China Auto News of the Week (June 2 - June 6, 2008)

SAIC injects auto-parts assets into Shanghai Bashi
 By George Gao

Shanghai, June 2 (Gasgoo.com) Shanghai Automotive Industry Corp. (SAIC) inject its unlisted auto-parts assets, valued at roughly 10 billion yuan ($1.44 billion), into Shanghai Bashi, operator of the city's bus transportation, local media reported on today.

Bus service provider Shanghai Bashi Industrial (Group) Co. said on Monday it would divest its public transportation assets and become a stock market listing vehicle for the SAIC group, China's biggest automaker. The Shanghai municipal government, which controls the SAIC group and Bashi, had approved the plan.

Ford to launch new Maverick in China in Aug
By Kelly

Shanghai, June 2 (Gasgoo.com) Ford Motor will introduce its Maverick SUV made in Ford North America to China this summer. It will be the second time for the Maverick brand to come to China.

Ford's Maverick lineup, named Escape in North America, was launched in 2001. Sharing the same platform with the Mazada Tribute compact SUV, Maverick was produced to enter the compact SUV segment for Ford Motor. Early in 2003, Ford introduced into mainland China the Ford Maverick produced in Taiwan Ford Lio Ho Motor Company. In 2005, Ford Motor exported to China’s mainland the Maverick manufactured in American Ford Company.

Hu Yong to be new helmsman of FAW Volkswagen
By Ally 

Shanghai, June 3 (Gasgoo.com) Hu Yong, the current Head of the ninth research institutes for FAW, will replace Su Weiming, who may become the new head of sales for Shanghai Volkswagen, Jinghua Newspaper reported yesterday.

Citing the announcement from FAW VW's shareholder meeting yesterday, the report said Hu Yong will become the new deputy general-manager of FAW as well as general-manager of FAW VW Sales Division in China in replacement of Su, who has been holding the position since 2005.

Su Weiming, the 45-year-old executive of FAW VW, has been making some resultful operational reforms at the joint venture since he assumed the position. The Changchun-based automaker sold 450,000 vehicles in 2007 alone, an increase of 34.3% from a year earlier.

Subaru lifts China sales target to 15,000 units in 2008
By Ally

Shanghai, June 4 (Gasgoo.com) Subaru plans to raise its sales target this year to 15,000 vehicles in China from 12,000 as announced in January, Beijing Youth Daily reported on Wednesday.

"We hope all of the additional sales growth will come from the new Forester ," said Kei Ono, Managing Director of Subaru China, adding that around 2,000 customers have already placed orders for the model so far this year.

Subaru sold 7,000 vehicles in China in the first five months of this year. Last year the Japanese automaker sold about 9,250 vehicles in China. "What concerns us most is the lack of capacity rather than the sales target," Kei Ono noted.

Great Wall vehicles heading for Australia
By Ally

Shanghai, June 5 (Gasgoo.com) Following in Chery's footsteps, Great Wall Motor is expected to enter the Australian vehicle market in 2009, reports drive.com.au.

Drive sources say Great Wall brand vehicles will be imported by Ateco Automotive, which has already announced that it will also ship Chery vehicles into the country in 2009.

Great Wall specializes in making sport utility vehicles (SUVs), where Australian interest is believed to lie, according to the report. As part of global moves to sell affordable Chinese cars, Great Wall recently began exporting small numbers of vehicles to Africa and Russia. Great Wall Motor already has established distribution networks in 81 countries and claims its vehicles "have run on the roads of 121 countries".

Great Wall exported 51,394 cars in 2007 and has experienced export growth of 90 per cent since 1998. It expects to export 80,000 vehicles this year.

SAIC leads transmission JV program with BorgWarner
By Joanne Jiu

Shanghai, June 5 (Gasgoo.com) World-leading supplier BorgWarner's advanced dual-clutch transmission (DCT) systems would be put into production in Jiading district, Shanghai. And in this joint venture program between BorgWarner and multiple Chinese automakers, Shanghai Automotive Industry Corp. (SAIC) plays a leading role, according to industry sources.

The DCT program was coordinated by the National Development and Reform Committee (NDRC) and a dozen of Chinese home-grown automakers would participate. These automakers include almost all the leading players: SAIC, FAW Group,Dongfeng Motor Corp., ChangAn Group, Chery Automobile Co., Geely Automobile Holdings Ltd, Brilliance Auto. The initial investment of the JV was said to reach 3 billion yuan ($433 million).

"Qian Xiangyang, head of our technology department has arrived in Beijing to discuss details of the program," said an official from Shanghai Automobile Gear Works (SAGW) who asked to be unnamed. SAGW is a component-manufacturing subsidiary of SAIC, which produced around 1 million units of transmission with 3 billion yuan revenue last year.

 Chery to build Central Research Institute for new energy
By Kelly

Shanghai, June 5 (Gasgoo.com) Chery Auto will establish the Central Research Institute to promote the development of new energy technology, the Chinese carmaker announced in the second technology conference on May 31.

The Central Research Institute, along with the pre-established General Automotive Engineering Research Institute, the Planning & Design Institute and the Technical Test Center, will form a complete developing system from OEM to spare parts and from design to engineering and testing. Plus, the branch research institute will be established in Beijing, Shanghai and foreign countries such as Europe, North America, Japan and Australia.

 Only Guangzhou Honda, FAW Toyota sales up in May
By Ally 

Shanghai, June 6 (Gasgoo.com) Of the top 14 passenger car makers in China, only Guangzhou Honda and FAW Toyota saw their monthly sales increase in May from the previous month, amid the pervasive auto sales depression as a result of the devastating earthquake on May 12, a report from China Association of Passenger Vehicles said yesterday.

Guangzhou Honda sold 27,687 vehicles in May, up 16.1% from April. The growth was led by its top selling Accord in the mid- to high-end market segment, with a total of 15,923 sold during the month. Sales of Odyssey and City were 3,088 units and 5,579 units respectively, also very impressive.

FAW Toyota sold 33,941 vehicles compared with April's 32,441 units. Corolla was the top seller in the mid-class auto market with sales of 15,230 units while Jetta stayed No. 1 in sales of all car models with 16,232 units sold.