China auto news this week(2007.03.19-2007.03.24)

This week, several auto giants lauched new models, such as Ford S- max, Hyundai five new modified models. But Honda Motors is no such lucky, it is recalling 528,406 China made cars.

Further more, DCX is accepting first round of bid. Potential bidders in China such as SAIC and Chery Auto denied their intentions, while FAW refused of no bidding yet.

Hereunder are the news this week:

DCX AG to accept first round of bid, GM emerged as potential buyer

By Ally   From:www.globalautosourcing.com March 23 2007
 
Three private equity firms are expected to present bidding quotes for buying the troubled U.S. division of German automaker DaimlerChrysler before the end of this month, sources from America auto industry insiders unveiled yesterday.

Cerberus, the tandem of private-equity groups Blackstone Group LPand Centerbridge Partners LP, have met with Chrysler executives and begun reviewing financial and product-development information last week.

General Motors was also reported to have been involved in the bidding, but GM CEO Rick Wagoner declined to comment on whether the world's largest automaker was considering a bid for Chrysler.

According to the reporters, DaimlerChrysler has confirmed it would sell the company as a unit. Currently DaimlerChrysler's listed price is 7.5 bn dollars, which means GM has to offer 50 bn RMB to buy the company. Further, other Chinese automakers, including SAIC and Chery, told they would not consider the purchase.

At the same time Cerberus Capital Management LLC is piecing together a team of auto-industry veterans headed by former Chrysler executive Wolfgang Bernhard to bolster its expected bid for the U.S. unit.

Worrying about the job-cut, President of The United Auto Workers union also said the union was hoping to see German automaker Daimler hold on to its struggling Chrysler unit, adding that he was "not ready to concede" a spin-off was inevitable.
 

Public vehicles in use in China rose to 49.85 mln
 
By Ally   From:www.globalautosourcing.com March 23 2007
 
Reports from National bureau of Statistics of China showed public vehicles in use in China comes to 49.85 million (including 1,399 tricycles and low-speed trucks), an increase of 15.2% compared with that of the same period a year ago; private vehicles in use were 29.25 million, up 23.7%.

Public sedans in use climbed by 15.2% to 15, 45 million units, of which private sedan rose 33.5% to 11, 49 million units.

The growth of private sedans and private vehicles exceed that of sedans and vehicles in use by 6.3% and 8.5%, respectively.

The electromechanical products export and import value climbed by 28.8% and 22.1% to $549,4 billion and $42,77 billion respectively, of which auto export foreign exchange earnings were $28,14 billion, up 42.8%;

Import exchange consumptions were $20,88 billion, up 36.3%. This ascension far outstripped the 13.9% and14.2%growth of electromechanical products, showing a positive development momentum for China auto import and export. 
 

Ford launches the S-Max in China
 
From:Automotive News March 21 2007
 
SHANGHAI -- Ford Motor Co. launched the S-Max crossover in China on Thursday, March 15, entering a small but important segment.

Ford will assemble the S-Max at Changan Ford Mazda Automobile Co., its joint venture in the southwest China city of Chongqing. Ford aims to sell as many as 10,000 units this year, says Thomas Yao, Changan Ford Mazda spokesman. Sales goals for 2008 haven't been determined, he says.

The multipurpose vehicle segment in China, which includes crossovers, grew by 20.0 percent in 2006 compared with 2005, to 142,614 units, according to Automotive Resources Asia, a consulting firm here. The entire market grew by 35.1 percent to 4.2 million.

But the multipurpose segment caters to small businesses, a fast-growing part of China's economy.

The S-Max should do OK in China, says Yale Zhang, director of emerging market vehicle forecasts for CSM Worldwide here.

"It is roomy and the style is impressive," he says. "It's streamlined. It's new."

Newness will be an important advantage of the S-Max over its main competitor, the Odyssey van produced at Guangzhou Honda Automobile Co.

Launching models is an important sales strategy in China, where they are generally hot sellers for at least a few months. The Odyssey in China was refreshed in December.

The price of the S-Max starts at 219,980 yuan, or $28,435 at current exchange rates, making it slightly less expensive than the Odyssey, which starts at 248,000 yuan ($32,000).

The S-Max in China has other uses besides entering a segment here. Ford is looking to boost the volume of parts purchased from China. Suppliers to the domestically produced S-Max potentially could supply the plant in Genk, Belgium, where the crossover also is assembled. 
 
 

Hyundai targets 310,000 units this year
Five new models debuted
By Jorvan   From:www.globalautosourcing.com March 21 2007
 
Five new models debut last week in March
Beijing Hyundai Five models debuted in Hainan Province, south China. The five models are Elantra SPORTS, SONATA NF 2.0DLX auto models, Elantra 2007, and two wheel drive 2.0AT Tucson, 1.6L Accent.

So far, Beijing Hyundai brand have five series and 24 models. Beijing Hyundai spokesman said that Beijing Hyundai is expected to sell 310,000 vehicles in 2007, 20,000 units more than that of 2006, the year of 2007 would be a crucial year for the Company to upgrade its quality and service.
 

Honda recalls 528,406 China-made cars
 
From:Automotive News March 19 2007
 
SHANGHAI (Reuters) -- Honda Motor Co. will recall 528,406 Chinese-made cars, a record for China's fledgling auto industry, to fix faulty oil pipes and pumps, the carmaker's venture in south China said today.

Price wars in the world's second-largest auto market have taken a toll on the quality of vehicles, with more than 350,000 units recalled last year, according to calculations from recalls announced last year.

Many foreign players operating in the country were involved in last year's recalls, including PSA/Peugeot-Citroen, Toyota Motor Corp., DaimlerChrysler AG's Mercedes-Benz and Volkswagen's Audi.

Honda Odyssey, Accord and Fit models produced between January 2003 and February 2007 will be recalled from March 19, Guangzhou Honda said in a statement.

No accidents or personal injuries had been linked to the defect, it said.