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

Chery launches luxury car brands Riich, Rely

Shanghai, March 20 (Gasgoo.com) Chery Automobile officially launched its luxury car brands Riich (Ruiqi) and Rely (Weilin) in Wuhu yesterday. The launch campaign included brand introduction, logo display, auto connotation and design philosophy. The Riich brand is positioned as high-class car while the Rely brand is positioned as all-purpose commercial vehicle.

At the same time, Chery has already set up a new marketing branch to promote these two brands. Besides, the high-end model E6 of the Riich brand made its debut in the launch conference as well, Information Times reported yesterday.

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SAIC-GM-Wuling kicks off Qingdao engine plant

Shanghai, March 19 (Gasgoo.com) SAIC-GM-Wuling Automobile Co started production at its new engine plant in Qingdao on March 18 with a ceremony to commemorate the event.

The engines to be made at the plant will be used in the Wuling brand minivans produced by SAIC-GM-Wuling, Chevrolet-badged Lova as well as some new models to be built by Shanghai GM.

Chery says has not shelved JV project with Fiat

Shanghai, March 19 (Gasgoo.com) China's Chery Automobile Co has delayed a joint venture project with Italian automaker Fiat SpA but it hasn't drop the project yet, according to a Reuters report, quoting words of the company's president.

Chairman Yin Tongyao told reporters that the joint venture project would not be started this year as scheduled since the global financial crisis has made it hard for foreign automakers to make further investment.

Beijing Auto may buy Delphi auto-parts assets

Shanghai, March 18 (Gasgoo.com) A source from Beijing Automotive Industry Holding Corp said that the company might buy part of the assets of the auto-parts giant Delphi or bid for complete assets of it, the 21st Century Business Herald reported on Wednesday.

The unnamed source said Beijing Auto are in talks with Delphi on buying part assets of the spare parts maker, which was reportedly in the process of chopping its non-core businesses, such as brakes and suspensions.

SAIC vehicles to hit Israel market by early 2010

Peugeot Citroen importer David Lubinski today launched the Chinese Shanghai Automotive Industry Corporation (SAIC) vehicle brand in Israel. The company plans to begin marketing the cars in the first quarter of 2010, after all the required regulatory procedures have been completed.

SAIC to roll out 3 own-brand models by 2011

Shanghai, March 17 (Gasgoo.com) SAIC plans to roll out three in-house developed new models in the next two years, ChangJiang Times reported, citing sources from SAIC's Roewe manufacturing base located in Linggang, an industrial town in Shanghai.

One of the three new own-brand models -- hatchback Roewe 550, derived from the MG 6-series, will fill in the hatchback blank of Roewe cars. Another two will be high-end models, which are believed more premium than Roewe 750, sources said.

Geely production in Russia halted by higher tax

Shanghai, March 16 (Gasgoo.com) Production of Geely vehicles at Ural Automobiles and Motors in Russia has been suspended for at least 9 months due to the introduction of new import duties on auto parts, Russia media reports. 

Russian newspaper Kommersant said Ural Automobiles and Motors has completely stopped production of Geely's Otaka sedans and Landmark SUVs because of a 35% duty rise on imported auto parts, which was issued by the Russian government this January to protect its domestic motor industry.

Guangzhou Auto, Fiat build framework for JV

Shanghai, March 16 (Gasgoo.com) Production of Geely vehicles at Ural Automobiles and Motors in Russia has been suspended for at least 9 months due to the introduction of new import duties on auto parts, Russia media reports. 

Russian newspaper Kommersant said Ural Automobiles and Motors has completely stopped production of Geely's Otaka sedans and Zhongxing Auto's Landmark SUVs in Sverdlovsky reg because of a 35% duty rise on imported auto parts, which was issued by the Russian government this January to protect its domestic motor industry.

China outperforms U.S. again in Feb auto sales

Shanghai, March 16 (Gasgoo.com) After overtaking the United States in January auto sales for the first time, China extended its lead as the world's largest auto market in the second straight month this year, xinhuanet.com said today.

In February, China sold a total of 827,600 vehicles, up 24.72% year on year (y/y) and up 12.43% month on month (m/m), according to the China Association of Automobile Manufacturers (CAAM). Vehicle output increased 23.08% y/y to 807,900 units. Passenger car sales in February rose 24.23% from a year earlier to 607,300 units, the CAAM said.

China details auto stimulus plan for rural buyers

The Chinese government has detailed a stimulus plan to encourage farmers to buy automobiles, which may bring an auto sales surge in rural areas, experts said Sunday.

Following an announcement in January that the central government would float 5 billion yuan (732 million U.S. dollars) to subsidize rural residents who buy automobiles, the Ministry of Finance announced Friday the subsidies would be 10 percent and 13 percent, respectively, for those who purchase automobiles and motorcycles.