China auto news this week(2007.06.11-2007.06.16)

This week let's take a look at auto joint ventures and cooperation news.

First, Daimler Chrysler factory in Fujian Province have started operation, and Peugeot Citroen also claimed to cooperate with Hafei, while Mitsubishi Motors increased investment in China, the Group and Changfeng Automobile will make further cooperation. YaXing builds assembly plant in Tunisia.

In auto parts, Yuchai and Russian enterprises reached a consensus to export engines and other auto parts to Russian markets.

The following are top news this week.

Fujian Daimler Chrysler Vans Co got business license
 
By Ally   From:www.gasgoo.com June 14 2007

According to reports, Fujian Daimler Chrysler Vans Ltd, co-established by Chinese Fujian Automobile, German Daimler Chrysler and Taiwan Zhonghua Motor, has got a business license from the Administration for Industry & Commerce of Fujian on June 8. The total investment of the joint venture amounts to over EUR200m.

It was also reported that Fujian Automobile and Daimler Chrysler held 50% and 33.78% shares in this new company with the rest held by Zhonghua Motor. The planned annual production capacity of this new joint venture is 40,000 sets, mainly producing medium and light buses, including Mercedes-Bens Vito, Viano and Sprinter in the initial stage.

Currently the company is filing for other relevant certificates and it is scheduled to start operation by the mid-term of 2009.




Yuchai joins hands with Russian automobile assembly plant
 
By Jorvan   From:www.gasgoo.com June 14 2007
 
Yuchai Machinery Group Co., Ltd. and a Russian automobile assembly plant signed a cooperation agreement in Yulin, Guangxi Province. According to the agreement, the Russian auto assembly plants will purchase 50,000 to 100,000 sets of YC4W - 1.22L Euro III diesel engines each year.

Recently, officials from the Russian assembly factories visited the Yuchai production workshop, Yuchai R & D center, which boosted their confidence and mutual trust in their cooperation. This Russian auto assembly plant is the largest automobile factory in Russia, while Yuchai is the largest internal combustion engine production plant in China; the two sides joined hands for a strategic partnership that will have extensive cooperation in technology, facilities, procurement, after-sales service and other fields.

Yuchai aimed its strategy at being an international enterprise; in 2006, the Group established its office in Russia. Yuchai heavy-duty diesel engine 6M have been exported to Russia, the engine got excellent performance in the Russian market. Yuchai and Russian automobile assembly plant jointly established a strategic cooperative relationship to expand Russia's auto market.




PSA Peugeot Citroen to strengthen development strategy in China
 
By Ally   From:www.gasgoo.com June 13 2007

According to Du Sen, director of PSA China office, PSA Peugeot Citroen will concentrate on three development stages in China: Firstly, continue to put focus on Dong Feng Peugeot Citro?n Automobiles (DPCA) and make all efforts to triple its productivity and capacity utilization in the near future; secondly, extend procurement and R&D business to the European countries and lastly, look for a second partner in China for more opportunities.

DPAC has just celebrated its 15th's anniversary this May. Since the first Fukang went off the production line in 1995, the company has achieved accumulated sales of 100 billion yuan with a volume of 900,000 units.

PSA Peugeot Citroen's first car plant in China, jointly established with Dongfeng Motor Corporation, will reach a capacity of 250,000 units this year and 400,000 by 2008. At the same time the construction of the second plant has already been underway, by 2009 the annual manufacturing capacity of the new plant is expected to reach 200,000, mainly focusing on the manufacturing of high-end sedans, Du said.

PSA Peugeot Citroen will position the brand more upscale to the Chinese customers, added Du.

Another official with the corporation said in a previous statement that the corporation has a share of about five percent of China's auto market, noting that the corporation will benefit greatly from the future development of Chinese auto sector. 




Changfeng, Mitsubishi to set up a joint venture
 
By Jorvan   From:www.gasgoo.com June 12 2007

Changfeng Motors and Mitsubishi Motors now get consensus on the establishment of joint venture in China. It is reported that Changfeng Motors, based in Hunan Province and Mitsubishi Motor Co., Ltd. will co-invest to set up a 50/50 share joint venture.

"Changfeng and Mitsubishi each will hold 50% shares of the joint venture." Chen Zhengchu, general manager of Hunan Changfeng Automobile Manufacturing Co., Ltd. said earlier.

Earlier, the industry speculated that there are two options for Changfeng: one is Sojitz Corporation and Mitsubishi Corporation to co-invest in Changfeng Motors as to raise their shares to the level of Changfeng major shareholders -- Changfeng Group, thus Changfeng Motors will become a joint venture company; Another way is Mitsubishi and Sojitz Corporation sell their 14.59% shares and 3.65% shares, and then set up a joint venture company with Changfeng Motors.

Chen Zhengchu said the joint venture company's production will mainly focus on sedans.

He also said that once the joint-venture company is established, Mitsubishi brand sport utility vehicle production will be continued in the new plant, meanwhile, the joint venture is expected to reach production capacity as 100,000 units."




YaXing to build assembly plant in Tunisia

By Ally   From:www.gasgoo.com June 11 2007

YangZhou YaXing Motor Coach Co., Ltd, has started its oversea expansion project after it has filed an application to Shanghai Stock Exchange to get re-listed in the stock market. YaXing aims to implement the project by two major stages. For the fist stage, it will export 300 buses to Tunisia in completely knock-down units. Then the company hopes to open an assembly plant at Tunisia locally.

Currently YaXing has signed sole agency agreement with customers from Russia, Malaysia, United Arab Emirates, Bahrain, Senegal and Chile. In addition, Yaxing extend its sales subsidiaries to 25 compared with the former 20, and twenty more service centers have also been set up based on its existing 208 operating centers.

In the first quarter of 2007, Yaxing sold a total of 846 buses, up 48% year on year; the bus company aims to turn a profit in its major business, targeting a sales of 900 million yuan with a volume of 4,000 bus units.

YaXing has become a mainstay company in the development of Yangzhou city and continually gained support from the local government.