China Auto News of the Week (January14-18, 2008)
China to apply VIN numbers to imported cars starting March 1
By Tony From:Gasgoo.com
Shanghai. January 18 (Gasgoo.com) – China will start to apply Vehicle Identification Number to imported cars starting March 1 this year, Xie Penghong, director of China Quality Certification Center made the announcement at China Imported Cars Forum last week.
VIN is a vehicle’s ID, consisting of 17 numbers and letters, which represent manufacturer’s name, country, model, engine type, product series and etc. Each vehicle has only one unique VIN number.
Once VIN number is put into use, vehicle importers will have to apply for a VIN number from China certification authorities for each imported vehicles and the authorities will assign a unique VIN to imported vehicles.
Custom House will check VIN numbers on imported vehicles against their database which contains the VIN numbers that Chinese authorities have assigned to imported vehicles.
The VIN number will assist Chinese authorities in tracking down and monitoring imported vehicles, Xie said.
Mitsubishi's new Chinese JV plan may hit bumpy road ahead
By Joanne Jiu From:Gasgoo.com
Shanghai, January 17, (Gasgoo.com)-Mitsubishi Motors' longstanding plan to set up a new joint venture automaker in China now runs into snags, as the program may be blocked by China's auto industry regulations, the Shanghai-based Oriental Morning Post reported today.
"We are still studying the joint venture plan," said Hiromi Endo, general manager of Mitsubishi Motors Beijing Office, who didn't explain how to bypass the regulation problems.
Under the Revised Regulations on Automotive Industry stipulated by central government in late 2006, new players must have at least a total investment of 4 billion yuan ($550.7 million) in order to enter the auto-making industry. Besides that, passenger vehicle makers must have engine-making facilities with total investment of no less than 1.5 billion yuan ($206.5 million).
But the two parties, Mitsubishi and Hunan Changfeng Motors currently fail to find an engine plant as required by the policy.
"We’ll try our best to meet the government requirements so as to start the joint venture as early as possible," an unnamed Changfeng official.
Earlier reports revealed that the JV would be a 50:50 alliance. And it would build sedans and sports-utility vehicles (SUVs) if approved.
Mitsubishi already owns a 16.07% stake in Hunan Changfeng, but this deal would consolidate their partnership. Changfeng now builds Pajero and Pajero Pinin that sold in Chinese market.
Chery to launch 38 models in five years
By Tony From:Gasgoo.com
Shanghai. January 18 (Gasgoo.com) – China’s largest home-grown Chery Auto plans to enrich its product portfolio by introducing 38 new car models in five years, a senior company official said in a business conference in Beijing yesterday.
"In 2008 and 2009 Chery will launch 8 models covering the whole range of A class, A+ class, B class, MPV and SUV vehicles,” said Li Feng, deputy general manager of Chery Auto. “In 2010, Chery will launch 9 B class models.”
"Ten models, including C class models, will be launched in 2011 and 11 models, including one D class model, will be introduced in 2012,” Li added.
Under Chery’s new product plan, A3 will be launched in March this year and B13 will be launched in May.
Chery A3 is equipped with four airbags (two front bags and two side bags), ABS+ESP, EPS, GPS, DVD systems.
Chery QQ5 will be launched in May and A6 will be launched in August, according to Chery’s new product launching schedule.
Chery plans to sell 480,000 vehicles in 2008: 300,000 vehicles in home market and 180,000 vehicles in overseas market.
Last year Chery sold a total volume of 381,000 vehicles both in home market and overseas market, up 24.8 percent from one year earlier.
Strong surge in sedan exports is a driving force behind Chery’s impressive sales growth. The company exported 119,800 vehicles in 2007, up 132 percent from one year earlier. Chery has been China’s biggest sedan exporter for five years in a row.
The best selling subcompact car, QQ, which is sold about $5,400, is Chery’s most powerful weapons. The company sold about 130,000 QQ vehicles in 2007, which represents about 34 percent of Chery’s total sales in 2007.
SAIC-GM-Wuling grabs 43 percent of China’s mini-vehicle market
By Tony From:Gasgoo.com
Shanghai. January 17 (Gasgoo.com) – SAIC-GM-Wuling, a leading manufacturer of mini-vehicles, sold 552,788 vehicles in 2007, up 20 percent from one year earlier and the automaker plans to sell 620,000 mini-vehicles in 2008, senior company official said.
