China Auto News of the Week (March 3-7)

By Tony   From:Gasgoo.comMarch 07, 2008

Shanghai. March 7 (Gasgoo.com) – FAW-Toyota is planning to invest RMB 3.6 billion ($502.79 million) to expand capacity in Changchun, the capital city of Northeastern province of Jilin, Shanghai Securities News reported today. 

The investment will be used to expand the FAW Fengyue plant and help lift Toyota’s capacity in Changchun to 200,000 units by 2013, according to the report.  

The expansion project will be started in May this year and is expected to start production by the end of next year. The second phase will be finished and start production by 2013, Shanghai Securities News cited government sources as saying. 

After the expansion, Toyota’s annual capacity in Changchun will be lifted to 200,000 units by 2013. Toyota vehicles based on Corolla platform, including Toyota Auris and Toyota Wish, will be produced in Changchun plant.  

Currently, Toyota’s plant in Changchun has a total capacity of 10,000 vehicles, where Toyota Land Cruiser and Prius are produced.  

The Changchun plant is a three-way joint venture: FAW Auto holds a 50% stake; Toyota Motor Corp 45% and Toyota Tsusho Corp 5%. 

Currently Toyota has three joint ventures: Tianjin FAW Toyota, Sichuan FAW Toyota and Guangzhou Toyota. The three joint ventures operate five plants in China.

Tianjin FAW Toyota Co. operates two plants in Tianjin: Plant No.1 currently builds Corolla and Vios, a sedan variant of the previous-generation of Yaris and Plant No. 2 builds the Crown and Reiz upscale sedans. The letter is derived from the Japan-market Mark X, according to China Automotive News

In Changchun, Jilin province, Sichuan FAW Toyota has the capacity to build 10,000 Land Cruiser SUVs and Prius hybrid cars, with 500 workers.

In Chengdu city, Sichuan FAW Toyota has the capacity to build 13,000 Coaster small buses and Land Cruiser Prado SUVs, with 1,300 workers.

Guangzhou Toyota now has a capacity to produce 200,000 Camry vehicles and compact sedan Yaris will be produced in Guangzhou this year. In November, Chinese authorities have approved Guanghou Toyota's plan to build a second plant in Guangzhou. The total capacity of Guangzhou Toyota, after the completion of the second plant, will reach half a million annually.

Shanghai.

BYD plans to raise $335.20 M from IPO in Shenzhen market

By Tony   From:Gasgoo.comMarch 07, 2008

Shanghai. March 7 (Gasgoo.com) – The board of directors of BYD, a Hong Kong listed Chinese battery and automaker  announced yesterday to launch IPO in Shenzhen stock market.

The IPO plan is subject to approval by a special session of stake-holders conference before it is submitted to Chinese authorities.

In January this year, the Shenzhen-base BYD announced to issue 58.50 million shares in its initial public offering in China’s A share market. Yesterday, BYD closed at $41.2 HK dollars in Hong Kong market. That means the company will raise approximately RMB 2.4 billion or $335.2 in U.S. dollars from the IPO.

BYD said the company will use A share market as new vehicle to raise capital for business expansions.  

China’s Brilliance hopes to capture 1.5 percent of European market in 10 years

By Tony   From:Gasgoo.com March 07, 2008

Shanghai. March 7 (Gasgoo.com) – Brilliance Auto expects to sell 200,000 vehicles a year in European market and capture at least 1.5 percent of the market with in ten years, the Chinese automaker’s chief dealer in Germany said at the sidelines of Geneva Motor Show.

"In 10 years, I expect we will have a market share of at least 1.5 percent, selling about 200,000 cars a year," Hans-Ulrich Sachs, CEO of HSO Motors Europe, Brilliance's importer for Europe, told Reuters at the Geneva auto show.

Sachs also said Brilliance was on schedule to finish covering all of Europe's main markets by the end of this year, becoming the first Chinese automaker to invade European market.

At the end of 2006, Brilliance and HSO signed a five-year export contract. Under the contract, Brilliance will export a total of 158,000 Zhonghua vehicles to European market.

"Brilliance will bring more and more models to German market. We will expand our exports to other European countries. Our ultimate goal is to sell vehicles to 22 member countries of European Unions,” said Qi Yuming, board chairman of Brilliance Auto.

This month Brilliance Auto displays three models at the Geneva Motor Show: a 2.0 liter luxury sedan Zhonghua Zunchi, a 1.8 liter TAT Junjie and a 1.8 TMT Zhonghua Coupe. This is the second for Brilliance to display models in Geneva Motor Show.

Brilliance now has import companies serving 17 European countries, including Germany, Switzerland, France and Spain, with 700 non-exclusive dealers, according to the Reuters report.

Last year, Brilliance made headlines in Europe when it received a rating of just one star out of five in a crash test for its BS6 sedan by Germany's ADAC auto club. 

