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New Product Strategy Benefits Chery

20th Dec reported by Xinhuanet

Thanks to itsnew product strategy, Chery has maintained stable sales volume this year and reached CNY38.75 billion revenue in the first eleven months, 22.73% aboveits year-earlier level.

Chery has gained sound development through rapid market expansion forits self-owned models, and attracted more than 3 million world-widecustomers in the past decade. To suit the growingbrand and quality conscious among customers, however, Cheryhas decided to convert its focus to product enhancementinstead of market expansion.And this new strategy has already brought Chery benefit.

In 2011, the major Chery models such as CheryA3, E5 and Rich have showed strong market performance with their sales proportion up to 55% from the 46.3% in 2009. The R&D system of Chery has grown mature enough for whole-set vehicle manufacturing. Besides, the 4230 awarded patents and self-developed DVVT, TGDI engine have helped distinguish Chery models in the automobile market.

Seeing from the current situation, Chery will promisingly achieve more with its new product strategy.

#Chery

Renault to Start China-based Production in Wuhan

19th Dec reported by Guangzhou Daily

After half-year effort, Renault-Nissan finally nailed down its China-based production plan viapartnership with Dongfeng Motor. The two parties will set up a joint venture in Wuhan, where Dongfeng’s headquarter is located, and start the production of Renault models in 2015.

To catch up with other auto giants in Chinese automobile market, Renault has been apparently eager to embark on its China-based production. In Jun this year, Renault dropped out its share from the joint venture with Sanjiang auto, as a step to prepare for the new partnership with Dongfeng. In early Dec, Renault finally reached consensus with Dongfeng on establishing a joint venture for its production in China. Besides, to accelerate the cooperation process, Renault-Nissan gave in the business sector of its Zhengzhou branch to Dongfeng.

Koleos, Renault’s best seller in Chinese market, will probably be the first production option. With an annual sales volume of about 20,000, Koleos accounts for 80% of Renault’s sales in China, and has made China its largest market. It will be a smart move to start with the best performer for the China-based production.

#Renault #Renault-Nissan #Dongfeng

Beiqi to Produce Self-Owned Brands

16th Dec 2011 reported by National Business Daily

Beiqi has finally been approved producing its self-owned B301Z model after passing a series of tests on model quality, plant condition, energy consumption and environmental protection. The production of B301Z will function as a crucial step for Beiqi to promote its self-owned auto brands.

Besides, the off-road project previously suspended due to personnel changes has also been started.And B40, Beiqi’s self-owned SUV model, will be manufactured soon in Beijing and ready for market entry by the end of 2012.

According to its 12th five-year plan,Beiqiplans to sell above 2 million self-owned models, among which passenger cars account for 900,000. By2013, Beiqi aims to rank the top four in China’s automobile market in terms of sales volume.

#Beiqi #B301Z

Chery to Rotate Development around Core Models

12th Dec reported by Auto163

Chery Rich G5 officially entered the market on 12th Dec. Except from Rich G2 that will land the market in 2012, Chery will not promote any new models in the next two years. Meanwhile, its online sales network will not largely expand either. It is all due to the new development strategy that Cherywill adopt.

Mr. Tongyue Yin, CEO of Chery

Instead of bombarding the market with various models, Cherywill focus on promoting its competitive core models, Mr. Tongyue Yin, CEO of Chery, told Auto163. The projects run by Chery have been deducted from the original 130 to the current 30 or so, after a thorough market evaluation on all its models. Besides, its operation structure has been optimized by integratingsales, R&D and purchasing channels.

Chery Rich well manifestssuch a new strategy. Mr. Deji Ma, General Sales Manager of Chery, released that Chery Rich will position itself in the high-end market, and orient in its core models such as G6, G5, G3 and G2.

Chery expects its annual sales volume this year at 650,000. Adding the 150,000 exported cars, Chery will promisingly end up with a sales volume of 800,000 in 2011.

