China Auto News of the Week (Nov. 17 - Nov. 21, 2008)

Chery to assemble cars in Thailand

Shanghai, November 17 (Gasgoo.com) China's largest homegrown automobile manufacture, Chery Automobile Co., last Friday signed a cooperation agreement with Thai Chery Yarnyon to assemble Chinese cars in Thailand, according to state media Xinhua.

Under the agreement, Thai Chery Yarnyon will start to locally assemble Chery vehicles including QQ and Tiggo in SKD form, with an initial capacity of 5,000 vehicles. Production will be aimed at both domestic and SE Asian markets.

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BYD to debut new models at Guangzhou show

Shanghai, November 17 (Gasgoo.com) Chinese battery and auto manufacturer BYD is preparing to unveil a series of new models at the 6th China (Guangzhou) International Automobile Exhibition opening tomorrow.

Among them are F4, F5 mid-sized sedans, an M6 MPV and an F8 sport car. Major dimensions vary, with the F5 being 4,600 mm long, 1,760 mm wide and 1,490 mm high, a little bit roomier than the F4. The F5 will use BYD's self-developed 1.8l engine.

Long-wheelbase Audi A4 introduced in China

Audi has announced the introduction of a long-wheelbase version of its Audi A4 to the Chinese market. The A4L features a wheelbase that is 60 mm longer than the conventional model, giving rear-seat passengers more room. The new model is built at the company's plant in Changchun, China and made its debut this week.

"The long-wheelbase version of the Audi A4 is being produced exclusively in China for the Chinese market," said Peter Schwarzenbauer, Member of the Board of Management for Marketing and Sales at Audi AG.

Shanghai, November 18 (Gasgoo.com) Antonov Automotive Technologies, the UK-based transmission technology specialist, will partner with Chongqing Loncin General Purpose Engine (Loncin) for the development, manufacturing and marketing of a small 6-speed automatic transmission in Chongqing, local government sources said today.

Sources from Chongqing Foreign Trade & Economic Relations Commission said that the two sides have decided to build a transmission production base with a total investment of 400 billion yuan ($58.57 billion). The date for the start of production was not disclosed.

SAIC, Dongfeng said to buy GM, Chrysler assets

Shanghai, November 18 (Gasgoo.com) Under the sway of the global financial crisis, the U.S. auto giants General Motors and Chrysler LLC are tottering on the brink of collapse. Japan's Toyota Motor was previously rumored to buy them out, but now Chinese carmakers SAIC and Dongfeng are also said to have plans to acquire the two U.S. auto companies, reported the 21st Century Business Herald today.

On November 15, a senior official of China's Ministry of Industry and Information Technology -- the state regulator of China's auto industry -- told reporters that the auto manufacturing giants in China, such as Shanghai Automotive Industry Corporation (SAIC) and Dongfeng Motor Corporation, have the capability and intention to buy some assets of the two crisis-plagued American automakers.

Nissan to sell electric cars in China by 2012

Japan’s Nissan Motor is heading to China with new plans for electric vehicles. The president of the car maker’s China division has said that the company will start selling electric cars in the country by 2012, according to Bloomberg.

The news comes the same day that Detroit’s Big Three are in Washington to get more money for their faltering businesses, suffering in part from a dependence on sales of the now-unpopular gas-guzzling SUVs.

Great Wall Motor ends joint venture in Russia

Shanghai, November 19 (Gasgoo.com) China's largest SUV and truck maker Great Wall Motor Co said earlier this week that it has decided to terminate its joint venture in Russia because of hard industry protectionist measures in the country, the Wall Street Journal online reported on Tuesday.

The joint venture, called Great Wall Alabuga Motor Open Joint Stock, was set up in March 2007 by Great Wall Motor and Land & Property Management Authority of the Republic of Tatarstan in the Russian Federation was scheduled for operation early last year. Great Wall owns 75 percent of the joint venture and the Tatarstan agency owns the remainder.

Volvo unveils long-wheelbase S80L for China market

Shanghai, November 19 (Gasgoo.com) Just like the long-wheelbase Audi A4L that debuted at the Guangzhou auto show yesterday, Volvo has also rolled out a longer S80 with an extended wheelbase at the auto event, said sina.com today. The long-wheelbase S80L, being showcased in Guangzhou along with Volvo's all 2009 series, is designed to suit Chinese buyers' growing tastes for premium cars.

Volvo entered the Chinese market with its locally built S40 in 2006. Now the Swedish carmaker has decided to produce this market-specific version of the brand's flagship sedan in China as well. "Volvo made a decision to produce its flagship sedan, the S80, in China, with upgrades to suit the tastes of Chinese consumers and to meet the increasing demand for premium cars in China," said Dr. Alexander Klose, CEO of Volvo Car China.

Chery aims to sell 1 mln vehicles a year by 2012

Shanghai, November 20 (Gasgoo.com) A senior executive of Chery Automobile Co briefly unveiled the company's production plans before 2010 on the sideline of the Guangzhou Auto Show yesterday,

Chery Auto sales manager Ma Deyi, said the company has set a goal to sell 1 million vehicles annually by 2012, of which 300,000 units will be commercial vehicles. 

Shanghai, November 20 (Gasgoo.com) An automotive commentator in Australia said it would be ideal for GM's Chinese partner, Shanghai Automotive Industry Corp (SAIC), to buy GM-Holden as its crippled American parent General Motors fights for survival, according to a report from the Herald Sun.

Melbourne-based industry analyst John Mellor, the publisher of GoAuto.com, said "Holden could wind up in the hands of SAIC and being Asian-owned could help springboard the local industry into the growing Asian car markets."

Dongfeng Nissan to build March minicar by 2010

Shanghai, November 21 (Gasgoo.com) Dongfeng Nissan will started to build Nissan's March mini car at its Wuhan plant by 2010, a company insider told Jinghua newspaper today.

The unnamed source said at the Guangzhou Auto Show that the joint venture carmaker will wait to build the new-generation March, which is scheduled to be launched after 2010. 

China mulling fuel tax to replace road tolls

Shanghai, November 21 (Gasgoo.com) China's top economic planning body is working closely with other organizations to study the feasibility of reforming the oil pricing mechanism and introducing fuel taxes to replace road tolls and cut oil prices, state media said today, citing latest information from the planner.

China's National Development and Reform Commission (NDRC) yesterday said on its website that it had held a meeting to discuss the fuel pricing reform with officials from the finance ministry, transportation authorities and local governments. The topics included lowering refined oil prices, levying fuel taxes, abolishing road and waterway maintenance fees, and removing tolls stations on lower-grade highways.