FEATURE: Multiple "first times" reveal progress of China's auto industry
Shanghai. August 23 (Gasgoo.com) This year China's auto industry are characterized by a couple of "first times". For the first time in the history of China's auto industry, a joint venture company tries to develop its own brand vehicles; for the first time ever, China's homegrown automakers are licensed to produce foreign branded vehicles for overseas market; again for the first time, a genuine German high-end vehicle is launched without lengthening its wheelbase.
The founding of GHRD
Guangzhou Honda Automobile Research & Development Co. Ltd (GHRD), a subsidiary wholly-owned by Guangzhou Honda, was established last month in Guangzhou.
The R&D company consists of an automobile R&D facility and a complete high-speed test course. The projected investment in the new subsidiary is approximately RMB 2 billion ($260 million). The company will develop a new automobile product, under the original brand of Guangzhou Honda, to start sales in 2010. The new product will accommodate consumers' needs in Chinese market.
This will be the first time for a Sino-foreign joint venture company to develop and market a product under an original brand. The aforementioned case may becomes a major trend in China's auto industry and be followed by other automakers in the future
A Chery-Chrysler deal
Chrysler Group signed a deal on July 4 with China's fourth biggest automaker, Chery, to produce cars to be exported to the United States and elsewhere. This is the first attempt that a U.S. automaker hires a Chinese automaker to produce cars to be sold in the US market.
The first vehicles to be exported to the United States will be based on Chery's A1 compact sedan and sold under the Dodge brand. With in a year, the vehicles will be exported to Latin America or Eastern Europe, and then to the United States and Western Europe within one or two years.
Chrysler Chairman and CEO Tom LaSorda promised that Chrysler would work closely with Chery to ensure the cars meet U.S. and European safety and emissions standards, and the two companies would jointly develop future models, probably with Chrysler styling on a Chery platform. This mode of cooperation has set a precedent in the history of China's auto industry and Chery will benefit tremendously from this deal. Chery will learn from Chrysler and improve its own competitive edge and more importantly, it will enable Chery to invade the much sought-after America market.
VW Magotan's wheel base shortened
Volkswagen unveiled its 3.2-liter V6 Magotan in China as an import unit. It will be sold by the existing Volkswagen-brand dealerships in northeastern China. The "B-segment" sedan is 4,765 mm long, 1,82 mm wide and 1,472 mm high. It has a 2,709 mm wheelbase, 94 mm shorter than that of Passat Lingyu.
VW's hot-selling Passat Lingyu, a long-wheelbase version of the previous Passat B5, has gained great popularity in the Chinese market due to its spacious interior compared with other models in the same class. This time VW resorts to technological innovations rather than more space by introducing high-end Magotan. It may become an innovative success or not, but it reflects a new round of technology-based competition in China's auto industry.
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