China auto news this week(2007.05.28-2007.06.02)

These days Chinese domestic enterprises are busy with their project overseas, Geely is peparing to launch its Taxicabs in Hongkong; Lifan started its production in Russia; Chery has another cooperation with a foreign enterprises. So how to survive in such a low cost markets is an inevitable question.

The following are top news this week:

MG cars reborn in UK, NAC gain big loan from Chinese bank
 
By Joanne   From:www.gasgoo.com May 31 2007

While the new MG TF sports cars parade at the Longbridge factory, UK, the Export-Import Bank of China offered NAC, MG Rover's new owner a 3-bill.-RMB loan, giving MG more competitiveness in the international arena.

Nanjing Automobile Corporation, the Chinese owner bought MG Rover in 2005, bringing the stopped production line back into life with three new MG TF sports cars rolling off the production line on May 29th. Thus the famous British marque will be available both in Europe and in China.

NAC general manager Yu Jianwei describes the whirl in China when the first MG cars rolled off from the NAC factories on Mar 27th. He hails the return of MG to Longbridge as historically significant. "Longbridge has an irreplaceable role in the MG project. It is in the front line of our strategy. Later this year MG cars will return to the market place."

As planned, 3,000 MGs will be in Longbridge production in the first year. The first batch will be assembled at Longbridge from which many parts are made in China. In the upcoming five years, the Chinese automaker aims  at 200,000 MGs, both from the British and Chinese facilities, as well as 250,000 engines and 100,000 gearboxes. To reach these objectives, 3.5 billion RMB is yet understated.

Lucky enough, NAC is backed with the financial support from the Chinese government. Export-Import Bank of China, one of the three strategic banks in China penned a cooperative agreement, offering financing support ranging from overseas investment projects to high-tech products exports.

The Chinese government does give a big hand to NAC, helping it to turn internationally recognized and to survive the competitive market.




Profits of major Chinese automakers reached RMB 12.754 bn
 
By Ally   From:www.gasgoo.com May 31 2007

Reports from National Auto Industry Association shows that accumulated profit margin of sixteen major automakers in China reached 12.754 billion yuan in the first quarter, up 69.9% y-o-y. Except Changhe Automobile, all the fifteen auto enterprises have made a profit.

Operating profit of the sixteen major automakers increased by 36.61% y-o-y to 229.803 billion yuan, leaded by Geely Automobile with an increase rate of 194.16% y-o-y. Operating profit of National Heavy Duty Truck Group Corp (CNHTC), Brilliance Automobile, Guangzhou Automobile Group, FAW Group Corporation, Southeast Motor and Chery Automobile have surged by 87.02%, 79.13%, 76.13%, 62.73%, 55.45% and 53.65%, respectively; Operating profit of Anhui Jianghuai Automobile, SAIC as well as Dongfeng Motor Corporation have also climbed 27.68%, 25.47% and 19.24% while Hafei Automobile and Changhe Automobile saw a slight profit drop of 0.60% and 1.07%.

Profit increasing rate of Geely Automobile, CNHTC and Chery Automobile were up 2891.62%, 545.14% and 410.68%. Brilliance Automobile, Nanjing Automobile Corp and Southeast Motor have recently turned into a profit and Changhe Automobile lost less money in March than before.




Geely to produce London taxicabs as of 2008
 
By Ally   From:www.gasgoo.com May 30 2007

Geely Automobile, the No 1 privately-owned car maker in the Chinese mainland, said yesterday it plans to sell the firm's iconic London taxicabs in China in 2008 and begin exporting the vehicles to Asia and elsewhere soon after. This is the first time Geely announced the sales plan for the taxicabs since it bought London Taxi International (LTI) in 2006.

Geely said the company hopes to introduce taxicab4 into the Hong Kong market, where customer demands are estimated at 1,000 to 4,000 units. Currently only diesel engine versions of the taxicabs are available, but Geely assured that the company would accelerate development of fuel engine models together with Hong Kong Productivity Council (HKPC).

WangLiang, spokesman and vice-president of Geely, told reporters that the taxicabs are scheduled to start production in the mid-term of 2008, with an annual production of 20,000 units.




Lifan Russian factories to put into operation in Aug
 
By Jorvan   From:www.gasgoo.com May 30 2007

May 29, Chongqing Lifan Motor Group held a press conference saying Lifan Russian auto factories will be officially put into operation and kick off Lifan's model sales in August this year. It is expected that the plant annual production capacity will be 25,000 units in 2009.

According to the news, Lifan Motor Group's Lifan 520 sedan will be assembled and produced in DERWAYS Company in the Russian city of Cherkessk, Russia-produced Lifan 520 sedan will be completed and will be officially launched into the market in August this year. Lifan plans for Lifan car production,assembling and import parts from China, then gradually establish a coating line, by then Lifan's car production is expected to reach a capacity of 25,000 units in 2009.

AUTOMIR Group, who is a sales dealership for Lifan's 520 sedan in the Russian market, said Russia produced Lifan 520 sedan will be sold directly under the Lifan brand in Russia, the price will be 10,000 to 15,000 U.S. dollars or so.




Fiat may set a JV with Saic
 
By Ally   From:www.gasgoo.com May 29 2007

Italian automaker Fiat's CEO Sergio Marchionne has said that they missed out on the huge opportunity China had provided over the years and they are now considering seeking an alliance with another automaker in China. 

The Italian carmaker may hold a discussion with Shanghai Automotive Industry Corp regarding the partnership in the near future, but Sources from Saic denied the possibilities of such cooperation, saying they would better put focus on their existing operations.

Reports from China Auto Industry Association show that Nanjing Fiat monthly sales lingered at one or two thousands in recent months, while only 140 Perla vehicles were sold last month. The market share of the joint venture was 0.7% in 2006, with 30,668 vehicles being sold.

On the contrary The Shanghai Auto Industry Corporation (SAIC), based on its two joint ventures with General Motors and Volkswagon, has claimed a leading sales result for years. Now the launch of Roewe and Shuanglong-badge cars will bring new opportunities for the company.

Fiat has already cooperated with Saic on heavy trucks through its Iveco division. Chinese laws require foreign car makers that want to produce cars locally, to do so in the form of a JV. Though Fiat come across difficulties in the sedan market in China, the auto maker may still possible to introduce the latest, most suitable product to the Chinese market once such an alliance is made.