China Auto News of the Week (Feb. 2 - Feb. 6, 2009)

China to subsidize use of energy-efficient vehicles

Shanghai, February 6 (Gasgoo.com) China will subsidize the use of energy-efficient and new-energy vehicles in 13 cities, the Ministry of Finance has announced. The government subsidy is intended to encourage the manufacture and use of "greener" energy-efficient vehicles, xinhuanet.com reported today.

According to a recent joint statement of the Ministry of Finance and the Ministry of Science and Technology, the central government will offer a one-off subsidy for buying hybrid, electric and fuel-cell vehicles. The subsidy will vary with the difference between the prices of new-energy vehicles and those powered by traditional fuel.

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Chery's Jan sales up 36% y/y to 35,000 units

Shanghai, February 6 (Gasgoo.com) China's automaker Chery Automobile Co reported all-time high monthly sales of 3, 5000 units in January, up 36.14% year on year and 31.5% month on month respectively.

Chery A5 sold 6,000 units. Chery QQ sales hit 15,000 units. A3, Chery's in-house developed model, saw sales reach 3,000 units last month. The A3 hatchback now is even short in supply due to hot selling.

China may overtake U.S. as No.1 car market

Shanghai, February 5 (Gasgoo.com) China has likely passed the U.S. in monthly vehicle sales for the first time in history, a trend that could also make China into the world's largest new car market this year, the Associated Press reported Wednesday.

Automakers in the U.S. sold about 668,000 cars and trucks in January, compared with about 790,000 in China, according to Mike DiGiovanni, General Motors Corp.'s executive director of global market and industry analysis.

GM talking with China's FAW on CV partnership

Shanghai, February 5 (Gasgoo.com) General Motors's China division said in a statement on Thursday that it is studying the possibility of establishing a joint venture with Chinese auto giant FAW Group for producing light commercial vehicles, according to newspaper reports.

A GM China spokesman confirmed to Reuters that the two parties had registered a name with the State Administration for Industry and Commerce for a planned venture, but the whole venture is "far from complete" now.

Fiat's new Chinese ventures awaiting approval

Shanghai, February 5 (Gasgoo.com) Italian automaker Fiat has found new Chinese partners after its Nanjing fiasco. Its multiple tie-ups with Chery Auto, Guangzhou Auto and Changan Suzuki are awaiting the approval of China’s auto regulatory bodies, reported 21st Century Business Herald today. The joint venture applications may have results next month.

At the end of 2007, Fiat terminated its Chinese partnership with Nanjing Auto, which was soon acquired by China's auto giant SAIC. And in 2008, Fiat transferred some of its equipment and technologies to Zotye Auto, and imported several of its new models such as Linea and Grande Punto to China to keep its presence in the Chinese market while seeking new partners in the country.

SAIC-GM-Wuling's Jan sales hit record high

Shanghai, February 4 (Gasgoo.com) SAIC-GM-Wuling Auto Co., Ltd., a Chinese venture of GM and leading manufacturer of mini-trucks and mini-vans in China, reported all-time high sales of 75,168 units in January, according to Qilu Evening News today.

The record sales were largely on the strength of Wuling Sunshine, which remained the best-selling model and saw its sales volume hit 1.4 million units by the end of January 2008.

GM to launch five car models in China by 2011

Shanghai, February 4 (Gasgoo.com) GM China Group president said the company would roll out at least five all-new car models under the Buick and Chevrolet brands over the next two to three years to lure Chinese buyers back to its showroom.

Kevin Wale, president and managing director of the GM China, said that the new models are developed by Pan-Asia Technical Automotive Center and tailored specially for Chinese consumers.

Many automakers see '08 profit drop over 50%

Shanghai, February 3 (Gasgoo.com) Many Chinese automakers including Changan Auto, SAIC, FAW Xiali and Jianghuai, have warned that their net profit for 2008 may have dropped by 50 to 100 percent due to sluggish demand and higher material costs.

Changan Auto, Ford Motor's China partner, said unaudited 2008 net profit was at roughly 38.93 million yuan ($5.7 million), down from 666.89 million yuan of 2007.

SAIC expects a 50 percent fall in its unaudited net profit in 2008, hit in part by its investment in Korea's Ssangyong Motor, which has filed for bankruptcy protection due to severe liquidity problems. SAIC earned a net profit of 4.63 billion yuan, or 0.708 yuan per share, in 2007.

Ford Asia Pacific HQ moving to China

Shanghai, February 3 (Gasgoo.com) Ford Motor Company's Asia Pacific and Africa region headquarters, with supporting corporate functions, will be moving to China, Ford Motor (China) Ltd told Gasgoo.com today. Thailand (Bangkok) will continue to serve as Ford's ASEAN regional headquarters.

In an email reply to the Gasgoo.com inquiry this afternoon about Ford Asia Pacific's headquarters relocation to China, Lynn Ouyang, Communications & Public Affairs executive of Ford Motor (China) Ltd., said: "Today, we can confirm that our leadership team, with supporting corporate functions, will be moving to China."

Dongfeng Yueda Kia to up sales by 30% in '09

Shanghai, February 2 (Gasgoo.com) Dongfeng Yueda Kia plans to sell 185,000 cars in 2009, up 30% from 142,008 last year, said sina.com today, citing a sales executive of the joint venture. The company will launch more new models this year to boost its sales.

The joint venture between Dongfeng Motor, Kia Motors, and Yueda now has become one of the fastest growing automakers in China. Although China's auto sales slowed in 2008, Dongfeng Yueda Kia Automobile Co. saw the year’s sales reach 142,008 units, up 40% year on year, compared with the industry average growth rate of 6.7%.

GM to form JV with Harbin Light Truck Factory

Shanghai, February 2 (Gasgoo.com) General Motors Corp is set to form a joint venture with northeastern China's Harbin Light Truck Factory Co. Ltd after the latter terminates partnership with FAW Group, said sina.com today. The venture may produce pickups, SUVs and light trucks for GM.

Harbin Light Truck Factory started as a military-industrial plant making heavy military trucks. Later it also came to make civilian-use trucks and mini-vans. In the mid-1990s, the factory ended its affiliation to Ministry of Space Industry and partnered with FAW Group to make pickups, Jiefang trucks and mini-vans for the Chinese auto giant. Many of the vehicles have been exported to the Middle East and Africa.