If you can’t beat piracy…

Chinese automaker Rongcheng Huatai Automobile has unveiled a new car called “Rover” in English; however its local name is pronounced “San-da-i-fe”. The vehicle looks exactly like Hyundai’s first-generation Santa Fe SUV.

A case of piracy, perhaps?

Not so… Hyundai says that Chinese automaker has acquired the rights to sell the Santa Fe, as well its overall design and engine, so that Rongcheng Huatai can develop its own version. Hyundai stopped producing this version of the Santa Fe in 2006.

Why did Hyundai do this?

"According to Hyundai officials, the company decided to enter into such a contract because it is difficult to prevent Chinese carmakers from copying its products."

Read it here.

Tags: Hyundai, Santa Fe, Hyundai Santa Fe, Rongcheng Huatai Automobile, Rongcheng Huatai, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, piracy, Chinese piracy

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China outsells USA

For the first time ever, car sales numbers in China have surpassed the United States. December 2008 sales totaled 735,000 units in China versus 657,000 in the US.

According to analysts, the sales slump in China has been less severe than in the USA.

Tags: automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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Toyota moving big in China

Toyota announced two big investments totaling $529 million dollars in the past months, to double their production capacity in China and meet growing demand.

The goal: reach sales of 1 million units and 10 percent market share by 2010.

Sichuan FAW Toyota Motor

This is an equal part joint venture between Toyota and local First Automotive Works Group (China’s #2 automaker).

Will reach annual output of 30,000 units of Coaster light commercial vehicles and Land Cruiser Prado SUVs at Chengdu factory. Production will begin in first half of 2010.

Their Changchun factory makes 10,000 Land Cruiser and Prius units per year. Other factories in Tianjin produce Corolla, Reiz, and Vios sedans.

Guangzhou Toyota

This is a joint venture between Toyota and Guangzhou Auto that produces Yaris and Camry models.

The plan is to add a second production line and reach capacity of 400,000 units.

Tags: automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, Sichuan FAW Toyota Motor, Guangzhou Toyota, Guangzhou Auto, FAW,  First Automotive Works, Toyota

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China: 95% of all vehicles recyclable by 2017

China’s Huliq News reports on a conference held for the local automotive parts remanufacturing industry, where China’s ambitious green program for that industry was launched.

The Chinese Association of Automobile Manufacturers described it as a three stage process:

• Stage 1 (current): China’s automakers and car dealers will be required to register recyclable vehicles made or sold by them.
• Stage 2 (2010): 90% of all China-made and imported vehicles should be recyclable, with at least 80% of their materials recyclable.
• Stage 3 (2017): 95% of all China-made and imported vehicles should be recyclable, with at least 85% of their materials recyclable.

Tags: China auto industry, auto industry, auto parts industry

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Winners and losers in global market share: forecast

According to Global Insight, a leading American market intelligence specialist, these are the automakers that will grow the most in global market share over the next five years:

1. Tata (India): will grow 0.6 percent (current market share: 0.6 percent, 2013 forecast: 1.2 percent)
2. Chery (China): will grow 0.4 percent (0.6, 1.0 percent)
3. Renault (France): will grow 0.3 percent (3.1, 3.4 percent)

Other brands that will gain market share: Maruti (India), Nissan, BMW, Audi, Mitsubishi, Skoda and Wuling (China). All will increase 0.1 percent.

Brands that will stay the same: Honda, Mercedes-Benz, Dodge.

Carmakers that will lose global market share:

1. Ford: will lose 0.7 percent (current market share 7.1, 2013 forecast: 6.4 percent)
2. Peugeot: will lose 0.4 percent (2.9, 2.5 percent)
3. Daihatsu: will lose 0.3 percent (1.2, 0.9 percent)
4. Lada (Russia): will lose 0.2 percent (1.1, 0.9 percent)

Other automakers that will lose global market share: Toyota, Chevrolet, Volkswagen, Kia, Hyundai, Fiat, Suzuki, Mazda and Opel.

Tags: auto industry

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Chinese automaker plans for U.S. delayed

According to Automotive News, the plans of most Chinese automakers for entering the U.S. market have fit a few snags…

Chery. Has an alliance with Chrysler to build small cars for the U.S. market, but Chrysler CEO Tom LaSorda surmises that will not be until 2011 as Chery works to meet safety and emissions standards. Chery will introduce a Chrysler-branded small car in Mexico this year.

Nanjing. Had plans to begin building MG sports cars in Oklahoma this year. The plan looks to have died. Nanjing was recently acquired by Chinese giant Shanghai Automotive.

FAW. Will open a plant in Mexico with a local partner to produce own-brand small cars for that market.

Tiger Truck. Has a plant in Oklahoma that makes two pickups designed by Chinese automaker Chongqing Changan. The pickups don’t meet U.S. safety and emissions standards, so they are only sold for use off of public roads, though now "Oklahoma’s governor signed a law making the trucks legal on Oklahoma roads, except for most federal highways, starting in November."

Geely. Had plans to enter the U.S. this year but that seems to have dissipated; has not announced a new launch date.

