors Deutschland, which aims to recruit around 100 dealers by the end of the year. It plans to double this by end-2008, Sachs said.


HEADING TO THE EAST

HSO also has signed dealer agreements in Switzerland, Sweden, the Baltics, Bulgaria, Romania, Greece, the Czech Republic and Slovakia, Sachs says. In a third phase of its expansion, the company plans to move into Norway, Finland, Austria, Poland and Hungary. "We have made very good progress in the month since the IAA", Sachs says. No dealer has yet agreed to open and exclusive store, however. The minimum requirement for a sales point: 22 square meters of showroom space and a €4,000 investment in signs. The HSO approach reduces a dealer's risk. But it requires no significant commitment to the brand, either.

"To a certain extent, they take what they can get in order to get a foot in the door", said Christoph Stürmer, auto analyst at Global Insight office in Frankfurt. The first batch of BS6s arrived in Germany in March. The aim at HSO is to sell 158,000 cars in Europe by 2011. But in July the BS6 did poorly in crash tests conducted by 11 national auto clubs, including Germany's ADAC. brilliance redesigned 65 BS6 parts. Spanish independent tester IDIADA crashed BS6 prototypes to EuroNCAP standards and says it would get a three-star rating. Sachs says the car will be retested next spring in time to apply for European type approval. "We had a sales goal but we had to scale back", he told.

His new target is 15,000 in 2008, but even that depends on receiving type approval no later than June. For 2008, HSO plans to launch the BS4 lower-medium sedan in spring, the BC3 coupe in autumn and a small hatchback, the BS2, by the end of the year.
 

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Key points:


Brilliance has distributors for its BS6 in Germany, France, Spain, Portugal, Switzerland, Sweden, the Baltics, Bulgaria, Romania, Greece, the Czech Republic and Slovakia

The aim at HSO is to sell 158,000 cars in Europe by 2011

After ADAC test Brilliance has redesigned 65 BS6 parts.

new target for 2008 is 15,000 cars

and the most important part:

"In a third phase of its expansion, the company plans to move into Norway, Finland, Austria, Poland and Hungary.

:thumb:
 

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I hope the USDM BS6 has the improved safety. I wonder if China Motor will still import them since they have been hit with lawsuits. The lawsuit claims that they would sell dealer points and lie about testing. I think Brilliance will get it right eventually.
 

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Brilliance opened their Italian website:
http://www.brilliance-auto.it/main/default.asp

Company is advertising its complete lineup including upcoming BS2. Vehicles sold in Italy are:

* BS2 1.6i 16v 108 HP
* BS2 1.6i 16v 108 HP AM
* BS4 1.8i 16v 136 HP Comfort
* BS4 1.8i 16v 136 HP DeLuxe
* BS4 1.8i 16v 170 HP Turbo AM
* BS6 2.0i 16v 122 HP Comfort
* BS6 2.0i 16v 122 HP DeLuxe
* BC3 1.8i 16v 170 HP Turbo
* BC3 1.8i 16v 170 HP Turbo AM
 

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it will be interesting to see how many are actually sold in Italy since it will give some indication of how it will do in other western nations. If italy fails then other G7 nations dont have much of a chance in acquiring chinese cars
 

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rendezvous65 said:
I hope the USDM BS6 has the improved safety. I wonder if China Motor will still import them since they have been hit with lawsuits. The lawsuit claims that they would sell dealer points and lie about testing. I think Brilliance will get it right eventually.
Mr. Shelburg and his China Motors partners (now Autokam) have worked hard at bringing Brilliance to America but he has possibly spread himself too thin with attempts to bring other manufacturers cars as well. For example, Hafei, Geely, Great Wall, and even the new and untested Gonow. Awhile back Mr. Shelburg even vowed to beat Mr. Bricklin to the punch. But it's not easy to get over homologation and other hurdles, as Chamco and Zhongxing have also learned. Of course these Chinese makers, and the Chinese government too, want to be sure they pick the best possible partner to be responsible for launching their products.
As for Hafei, everything there will change if Dongfeng Motor gets control as the latest news suggest it might.
 

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Brilliance hopes to capture 1.5 percent of European market in 10 years.

Gasgoo.com:
March 7, 2008 – Brilliance Auto expects to sell 200,000 vehicles a year in European market and capture at least 1.5 percent of the market with in ten years, the Chinese automaker's chief dealer in Germany said at the sidelines of Geneva Motor Show.

"In 10 years, I expect we will have a market share of at least 1.5 percent, selling about 200,000 cars a year," Hans-Ulrich Sachs, CEO of HSO Motors Europe, Brilliance's importer for Europe, told Reuters at the Geneva auto show.

Sachs also said Brilliance was on schedule to finish covering all of Europe's main markets by the end of this year, becoming the first Chinese automaker to invade European market.

