The Light Is Green

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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China plans: Audi

Audi is doing very well in China, having sold over 100,000 units in 2007 (after Germany, China is now Audi's second largest market). Audi's success in China is based on their higher-end cars, most notably the A6.

Audi's big announcement at the China Auto Show in Beijing was the new Audi Q5 SUV, which is being introduced to compete against the BMW X3.

Autoweek reports that the Q5 will be Audi's first hybrid model, and will be based on the latest lithium-ion-battery technology. The Q5 hybrid version will be available in early 2010. Gas and diesel versions will go on sale, in the U.S., in early 2009.

Tags: Audi, Audi China, Audi Q5, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, hybrids

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China plans: Honda

At the Auto China Show being held in Beijing, all of the major automakers, both foreign and local, have been letting industry observers in on their plans for the future in the Chinese market.

Honda in China

Honda announced a stand-alone brand to be used exclusively in China: Li Nian. The brand will be an entry-level, youth-oriented initiative, a la Toyota's Scion brand in the U.S. Honda is showing their first concept in Beijing.

The Li Nian venture is actually a joint project between Honda and their current joint venture partner in China, Guangzhou Automobile Group.

The first Li Nian vehicle will be released in 2010. It will be a five-door crossover vehicle, and was designed in China.

Tags: Li Nian, Honda Li Nian, Guangzhou, Guangzhou Automobile Group, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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Luxury cars in China: BMW and Hyundai-Kia

A recent post talked about the paradox in China's automotive policy: the government wants manufacturers to make electric and hybrid cars, but at the same time price controls on gas are motivating the sale of SUVs and luxury cars.

Here's what some of the major carmakers are doing in China:

BMW in China: Will triple capacity by 2012, from 35,000 to 100,000 annual units, via their joint venture with Brilliance China. Car sales grew 43 percent (14,574 units) from January to March this year, after growing 42 percent in 2007.

Hyundai-Kia in China: Working to expand presence, Hyundai just opened second plant to achieve annual output of 600,000 units, Kia will open second plant in 2010. Have released two high-end vehicles, the Rohens (Genesis) luxury sedan, and the Barui (Mohave) luxury SUV.

Tags: Brilliance China, Brilliance China Automotive Holdings, Hyundai, Kia, Hyundai-Kia, Hyundai China, Kia China, Hyundai-Kia China, Rohens, Barui, BMW China, BMW, China, Chinese auto industry, Chinese automotive industry

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China's emissions paradox

Heads: The Chinese government is pressuring automakers to improve energy efficiency, by demanding that automakers produce electric and hybrid (gasoline-electric) cars.

Tails: Chinese government price controls on gas are spurring interest in large SUVs and luxury cars. This trend is also being driven by rising incomes for China's elite.

China is already the world's second largest car market, with 8.8 million units sold in 2007, 10 million expected for 2008, and double-digit growth projected for the next five years. China is also the world's second largest oil consumer.

And of course, automakers go with what the market wants. Though some manufacturers, like Daimler, GM and local BYD are showing electric and hybrid prototypes at the Beijing Auto Show, the models truly being focused on are of the gas-guzzling variety.

"... many auto executives are skeptical that Chinese consumers will be willing to pay considerably more for cars with hybrid engines... while hybrids still account for less than one percent of the far more affluent American market. So unless the government heavily subsidizes vehicles with new technologies, their sales may be limited along with their effect on oil imports and emissions of global warming gases."

And the NYT finally points out the paradox:

"... price controls on fuel have had the effect of stimulating sales of big vehicles, despite other government policies intended to discourage such sales. Liu Shijin, a vice minister for the powerful State Council Development and Research Center, acknowledged Thursday that the government had missed a chance to raise fuel taxes earlier in this decade and now faced a difficult decision on what to do in the face of inflation. "If the fuel is priced right, consumers will use energy more carefully,” Mr. Liu said at the conference."

Tags: emissions, electric cars, hybrids, BYD, BYD Auto, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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Nano Wars begin

Hot on the tail of Tata Motors' announcement of their much-anticipated $2,500 "People's Car", officially known as the Nano, several manufacturers are rushing to get their own ultra-low cost cars to market.

Chery Automobile, one of China's top automakers, announced the imminent launch of their Faira ("five dolls") car. The presentation will be made at the 2008 Beijing International Auto Show.

The Faira has five variants: the BB, HH, JJ, NN and YY models, with the BB being the lowest cost model. All are powered by a 1.3-liter gasoline engine.

