China auto news this week(2007.04.23-2007.04.27)

As the Shanghai Auto Show launched on 20 April 2007, more and more future car owners are considering models from China's domestic auto manufacturers. The fact is that, many records were broken at the show, Chinese auto manufacturers are confident and optimistic about the Chinese domestic market, enabling them to sell overseas. Geely, Chery, Great Wall and others received many overseas orders during the show, supporting China's role in becoming the global leading manufacturer.

Following are the top news this week:

Anhui Jianghuai Auto Sets Up Chinese Components JV with American Axle
 
  From:Automotive April 26 2007

Chinese carmaker Anhui Jianghuai Automobile Co. and U.S. automotive components manufacturer American Axle & Manufacturing Holdings Inc. (AAM) are to set up a 50/50 joint venture (JV) to make automotive components for the Chinese market. According to AFX Asia, the new JV will be situated in the Hefei Economic and Technical Development Zone. The whole project is slated to involve an investment of over 200 million yuan (US$25.9 million).

The new facility will manufacture transfer case assemblies, suspension assemblies and other components for passenger cars, according to the report. AAM's core business in the United States involves the design and manufacture of drivelines and related components and chassis systems. The amount of investment in the Chinese automotive components industry over the last decade has increased exponentially. The cost benefits and large indigenous automotive industry have made the country an increasingly popular destination for large global components manufacturers such as Bosch and Delphi in which to base production facilities.  
 

Brilliance Plans to Begin U.S. Sales in 2008
 
  From:Reuters April 24 2007

Brilliance is looking to begin exports of its BS6 D-segment sedan to the U.S. market by early 2008 at the latest, according to President Zhingang Liu. Speaking to Reuters, Liu said, "We are making preparations currently and hope to ship the first batch of BS6s to the United States late this year or in early 2008." However, there was no further information as to whether Brilliance had signed a deal with a local importer, or on the BS6's pricing in the U.S. market. Brilliance launched the BS6 in Europe at March's Geneva Motor Show (Switzerland), having agreed a deal with HSO Motors Europe to act as the company's European importer (see Europe: 9 March 2007: Tata and Brilliance Auto to Launch Cars in Europe ). The first BS6 models should go on sale in mainland Europe in the next few weeks priced between 19,000 euro (US$ 25,831) and 23,000 euro.

Significance: Chinese carmakers face considerable obstacles as they look to achieve significant sales in either the U.S. or European marketplaces. There are concerns over Brilliance's ability to meet the latest emissions standards in either market, although the company has recently announced the production of its own self-developed 1.8-litre turbocharged gasoline (petrol) engine. Customers will also be wary about safety, reliability and quality standards. However, Brilliance is a hugely ambitious company, and while the BS6 currently lags behind U.S. and European standards in terms of quality, the model may find buyers if it is priced aggressively enough. However, developing a dealership and service network of sufficient quality to maintain customer satisfaction in these markets will be a formidable challenge.  
 

Great Wall to realize sedan dream before August
 
By Ally   From:www.gasgoo.com April 25 2007
 
Great Wall Motor Company Limited (GWM) will be able to get permission from the National Development and Reform Commission (NDRC) to produce compact cars before the end of August, making GWM's sedan dream to become true, said company chairman Wei Jianjun during the Shanghai International Automobile & Manufacturing Technology Exhibition. However, facing the big void for funds, Wei said Great Wall has abundant financial support and do not need to raise capital at present.

The privately-owned Great Wall Motor Co., Ltd, who was listed on Hong Kong's stock exchange in 2003, has already submitted an application to NDRC earlier in 2005 for sedan production allowance and has prepared to raise 2.8 billion Yuan in the mainland according to original expansion plans. But the company gives up the plan thanks to the sound performance of the group in Hong Kong's market.

Great Wall, based in the northern city of Baoding, has been China's largest seller of SUVs and pickups for the last eight years. In future the SUV and Sedan divisions will share their R&D equipment, manufacturing facilities as well as sales network.
 

Shanghai GM to launch new hybrid vehicles
 
By Jorvan   From:www.gasgoo.com April 26 2007
 
"Next year Shanghai GM will launch new hybrid vehicles which will be mass produced." Ding Lei, Shanghai GM General Manager said at the Shanghai Auto Show. The development of new energy will be the next important strategy for automobile manufacturers. Buick concept car debuting in China indicates that GM is focusing on Chinese market. As the first China developed concept car, Buick foretells the future direction of the new design, it also indicates the local R & D centers had won global recognition.

The struck out of Park Avenue and unveiling of two Buick and Chevrolet concept cars at the Shanghai Auto Show indicate Shanghai GM are becoming more and more internationalized in launching new models as well as research & develop capabilities.

There is no doubt that developing new energy vehicles is an important strategy for manufacturers, Shanghai GM is no exception. Shanghai GM has always attached importance to the cause of environmental protection, and will introduce new mass-production hybrid vehicles next year.
 

Chery unveiled to-be-launched models

Shanghai Auto Show new models series report

By Ally   From:www.gasgoo.com April 23 2007
 
Chery chairman Yin Tongyao unveiled the A1 and other to be launched vehicles at the Shanghai Auto Show, of which A1, MPV V2, A3, and A4 will be successively launched this year.

The new debuted MPV V2 Ruiqi is the first model in the China market that features front-wheel drive and is equipped with a front engine. The Chery A3 is a typical A-series model and will be available in a 1.6L diesel as well as 2.0L edition, said Li Feng, general manager of Chery sales department.

Chery A6 is an all new B-series model. According to Yin Tongyao, Chery will secure its market share in the small sedan market, and 50 percent of future developed models will belong to this range. But small cars don't necessarily mean cheap cars; the A1 launched at the Shanghai Auto Show is a superior model costing 1 billion Yuan to develop, targeting a global auto market.

Chery's established models, including the A5, are designed towards the Chinese market while the A1, small A3 sedan and midsize A6 are all aiming at global auto market.