#Chery #G5 #G2

On Shanghai Volkswagen’s Urumqi Subsidiary

7th Dec reported by Auto163

Shanghai Volkswagen will set up its new subsidiary company in the Urumqi economic and technological development zone with the total investment of 2 billion yuan. The subsidiary will start production in 2013 and by 2016, its annual production capacity will be expected to achieve 50,000.

Xinjiang—the door to western Asian market

The industrial environment of Urumqi has been greatly improved in the past few years, and some giant car makers have started their auto production there such as Shanxi Automobile Group,Dongfeng Commercial and China National Heavy Duty Truck Group. The entry of these manufacturers has helped enhance the automobile industry in Urumqi. Since 2003, Shanghai Volkswagen has beenexporting thousands of its Passat and Santana models toKazakhstan from Xinjiang Huoerguosi port. The entry into Xinjiang area will promisingly help Shanghai Volkswagen to explore the western Asian market.

50,000 annual volume—just a start for mass production

The initial annual production capacity of 50,000 seems too low for such an auto giant as Shanghai Volkswagen. It is, however, theunique rolling development strategy of growing fast based on limited input and small-scale production. Shanghai Volkswagen has enlarged itself to the current scale exactly by using such a strategy. In the case with the Urumqi subsidiary, the strategy will probably show its magic again.

A-level Santana—the most favored model

As the most successful model of Shanghai Volkswagen in terms of domestic production and sales, A-level Santana is said to be the first production option for the Urumqi subsidiary. It is known that Shanghai Volkswagen has been working on a Santana NF model and will put it into production by the end of 2012. Once the Urumqi subsidiary embarks onauto production, Shanghai Volkswagen will manufacture Santana NF in Xinjiang instead of its Nanjing plant.

2011 Auto Export to Exceed 800,000

6th Dec, 2011 reported by China Morning Post

It is anticipated by China Automobile Industry Association that the total number of Chinese autos exported abroad this year will promisingly exceed 800,000, setting a record high.

Mr. LuxunZhi, Deputy Director of Department of Mechanic, Electric and Hi-tech Industry of Ministry of Commerce, remarked that as one prominent trading goods, automobile trade accounts for about 10% of the global goods trade. The giant automobile manufacturers such as Germany, Japan and Korea have export ration of their automobile productionrespectively up to 75%, 65% and 50%. Even Brazil, not such a sharp competitor in the global automobile market, manages to get its auto export proportion to above 20%. China, in comparison, is lagged behind in this aspect. In 2010, out of all the 580,000 autos, only 3% got exported abroad. Although the export number of Chinese autos hit 614,000 in the first nine months this year, a yearly increase of 60%, and expected to exceed 800,000 by the end of 2011, the export proportion will still remain as low as 4%.

The not-so-competitive quality performance and still immature brand awareness among global customers of Chinese autosseem to blame to the low export to western countries. The severe lack of independent intellectual property rights forthe core partsand the high repair rate have also been restrictingthe performance of Chinese autos on the international arena.

Mr. LuxunZhi also commented that another noticeable problem in the current Chinese automobile market is that the auto manufacturers are in over large quantity with the total number up to 500 whilst the average production capacity hits as low as 1,000. The 580,000 autos worth 32 billion dollars exported to 210 markets abroad last year were produced by almost 20,000 car-makers.

#Auto Export

Great Wall Motor enters stock market, trading 1.54% lower than issue price

29th Sept, 2011, Beijing Times Report

As confirmed by the staff from Volkswagen (VW) China on 23rd Sept, Seat will settle down in VW China, and the manufacturing plant for its production in China will be located in Foshan. VW China has been conducting the market analysis for Seat in China’s automobile market. Detailed arrangement is still under discussion.

It’s known that conducting market analysis is the initial step to introduce a new car model. VW China has been investigating the customer awareness and preferences for car models, defining target customers, estimating market demand, and will eventually determine the configuration and powertrain of the Seat models to be produced in China based on the analysis.

