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

MAN buys EUR560m stake in Sinotruk

Shanghai, July 17 (Gasgoo.com) German truck maker and engineering company MAN SE said Wednesday that it would pay EUR560m for a 25 per cent stake in Sinotruk, China's largest manufacturer of heavy trucks, in a deal for the two parties to jointly tap into emerging export markets.

Through the deal MAN will become the company's second-biggest shareholder in Sinotruck, next to its parent China National Heavy Duty Truck Corp, which holding 51%.

(Click the title to read the full article)

Daihatsu to sell cars in China under FAW brand

Shanghai, July 17 (Gasgoo.com) Japanese carmaker Daihatsu Motor Co. said today that it will start selling vehicles in China under its Chinese partner FAW's brand from the autumn, as sales under its own brand remain sluggish due to weak brand recognition, Dow Jones reported.

Daihatsu, a smaller-car subsidiary of Toyota Motor, began selling its Xenia compact minivan in 2007 and initially planned to produce 30,000 vehicles a year. But sales of the model totaled 5,100 vehicles in 2008.

BYD plans Shenzhen share issue to fund growth

Shanghai, July 16 (Gasgoo.com) Chinese battery and electric car maker BYD Co. (1211.HK) said it planned to issue as many as 100 million A shares on the Shenzhen Stock Exchange to raise capital for battery and auto development projects, Reuters reported today.

The company said today the cash raised would be used to fund lithium-ion and solar battery production and the expansion of auto products and accessories. BYD needs a lot of investment into development of alternative energy vehicles, and a mainland share offering will meet some of its capital needs, said an industry analyst.

Geely said to offer final $2-bln bid for Volvo

Shanghai, July 16 (Gasgoo.com) Geely Holding Group Co. is expected to submit a final bid by later this month with an offer anticipated to be around $2 billion, according to people familiar with Geely, The Wall Street Journal reported.

The private Chinese automaker has been working for almost three years on its takeover plan for Volvo, key elements of which people familiar with the plans described to The Wall Street Journal. Geely is bidding at the parent company level, not through its Hong Kong-listed unit Geely Automobile Holdings Ltd.

Hyundai lifts China '09 sales target by 13%

Shanghai, July 15 (Gasgoo.com) South Korea's top carmaker, Hyundai Motor Co, has raised its 2009 sales target in China for a second time this year as a result of sustainable auto market growth seen in the country, Reuters reports.

Hyundai said in a statement on Tuesday that its Chinese unit aimed to sell 450,000 cars this year, 12.5 percent higher than its previous target.

China regulators back Tengzhong-Hummer deal

Shanghai, July 15 (Gasgoo.com) China's commerce ministry today downplayed media reports that it is at odds with the country's economic planning body over a controversial deal for a little-known Chinese company to buy GM's Hummer unit, Reuters said.

"The Ministry of Commerce and the National Development and Reform Commission (NDRC) both hold a supportive attitude toward Chinese companies venturing abroad," said the ministry's spokesman Yao Jian.

JAC to invest $86M in 30,000-unit MPV plant

Shanghai, July 14 (Gasgoo.com) Chinese automaker Anhui Jianghuai Automobile Co., Ltd. (JAC) announced today that it will invest 590 million yuan ($86.4 mln) in building a new multi-purpose vehicle (MPV) facility, China Securities Journal reported.

The MPV project, located in the Baohe Industrial park of Hefei city, capital of Anhui province, will have an annual capacity of 30,000 units. The products to be manufactured at the new facility are of the MPV models developed by JAC with the help of international designers.

BYD to close purchase of Sanxiang bus firm by Oct

Shanghai, July 14 (Gasgoo.com) Chinese battery and electric car maker BYD Co plans to complete acquisition of Hunan Sanxiang Bus Group from the Midea Group in a three or four month period, the National Business Daily reports Tuesday.

BYD's sales manager Wang Jianjun said that BYD is in acquisition talks with Sanxiang Bus at the present, but the final price of the deal has not been settled.

Fiat says JV project talks with Chery put on hold

Shanghai, July 13 (Gasgoo.com) A top executive of Fiat China said yesterday that the talks between Fiat and Chery Auto about their future joint venture project have been put on hold, and Fiat has no immediate plan to seek another Chinese partner after Guangzhou Auto, Beijing Times reported today.

After the Italian automaker signed a joint venture agreement with Guangzhou Auto earlier this month, Chery Auto's spokesman said that his company is still in talks with Fiat though currently there is little progress to be announced. However, this statement has been denied by Fiat China.

FAW VW to expand network for 1-mln sales

Shanghai, July 13 (Gasgoo.com) After one year of preparation, FAW-Volkswagen is set to kick off its sales network expansion for the goal of annual sales of 1 million vehicles, China Business News reported today, citing the company's sales executive.

FAW-Volkswagen Automotive Co., a Chinese venture of Volkswagen AG, has officially launched its project of boosting annual sales to 1 million units as part of the "2018 strategic plans" announced by Volkswagen Ag earlier this year, said Hu Yong, general manager for FAW VW's sales company.

GM sets international operation base in Shanghai

Shanghai, July 13 (Gasgoo.com) General Motors Corp (GM) CEO Fritz Henderson said on July 10 that the company would settle its global operational base in Shanghai, which is second only to the Detroit Headquarter in significance.

The reconstituted new GM, emerged from bankrupcy on the same day, has withdrawn all its previous regional operation establishments in Latin America, Europe, North America and Asia Pacific and will set up a new global operational base in Shanghai instead.