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China auto news of the week (Sept 24-Sept 28)

Tony From Gasgoo.com| September 28 , 2007 19:25 BJT
This week, Changan Ford opens its second plant in Nanjing. Alan Mulally, president and chief executive officer of Ford said the Nanjing plant will produce Mazda 2, Fiesta. He also hinted that the Nanjing facility may produce Verve and sell them outside the Chinese market.

The following stories provide a glimpse to the recent development of Ford's second plant in Nanjing as well as other new car models to be introduced to Chinese market.

Ford's second manufacturing JV inaugurates in China

September 25 2007
By Ally  

Shanghai. September 25 (Gasgoo.com) Ford Motor Co announced the opening of its latest joint-venture (JV) vehicle manufacturing facility in China's eastern city of Nanjing yesterday, according to the state-owned Xinhua newswire.

The second factory of the Detroit carmaker's joint venture with its Japanese unit Mazda Motor Co and Chang'an Motor Corp will start to assemble a Mazda 2 subcompact, also known as the Demio, from 30 October and a Ford small-sized model next year.

Yin Jiaxu, chairman of Changan Ford Mazda Automobile, Alan Mulally, president and chief executive officer of Ford as well as Mazda president and CEO Hisakazu Imaki have participated in the opening ceremony.

"This new state-of-the-art facility will significantly increase our capacity in China and allow us to continue our rapid growth in the market," said Alan Mulally.

According to the report from Xinhua, the to-be-produced Mazda2 will be priced at 80,000 yuan to 100,000 yuan ($10,600-$13,200) and will compete with rivals including Peugeot206, Citroen C3, Fit and Polo.

Mazda has specifically developed the Mazda2 model that will be produced at the Nanjing plant to accommodate the Chinese market, the report, citing a company official from Mazda, said.

The Nanjing plant will have an annual capacity of 160,000 units and use Mazda’s production system. It will give the firm a total capacity in the country of 410,000 units per annum (upa). The plant will help Mazda achieve its annual sales target of 300,000 units in China, one of its mid-term goals to be achieved by 2010.

The first factory established by the same three partners is located in the city of Chongqing, and builds the Focus, S-Max, and Mondeo, as well as the Volvo S40 and the Mazda3 models.

Sales of Ford increased 29 percent for the first eight months of this year with total retail sales of 114,702 vehicles, Ford said earlier this month.


Mazda 2 and redesigned Fiesta to be produced in Changan Ford Nanjing plant

September 26 2007
By Tony  

Shanghai. September 26 (Gasgoo.com) Changan Ford Nanjing Plant, which officially opened this Monday, will produce Mazda 2 and two redesiged Fiesta compact models within a year, Chinese media reported today.

The to-be-produced Mazda2 will be priced at 80,000 yuan to 100,000 yuan ($10,600-$13,200) and will compete with rivals including Peugeot206, Citroen C3, Fit and Polo, Chongqing Business News said.

The Nanjing plant will have an annual capacity of 160,000 units and use Mazda's production system..

Under the joint venture's production plan, the Nanjing Plant will produce 100,000 Mazda J37AC, 43,000 Mazda B-B 43,000, 56,000 Ford b376 and 30,000 Ford B2.

The Nanjing facility will give the Changan Ford an annual output capacity of 410,000 units in China. The plant will help Mazda achieve its annual sales target of 300,000 units in China, one of its mid-term goals to be achieved by 2010.

The first factory established by the same three partners, Changan, Ford and Mazda is located in the city of Chongqing, and builds the Focus, S-Max, and Mondeo, as well as the Volvo S40 and the Mazda3 models.

Changan Ford Mazda sold 128,469 units in the first eight months, up 59 percent year on year. Starting in April this year, Changan Ford Mazda has  entered China's top 10 biggest automaker list.

Sales of Ford increased 29 percent in China for the first eight months of this year with total retail sales of 114,702 vehicles, Ford said earlier this month.

In addition to Mazda 2, the Nanjing plant will also produce Ford's latest compact sedan models, namely Fiesta models. Nanjing plant will start to produce redesigned Fiesta models in a year, according to Yi Jiaxu, Chairman of Changan Ford Mazda.


Following Chrysler's footsteps, Ford mulls over producing Verve in China for export
September 27 2007
By Ally  

Shanghai. September 27 (Gasgoo.com) - Ford Motors is considering following Chrysler-Chery's path to produce small cars in China for sale in international  markets, a senior Ford official said recently.

"Ford may start to import small cars from its new factory in China provided that these vehicles can meet Ford's quality standards, " Ford president and CEO Alan Mulally said in an interview with the Xin Hua News Agency. "One of the cars will be the Verve unveiled at the Frankfurt Motor Show."

The president has recently been in a China tour to participate in the opening ceremony for its second manufacturing facility in Nanjing this Monday. Mulally also visited its new wholly owned research and engineering center also located in Nanjing, which project involves an investment of 220 million yuan (US$29.3) for the first phase.

Mulally said Ford's one advantage over Chrysler in this case is that Ford has its own manufacturing facilities and R&D center in China, where Chrysler will rely on Chery to undertake production and some basic engineering work.

This June, Chrysler Group has officially signed a deal with China's Chery to build small cars to be sold in the United States within the next 24 months.


PSA presents new Peugeot 307 in China

September 25 2007
By Joanne Jiu 

Shanghai. September 25 (Gasgoo.com)- Early this week, the revamped series of Peugeot 307 sedan hit the Chinese market after the old generation had been sold for three years. Such new models as 307 are part of the French automaker Peugeot Citroen's (PSA) ambitious strategy in China.

The biggest change in the outlook of new Peugeot 307 is that it absorbs aesthetic elements of Peugeot 407. The overall length is expanded to 4.34 m with the tail frame also resigned. Streamlined curve of the car body focuses on the exclusive and elegant style with enough space for passenger and luggage.

The car is also advanced in technology and equipment. New Peugeot uses the updated Content Management System (CMS) which makes the car more intelligent and high-tech infotainment server which integrates DVD, GPS and communication functions. The hard disk volume on the car is as large as 30G.

The manufacturer, Dongfeng Peugeot, PSA's joint venture in China offers 13 versions of the new 307 in 9 colors. The price range is between 109,800 Yuan (14,500 USD) and 165,800 Yuan (22,020 USD). Consumers can choose either 1.6L or 2.0L engine version.

PSA expects new Peugeot 307 will sell 20,000 units in the remaining three months of this year. And by the end of 2007, Dongfeng Peugeot will increase its sales outlets to more than 240 dealers to meet the growing demead.


Chrysler to launch production of Dodge Caravan in China
September 26 2007
By Ally  

Shanghai. September 26 (Gasgoo.com) - Chinese-made Chrysler-Dodge Caravan will roll off production line this October and go on sale in the Chinese market by the end of this year, a Beijing-based newspaper reported.

"If everything goes smoothly, Chrysler-Dodge cars made in China will be launched in the last quarter of this year," Chen Landing, an official from Southeast Auto Group in charge of the Chrysler-Dodge program told Beijing Business Today.

Southeast Auto Group will be responsible for the sales of Chrysler-Dodge products, and the automaker plans to establish 60 authorized dealers in China before the end of this year, the official said.

To date, Chrysler's three big brands - Chrysler, Jeep and Dodge, has all entered the Chinese market consecutively, and Chrysler is expected to promote volume production of the three brand vehicles significantly within the next one or two years.

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