China auto news of the week (Oct 22-26, 2007)

The following five stories are rated by Gasgoo.com as the most significant news in China's automobile industry over the past week.

China releases guidelines for new energy vehicles
By Joanne Jiu   From:Gasgoo.com October 26 2007

Shanghai, October 26, (Gasgoo.com) – China National Development and Reform Commission, the country’s all powerful economic policymaker, has laid out a set of rules regarding the research, production, technical standards and market access of new energy vehicles.
 
New energy vehicles include hybrid electric vehicles, battery electric vehicles, fuel-cell electric vehicles, hydrogen vehicles, according to official explanation. .
 
The guidelines, known as "Rules on Production Permission and Market Access of New Energy Vehicles" will become effective on November 1 this year. Under the rules, automakers are required to obtain government permission before it can proceed with any production.
 
The guidelines have laid out 15 “hurdles” that a new energy vehicle manufacturer has to clear before obtaining a production permit. Among them, new energy vehicle manufacturer has to grasp at least one of the following three key technologies: the on-board energy supply system, the driving system and the control system.
 
The development of new energy vehicles are divided into three phrases—trial production, limited production and mass production phrases. Manufacturers are allowed to make a small number of new energy vehicles in the trial production; next they will be allowed to produce a limited number of vehicles to be used under certain restrictions; in the mass production, new energy vehicles will be used widely as conventional vehicles.
 
Jia Xinguang, a veteran auto expert, called on government to offer policy incentives, like lower tax and research grants to support the development of new energy vehicles.
 
"But the most pressing issue now is to lay down a series of unified standards to regulate the new energy vehicles industry,” Jia said, citing a chaotic situation in the technical standards of China’s new energy vehicles.

75% Chinese suppliers fail to meet German standards
By Joanne   From:Gasgoo.com October 25 2007

Shanghai. October 25, (Gasgoo.com)-Three quarters of Chinese suppliers have failed to meet German technical standards, according to the general manager of Beijing office of German Association of the Automotive Industry (VDA).
 
"I'm sorry to tell you this cruel fact," said Wolfgang R.Wagner, general manager of VDA China on the sideline of 2007 China Industrial Subcontracting & Outsourcing Fair. He said 75% of Chinese suppliers that supply auto parts for German automakers in China have failed to meet standard A.
 
"Chinese auto parts suppliers must at least bring the PPM (problems-per-million) level down to 120 PPM, if they could make it to 100 PPM," said Wagner. The average PPM level of European and American parts suppliers is rated at around 100 PPM, but the Chinese suppliers are currently rated between 500 and 3000 PPM, he said.
 
He revealed that 30 percent of these failures are tied to product quality problems while other problems arising from logistics, R&D, delivery and after-sales service account for 70% of the total.
 
German OEMs would carry out a general survey on its suppliers, and those who scored higher than 92 points are ranked at A-level, Wagner said. German automakers comply with international standards such as PPM system, he added.

Toyota Camry scores best in Chinese crash test
By Joanne Jiu   From:Gasgoo.com October 25 2007

Shanghai, October 25  (Gasgoo.com)-C-NCAP, the Chinese crash test authority released the latest test result for eight models sold in the Chinese market. Five of the eight cars got 5-star ratings and Toyota Camry ranked the first with a total score of 48.8 points.

The Camry in the crash test is produced by Toyota's local joint venture Guangzhou Toyota. In the full frontal impact test at 50km/h, Camry scored 14.53 points, and in the 40% offset frontal offset crash test, Camry got 15.51 points. It got a bonus 3 points (maximum 5) for its seat belt reminders, side airbag and side air-cushion. 

C-NCAP test is carried out by CATRC, which awards stars to each manufacturer depending on safety performance in the same testing procedure as the European NCAP. The center, founded in mid 2006, is planning to test 25 models this year and the above-mentioned eight is the third batch being tested this year.

The table below shows result of crash test:

Sources: China Automotive Technology & Research Center (CATRC) 
Notes: Buick Park Avenue is based on the Holden Caprice platform, made by Shanghai GM.

Daimler to build commercial vehicle plant in China's Fujian province
By Ally   From:Gasgoo.com October 24 2007

Shanghai. October 24 (Gasgoo.com) - Daimler AG launched yesterday a 208 million euro ($295 million) commercial vehicle manufacturing plant in Fujian, a coastal province in southeastern China, Shanghai Securities Journal reported today.

The plant, known as Fujian Daimler Automotive Ltd (FJDA) is located in Fuzhou, capital of Fujian province. Fujian Motor Group and Daimler Light Vehicles (Hong Kong) Co each holds 50 percent of the JV’s stakes. Daimler Light Vehicles (Hong Kong) Co is made up of China Motors Corp of Taiwan and Daimler Motor.

The construction of this plant will be finished by the end of 2008 and the first Chinese made Mecedez-Benz light vehicle will roll off assembly line in this plant by mid-2009, Shanghai Securities Journal said. 

The plant will have a capacity to produce up to 40,000 Mercedes-Benz multi-purpose vehicles annually by 2009, said Ling Yuzheng, Chairman of Fujian Motor Group.
"We plan to make Mercedes-Benz Viano, Vito multi-purpose vehicle and Sprinter vans in the first phase here, and Viano will be the first model to go on sale in the market," said Ulrich Walker, Chairman and CEO of Daimler Northeast Asia.

"The plant will be able to produce up to 60,000 vehicles annually in the second phase, and it will be flexible enough to change its output and product lineups in line with market demand," Walker said.

Toyota will not sue Chinese company that duplicates RAV4
By Ally   From:Gasgoo.com October 23 2007

Shanghai. October 23 (Gasgoo.com) -Toyota Motor says it will strengthen its efforts to get design patents for its models in worldwide markets following China's Jonway Automobile's duplicated car goes on sale, Automotive News reported last weekend.
    
The report said that China Automobile Deutschland started selling the UFO, which much resembles the second-generation RAV4, in Germany last month. The starting price is 15,990 euros (169,089 yuan), while Toyota RAV4 is sold at 26,600 euros (281,286 yuan) and up in Germany.
 
"We are strengthening our efforts to obtain patents and register designs for all our models in markets around the world," Toyota spokesman Paul Nolasco said.

A senior auto analyst said the reasons why Toyota did not take legal action against UFO sales is that it is hard to win lawsuits over a car's design patent as long as there is even a slight change made to the alleged model's lights, windows or any part of the car, citing the report.
 
Moreover, such kinds of lawsuit will only help the accused brand increase sales more rapidly, said the analyst.
 
Separately, European vehicle importer Martin Motors has declared to sell the China-built Shuanghuan Noble in Europe next year despite a legal challenge from Daimler AG, which claims the model is a copy of its Smart ForTwo.