At the end of 2006, Brilliance and HSO signed a five-year export contract. Under the contract, Brilliance will export a total of 158,000 Zhonghua vehicles to European market.

"Brilliance will bring more and more models to German market. We will expand our exports to other European countries. Our ultimate goal is to sell vehicles to 22 member countries of European Unions," said Qi Yuming, board chairman of Brilliance Auto.

This month Brilliance Auto displays three models at the Geneva Motor Show: a 2.0 liter luxury sedan Zhonghua Zunchi, a 1.8 liter TAT Junjie and a 1.8 TMT Zhonghua Coupe. This is the second for Brilliance to display models in Geneva Motor Show.

Brilliance now has import companies serving 17 European countries, including Germany, Switzerland, France and Spain, with 700 non-exclusive dealers, according to the Reuters report.

Last year, Brilliance made headlines in Europe when it received a rating of just one star out of five in a crash test for its BS6 sedan by Germany's ADAC auto club.

Brilliance at 2008 Geneva Auto Show:
 

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Brilliance to start selling improved BS6 sedan in Europe.
Brilliance Jinbei Automobile Co. will launch sales of improved cars in Europe this summer, about one year after its BS6 sedan got a low safety rating in a crash test in Europe.

Its chief distributor in the region has cut the sales target for its sedans set before the crash test by more than 50 percent.

Hans-Ulrich Sachs, managing director of Brilliance's European importer HSO Motors Europe, says the sales of the redesigned cars will start in Germany.

In addition to the redesigned BS6, another sedan made by Brilliance -- the BS4 -- will also hit the German market in summer. The third car, a coupe model BC3, will be launched there in autumn, he says.

Sales in other European countries like France and Belgium are expected to start in early 2009.

Brilliance confirms the plans and says it will start producing the improved BS6 as well as the BS4 in April or May at its plant in Shenyang city, Liaoning province.

The company adds the improved versions, dedicated for European markets, will differ from products targeting Chinese domestic markets, but all products will share production lines.

Brilliance started exporting cars to Europe at the end of 2006, but all sales of the BS6 sedan stopped last July and August after the car did badly in crash tests conducted by 11 national auto clubs, including Germany's ADAC.

Brilliance says it has redesigned "approximately 60 components" of the BS6 to improve its safety.

The company says it:

A) Replaced an unspecified number of parts in the chassis;

B) Redesigned the airbags to minimize injuries to front-seat passengers' chests during a car crash;

C) Equipped front seats with seat belt pretensioners, which will lock the belts almost instantaneously when a car crash happens;

D) Improved door panels, car roofs and roof pillars to minimize injuries inflicted by edged parts on passengers during a car crash;

Brilliance and HSO Motors say they are now requesting the independent car-testing organization EuroNCAP to crash the improved Brilliance car later this year. A EuroNCAP spokeswoman says no final decision has been made on when to conduct the test.

Spanish independent tester IDIADA has crashed a prototype of the redesigned BS6 to EuroNCAP standards last September, and says it would get a three-star rating.

Brilliance says the improvements add to the costs, thus the cars targeting European markets will be more expensive than those sold on the domestic market.

Sachs says the improved versions of the BS6 will sell at about 19,900 euros per unit while the BS4 will be priced at about 16,900 euros. The price of the BC3 will range between 17,000 and 18,000 euros.

Sachs adds HSO Motors plans to sell 3,000 to 4,000 Brilliance cars this year, about 10,000 in 2009 and 20,000 in 2010. The company previously aimed to sell 20,000 in 2008, 30,000 in 2009 and 40,000 in 2010.

He adds HSO Motors sold 120 units of the unimproved Brilliance cars to its European distributors in January. The company has 10 distributors in 16 European countries.

"We are still alive and we are fighting back," Sachs said.

Brilliance also says its cars are receiving emission and crash tests in the United States now. The company is building distribution networks there. It expects to get 500 dealers across the U.S. by the end of this year.
source: Automotive News China, March 25, 2008


Brilliance Auto to make vehicles in Ukraine.
March 25, 2008 - Shenyang Brilliance Jinbei Automobile has named a Ukraine company KRES as its sole sales agency in the country, sources from Ministry of Commerce said.

The two sides have already signed cooperative agreement, according to the sources. KRES will import auto parts from Brilliance and assemble Brilliance vehicles locally.

Brilliance Auto expects to sell 200,000 vehicles a year in the European market and capture at least 1.5 percent of the market share within ten years, Brilliance's importer for Europe said earlier this month.

Brilliance is now linked with import companies abroad serving 17 European countries, including Germany, Switzerland, France and Spain, with 700 non-exclusive dealers, according to a Reuters report.
source: Gasgoo.com
 
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