GM, meanwhile, is looking to leverage their existing ties with Chinese carmaker Wuling Automobile with whom they currently manufacture the Chevrolet Spark, a $5,680 small car.

On the one hand, GM wants to try to lower the cost of the Spark. But at the same time, knowing that halving the Spark's price is virtually impossible, they are said to be "undertaking research into the development of an extremely low cost ultra-compact vehicle for expanding world markets", according to Motor Trend.

Tags: Chery, Chery Automobile, Chery Faira, GM, Chevrolet Spark, Wuling, Wuling Automobile, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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Chamco in disarray

Chamco Auto made headlines some time back when it was created, as it was the first formal launching of an initiative to sell Chinese cars in the U.S. Some months later they announced their plan of attack: first Mexico, then the U.S.

Chamco partners with China's Hebei Zhongxing Automobile Company, Ltd. who will produce the cars to be sold.

But there's trouble afoot.

The company's board has fired chairman Bill Pollack (pictured), president Sam Tropello and consultant E. Michael Daspin, husband of the company's largest shareholder.

Daspin is alleged to be the company's de facto leader, a fact concealed to cover up a past felony fraud conviction.

A new executive team was installed on March 3, led by Mario Ferla as new CEO.... the bad news is that top officers and shareholders have now filed a civil suit for fraud, mismanagement and diversion of corporate funds by the company's former managers.

Automotive News says:

"CEO Mario Ferla and his allies have sued owners and managers for fraud, alleging they skimmed millions from Chamco through bogus fees and excessive commissions."

A little off-topic, I found this reassuring tidbit on Chamco's website:

"CHAMCO AUTO will not launch any vehicle unless and until it is proven to get on the road and stay on the road."

Read more at Automotive News.

Related articles:

• China cars, first Mexico then USA

• Chamco: another plan for Chinese cars to U.S.

Tags: automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, Chamco, Chamco Auto, Bill Pollack, Sam Tropello, E. Michael Daspin, Hebei Zhongxing Automobile Company

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And so it begins: Chinese cars to Europe

Two Chinese cars have been approved by the European Union for sale on that continent, according to Reuters. They will be launched there next month.

• Zhejiang Jonway UFO
• Shuanghuan Automobile CEO

Both models have come under fire because their appearance is similar to rivals. The UFO looks like the Toyota Rav4 and the CEO resembles the BMW X5.

BMW has already started legal proceedings to stop the CEO's launch, while Toyota will not take legal action to block the UFO's sale.

These are the cars in question, the UFO on the left, the CEO on the right...

Other major Chinese carmakers are announcing their plans to have models in Europe by 2011 once they meet European safety and emissions regulations:

• Geely Automobile. China's largest private carmaker, plans to start selling its CK sedan in Europe.
• BYD Auto. Wants to have its F1 small hatchback in the EU, also a plug-in version of its hybrid F6 DM sedan.
• Changfeng Motor. Planning a joint venture with Mitsubishi in China, wants to sell the Liebao CS7 and CS6 SUVs, and the Kylin minivan. After that, the U.S.

Tags: Shuanghuan Automobile, Shijiazhuang Shuanghuan Automobile Co., Shijiazhuang Shuanghuan, Shuanghuan CEO, Zhejiang Jonway UFO, Zhejiang Jonway Automobile Co., Zhejiang Jonway, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, Geely, BYD, BYD Auto, Changfeng, Changfeng Motor, BMW, Toyota, Rav4, Toyota Rav4, BMW X5

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China’s BYD to beat Toyota and GM?

General Motors and Toyota are working to launch plug-in hybrid cars by 2010.

But China’s BYD Auto has just announced that they’ll be the first automaker to commercially release a plug-in hybrid, the F6DM, and they’ll do it by mid 2008.

They’re showing their F6 Dual Model plug-in hybrid at the 2008 North American International Auto Show in Detroit.

BYD also plans to launch two more two electric cars, the F3e and F6e, in two or three years.

The F6DM will have a top speed of 62 miles per hour (100 km/h), travel 60 miles (100 kms.) on electric power alone (250 miles on five gallons of gas), will need nine hours for a full recharge by home power mains (10 minutes for a 50% recharge with a special power station), and will have a price tag of around $27,000 dollars.

Tags: automotive, auto industry, automotive industry, alternative energy, sustainable energy, electric cars, hybrids, flex-fuel, BYD Auto, BYD F6, BYD F6DM, BYD F6 Dual Model, BYD F3e, BYD F6e, BYD, Detroit Auto Show, GM, Toyota

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