China auto news this week(2007.08.06-2007.08.11)

Some of automakers'July sales have not been released yet, but according to the statistics released by CAAM that seven auto makers' sales are declining compared to those of June. Generally speaking, the sales and outpt in the first seven months both exceeded 5 million units, so in August, the sales will be seen turning around.  

The following are top news this week:

Beijing Benz insistent on plan to produce Benz C class in China 
 
By Tony   From:Gasgoo.com August 09 2007

Beijing Benz will not abandon its plan to produce Benz C class in China, a Beijing Benz press official said today.

“We are prepared to produce Benz C class right here in Beijing by end of this year,” Ruan Weijian, a public relations official, told Gasgoo.com today.

Ruan denied earlier reports that Beijing Benz may give up its original plan to produce Benz C class this year and will instead import Benz C class from Germany.

“We cannot tell you when China-produced Benz C class will be sold in Chinese market, but I can assure you we won’t give up our production plan in China,” Ruan said.

Ruan’s comments are in conflict with earlier reports from a Chinese newspaper  that stated: “Beijing Benz may give up its plan to produce Benz C in China this year.

The report says Beijing Benz is conducting a research on Chinese customers’ possible reactions to Benz C introduced to China late this year.

In comparison with Audi and BMW that have a series of products made in China, Benz has only an E class product and its sales are poor.

In the first six months, China-made Audi A6 sold 36,992 units, China-made BMW sold 15,165 units, but China-made Benz E class sold only 3,105 units. As a result of bad sales record, Benz E had to reduce its prices to compete with rivals, which unfortunately has damaged Benz image in China.

In order to change this situation and better compete with Audi and BMW series, Beijing Benz plans to produce Benz C class locally in China.




Local brands account for 28% in China’s sedan market, CAAM says 
 
By Tony   From:Gasgoo.com August 09 2007

The sales volume of local brand cars reached 745,798 units in the first seven months,  accounting for 28% of China’s sedan market, China Association of Automobile Manufacturers says yesterday.

The top ten local brands sold 539,100 cars in the first seven months, which accounts for 72% of total local brand cars sold in China. The top ten brands are: QQ, Xiali, Familia, Flag Cloud, F3, Splendor, A502, Freedom Cruiser, Ben Ben and Geely Jingang.

In the first seven months, Japanese brands sold 710,418 units; German brands 537,039 units, American brands 399,531 units, Korean brands 160,118 units, French brands 115,146 units and Italian brands 12,519 units.




GM sales in China to hit one million vehicles
 
From:The Associated Press August 09 2007

General Motors Corp. expects to sell more than one million vehicles in China for the first time ever this year, chief financial officer Fritz Henderson said Wednesday.

But the company has nevertheless lost market share in the quickly growing Chinese market, he admitted.

Henderson, during a presentation to securities analysts, said Chinese demand for new vehicles is up 21 percent and should top 8.4 million units in 2007, a four-fold increase from the two million vehicles sold in 2001.

GM's own sales are up substantially again this year, he added, though the market share of the US giant, struggling against foreign competitors on its home turf, is lower.

"We're on pace for our sales in China join the million unit club," Henderson said, calling China now GM's second most important market after the United States. "It's also profitable growth," he said.

Henderson predicted GM's earnings from its Chinese ventures would increase from 157 million dollars to around 230 million dollars this year.

GM has stakes in several different operations in China, among them Shanghai Automotive and a joint venture with Wuling Automotive.




Fiat, Chery link on cars

From:Shanghai Daily  August 09 2007

Italy's Fiat Group Automobiles said yesterday that it will set up an equally owned joint venture with China's Chery Automobile Co Ltd to make and market passenger cars.

The new company, located in Chery's home city of Wuhu in Anhui Province, will produce Fiats such as Alfa Romeo sedans as well as other models that carry the Chery nameplate, a statement from Italy's biggest car maker said.

The JV is expected to manufacture 175,000 cars a year when it starts production in 2009. No financial details were released yesterday.

"The two parties plan to begin immediately the process to discuss the JV contract and obtain relevant authorizations," the statement said.

The announcement dispelled market speculation that the deal might be halted after Fiat's improved relationship with its other Chinese partner, Nanjing Auto.

Nanjing Auto is holding discussions with Shanghai Automotive Industry Corp on a possible tie-up, a move that would increase its financial capability and benefit Fiat through the development of their joint venture.

"Entering the Chinese market at this stage is a key milestone in our plan to revamp and expand the Alfa Romeo business worldwide," said Sergio Marchionne, chief executive officer of Fiat Group and Fiat Group Automobiles. "The cooperation with Chery will also further development of the Fiat brand in China."

Fiat plans to sell 300,000 vehicles in China, the world's second-largest auto market, by 2010, leaping from combined sales of 44,000 Siena, Palio and Perla compact cars last year.

On Monday, Fiat finalized a deal under which Chery will supply it with 100,000 engines a year.




China imports 139,000 automobiles in H1, up 34.9 percent 
 
By Ally   From:www.gasgoo.com August 08 2007

China imported 139,000 vehicles in the first half year, up 34.93 % from a year earlier, but growth rate dropped 26.77 percent from last year. The total import value amounted to $4.43 billion, up 29.31 percent, but growth rate declined 45.98%.

During the first six months, China imported 20,000 units every month except February, while in June imports topped 30,000 vehicles, the highest month in the first half. China’s auto imports in Q1 and Q2 were 59,100 and 79,900 respectively.

Imports of sedans and cross-country vehicles increased to 64,200 and 60,600 units, up 38.64 and 37.63 percent respectively, while imports of minivans saw a drop of 4.69 percent to 8,500 units.

Imports of the above three automobiles categories in the first six months were 133,300 units, accounting for 96 percent of the total. Imports of sedans with an engine size beyond 3 liters climbed 57.80 percent to 20,900, while those sedans with 2.5 and 3.0 liters engine surged by 76.47 percent to 25,000. Imports of these two sedans were 45,900, representing 72 percent of the total sedan imports.

In addition, China imported 24,900 vehicles from Germany, which represents 38.79 percent of China’s total imports. Following Germany, United States exported 13,400 units to China and Japan exported 12,300. In the first six months imports from the three countries were 50,600 units, representing 79 percent of the total imports.

In cross-country vehicle segment, imports of the model with engines larger than 3 liters went up 37.63 percent to 60,600 units, but the growth rate dropped 36.32 percent. Total import value of these vehicles increased 36.54 percent to $1.76 billion with a plunge in growth rate by 55.90 percent. Models with engine size between1.5 and 2.5 liters surged 170 percent to 9,200 units.

Japan exported 910,000 cross-country vehicles to China, which represents 48 percent of China’s total cross-country imports. Japan is followed by South Korea and the United States, which exports 13,500 and 6,140 cross-country vehicles China.