China Auto News of the Week (May 11 - May 15, 2009)

Shenzhen to subsidize buyer of BYD hybrid car

Shanghai, May 15 (Gasgoo.com) South China's Shenzhen city is to subsidize buyers of its local automaker BYD’s hybrid cars as the central government has jumped on the hybrid bandwagon with incentive policies, China Business News said recently.

While most of the central government's subsidies for hybrids and other new-energy vehicles are aimed for corporate or public purchases of such vehicles, Shenzhen is going further by offering subsidies to consumers.

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China auto imports fall 34% y/y in Jan-April

Shanghai, May 15 (Gasgoo.com) China's imports of automobiles plunged 34% from a year earlier to about 93,000 units in the January-April period, state media Xinhua News Agency reported, quoting data form China Customs.

Import value in the first four months came to 3.47 billion yuan, down 32% from the year-ago period.

Honda China April sales up 2.9% to 42,062 units

Shanghai, May 14 (Gasgoo.com) Honda Motor Co said in a statement on Thursday that its China sales in April reached 42,062 units, up 2.9% from a year earlier.

Sales at Guangzhou Honda Automobile Co., the Japanese firm's car-making joint venture with Guangzhou Automobile Group, rose 9.1% to 26,012 units in April and were up 3.4% to 98,666 cars this year to date.

Geely says Saab, Volvo aren't cheap to buy

Shanghai, May 14 (Gasgoo.com) Chinese automaker Geely Auto has denied it is bidding for General Motors' Saab brand or Ford Motor's Swedish unit Volvo. Amid growing speculation about its move for either brand, Geely said overseas acquisitions are not cheap deals, the 21st Century Business Herald said today.

"The company has not submitted, and has no plans to submit, any bids concerning the takeovers of 'Volvo' or 'Saab' as stated in recent press articles," said Geely in a notice to the Hong Kong stock exchange last Thursday, when the company's stock price jumped 13.6%.

Guangzhou Auto acquiring Changfeng Motor

Shanghai, May 13 (Gasgoo.com) Guangzhou Auto is expected to announce its acquisition of Hunan-based SUV-maker Changfeng Motor on May 19 at the earliest, 163.com reported today, citing reliable sources.

An auto industry official of Hunan province in southern China recently confirmed the Changfeng Motor's close contact with Guangzhou Auto. On April 15 this year, when Changfeng's CS7 hybrid SUV rolled off the production line, an official of the provincial government also said that Changfeng Motor will be merged into Guangzhou Auto for restructuring.

Chongqing to subsidize buyer of Changan hybrid

Shanghai, May 13 (Gasgoo.com) Southwest China's Chongqing municipality is leading other Chinese cities in the promotion of new-energy vehicles. Following the national program of new-energy vehicle trial running in some cities, Chongqing is the first city in China to provide subsidies for buyers of hybrid vehicles, sina.com said today.

Sources said that the subsidy is limited and only goes to buyers of hybrid vehicles made by the local carmaker Chongqing Changan Auto. This shows some sign of local protectionism in this city's enthusiastic promotion of new-energy vehicles.

Great Wall Motor breaks ground for Bulgaria plant

Shanghai, May 13 (Gasgoo.com) China's largest sport utility vehicle (SUV) maker, Great Wall Motor Co, has started construction of an auto plant in Lovech city of Bulgaria in cooperation with Bulgaria's Litex, Bulgarian media reported on Monday.

The plant has an initial investment of 80 million euros and is expected to produce Great Wall's Florid cars and Hover SUVs. According to Sofia News Agency, this project will initially create 1,000 new jobs. 

GM's China-made car import plans to be settled

Shanghai, May 13 (Gasgoo.com) GM China said yesterday that GM's plan to import vehicles made in China starting 2011 indicated that the Detroit automaker would rely more on Chinese joint ventures, though the plan is yet to be settled, the Shanghai Securities News reported on Wednesday.  

Shanghai Automotive Industry Corporation (Group) (SAIC), GM's Chinese partner, said it hasn't got such information from GM yet.

BMW opens Asia's largest training center in Shanghai

Shanghai, May 12 (Gasgoo.com) BMW AG announced the opening of BMW Shanghai Training Center, the biggest BMW training center in Asia on Monday, reported Xinhua news agency.

The BMW Shanghai Training Center began construction in Shanghai Jiading Industrial Zone on March, 2008. Investment on the project totaled 100 million yuan (US$14.6 million) in the first stage.

China ups 2009 vehicle sales target to 10.2 mln

Shanghai, May 11 (Gasgoo.com) China Association of Automobile Manufacturers(CAAM) raised 2009 domestic vehicle sales target to 10.2 million units, increasing by 350,000 units over the target set at the beginning of the year, or 8% from the initial 5%, Oriental Morning Post reported today.

FAW to boost hybrid vehicle manufacturing

Shanghai, May 11 (Gasgoo.com) FAW started construction of its new-energy vehicle manufacturing base at the end of 2008, a project that is expected to be completed in 2012, with an annual capacity of 1,000 hybrid buses and 11,000 hybrid sedans, sina.com said today.

Chinese auto giant FAW Group is one of the carmakers in China that has entered the hybrid vehicle segment. FAW has conducted the hybrid car R&D since 1995, and now the company has established the platforms for hybrid buses and hybrid sedans.