Recently, a trial drive for Seat was arranged in Spain attended by the media and some working staff from VW China as well. The Seat Ibiza and Leon, demonstrated in the Shanghai auto show this year, will enter China’s automobile market in 2012 and establish its own distribution network. It was said that Seat has already chosen some dealers from VW China’s imported car sales network, and been planning on polishing its distribution stores with Spanish style.

The manufacturing plant for Seat’s production in China will be located in Foshan, according to the current plan. The construction project of the plant has been approved, and will be completed in 2013, by which the market analysis for Seat in China will be completed and the China-based production can be launched. Besides, the Seat Lion is expected to come up with a new model in 2013 with the same performance parameters as 7th Generation VW Golf, to replace its current model sold in the market since 2005.

The distribution network of Seat in China will be officially announced in Guangzhou auto show this November, and the Seat models to enter China’s automobile market will be demonstrated in Beijing auto show next year.

#Great Wall Motor

Two More Shareholders Transfer Chery Share

2nd Dec 2011 reported by First Financial Daily

After some shareholder transferred 33.336 million Chery share, two more companies followed the step, as reported by Beijing Financial Asset Exchange yesterday.

China Huarong Asset Management Corporation transferred all its 2.152% equity in Chery with 83.5 million shares at 388.275 million yuan. Rongde Asset Management Company at the same time transferred 0.4253% equity that it had held in Chery at 76.725 million yuan with 16.5 million shares.

Chery’s blurry schedule of going for stock market listing is to blame for the equity transfer actions of its shareholders.

#Chery Auto #Chery Share

FAW-VW Foshan Branch in the Making

On 1st Dec, FAW Volkswagen celebrated the opening ceremony of its new branch in Foshan, Guangdong.

FAW-VW Foshan branch enjoys a total investment of 13.3 billion yuan, and will be ready for production of VW and Audi models by Aug 2013 with a preliminary production capacity aimed at 300, 000 units.

The branch will use MQB platform for manufacturing 7th Generation VW Golf and Audi A3 which will be the major models for FAW-VW’s production in South China.

The operation of the Foshan Branch will not only increase FAW-VW’s overall production capacity, but, more importantly, will serve as a crucial step in FAW-VW strategy to explore the automotive market in South China.

#FAW-VW #FAW-VW Foshan #MQB platform #VW Golf #Audi A3

Subaru to Use Chery Logo for China-Based Production

24th Nov reported by Beijing Times

The National Development and Reform Commission (NDRC) has officially approved the joint-venture project between Chery and Subaru, under the condition that Subaru should use Chery logo for its vehicles produced in China, and meanwhile adoptChery’s sales network instead of establishing its own distribution channel. Such a breakthrough was far from expected before.

The joint venture project between Fuji Heavy Industries (FHI) and Chery initially came into shape in early 2011. Back to then, the two parties reached consensus on issues such as the ownership allocation and chose Chery’s Dalian plant for manufacturing Subaru autos in China. Upon the news, Pangda Group, Subaru’s currently major partner in China, also started to adjust its cooperation strategy with Subaru.

In Aug this year, Chery released the joint-venture project failed approval from NDRC. The underlying cause of NDRC’s decline was said to be with Toyota. As the largest shareholder of FHI, Toyato occupies 16.5% ownership, and thus the new joint venture can be assumed to function as the 3rd China-based plant for Toyota.

In Sept, NDRC formally notified FHI of its decline on the joint venture project application. Just when people were guessing this project would end up impractical, FHImade the decision of adopting Chery logo for its China produced vehicles, and usingChery’ssales network as well. And such a concession finally led to the approval of the joint venture project.

#Subaru #Chery

Chang’an Expects Compensation from Joint Venture

16th Nov reported by 21st Century Economic Report On 14th Nov

Chang’an Auto announced again that the company would continue stopping trading on the stock market. It is already the 4th time since 22nd Oct that the company has made such an announcement. Apart from the repurchase of B share, the speeded up joint venture programme and the asset injection plan are also assumed to take account for the trading suspension. It is released that the business of the joint venture to be set up by Chang’an, Peugeot and Citroen will be incorporated into Chang’an Auto, which will probably help Chang’an enhance its market performance.

