Auto news this week(2007.02.26--2007.03.04)

Undoutedly, the aquisition of DaimlerChrysler AG was the most eye-catching news,several Chinese automakers were in the potential bidders list: FAW, Chery,SAIC etc.

Hereunder are the breaking-news this week:

Report: DCX considers trading Chrysler Group for stake in GM

From:FREE PRESS BUSINESS  February 27 2007 
DaimlerChrysler AG is considering selling the Chrysler Group for a stake in General Motors Corp., according to a report in Monday’s Financial Times.

DaimlerChrysler and GM have declined to comment on reports. DaimlerChrysler sparked speculation of the sale of the Chrysler Group two weeks ago when executives said all options were on the table for the Auburn Hills-based unit. The Chrysler Group posted an operating loss of $1.5 billion for 2006.

Several potential bidders have denied interest. Renault SA and Nissan Motor Co., which explored an alliance with GM last year, have said they do not wish to buy Chrysler. Volkswagen AG and Hyundai Motor Co. have said they have no interest in pursuing a deal.

GM has declined to talk about its interest in the Chrysler Group. Analysts say linking GM and Chrysler together would have mixed results. Both are dealing with overcapacity and legacy costs for retiree healthcare and pension expenses. Both also have been hurt by a heavy reliance on trucks and SUVs.

"Unfavorable truck mix (Chrysler 77% vs. GM 61%) stands out as an obvious obstacle but we think the potential to use the deal to negotiate concessions with the UAW could appeal to GM.,"J.P. Morgan analyst Himanshu Patel said in an investors' note Monday morning.

Chery: no intention to acquire Chrysler 
 
By Jorvan   From:www.globalautosourcing.com March 02 2007 
According to news report, the Chrysler Group under DaimlerChrysler AG and Chery Automobile Co. Ltd. is negotiating on expanding cooperation. However, Chery has no intention of purchasing part or all of Chrysler.

A source said Chery, a Wuhu based automobile manufacturer, is in discussion with Chrysler Group Ltd, to establish production parts and complete vehicle in China. However, the source, who declined to be named, said the negotiations still at the initial stage.

Chrysler Group had taken a step forward on the basis of the agreement announced in January; Chrysler Group announced the Group would sell Chery production but under its own brand name in North America, Europe. The agreement still requires the approval of the authorities.

Jin Yibo, deputy sales general manager of Chery Automobile Company said to the Dow Jones news agency, Chery has no intention to acquire Chrysler.

China FAW Group interested in acquiring Chrysler 
Seeking to be an international enterprise 

By Jorvan   From:www.globalautosourcing.com February 28 2007

It is learned from sources that China FAW Group intends to purchase the subsidiary of DaimlerChrysler Group--Chrysler Motor Company.

Just 10 days ago, DaimlerChrysler Group agreed to sell whole or part share of Chrysler Corporation to start up its revitalize and reform program: to layoff 13,000 in the next three years, cut 10 to 20% output of Dodge and Jeep brands.

Sources analysis, it is quite possible for FAW to make whole acquisition of Chrysler, which could make FAW develop into an international automobile brand and a r&d center at a lower cost, This means has been proved to be a new approach for Chinese enterprises to realize internationalization.

At present, FAW Group owns FAW sedan Brand, FAW Xiali Brand and Haima sedan Brand. It is still difficult for its own brands to help the FAW to become an international enterprise.

In China Chrysler 300C and Jeep brand have been China-made under their joint venture Beijing Auto Companies.
 

Daimler, BMW Collaborate on Drive System
 
From:Associated Press March 02 2007 
The automakers DaimlerChrysler AG and BMW AG said Thursday that they will work together to develop a hybrid drive system for luxury cars.

The automakers DaimlerChrysler AG and BMW AG said Thursday, March 1, 2007 that they will work together to develop a hybrid drive system for luxury cars.

The two companies said they would work on a so-called "mild" hybrid system for rear-wheel-drive vehicles. That type of system is more efficient than a standard motor because it draws power from two energy sources, typically a gas or diesel engine combined with an electric motor, but less so than a full hybrid.

"Cooperation in the field of innovative drive systems makes good sense not only from a technical, but also from an economic standpoint," said Thomas Weber, a DaimlerChrysler board member responsible for research.

Though they would be working together, BMW board member Klaus Draeger said their final products would remain distinct. "The distinct identities of the different brands will not be affected, since the relevant technologies will be tailored to fit the specific character of the different vehicles," he said.
 

Visteon electronic products purchases in China up 30%
 
By Jorvan   From:www.globalautosourcing.com February 28 2007 
Kang Xiwang, director of Visteon Asia-Pacific region and global electronics industry, said Visteon hope to increase purchasement in the next few years in China, especially electronic products will be increased by 30%.

Kang hoped that the volume of procurement from China would be 20% of global procurement, turnover of Visteon Asia-Pacific region will become the world's largest area by the end of this year, and several years later, turnover in the Asia-Pacific region will account for nearly 50% of its global business turnover. The procurement of electronics products in China may be increased by 30%.

He explained that the procurement target in China range from joint ventures to local suppliers and subsidiaries of global suppliers in China, 50% of Visteon suppliers in Asia are from China, a total of 21 factories in China.