China Auto News of the Week (July 20 - July 24, 2009)

Chery, JAC merging to form Da-An Motors

Shanghai, July 24 (Gasgoo.com) The Anhui provincial government is set to merge Chery Automobile Co and Jianghuai Automobile Co (JAC) and turn them into the so called "Da-An Motors" Group by end of this year, the Shanghai Securities Journal reports on Thursday.

Citing an informed source, the newspaper said the auto-industry team sent by the Anhui provincial government, where Chery and Jianghuai is based, will unveil detailed scheme on the merger deal before the end of year. The source said the two sides may hold stakes in each other to form a full scale alliance instead of a complete acquisition by any part.

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Beijing Auto says fails in bid for GM's Opel brand

Shanghai, July 24 (Gasgoo.com) China's Beijing Automotive Industry Corp. (BAIC) said today it had failed to reach an agreement with General Motors on the buying of GM's Opel unit in Germany due to intellectual property issues, Reuters reported.

"In the negotiations over intellectual property, we have been in constant communications with General Motors," the company said in a statement. "Regrettably, both parties failed to reach agreement on (the intellectual property) issue."

Volvo to end Sinotruk tie, resume Dongfeng talks

Volvo AB has agreed to withdraw from its truck venture with the state parent of Sinotruk, moving closer to a possible tie-up with Dongfeng Motor Group Co, sources familiar with the situation said on Wednesday.

Volvo reached agreement with China National Heavy-Duty Truck Corp recently to pull out of their truck venture after production had been suspended for several years due to poor sales, a source at the Chinese truck maker said.

Geely to launch Emgrand EC718 in mid-August

Shanghai, July 23 (Gasgoo.com) Geely Auto has recently announced that its first Emgrand model EC718 is expected to be released into the market in mid-August, with a starting price of 80,000 yuan ($11,700), Gasgoo.com said today.
 
According to Geely's brand planning, Emgrand sub-brand features "luxury, steadiness and power." The EC718 shows active dynamic appearance with simple vivid shape. The model is equipped with brand-new 4G-N series D-CVVT gasoline engine to provide power with exhaust dual-variable valve timing system. The emission can meet the Euro VI standard.

Volvo engineers union repulses acquisition by Geely

Shanghai, July 22 (Gasgoo.com) Head of Volvo Car Corporation engineers union said that although Geely appears to be a serious buyers for Volvo, it can not change the union's position that a Chinese buyer will do no good to Volvo, Sweden's leading business journal "Dagens Industri" reports Tuesday.

Magnus Sundemo claimed that the 1,800 members of Volvo engineers union still hope to get a European owner that has a similar corporate culture to Volvo.

Beijing Auto eyes Fujian-Daimler CV venture

Shanghai, July 22 (Gasgoo.com) Beijing Automotive Industry Holding Corp (BAIC) is in talks with Fujian Motor Industry Group in southeast China to replace it as the local partner in a commercial vehicle venture with Daimler AG, Reuters reported today, citing a source.

Beijing Auto, which already makes Mercedes-Benz cars in partnership with Daimler in China, wants to take over the 50% stake held by Fujian Motor in its van manufacturing venture with the German automaker. 

GM Holden denies sale talks with Dongfeng

Shanghai, July 21 (Gasgoo.com) An executive at Chinese car maker Dongfeng Motor Corporation says his company has made contact about buying Holden from its distressed American parent, General Motors, prompting immediate denials from Holden and the Australia Federal Government, the Sydney Morning Herald reported.

Dongfeng's vice-president Li Shaozhu revealed his company's interest to buy Holden last Thursday when taking the Trade Minister, Simon Crean, and Industry Minister, Kim Carr, through his factories in Wuhan.

Chery resumes IPO plans as market rallies

Shanghai, July 21 (Gasgoo.com) China's largest home-grown automaker Chery Automobile Co has resumed preparations for an A-share initial public offering (IPO) because stock markets have recovered, the Shanghai Securities News reported today.

Chery Auto had applied for a domestic listing in June 2008 but the application was shelved amid a market slump as the global financial crisis struck home, the newspaper said, citing Chery's spokesman Jin Yibo.

Chery enters Brazil market with Tiggo launch

Shanghai, July 20 (Gasgoo.com) Chinese automaker Chery Auto has recently launched its Tiggo SUV in Campinas, an industrial city in southern Brazil. This is the first Chery vehicle model to sell in Brazil, marking Chery's formal entry into the Brazilian auto market.

The 2.0-liter Tiggo SUV was assembled at Chery's joint venture plant in neighboring Uruguay and imported to Brazil for sale for 49,000 reals ($25,000). Starting at the end of this month, the Chery Tiggo will be sold through 27 local car dealers in 25 Brazilian cities.