This source is well proved by the Q3 report of Chang’an Auto. It is proposed in the Q3 report that upon the commencement of the operation, Chang’an China transfers its entire share capital in the joint venture to Chang’an Auto.

#Chang’an

Refitted Yuexiang of Chang’an to Make a Debut in Guangzhou Auto Show

November 13, 2011 Auto163.com:

The model will be officially unveiled at Guangzhou Auto Show on November 21.

Like Benben mini, the grille of refitted Yuexiang is redesigned to adapt to the new-style logo. In addition, its air inlet grille and front bumper are improved: large-size chromeplate elements and closed angle profile are removed in air inlet grille; the new V-shaped logo is embedded on the net-shaped grille, and the red sign “S” indicates that this is a model of sports version.

The front bumper is redesigned by significantly enlarging the trapezia-shaped grille under the front bumper, similar to that of Ford Focus. The fog lamp is embedded with chromeplate outer rings, and the grille-shaped decoration beside the fog lamp is also changed. As to wheel hub, the 15-cun (a Chinese unit of length) 8-bar dumb light black aluminum alloy wheel hub of models of sports version is adopted, and 195/55 R15 wheels are used, which are slightly larger than the 185/65 R14 wheels of models of common versions.

Whether the tail and interior decoration of the refitted model will change significantly is unknown yet, but its configuration is predicted to be adjusted to show more added value and high performance/price ratio, inferred based on the changes of the refitted Benben mini of Chang’an.

Besides, the Chang’an Yuexiang model equipped with IMT transmission case will be launched. IMT transmission case boasts lower cost and convenient maintenance, with structure of its internal gear mechanism and clutch for power connection having the same structure with that of traditional manual transmission case, so it can bear the same working environment with manual transmission case, and has the same maintenance requirements with manual transmission case. Meanwhile, it can realize better control over power performance through the flexible utilization of manual mode, and enables easier pursuit for power and fuel efficiency. With the utilization of IMT transmission case, the selling price of Chang’an Yuexiang with automatic shift will be lowered.

#Yuexiang #Chang’an #Guangzhou Auto Show

Infinite to Promote 8 New Models

15th Nov reported by Chongqing Economics Times

Infinite will promote its JX SUV range in 2012. Infinite JX will include 2.5L cars and 3.7L or 3.5L ones, respectively to be launched in Q1 and Q3 next year. The size of the JX range will be between QX SUV and FXSUV. Infinite also announced that in 2012, 7 new JX models will be developed, along with the MG hybrid and upgraded FX model.

Infinite sold 20,000 vehicles in 2010, and plans to reach a sales volume of 35,000 in 2012. It is rumored that to realize such a high sales goal, Infinite will start China-based production, probably in Guangzhou or Xiangyang. Infinite has already denied the rumor and claimed no intention for production in China.

#Infinite #JX SUV #Infinite JX #QX SUV

FAW Burdens 50 Million Net Loss in Q3

11th Nov reported by National Business Daily

Though 2011 is coming to the end, FAW Group has not seen much progress in its yearly ‘must-done’ task of stock market listing. It still seems a long way to go for FAW to improve its personnel management, clarify the ownership structure and enlarge sales for its self-owned brands.

FAW Car Limited Company, one subsidiary of FAW Group, has made limited achievement this year. As shown in its Q3 report, the operating revenue of the company from Jan to Sept 2011 is 25.7 billion yuan, down 4.08% from a year earlier. The net profit for its stakeholders dropped by 57.79% to 0.754 billion yuan. Both the earnings and fully diluted earnings per share suffered a yearly decline of 57.79%. The net cash flow in the operating process is minus 2.1 billion yuan, and plummeted 157.92% from a year earlier.

As shown by the analyst report from Central China Securities, FAW Car Limited Company ranked second to last in terms of sales growth in Q3 with a yearly decline of 26.45%. The major cause of such unsatisfactory performance seems to be the increasing advance payment expensed at the end of Q3 on its construction projects and the purchase of imported auto parts. In August this year, despite the overwhelming capital pressure, the company still invested 3.5 billion yuan in its vehicle expansion project.

