China auto news this week(2007.07.02-2007.07.07)

It is July again. Automakers are successively releasing their H1 results. Compared to the sluggish U.S. market, Chinese market is rather eye-catching. Ford, GM, VW had good satisfactory results; meanwhile, local brands such as Brilliance got excellent performance in domestic market.

Another news is the cooperation between China Chery and Chrysler, it is hopefully to see China made autos in U.S. market, and it is significant to the Chinese auto history.

The following are top news this week:



Ford posted 25% gain in China during H1
 
By Jorvan   From:www.gasgoo.com July 06 2007

Ford announced that sales in China have increased by approximately 25% y/y in the first half of 2007. The total vehicle sales, which includes Ford, Lincoln, Volvo, Jaguar and Land rover reached 93, 206 units, up 25% compared to that of last year.

Between January and June 2007, sales of commercial vehicle and passenger car, which are both locally produced and imported, reached 84, 208 units, increased by 22% y/y.

As of end of 2007, Ford Motor Company in China is hoping to see its production capacity reach 460, 000 units, with Changan Ford Mazda churning out 410, 000 units and the remaining 50,000 units by Jiangling Automobile Co. production.

Jiangling Automobile Co., Ltd, in which Ford Motor Company has a 30% stake, has recorded commercial vehicle sales of 12,584 units in the first half of 2007, increased 13% compared with the same period last year.

Ford Motor's luxury car, Volvo, Land rover and Jaguar posted an impressive sales results for the first half of 2007, reaching 8, 779 units, an increase of 66% y/y.




Yet another record: VW China sales jump nearly 25%
 
By Joanne   From:www.gasgoo.com July 05 2007

VW China achieved a record sales of 431,369 units during the first half of this year, equavilent to an increase of 24.6 percent Y/Y，according to the company's announcement. VW is also the first foreign automaker to publish its half year results in China.

VW's joint ventures here, Shanghai VW and FAW-VW, has sold 379,705 units of VW brand vehicles, an increase of 23.7 percent Y/Y, 49,267 units of Audis, up 26.9 percent Y/Y and 2,274 units of Skodas (imports included). Skoda Octavia, launched on the 6th of June, contributed 2,066 units to the German automaker's business in China.

"After the good results from the first quarter, VW has made more progress in the second quarter. The Olympic Restructuring Plan has been working well," said Dr. Winfried Vahland, CEO and President of VW China. The Olympic Restructuring Plan is a VW initiative which aims to cut cost, strengthen the line-up and improve the product quality by 2008,

"Skoda Octavia is off to a good starts with the piles of orders coming in and VW Magotan will hit the market next week. We have confidence in our second half year performance," He added. The whole-year sales is set to exceed 800,000 units.

Currently, VW is the top auto maker in China. As it leads the market, VW is trying to answer the government's call for environmental protection and energy savings. The company is committed to cut fuel consumption and emission of its main products by over twenty percent. The two upcoming flagship models---Skoda Octavia and VW Magotan are both equipped with world-class TSI engine, which is manufactured in its recently completed Dalian facilities. "We advocate sustainable development to create a 'Green China'," said the leader of VW China.




Brilliance to return to profit in 2007
 
By Ally   From:www.gasgoo.com July 05 2007

Brilliance China Automotive Holdings, the mainland's largest minibus maker, sold 146,000 vehicles in the first half year, up 58% y-o-y and surpassing the 10,000-unit mark for the sixth consecutive month. It is worth noting that oversea sales has made great contributions to this result and exports of the company reached 7,000 vehicles in the first six months.

Brilliance secured a deal last year to sell 158,000 sedans in Europe over the next five years. But the Zhonghua Zunchi (BS 6) mid-range sedan, one of the models for Europe, scored only one star out of five in a recent crash test organized by German auto association ADAC.

However, its sales result has not been affected. Of the first batch of 3,000 BS 6 sedans, 500 units have already been launched and 350 have been sold to consumers. In East Europe, the company has plans to sell another 5,000 light buses to Russia by the end of this year.

Moreover, Brilliance Auto is in negations with US automakers to sell its BS 6, equipped with 1.8T turbo engine, in the American market.

Brilliance China said it expects turnover to first reach 40 billion yuan this year and subsequently expects its annual turnover to double to 80 billion yuan by 2010. In the meantime sales is expected to increase to 50,000 units in 2010 from the current 30,000 units annually.




Shanghai GM first half year sales up 11.7%
 
By Jorvan   From:www.gasgoo.com July 04 2007

Latest statistics show that the Shanghai General Motors is currently leading in the auto industry, with total sales of 225,502 units..

Between January and June this year, Shanghai General Motors' sales grew by 11.7% year on year, with an absolute growth of 23,600 in sales year on year.

The sales of brand new Cadillac SLS has exceeded 2,206 units, accounting for 60% of the total Cadillac sales and overall, the Cadillac sales has increased by 120.8% compared with a year earlier. Chevrolet brand Lova had total sales of 31,457 units while Chevrolet Epica had sales of 14,023 units with market share growth of 12.4%.

Shanghai GM Buick Excelle's first half year sales were 91,303 units, increased 25.6% year on year, while the cumulated sales of mid-grade model Buick Regal and Lacrosse reached 46,228 units, with an increase of 20% year on year.




Chery, Chrysler to jointly explore N American, European markets
 
  From:Xinhua News Agency July 05 2007

Chinese carmaker Chery Automobile and U.S. Chrysler Group signed an agreement here on Wednesday to jointly explore the North American and European markets.
   
The cooperation deal will combine Chery's capabilities in developing and producing low-cost small-and medium-sized cars with Chrysler's expertise in branding and marketing, according to a joint statement from the two companies.
   
Young and promising, Chery is the best partner Chrysler could have found anywhere, said Chrysler chairman Tom LaSorda.
   
Chrysler will select several models developed by Chery and launch them in the North American and European markets under Chrysler Group brands after making some necessary modifications, said the joint statement.

Industry insiders say that the first vehicle exported -- based on the Chery A1 compact model that made its debut at the Shanghai auto show in April -- will be sold under the Dodge brand. It could go on sale as early as the end of the year, with Mexico and Southern Europe likely to be the initial target markets.
   
The two companies will also jointly develop new products based on Chery's small-car platforms.
   
"Cooperating with Chery will improve Chrysler's competitive edge in the small-and medium-sized segment," said LaSorda, adding that the partnership will allow Chrysler to roll out new products "more quickly with less capital expenditure".
   
"Chrysler can teach Chery a lot and the cooperation will strengthen Chery's i nternational competitiveness," said Chery chairman and CEO, Yin Tongyao.
   
Chery, a flag-bearer of Chinese indigenous brands, became the country's seventh largest automaker and fourth largest sedan producer in 2006, with sales of 305,200 vehicles, including 272,400 sedan cars.
   
It plans to double its exports this year, encouraged by last year's exports of 50,000 vehicles.