China Auto News of the Week (December 10-14)

Head of China's biggest automaker enters politics

By Joanne   From:Gasgoo.com December 14 2007

Shanghai, December 14, (Gasgoo.com) - Zhu Yanfeng, head of China's biggest automaker FAW Group, has assumed the office of lieutenant governor of northeast China's Jilin Province after 24 years working for FAW. The successor will be announced by the end of this month, state media reported yesterday.
 
Zhu became general manager of FAW in 1999. During his tenure, FAW acquired Tianjin Xiali Auto Company and set up several joint ventures with global auto giants such as VW, Toyota and Mazda. On the Fortune 500 list of 2007, FAW is ranked 385th with total sales revenues of US$ 18.71 billion. It sold a total of 1.166 million vehicles last year.
 
In July this year, Zhu announced that FAW will spend 13 billion yuan ($1.76 billion) developing own-branded sedans by 2015 and building 50 car models based on 4 platforms.  


Dongfeng Honda top executive retires, succeeded by deputy

By Tony   From:Gasgoo.com December 14 2007

Shanghai. December 14 (Gasgoo.com) – The first general manager of Dongfeng Honda, a joint venture between China’s Dongfeng Group and Japanese automaker Honda Motor, will finish his four-year tenure in coming January and succeeded by his deputy, Chinese newspaper Beijing News reported today.
 
"I will retire in the middle of January next year and will return to Japan by earlier January,” Mitsuru Ozaki, general manager of Dongfeng Honda said in his farewell statement. “My deputy Seiji Kuraishi will succeed me.”
 
Seiji Kuraishi, 47, currently serves as Vice President of Honda Motor (China) Investment Corporation.
 
Mitsuru Ozaki assumed the position of general manager of Dongfeng Honda since July 2003. During his tenure, Dongfeng Honda introduced CR-V and CIVIC models to Chinese market and established an independent sales network for the company.   

China's first local brand hybrid vehicle Jiexun rolls off assembly line

By Ally   From:Gasgoo.com December 13 2007 

Shanghai. December 13 (Gasgoo.com) – China’s first local brand hybrid vehicle Jiexun rolled off assembly in Changan Automobile today, Chinese media reported today.
 
"It took us 6 years to develop this hybrid and it marks the beginning of mass production of hybrid vehicles at our company today," said Xu Liuping, the president of Changan Automobile at a celebration ceremony. “We will donate 10 Jiexun hybrid vehicles to the Olympics Games next year.” 
 
The hybrid vehicle can save up to 20 percent fuel consumption compared with conventional vehicles and its tailpipe emission can meet EU-IV standards, the report said.
 
"The volume production of Jiexun indicates that China has grasped core technologies of hybrid vehicles,” Xu said.
 
Changan Automobile plans to invest 300 million yuan ($40.7 million) to achieve more breakthroughs in hybrid technology and realize volume production. 

Volkswagen Direct-Shift Gearbox to be locally produced in China next year

By Tony   From:Gasgoo.com December 13 2007

Shanghai. December 13 (Gasgoo.com) – Volkswagen’s most advanced gearbox, DSG (direct-shift gearbox) will be locally produced in China’s northeastern city of Dalian next year, local newspaper Western China City Daily reported today.
 
The gearbox is expected to be equipped on the future version of Volkswagen’s Magotan 2.0 TSI and Tiguan vehicles, the report said.
 
Currently many Volkswagen models, including Golf GTI, Audi TT, Audi A3, have been equipped with DSG gearbox.
 
Volkswagen Group's DSG combines the ease of an automatic car with the efficiency and flexibility of a manual, the company explains.
 
While a conventional gearbox works with one clutch, the DSG transmission has two - one in gear, while the second has the next gear pre-selected.  When the gears need to shift, the second clutch takes the load, while the first pre-selects the next gear.  The whole process takes no more than three to four hundredths of a second.
 
DSG transmissions also have a 'tiptronic' function, allowing gears to be manually selected. There are several benefits of the system. These include improved acceleration and refined uninterrupted driving. 


China sold 8 million vehicles in the first 11 months, up 23.19% year-on-year

By Tony   From:Gasgoo.com December 12 2007 

Shanghai. December 12 (Gasgoo.com) China produced 8.05 million vehicles in the first 11 months this year, up 22.25 percent from one year earlier, meanwhile the country sold 7.95 million vehicles in the same period, up 23.19 percent from one year earlier, Xinhua News Agency reported yesterday.
 
In the first 11 months, China produced 5.75 million passenger vehicles, up 21.64 percent and sold 5.66 passenger vehicles, up 22.84 percent from one year earlier. Meanwhile, China produced 2.30 million commercial vehicles, up 23.83 percent and 2.29 million in this period, up 24.12 percent from one year earlier.
 
The table below shows China’s top 10 automaker in November sales (both passenger and commercial vehicles are included).  

Chinese suppliers weigh anti-dumping actions against foreign competitors

By Joanne Jiu   From:Gasgoo.com December 10 2007 

Shanghai, December 10, (Gasgoo.com) -After losing too many anti-dumping cases in overseas market, China is encouraging domestic automotive suppliers to take legal action against foreign auto parts manufacturers that dominate China's domestic market. Government-led preparation for anti-dumping proceedings may start early next year, local newspaper 21st Century Business Herald reported today.
 
China Association of Automobile Manufacturers (CAAM) and Ministry of Commerce (MOC) have reached an initial agreement on carrying out anti-dumping investigations among the world leading auto parts suppliers in China. The investigation may kick off early next year.
 
"China's domestic auto parts manufacturers are threatened by the international competitors. The situation is even worse comparing with the OEM markets and the whole auto parts industry is very likely to be wiped out," said Wang Qinhua, ex-director of the Bureau of Industry Injury Investigation under MOC.
 
Currently, more than 70 percent of the world's Top 100 auto parts suppliers have business operations in China and China has about 1200 auto parts suppliers that are either wholly-owned by a foreign company or Sino-foreign joint-ventures. These foreign or joint venture suppliers have grabbed over 50 percent of China’s auto parts market.
 
By contrast, China has more than 5000 local-brand auto parts companies, most of which are small and engaged in unregulated competition.
 
"Imported auto parts are generally technology-intensive products, and they have a great impact in domestic market In fact, some have even monopolized the Chinese market in certain products,” said Dr. Guo Yan, an expert with China Automotive Technology & Research Center.
 
As of 2008, China will improve the early-warning system for the automotive industry, expanding the scope of the oversight, according to an unnamed source at a recent conference dedicated to studying how to maintain safety of China's key industries.
 
This system, after being improved, will cover a larger scope of automotive goods, especially the auto parts products. The companies registered in the system will be informed on monitoring and early-warning services on the quantity, prices. In case that a registered company is hurt by dumping actions from foreign competitors but could not win the lawsuit, Chinese government may offer subsidies or compensations to these companies.