China Auto News of the Week (August 17- 21, 2009)

JAC plans truck JV with Caterpillar, Navistar

Shanghai, August 21 (Gasgoo.com) Anhui Jianghuai Automobile Co. (JAC) is in talks with construction and mining equipment manufacturer Caterpillar Inc. and truck maker Navistar International Corp. to establish a joint venture, state media reported today.

The three parties have basically agreed on the framework for a 50-50 venture to make medium- and heavy-duty trucks and engines. JAC will hold a 50% stake in the venture, with Caterpillar and Navistar owning the rest. Some other related details will be ironed out soon.

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Honda starts making new Spirior sedan in China

Shanghai, August 20 (Gasgoo.com) Honda Motor Co. said yesterday that it has started to manufacture the Spirior sports sedan at a Chinese joint venture, and will release the new premium car to the Chinese market next month, AsiaPulse reported.

The 2.4-liter Spirior, known in Japan as the Accord, is being produced at the plant of Dongfeng Honda Automobile Co. in Wuhan, central China's Hubei province. The 2009 sales target of this new model is set at 15,000 units. This is the third model being produced at this joint venture after the CR-V SUV and the Civic sedan.

BYD builds EV battery production base in Huizhou

Shanghai, August 20 (Gasgoo.com) China's battery and electric car maker BYD Co. said that it has built an electric vehicle battery production base in Huizhou, a city of southern China's Guangdong province, xinhuanet.com reported today.

This 5-billion-yuan ($732 mln) facility, located in the BYD Huizhou Industrial Park, is one of the nine manufacturing bases that BYD plans to build across China for making cell-phone components, rechargeable batteries and auto parts.

Chrysler to make Jeep Compass in China

Shanghai, August 20 (Gasgoo.com) China's Guangzhou Auto, now a Chinese partner of Fiat Group, has signed a deal with the Italian automaker's newly acquired Chrysler Group to jointly produce Jeep-brand SUVs in central Chinese city of Changsha, Time Weekly reported today.

The Jeep is Chrysler's renowned SUV brand. The Jeep Compass will be the first model to be made in the Changsha plant of the new Guangzhou-Fiat joint venture. The venture will start building the plant later this year and may start production and sale of Fiat and Chrysler vehicles by the second half of 2011.

Chinese-made 'London taxi' set to run in Israel

Shanghai, August 19 (Gasgoo.com) Eldan Ltd., a leading car rental firm in Israel, has signed an exclusive deal with Britain's taxi manufacturer LTI Vehicles Ltd. to import and market London taxi models built by China's Geely Auto, Israel's business portal Globes (online) reported today.

Geely Automobile Holdings Ltd. makes the "London taxi" under license in Shanghai for markets outside the UK. LTI manufactures the taxis for the British market at its plant in Coventry.
 
Skoda launches Superb Hao Rui in China

Shanghai, August 19 (Gasgoo.com) The Skoda Superb was launched to the Chinese market yesterday under the name Hao Rui, which is Skoda Auto's third strategic model in China and Shanghai VW's new growth model, the 21st Century Business Herald reported.

The Superb Hao Rui comes to Chinese buyers in four model versions: Classic, Comfort, Comfort+ and Elegance, featuring 1.4 TSI, 1.8 TSI, and 2.0 TSI engines. The European versions differ from the Chinese ones based on the engine lineup, the choice of colors, and chrome decor on the vehicles. The Hao Rui is priced between 172,300 yuan ($25,230) and 253,300 yuan.

BYD signs contract to supply lithium batteries to SAIC

Shanghai, August 18 (Gasgoo.com) Chinese battery and electric car maker BYD Co has reached an agreement with Shanghai Automotive Industry Corp (SAIC) to supply the automaker with lithium-ion batteries for hybrid vehicle productions, The Beijing News reports Tuesday, citing source from SAIC.

The source said SAIC would purchase BYD's lithium-ion batteries to power its own brand Roewe hybrid vehicles.

Four Chinese astronauts buy Volvo S80L cars

Shanghai, August 18 (Gasgoo.com) Four Chinese astronauts who have successfully accomplished Shenzhou-5 and Shenzhou-7 space missions have chosen to buy Volvo S80L sedans, media reported yesterday, citing a press release of Volvo Cars China. The Volvo S80L car is locally made in China by Ford Motor's Chinese venture with Changan Auto.

Volvo Cars China said the four astronauts from China's air force - Yang Liwei, Zhai Zhigang, Liu Boming and Jing Haipeng - have selected S80L mainly for three reasons: the car is safe, built locally, and the "brand image expresses premiumness and is not ostentatious." Another reason may be Changan's military background: it first entered the auto industry in 1957, making military vehicles.

Tengzhong preparing Hummer sales division in Shanghai

Shanghai, August 18 (Gasgoo.com) China's Sichuan Tengzhong Heavy Industrial Machinery Co, the surprise leading bidder for the General Motors' Hummer brand, is preparing to establish a separate sales division in Shanghai for marketing of imported Hummer vehicles, according to a report compiled by Chinese Internet portal Netease.com.

The report said Tengzhong had poached Huang Zhiqiang, vice president of Chery Auto's international business department, to head the upcoming Hummer division in Shanghai, which is not yet registered.

Ministry issues list of new-energy vehicle models

Shanghai, August 17 (Gasgoo.com) China's Ministry of Industry and Information Technology (MIIT) has recently announced the first list of new-energy vehicles models that have got the regulatory approval for production, China Business Times reported.

There are five new-energy vehicle models in the list, including Nanjing Iveco's all-electric service vehicle, Jianghuai Auto's all-electric engineering vehicle, and BYD's F3DM model, which is the only one new-energy sedan model listed this time for mass production, according to the MIIT statement on its Web site.

Tengzhong says to close Hummer deal in Sept

Shanghai, August 17 (Gasgoo.com) Chinese heavy machinery manufacturer Sichuan Tengzhong recently said that it will close its deal with General Motors to buy GM's Hummer brand at the end of next month, adding that their substantive talks are going well, China Business News reported today, citing an executive of Tengzhong.

According to the source from Sichuan Tengzhong Heavy Industrial Machinery Corp., the company only signed a tentative agreement with GM on June 2 about the Hummer deal, and since then the two parties have been talking about many substantive details, some of which have to be discussed and finalized one by one, especially the price.