The three-way automaker has taken 43 percent of China’s mini-vehicle market by 2007, while it held only 37 percent of the market one year earlier, Shen Yang, general manager of SAIC-GM-Wuling told a dealership conference.
Prior to 2005, China’s mini-vehicle market was led by Changan Motor and followed by three challengers, SAIC-GM-Wuling, Hafei and Changhe.
SAIC-GM-Wuling builds and sells both commercial vehicles and passenger vehicles, including Wuling brand minivans, Wuling brand mini-trucks and the Chevrolet Spark mini-car.
SAIC-GM-Wuling was founded in June 2002 by GM China, Shanghai Automotive Industry Corp. Group (SAIC) and Liuzhou Wuling Automotive Co., Ltd. (Wuling Automotive). SAIC has a 50.1 percent stake, GM China a 34 percent stake and Wuling Automotive a 15.9 percent stake. SAIC-GM-Wuling is based in Liuzhou, Guangxi Zhuang Autonomous Region, in southwestern China.
Changfeng Motor may seek to open plant in U.S.
By Ally From:Gasgoo.com
Shanghai. January 16 (Gasgoo.com) - Changfeng Motor Co said Tuesday it is mulling over a plan to establish a production unit in North America, but will begin to sell Changfeng vehicles in the market starting 2009, Changfeng's chairman said at the North American International Auto Show.
Li Jianxian also said it is looking for partners in Europe in the hope of entering the European market in the future, according to a Shanghai Securities News report.
Last year Changfeng sold 36,000 vehicles in total, of which 3,000 were exported. The automaker hopes its export volume will double in 2008 and will eventually increase its export to 60,000 units by 2010.
The state-owned Chinese automaker displayed Liebao CS6, CS7 SUV vehicles and its first sedan Kylin during the show. It was the second year for Changfeng to exhibit vehicles at the Detroit show.
Changfeng Motor displays Liebao CS7 SUV at the North American auto show
Chery aims to sell 480,000 vehicles in 2008
By Tony From:Gasgoo.com
Shanghai. January 16 (Gasgoo.com) – China’s largest home-grown automaker Chery plans to sell 480,000 vehicles in 2008: 300,000 vehicles in home market and 180,000 vehicles in overseas market, company president Yin Tongyao announced during a conference yesterday.
Last year Chery sold a total volume of 381,000 vehicles both in home market and overseas market, up 24.8 percent from one year earlier.
Strong surge in sedan exports is a driving force behind Chery’s impressive sales growth. The company exported 119,800 vehicles in 2007, up 132 percent from one year earlier. Chery has been China’s biggest sedan exporter for five years in a row.
The best selling subcompact car, QQ, which is sold about $5,400, is Chery’s most powerful weapons. The company sold about 130,000 QQ vehicles in 2007, which represents about 34 percent of Chery’s total sales in 2007.
Apart from QQ, Chery has five other leading models, which include three sedan models: Qiyun, A5, A1 and Oriental Son and a SUV model, Tiggo.
Chery has more than 40 dealerships in Latin America, Africa, Middle East, Central Asia and Southeast Asia. It has dealers in countries like Colombia, Cuba, Bangladesh, Israel, Iran, Nigerian and Azerbaijan. It also has CKD operations in Pakistan, Syria, Russia and Uruguay.
China forms alliance organization to reduce car weight by 8%-10%
By Tony From:Gasgoo.com
Shanghai. January 15 (Gasgoo.com) – China has formed an organization called automobile weight reduction alliance. The objective of this organization is to reduce car weight, fuel consumption and enhance safety performance, Chinese state media Xinhua News Agency reported today.
The organization aims to reduce sedan weight by 8%-10% and reduce commercial vehicle weight by 300 kilograms in the coming three to five years, the report said.
By means of using new materials, improving designs and reducing weight, an automobile can reduce up to 3% in fuel consumption, according to Toyota’s “Lean Car” plan.
"Car weight reduction is a high priority issue in China’s efforts to achieve energy conservation and environmental protection,” said Chen Yilong, president of the newly established Alliance. “The weight of China’s domestically made car is typically 8%-10% heavier than international standards; and Chinese-made commercial vehicles are usually 10%-15% heavier than international standards.”
"The National Development and Reform Commission requires a 15% reduction of average vehicle fuel consumption by 2010. Without the auto weight reduction technology, this goal would be unreachable,” Chen added.
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