China Auto News of the Week (Feb. 16 - Feb. 20, 2009)

Chery Auto unveils its first electric car S18

Shanghai, February 20 (Gasgoo.com) China's largest homegrown carmaker Chery Automobile has rolled out its first own-brand plug-in electric car model, xinhuanet.com reported today. The company says the electric car can run up to 150 km (94 miles) on a single charge.

The Chery S18 electric model has a top speed of 120 km per hour and can be fully charged at a home electrical outlet within 4-6 hours and 80% charged in half an hour, Chery said yesterday in a statement on its Website. The car uses iron-phosphate-based lithium-ion batteries.

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BAIC building R&D base for own-brand clean cars

Shanghai, February 20 (Gasgoo.com) Beijing Automotive Industry Holding Co (BAIC, or Beijing Auto) broke ground yesterday in a suburb of the capital city to build an auto research and development (R&D) base as part of the carmaker's own-brand clean vehicle strategy, xinhuanet.com reported.

The 1.68-billion-yuan ($246 mln) project, named Beijing Auto Industry R&D Base, will have two SUV platforms and four sedan platforms. Together with Beijing Auto Design Institute and the commercial car R&D center of Beiqi Foton Motor, the new R&D base will help BAIC speed up its strategic development of new-energy own-brand vehicles.

FAW Group to raise R&D spending by 61% in '09

China auto giant FAW Group will increase its spending for research and development (R&D) by 61.45% to 4.23 billion yuan ($619 million) this year despite the financial crisis, xinhuanet.com reported today, citing FAW's president.

FAW Group president Xu Jianyi said that it will use the economic crisis "as an opportunity for structural adjustment and innovation" and will focus on the development of energy-saving and environment-friendly vehicles this year, as well as vehicles for China's vast rural areas.

GM says not to change its China operations

Shanghai, February 19 (Gasgoo.com) The proposed $30-billion restructuring plan of General Motors would not impact its China operations, xinhuanet.com reported today, citing the company's local division. GM is still profitable in China's auto market with increased sales.

GM has maintained its leadership position among multinational automakers in China. That makes it possible for the U.S. auto giant to continue developing new projects in China by using internal capital. "China is one of our most important strategic markets. It is vital to GM's global business growth," the struggling U.S. automaker said yesterday in a statement.

China's heavy-duty truck sales down 72% in Jan

Shanghai, February 18 (Gasgoo.com) China's heavy truck sales fell down by 72% in January 2009 due to the impact of a slowing domestic economy and global financial crisis. 

Sales of heavy duty trucks (gross vehicle weight greater than 40 tons) in the Chinese market in January were down 72.15 percent in January from the same month in 2008 to 10,851 units.

BAIC to acquire Fujian Motor, Changfeng Motor

Shanghai, February 18 (Gasgoo.com) To make itself one of China's auto giants, Beijing Automotive Industry Holding Corp (BAIC, or Beijing Auto) is set to expand by acquiring and restructuring Fujian Motor and Changfeng Motor, two Chinese carmakers related to Mitsubishi Motors, said 21st Century Business Herald today. The acquisitions will also help the Chinese partnerships of Daimler, Chrysler and Mitsubishi unite and focus on BAIC.

Sichuan Auto denies plan to buy GM's Hummer

Shanghai, February 17 (Gasgoo.com) Sichuan Auto Industry Group Co, a small automaker in southwestern China, has denied a media report that it is in talks to buy General Motors' Hummer brand, AP and Reuters said today, citing executives of the Chinese company.

Bloomberg News, citing three unnamed people it said were familiar with the matter, reported yesterday that Sichuan Auto was considering a $500 million bid for GM's Hummer line, known for its huge, rugged vehicles that come with poor fuel economy. A GM spokesman, Henry Wong, would not comment on the reports or name any potential bidders for the Hummer brand.

Changan Auto to build car in Mexico venture

Shanghai, February 17 (Gasgoo.com) Chang'an Automobile, the Chongqing-based carmaker that has joint ventures in China with Ford, Mazda and Suzuki, has signed an agreement in Mexico with Grupo Hispanoamericano Autopark for the manufacture and marketing Changan cars in the region, reported Empresa Exterior, a local weekly business magazine.

In a visit to Mexico on February 10, Changan president Xu Liuping signed a framework agreement with Autopark president Juan Manuel Vinos, to build Changan's Benben, Zhixiang and Yuexiang cars in Mexico.

Foton Motor secures big buyers Sinopec, CRCC

Shanghai, February 16 (Gasgoo.com) Beiqi Foton Motor Co., Ltd has recently signed framework deals separately with China Petroleum & Chemical Corp (Sinopec) and China Railway Construction Corp (CRCC) for strategic cooperation in R&D, manufacturing, purchasing, marketing, brand promotion and other sectors of the value chains, xinhuanet.com reported today.

Under the deals, Foton Motor's partnership with Sinopec and CRCC will focus on information and market interaction. Sinopec and CRCC have pledged to keep their information of vehicle needs open to Foton Motor and to select Foton Motor as their top supplier of logistics equipment, construction machinery and commercial vehicles.

Chery Auto to raise '09 sales 18% to 419,000 cars

Shanghai, February 16 (Gasgoo.com) Chery Automobile Co aims to sell 419,000 cars this year, up 17.7% from 2008, Guangzhou Daily reported today, citing Chery chairman Yi Tongyao as saying over the weekend at the company's annual "pep talk" themed "To Win the Year 2009."

Chery Auto, the maker of the best-selling Chinese compact sedan QQ, reported a rare decline of 6.56% in 2008 as the global recession also dented China’s auto industry. The independent Chinese carmaker plans to boost its car sales by nearly 18% in 2009 banking largely on government support to bolster demand amid a slowing economy.