China Auto News of the Week (July 7 - July 11, 2008)

China sells 286,804 SUVs in Jan-May, up 58.8% y/y

Shanghai, July 8 (Gasgoo.com) China sold 286,804 SUVs from January to May this year, up 58.8% from the same period of last year, sources from China Passenger Car Association said yesterday.

The total sales of SUVs built in China were 199,812 units, up 47.8% from a year earlier, while sales of imported SUVs rose a remarkable 91.3% year on year to 86,994 units.

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Changan Ford Mazda to build 3rd plant

Shanghai, July 8 (Gasgoo.com) The third plant of Changan Ford Mazda Automobile Co. (CFMA) has topped the joint venture's agenda and is confirmed to be located in Chongqing, sources told the Beijing Morning reporters recently.
 
Changan Ford Mazda is a three-party joint venture with Chinese and foreign automotive bands namely Changan, Ford and Mazda. The automaker said the poor performance of its Nanjing plant was the major reason for the relocation of the carmaker's new manufacturing center. The new facility will have the same capacity the Nanjing plant, sources said. Ford and Mazda vehicles will be made in turn in the new plant. The newspaper also said that it is not possible for the third plant to be launched within the year. 

Top 10 best-sellers of sedan models in H1

Shanghai, July 9 (Gasgoo.com) In the first half of 2008, the top 10 best-sellers of China-made sedan brands (ranking 1st-10th) are Santana (Shanghai VW), Jetta (FAW VW), Buick Excelle (Shanghai GM), Toyota Corolla (FAW Toyota), Chery QQ, Toyota Camry (Guangzhou Toyota), Honda Accord (Guangzhou Honda), Hyundai Elantra (Beijing Hyundai), Xiali (Tianjin FAW) and Chevrolet Lova (Shanghai GM), said xinhuanet.com yesterday according to the latest statistics from China Association of Automobile Manufacturers (CAAM).

The ten China-made brands sold a total of 838,500 units, representing 31.43% of the sedan sales in the Chinese market during the six-month period. 

China's top 10 passenger-car makers in June

Shanghai, July 9 (Gasgoo.com) China's Shanghai VW was the top seller in June with sales of 44,618 vehicles both in domestic and overseas markets, followed by Chery Auto and Shanghai GM, with sales of 37,994 units and 37,921 units respectively, according to a report unveiled by China Passenger Car Association (CPCA).

FAW VW saw a remarkable sales drop in June as a result of strategy adjustment. The new appointed general-manager of FAW VW Sales Division Hu Yong announced plans early in June to restrain vehicle supply to dealers so as to reduce excess inventory, which led to a decline in the monthly wholesale volume. Chery experienced a strong sales growth thanks to contribution by overseas market.

China's top-selling mid-sized sedans of June

Shanghai, July 10 (Gasgoo.com) China's overall passenger vehicles (PVs) sales plunged for the third straight month in June compared with the previous month, amid the trend that mid-sized sedans have been experiencing a bigger decline than other vehicle segments.

With 14,042 units sold, the 8th-generation Accord made by Guangzhou Honda Auto tops the mid-sized car sales list, but it's worth noticing that the rate of its sales decline was the most rapid.

Chrysler to relocate Asia HQ from Beijing to Shanghai

Shanghai, July 10 (Gasgoo.com) Philip Murtaugh, CEO for Chrysler Asia who has aimed to change the carmaker's situation in China, now is beginning to do a long-considered surgery on the company's Chinese operations. This surgery includes reshuffling the executive team and relocating Chrysler Asia's headquarters from Beijing to Shanghai, reported Beijing Times today.

Chrysler Group has named a Korean the general manager of the auto sales company of Chrysler China, and Daphne Zheng, from GM, is named the Chrysler Asia's director of marketing and communications. With the setting up of its Asian business framework, Chrysler will put its Chinese operations under the control of Chrysler Asia.

In the near future, the major divisions of Chrysler China will moved from their current Beijing headquarters to Shanghai, only with a Chrsyler Beijing office left behind in the Chinese capital.

China FAW Car says H1 net profit up 200-250%

FAW Car Co, a unit of one of China's three largest auto makers, First Automotive Works, estimated on Wednesday that net profit jumped between 200 and 250 percent in the first half of this year.

The company, which makes Mazda Motor's Mazda6 mid-sized sedans, cited rising sales and cost-cutting.

SAIC-Ssangyong venture delayed by tech leak rumor

Shanghai, July 11 (Gasgoo.com) Shanghai Automotive Industry Corporation (SAIC) and its majority-owned Ssangyong Motor may have to further postpone their joint venture plan for several months as the latter is claimed to have leaked hybrid car-related technologies to SAIC, Beijing Times newspaper reported Thursday.

Investigations by South Korea's judicial authorities into the matter will last for some months, and during this period Sssangyong's overseas technology transfer activities will be restrained by police, the report said.

Last Sunday Dow Jones Newswire cited words from Ssangyong spokesman Lee Kyo-Hyun as retorting that Ssangyong has never leaked any hybrid technologies to SAIC, adding that SAIC is even considering transferring the technologies to Ssangyong as it is already quite capable of them.