#FAW #Q3 2011

Ministry of Science and Technology: Support for New Energy Vehicles Free from Purchase and Passage Restriction Policies

National Business Daily November 11, 2011

On the Energy-saving and New Energy Vehicle Industry Development Forum held at Hefei on November 9, Ye Shengji, Deputy Secretary of CAAM, called for “More Patience” on the new energy vehicles from the society and consumers. Next day, the Ministry of Science and Technology released, on its official website, Notice on Further Implementing the Demonstration Promotion and Pilot Work of Energy-Saving and New-Energy Vehicles (hereinafter referred to as “Notice”)

The Notice proposes “Study the work to make the new energy vehicles free from the restriction measures of plate number auction, sortition and passage restriction, etc; release the supportive policies on the parking fee, electricity price and road toll; mobilize the enthusiasm of government, enterprise and public institutions and individuals to purchase, use the energy-saving and new-energy vehicles. ”

As a matter of fact, the pilot works by the domestic vehicle manufacturers have been going on in Shanghai, Guangzhou and Shenzhen, etc. Since more and more domestic joint ventures are investing in the production of electric vehicles, the new energy vehicles in various technical routes are emerging throughout the country. However, the evaluation on the electric vehicle pilot cities is getting more and more stringent. It is said from unknown sources that, NDRC, Ministry of Finance, Ministry of Science and Technology and Ministry of Industry and Information Technology have launched the “Accountability” for the demonstration and pilot cities and enterprises, and implemented the “Last Position Eliminating Principle” for the nonconforming vehicle enterprises or pilot cities, that is, cancelling the central financial subsidy as much as RMB 60,000 at most and the local financial subsidy more than RMB 100,000 at most.

#EV #Ministry of Science and Technology

Shanghai Electric Cars Expecting Special License

9th Nov reported by Auto163

The widely-noticed incentive policy for electric vehicleswill be issued soon. All the clauses in the policy have been finalized, including the maximum 40,000 yuan subsidy one.Due to the high license fee in Shanghai, a special license is expected to be used by electrical cars. Practical procedures are currentlyunder discussion and expected to be decided in short time, Mr. Wenwei Rong, General Manager of Shanghai International Automobile City, was quoted as saying in his presence of signing the strategic cooperation memorandum with Volvo on 8th Nov.

As the first demonstration city for electric vehicles in China, Shanghai has set up 45 Charging piles, 1 charging station, and will build up 770 more charging piles within 2011, and meanwhile start the construction of onepower station multifunctioning in charging, discharging and storing electric power. All these facilities are located at Jiading district and cover the entire 100 square meters of Shanghai international automobile city. Along with the electric cars, electric buses 18 vehicleswill be put into use in Jiading district by the end of 2012, and 48 by then end of 2013.

In middle 2011, 8 private electric cars were purchased and put into use, which is assumed as the landmark of electric vehicles into the private consumption field. As the major force pushing for such a progress, Shanghai international automobile city has kept close contact with the users and carmakers in the past half a year, and reflect immediate feedback in between. The 8 electric cars have been performing quite well, which greatly inspires Shanghai’s ambition in developing electric vehicles in the future.

#EV #Chinese policy

Hyundai Kia Aims at 1,730,000 Annual Production in China

7th Nov reported byThe Southern Metropolis Daily

After two days’ field investigation in Yancheng, Jiangsu China, Mr. Mengjiu Zheng, Chairman of Hyundai Kia Automotive Group, signed agreement with Yancheng government on expanding investment inDongfengYueda Kia. Kia will invest 800 million dollars in total and meanwhile build its third China-based plant in Yancheng with an annual production aimed at 300,000. Once the plant is completed in 2013, Kia will produce 730,000 vehicles annually in China. In 2014, with Hyundai’s third plant put into use, HyundaiKia will be expected to reach an annual production capacityup to 1,730,000.

#Hyundai #Kia

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