China Auto News of the Week (Dec. 15 - Dec. 19, 2008)

Shanghai, December 19 (Gasgoo.com) China started to cut prices for gasoline, diesel and jet fuel at the zero hour today. The price of gasoline is cut by  0.91 yuan ($0.133) while the price of diesel has fallen by 1.08 yuan. Jet fuel prices has dropped by 2,400 yuan per ton. The cuts will help trucking companies, airlines, factories and others that are being squeezed by high fuel prices and a slump in sales, state media reported Friday.

The benchmark price for gasoline was cut from 6.37 yuan per liter to 5.46 yuan and diesel from 6.23 yuan per liter to 5.15 yuan starting Friday morning, according to the Xinhua news agency. "The (gasoline) price cut of 0.91 yuan per liter means a monthly saving of 900 yuan for a taxi driver," said Mr. Qu, a Beijing cab driver waiting in Thursday's midnight dark for the clock to turn zero.

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Dongfeng Nissan may make electric vehicle

Shanghai, December 18 (Gasgoo.com) Nissan China has recently announced Nissan's global plan to mass produce electric vehicles in 2010, and Dongfeng Nissan is likely to make Nissan electric cars for the Chinese market, said xinhuanet.com today.

Nissan will start mass-producing its electric vehicles globally in 2010 and has signed the memo of understanding with several countries and regions. The Japanese carmaker is also in talks with China's auto authorities for local production of Nissan electric cars for the Chinese market. The joint venture Dongfeng Nissan may choose Beijing or Shanghai for a new facility to make the Nissan electric cars.

WTO ruling impacts little on China auto industry

Shanghai, December 17 (Gasgoo.com) Industry experts say the WTO's final auto parts ruling will have little impact on China's auto industry currently, according to newspaper reports Wednesday.

Jia Xinguang, former chief analyst with the China National Automotive Industry Consulting and Development Corp, told Guangzhou Daily that the ruling won't affect much as China only imports a limited number of auto parts at present and moreover, output in CKD assembly plants only accounts for 1.98 percent of China's total production figure.

Chrysler in tie-up talks with Great Wall Motor

Shanghai, December 17 (Gasgoo.com) Hot on the heels of ending up cooperation with Chery, Chrysler is busy in talks with China’s another automaker Great Wall Motor on cooperation projects, auto163.net said.

Philip Murtaugh, Chrysler Asia CEO, went to inspect Great Wall Motor’s facility last week to look into the code-named CH041 model and CH031 hatchback, which were rumored to be the A-class model co-developed by Great Wall Motor and Chrysler. It is reported that Murtaugh was satisfied with the two models.

Hybrids to make 10% of China auto output by '12

Shanghai, December 16 (Gasgoo.com) Experts said at an industry event that the hybrid vehicle output is expected to reach 1 million units annually by 2012, which will account for more than 10 percent of China's overall vehicle output, the Jinghua newspaper reported today

Hybrids would be mass-produced for the Chinese market within the next three years, and production at this stage would be focused on mild-hybrid such as BSG and ISG hybrids, said the newspaper, citing experts presenting at International Hybrid Vehicle Technology Development and Application Seminar held last weekend.

China mulling plan to cut car purchase tax

Shanghai, December 16 (Gasgoo.com) China's top economic planning body has received proposals from China Passenger Car Association (CPCA) to reform the fuel tax mechanism, and may start to cut passenger vehicle purchase tax based on the proposals sometime next year, the Shanghai Securities Journal reported Tuesday.

According to the report, the China's National Development and Reform Commission (NDRC) is considering a proposal to cut the 10 percent tax paid by car buyers to 2 percent for engine sizes of up to 1 litre. Tax for engine sizes of between 1 and 1.5 litres would be 4 percent; engines of 1.5 and 2 litres would be taxed at 6 percent; 2 to 2.5 litres engines at 7 percent; 2.5 to 3 litres at 8 percent, while 3 to 4 litres at 9 percent, and engines greater than 4 litres would stay at 10 percent.

Dongfeng Motor not to buy troubled GM

Shanghai, December 16 (Gasgoo.com) China's third largest automaker Dongfeng Motor has no intention to acquire the troubled General Motors, reported Securities Daily yesterday, citing a publicity officer of the company.

As a $14 billion loan package for the three Detroit-based automakers failed to pass the U.S. Senate later last week, GM has become the most troubled of the Big 3, though GM CEO Rick Wagoner is still unwilling to admit that the auto giant has come to the verge of bankruptcy. But sources said that Wagoner has decided to engage external advisors for this matter.

Sales of imported big cars fall 50% m/m in Nov

Shanghai, December 15 (Gasgoo.com) Statistics show that China's import of Acura, Audi and other brands' high-emission cars dropped in November by more than 50% month on month, said xinhuanet.com today. In addition, the inventories of many fuel-guzzlers have risen to triple the monthly average sales.

Amid the global financial crisis, sales of big-engine cars imported to the Chinese market have slowed down. A Lexus dealer said that his store's sales in November dropped by more than 40%. Previously he could sell 120-130 units each month, but now only 60-70 units.

Changfeng, AM General in talks on Hummer bid

Shanghai, December 15 (Gasgoo.com) Hunan Changfeng Motor Co is in talks with AM General LLC about a joint acquisition for Hummer brand, general manager of Changfeng Motor said.

"We never quit talks on acquiring the brand," said Zhengchu Chen in an interview with Beijing based Jinghua newspaper.

"But now instead of doing it alone, we decide to form partnership with AM General to reduce risk as the global economy falters," Chen explained. "We have to always adjust our plan to market conditions."

BYD F3DM electric hybrid car goes on sale

Shanghai, December 15 (Gasgoo.com) BYD, the upstart Chinese company best-known for making cell-phone batteries, began selling its F3DM hybrid electric car today in the Chinese market, said sina.com. As the country's first mass-produced electric hybrid vehicle, the car is expected to retail for 149,800 yuan ($21,200) in China and will make its way to the U.S. in 2010.

After five years of innovation and development, BYD has brought its F3DM electric hybrid technology to maturity. The F3DM model is equipped with the world's first dual hybrid power system, for the driver to switch between EV and HEV modes. The F3DM is capable of traveling 100km (62 miles) on electric power provided by the battery to meet daily driving needs. In contrast, the dual-mode electric models of GM and Toyota can travel only 25km without recharging.