China Auto News of the Week (Nov. 10 - Nov. 14, 2008)

China's Jan-Oct vehicle sales up 11 pct

Shanghai, November 10 (Gasgoo.com) China's vehicle output and sales both grew 11 percent from January through October compared with one year ago, official data showed last week.

"China produced 8.02 million motor vehicles and sold 7.94 million units for the January to October period, representing a growth of 11.01 and 11.11 percent respectively," data from China Associations of Automobile Manufacturers (CAAM) said Friday.

The output figure included 5.71 million passenger vehicles, up 11 percent year on year and 2.31 million commercial vehicles, up 11.05 percent from the same period of last year.

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Volkswagen seeking battery partner in China

Shanghai, November 10 (Gasgoo.com) Volkswagen AG is seeking partners to cooperate on battery for auto power supply in China, Volkswagen China vice president Xu Jian said in an interview at the CEIBS 6th Annual China Automotive Industry Forum held in Shanghai on Nov. 6-7, National Business Daily reported.

The financial crisis hits the auto industry but also offers opportunity for auto companies to retool themselves. The European companies are surely to capture the chance to develop new energy as big cars development will suffer the most during financial crisis and erratic oil price, Xu Jian said.

EU urges China to ease 50% stake limit on auto JV

Shanghai, November 11 (Gasgoo.com) Global carmakers are demanding more from China's auto industry after the World Trade Organization's July ruling against the Chinese tariffs on auto-parts imports, said xinhuanet.com today.

At a recent auto industry forum in Shanghai, Ivan Hodac, secretary-general of the European Automobile Manufacturers Association (ACEA), said that the European Union (EU) expects China to ease the restrictions on vehicle import certifications and 50:50 joint ventures in addition to following the WTO principle about auto-parts imports.

GM in talks to boost stake in SAIC-GM-Wuling JV

Shanghai, November 12 (Gasgoo.com) General Motors Corp is in talks to increase its stake in a Chinese joint venture that makes small, inexpensive vans and trucks, the Wall Street Journal reported, citing people familiar with the situation.

The U.S. car maker is in negotiations with the government of Guangxi province in southwestern China to expand its stake in SAIC-GM-Wuling Automobile Co., said Hu Maoyuan, chairman of Chinese car maker Shanghai Automotive Industry Corp., which is a majority owner of the Wuling venture.

Chery Auto to cut prices of seven models in Nov

Shanghai, November 13 (Gasgoo.com) Chery Auto's sales company said that this month it will cut the prices of seven car models of six Chery brands this month by up to 11,000 yuan ($1,610) in the Beijing market, said xinhuanet.com today.

The seven models ready for the price markdown are Chery A1, A3, A5, QQ3, QQ6, Tiggo 3 and Cowin (Qiyun), with the Chery A5 to have the biggest price cut at 11,000 yuan. After the price reduction, the Chery A5 will sell at the cheapest possible price of 58,800 yuan in Beijing.

A local Chery dealer said that currently the Chery A5 only has its four 1.8L and 1.6L models available in the Beijing market, priced at 72,800 yuan and 58,800-68,800 yuan respectively after the price cuts.

500 suppliers vying for BMW sourcing on Day 1 CIAPE

Shanghai, November 13 (Gasgoo.com) On November 12, the opening day of the 2008 China International Auto Parts Expo (CIAPE), more than 500 suppliers were vying for the auto-parts sourcing orders of BMW at the buyer-supplier matching event organized by Gasgoo.com, a renowned e-commerce portal of auto parts, said state media today.

BMW Group and British Alexander Dennis started their auto-parts sourcing’s matching sessions simultaneously at 10 in the morning, with BMW focusing on its China sourcing of car body parts and electrical and electronic products, while Alexander Dennis sourcing chassis and general parts. Over 500 companies took part in the matching sessions on the opening day.

Honda China exports 100,000th Jazz car to Europe

Shanghai, November 14 (Gasgoo.com) Honda Motor Co has held a ceremony at its Chinese joint venture in Guangzhou to mark the shipping of the 100,000th Jazz car to Europe since the car was produced in the plant in 2005, the Xinhua news agency reported Thursday.

Speaking at the ceremony Honda Chief Executive Takeo Fukui said he has "great confidence" in the future of the business Honda has been pursuing in China.

"The recent financial crisis has set in motion a headwind that is blowing against the global economy. However, I have great confidence in the future growth of the export plant based on our brand reputation in Europe for high quality," Mr. Fukui said.

FPT Shanghai R&D center construction completed

Shanghai, November 14 (Gasgoo.com) Fiat Powertrain Technologies (FPT) completed construction of its first Chinese research and development centre -FPT(Shanghai) R&D Co.,Ltd, located in Jiading District of western Shanghai yesterday, auto industry website Gasgoo.com reported.

Built on an area of 36,000 square meters, the 22-million-euro center will focus on the development of both gasoline and diesel engines, and transmissions for cars and commercial vehicles.

By the end of next year when it officially starts operation, FPT Shanghai will employ 100 engineers, of which more then 90 percent will be local talents.