China Auto News of the Week (Apr. 13 - Apr. 17, 2009)

Geely posts 191% rise in '08 net profit

Shanghai, April 17 (Gasgoo.com) Chinese car manufacturer Geely Automobile Holdings Ltd said on Thursday that its profit more than doubled last year on increased stakes in its affiliated units in China.

Net income rose to 879 million yuan (US$129 million), or 0.15 yuan a share, in 2008 from 302.5 million yuan, or 0.06 yuan a share, of the previous year, representing a growth of 191 percent.

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China Q1 commercial vehicle sales still slump

Shanghai, April 17 (Gasgoo.com) In the first quarter this year, the sales of China's commercial vehicles, which account for about 30% of the country's auto market, continued to drop from a year earlier and lag behind the passenger car sales, said Xinmin Evening News today.

Data show that in the first three months, China sold 683,100 commercial vehicles while 692,600 units were produced, down 6.13% and 4.38% respectively. In March, the output of commercial vehicles hit 343,800 units, up 58.73% month on month (m/m) and up 6.53% year on year (y/y), and meanwhile 337,400 commercial vehicles were sold, up 53.18% m/m but down 5.29% y/y.

GM said eighth Chinese plant needed to reach sales goal

Shanghai, April 16 (Gasgoo.com) General Motors Corp may need to build at most one more plant in China to meet its ambitious sales goal set for the market, the Wall Street Journal reported Wednesday, citing a senior executive from GM China.

Kevin Wale, head of GM China Group, was quote by the newspaper as saying that "GM China is pretty well-placed to do a lot of growth at the moment without having to spend a lot of money."

Changan Auto to show e301 crossover in Shanghai

Shanghai, April 15 (Gasgoo.com) Chongqing Changan Automobile Co, a partner of Ford Motor in China, will roll out several new products of its own design at the 2009 Shanghai Auto Show. They will include the Chana e301, a design study for a compact crossover.

The Chinese automaker has issued the first photos of its e301 subcompact crossover. Changan is being secretive about the e301 and what it represents for the company.

Geely to launch Ying Lun-brand cars at SH show

Shanghai, April 15 (Gasgoo.com) Shanghai Maple Automobile (SMA), a subsidiary of Geely Automobile, will launch Shanghai Ying Lun brand for the upper class premium market at the upcoming 2009 Shanghai auto show, reported Xinhua on Wednesday.

Three new car models including GE, SC618 and London Taxi TX4 will be sold under the Shanghai Ying Lun brand, of which SC618 is luxury family sedan powered by Geely's JL4G18 CVVT engine once used in the AGF Asia Formula Competition.

Renault builds China division to boost business

Shanghai, April 14 (Gasgoo.com) France's Renault SA has recently announced the setting up of its Greater China division, to be led by Mr. Chen Guozhang (Robert Chan), former general manager of Nissan China Investment Co.'s Nissan-brand imports unit, said Gasgoo.com today.

Renault China is headquartered in Beijing and will be responsible for Renault's businesses in China's mainland, Taiwan, Hong Kong and Macao. It will simultaneously promote Renault's brand, products, sales strategies, marketing and human resources in these regions of China.

VW March China car sales up 9% to 112,466 units

Shanghai, April 14 (Gasgoo.com) German auto giant Volkswagen (VW) said today that its vehicle sales in March grew 9% from a year earlier in China's mainland and Hong Kong as the Chinese government's stimulus policies boosted auto market demand, Reuters reported.

Last month, the top European automaker sold 112,466 vehicles in China's mainland and Hong Kong, up from 103,204 units in March 2008, it said in a statement.

SAIC denies plan to buy GM's Vauxhall, Opel

Shanghai, April 14 (Gasgoo.com) SAIC denied a report yesterday that it is interested in buying GM's Vauxhall and Opel brands, reiterating that it has no plans for foreign mergers and acquisitions, the Shanghai Securities Journal said.

London's Telegraph reported on Saturday that Shanghai-based SAIC has requested a sale document from GM, who has warned that it may file for bankruptcy in an effort to ensure its survival.

China operation to grow even if GM goes under

Shanghai, April 13 (Gasgoo.com) Even if General Motors meets the worse-case scenario -- bankruptcy, its operations in China won't be affected and will expand further as they have been making profits and have abundant fund and technologies, said Kevin Wale, president of GM China Group, to the media last week.

As the possibility of GM going bankrupt is looming large in the U.S., many customers and dealers in China's auto market wonder how GM China will fare in the future. Less than two weeks ahead of the 2009 Shanghai auto show, GM China boss Kevin Wale told Chinese reporters that GM's China-based businesses, jointly operated with its Chinese partners, have been making profits and will expand further.