China Car Forums banner
1 - 1 of 1 Posts

· Premium Member
1,056 Posts
Discussion Starter · #1 ·
Auto makers chosen as UN official suppliers
Jin Jing
NINE Chinese vehicle makers have become official auto suppliers to the United Nations for the first time, which will enable them to compete to supply cars to the world body.

First Automotive Works Group, along with the other eight Chinese car makers, will compete against 11 global car makers to supply 15,000 vehicles to the world organization from this year to 2008.

Selection as official supplier to the UN marked the first time Chinese car makers are directly involved in the UN purchase, signaling a new foray in global markets for China's price competitive models.

Besides FAW, the nation's biggest auto manufacturer, others include Shenyang-based Brilliance Jinbei Automobile Corp, Jiang Ling Automobile Co, Zhengzhou Nissan Automobile Co, Ltd, Great Wall Motor Corp, and Shanghai Maple Automobile Co Ltd, an affiliate of Geely Holding Group.

Mai Shouxin, a UN sourcing official, said earlier that China now accounts for less than one percent of the UN's global purchases although most of the products bought are made in China.

"It's the first time for the UN to buy autos in China and more direct purchases are expected in the future," Mai said.

Six out of the nine successful private, state-owned and joint venture car makers, will provide pickups to the UN in addition to minibuses, coaches and sports utility vehicles if they win the bid. Only FAW won the bid to supply its trucks.

The auto makers may not get orders immediately. However, chosen as the designated suppliers to the UN will hopefully bring more business and enhance their reputation, Zhang Boshun, secretary of the China Association of Automobile Manufacturers Market and Trade Commission, said.

But he also warned that China car makers face many obstacles such as the lack of experienced and extensive after sales service in overseas markets, knowledge of the UN's purchasing rules and procedural process.

The UN buys more than US$8.3 billion worth of products globally every year, of which 40 percent were sourced in developing countries. Last year, purchases in China totaled US$84 million, up from US$30 million in 2002.

1 - 1 of 1 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.