Chamco & Hebei Zhongxing. U.S. based Chamco had planned to import vehicles made by small from Hebei Zhongxing Automobile. Chamco is now in the midst of an ugly legal situation. Zhongxing is looking for a new U.S. partner.

BYD Auto. Showed cars at the Detroit Auto Show but has not announced specific plans for the U.S. market.

Changfeng Motor. Showed cars at the Detroit Auto Show but has not announced specific plans for the U.S. market.

Brilliance. Will be present at the Detroit Auto Show in Jan 2009 and say they will start selling there in 2009.

Shanghai Automotive (SAIC). No plans announced.

Tags: Chery, Nanjing, FAW, Tiger Truck, Geely, Chamco, Hebei Zhongxing, BYD Auto, Changfeng, Brilliance, Shanghai Automotive, SAIC, auto industry, Chinese auto industry

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Volvo suitors from China

Two Chinese automakers have shown an interest in buying Volvo from Ford.

Chinese automaker Guangzhou Automotive may be interested, but only after they finalize their current IPO stage in October;  they plan to raise $1 billion by dual-listing in Hong Kong and Shanghai.

Guangzhou Automotive has joint ventures in China with both Toyota and Honda. They plan to invest $1 billion in a plant to build their own branded cars in 2010.

Chery Auto, one of China’s largest and most well-known carmakers, has also been named in the media as a possible buyer of the Volvo assets.

Tags: Volvo, Ford, Guangzhou Automotive, Chery, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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First Chinese vehicles in U.S.

The Tiger Champ ($12,995) is the first American-made Chinese vehicle, and it rolled off the assembly line last week, in the form of a small utility truck intended for military bases, golf courses, college campuses, industrial complexes, private residential communities and municipalities (according to the manufacturer).

The Chinese automaker involved? Not Geely, Changfeng, BYD (all present at the Detroit Auto Show) or well-known powerhouses FAW, Shanghai Automotive, Dongfeng or Chery, but rather  Chongqing ChangAn Automobile Co., Ltd...  Though less well-known they are China’s third largest vehicle maker, and their U.S. name is Tiger Truck.

Tiger’s plant is in Oklahoma and employees one hundred, and they assemble the Tiger Champ from parts and kits shipped from China; half of the parts used in final assembly will be US-sourced.

I read of this here.

Tags: Chongqing ChangAn Automobile Co., Ltd., Changan, Chang’an, Tiger Truck, Tiger Champ, automotive industry, China auto industry, auto industry

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China plans: GM

General Motors is looking at increasing its stake in their current joint venture with local automakers Shanghai Automotive and Wuling Automobile, called SAIC-GM-Wuling Automobile Co. Ltd., as part of its strategy to start focusing on small cars that can compete with Tata’s Nano, a.k.a. the People’s Car. GM owns 34% of this venture.

The SGMW joint venture currently produces minivans and other small commercial vehicles under the Wuling brand, and as such they are China’s largest minivan manufacturer (they sold 550,000 units in 2007). They also make one GM branded model, the low-cost Chevrolet Spark minivan. GM is trying to lower production costs on the Spark.

A noteworthy offering from the SGMW joint venture is the tiny Xingwang (a Wuling brand model), the smallest, cheapest offering from SGMW. The Xingwang may in fact soon carry the GM brand name.

Shanghai General Motors is also pushing a green philosophy in its marketing message. They unveiled two hybrid vehicles at the Beijing International Auto Show, the LaCrosse Eco-Hybrid (to be sold in June 2008) and the Cadillac Escalade 2-Mode Hybrid (2009).

Tags: GM, General Motors, GM Spark, Shanghai Automotive Industrial Corp, SAIC, SAIC Motor, Shanghai Automotive, Shanghai General Motors, Shanghai GM, Wuling Automobile, SAIC-GM-Wuling Automobile Co, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, alternative energy, hybrids

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China plans: Chrysler

Despite the Chrysler Daimler separation, Chrysler will continue with the existing joint venture that both companies set up in China in 2004, the Beijing Benz Daimler Chrysler Automotive Co Ltd.

Chrysler is playing catch-up in China, as they were late to enter that market. Their main focus now is to expand production capacity in order to support expansion in China.

Said Philip Murtaugh, CEO of Chrysler’s Asian operations:

"The BBDC remains exactly as it was before the separation of Chrysler and Daimler. This company is critical for Chrysler’s success and these cars are very large and important segments in China’s market. Chrysler and BBDC are working closely and hard together to make sure we will succeed."

The BBDC joint venture currently produces Mercedes-Benz E-class and C-class luxury sedans as well as Chrysler 300C and Chrysler Borui (Sebring) sedans under technical licensing contracts that will continue until 2013. As reported by the Shanghai Daily.

In 2007, Chrysler also began to produce Dodge Caravans and Chrysler Grand Voyagers in a joint venture with Fujian Automotive Industry Corp.

Chrysler is also said to be forming a joint venture with Chery Automobile to attack the small car segment.

Tags: Chrysler, Chrysler China, Dodge China,  Philip Murtaugh,  Beijing Benz Daimler Chrysler Automotive Co Ltd., BBDC, Fujian Automotive Industry Corp., Chery, Chery Automobile, Chery Automobile Co., automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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