Changhe sees financial rebound in 2011

Gasgoo.com (Shanghai January 10) - Changhe Automobile, a Jiangxi-based manufacturer which has a joint venture with Suzuki, finally turned a profit in 2011, Gasgoo.com (Chinese) reported today. The manufacturer has made several significant strides in the past two years, when it was reporting an annual deficit of between 600 million and 700 million yuan ($91.03m-$106.21m).

Although the manufacturer was unable to meet its 2011 sales target of 170,000 units, Chen Ping, vice president of sales and brand director, was still pleased with Changhe's performance. Furthermore, Mr. Chen expects Changhe to achieve growth rates of around eight to ten percent, or even more, in 2012.

Changhe has gained much after being acquired by Chongqing-based manufacturer Changan. It has been able to take advantage of its new parent's resources to purchase auto parts, helping it cut down on costs. Additionally, the manufacturer's lineup has become more diversified, with more and more passenger automobiles added to its product range, allowing Changhe to become less reliant on the commercial vehicle market.

Changhe has set a domestic sales goal of 200,000 vehicles for 2012, with an additional export target of 30,000 to 50,000 vehicles. However, Changhe still needs to invest a large amount of funds in expanding its sales network and strengthening its brand image, which is why the manufacturer has set a profit target of only 50 million yuan ($7.92m).

Changhe will be dividing its sales network into two segments, one covering passenger vehicles and the other for commercial vehicles. Furthermore, the manufacturer will be establishing dedicated managerial teams for sales, logistics and other tasks. The manufacturer will also continue on its plan to construct over 600 service shops, specializing mainly in commercial vehicles, in counties and townships across China.

In other news, the new VVT version of the Changhe Suzuki Liana (known overseas as the Suzuki Aerio, pictured) is expected to hit the market later this year. Alongside the Changhe Suzuki Splash, the new Liana looks to be one of the manufacturer's key models in 2012.