BYD displays plug-in hybrid F3DM at Geneva Auto Show

By Joanne Jiu   From:Gasgoo.com March 05, 2008

Shanghai. March 5 (Gasgoo.com) –Chinese automaker BYD Auto Co. showcased five car models at the Geneva Auto Show Tuesday. Among them, F3DM is the most eye-catching model with its "dual mode" system— an integration of the electric and hybrid power train systems. 

"We decided to display the F3DM hatchback rather than the larger F6DM sedan because we know that the European consumers prefer small cars, on the other hand we plan to offer dual mode version for each car model in the future," a BYD official said at the motor show. Prior to the F3DM model, BYD has showcased a similar model -the F6DM in the Detroit Auto Show early this year 

The F3DM uses BYD's self-developed iron batteries, which the company said could be recharged for more than 2,000 times and can power the car to run over 600,000 miles. The car equipped with BYD's batteries can travel as long as 100 miles after one charge, much longer than the 25-mile duel model vehicles offered by other automakers.  

BYD Co., the automaker's parent company, is the world’s second largest rechargeable battery producer. BYD entered the automotive industry in 2003. The automaker announced earlier that it will sell rechargeable hybrid vehicles in China this year.  

Besides F3DM, BYD also displayed its F3, F3R, F6 and F1 car models. The company aims to boost its Chinese market sales to 200,000 from 100,000 units and its overseas sales to 25,000 from 10,000 units this year. 

Also during the Geneva Auto Show, General Motors says it plans to produce a new version of its GM Hybrid System in 2010 using a lithium-ion battery to deliver three times the electric power of its current nickel-metal battery. GM is scheduled to mass produce its plug-in hybrid Chevrolet Volt in 2010. 

Beijing Auto to raise $300 million from A share IPO

By Tony   From:Gasgoo.com March 05, 2008

Shanghai. March 5 (Gasgoo.com) – Beijing Automotive Industry Corporation or Beijing Auto has decided to make IPO in China’s A share market, not in Hong Kong market, senior company official has said.  

After the launch of Sebring on Monday, Xu Heyi, board chairman of Beijing Auto, said reporters that different overall listings are being discussed and debated inside the company and a decision has been made: the company plans to make IPO in A share market, not in Hong Kong.  

Xu did not disclose precisely how much capital would be raised under the A share IPO plan, but he said at least 2 billion yuan ($280 million) would be raised from the A share IPO.  

In January this year, Beijing Auto’s ownership reform and overall listing plans were approved by city government authorities. Under these plans, Beijing Auto will go public by the end of this year.  

Investment experts say Beijing has two major reasons to choose A share market: First, it is less costly and a lot simpler to IPO in A share market than Hong Kong market; secondly, it is less likely to meet ill-intended takeovers in A share market. 

Besides the OEM arms of Beijing Automotive and Beiqi Foton, Beijing Auto also seeks to list an auto parts supplying business unit in A share market, Board Chairman Xu Heyi said. 

Beijing Auto Group consists of three auto making companies: Beiqi Foton, Beijing Hyundai and Beijing-Benz-Daimlerchrysler. 

Last year, Beiqi Foton sold 400,000 vehicles, up 16.9 percent from one year earlier. The sales figure has made the Chinese automaker world second largest commercial vehicle maker after Mercedes-Benz.  

Beijing Hyundai sold 231,137 vehicles in Chinese market, a significant decrease from one year earlier. However, with the opening of its second plant earlier this year, Beijing Hyundai hopes to sell 380,000 vehicles this year. 

Beijing-Benz-Daimlerchrysler sold a total 21,181 vehicles in Chinese market last year, which include 7,959 Chrysler 300 C vehicles, 6,020 Mitsubishi Outlander vehicles and 6,882 Mercedes-Benz E class vehicles.  

Chery wins government approval to build third engine plant

By Ally   From:Gasgoo.com March 04, 2008

Shanghai. March 4 (Gasgoo.com) - China's National Development and Reform Commission (NDRC) has recently approved Chery's new engine plant in Wuhu, Anhui province, according to an announcement released by NDRC on its official web. 

The new engine plant will mainly produce 1.3L 477FB and 1.5L 477F engines, which may be equipped on Chery A3 and Qiyun models.  

Jin Gebo, the director of Chery's administrative office, however, denied that the Qiyun 1.3L and 1.6L models will be equipped with the new engine, as the new plant has just got approval and is far from completion. 

Currently Chery has two engine plants in China with annual capacities of 500,000 units. Both plants produce Acteco engines and other Chery brand engines. 

Meanwhile Chery now has a sedan capacity of 850,000 units per year. "The construction of the third engine plant will ease pressure on Chery's engines output capacity," Jin added. 

China’s major car makers unveil 2008 sales target

By Tony  From:Gasgoo.comMarch 03, 2008

Shanghai. March 3 (Gasgoo.com) – China’s automobile sales will remain a doubt digital growth this year and the sales sedans will grow at a faster pace than the average growth rate of both China’s auto industry and passenger vehicle sector, automobile industry analysts have said.  

Twenty Chinese automakers have recently unveiled their sales target for 2008, according to the Beijing-based Chinese newspaper China Automotive News.  

Source: China Automotive News