Chinese Industry News

[Scaerio]

http://www.globalautoindex.com/news.plt?no=1798#

NAC MG celebrates the birth of China’s first international car brand


Nanjing MG has issued the following press release:

On 27 March 2007, after a period of huge anticipation, MG - China’s first international car brand - revealed its strength to an eager public.

This day will symbolise a milestone in Chinese automobile manufacturing. NAC MG is inaugurating its state of the art production line while celebrating the launch of China’s first international car brand which inherits all the British traditions synonymous with MG.

The celebrations to mark the first car off the line have attracted leaders from the JiangSu provincial government, NanJing CCP committee and the NanJing municipal government, while British VIPs including a Member of Parliament will also attend the celebrations. Nearly 1,000 visitors will attend, including MG’s global suppliers, distributors, partners, Chinese and non-Chinese consultants and the world’s media. All have gathered together to enjoy this significant moment which will witness the first Chinese built MG roll off the production line.

The MG plant is the world’s largest single power assembly line making the world’s widest range of associated products. The Chinese built, fully automated welding and assembly line guarantees the simultaneous production of multiple models and also incorporates modern production equipment brought over from the UK. Three new Chinese built MG models will be seen for the first time at the event, witnessed by nearly one thousand guests.

The new MG models include the MG7 series and the MG TF sports car. The luxurious and elegant MG7 series will appeal to China’s middle and high-end car market sectors, while the first Chinese made sports car - the MG TF - incorporates many high technology features. A true sports car, the TF is a high performance model with outstanding handling characteristics and dynamic good looks, very much in keeping with its British sports car heritage. The new MG cars demonstrate world class levels of construction, quality and technology.

The official ‘off the line’ celebration of NAC MG car production not only symbolises the full launch of this new international Chinese brand but also marks a new age of development for the Chinese automobile industry. Chairman HaoLiang Wang says of the event: “The purpose of the MG project is to create a brand-new self-dependent Chinese brand which has the advantage of already being recognised as an internationally well respected brand. From the outset, this was an advanced project that has delivered competitive and technologically advanced products. The project is hugely different from the traditional joint ventures and the purely domestic products of the Chinese automobile industry. NAC has adopted the third development model which in essence brings a truly international brand to the market led by a Chinese enterprise. This is a true innovation. The brand’s core competence is to incorporate international standards of development, production and quality control with world class marketing and know-how.”

In recent years, the Chinese automobile industry has made great improvements and has become the third largest car manufacturing and consumer market in the world. However, compared with world’s top level automobile manufacturers, the Chinese auto industry lacks certain competitive advantages. The auto industry has become the fifth largest industry in China and huge emphasis is now being focused on how the country can further improve its competitiveness and become a major power in the world’s automotive industry.

During “the 11th Five-Year Plan” period, CCP implemented a plan to enhance creativity as one of the key strategies for developing Chinese society and industry. The key strategic decision of “going out” was a change from the established macro economic development of the country. The “third development model” of the Chinese automotive industry, adopted by NAC-MG, clearly demonstrates the proactive implementation of these two great strategies. According to NAC-MG Chairman, Mr Jian Wei Yu, to accomplish this strategic concept, MG will develop two bases; one in Nanjing and the other in Longbridge, Birmingham, UK. The UK will be the centre for R&D and also the base for production of high-end value-adding products, while China will be the production centre and responsible for developing the domestic and overseas markets. In China, NAC MG will focus on achieving cost control and developing core competences for sustainable growth.

Since NAC’s successful acquisition of the assets of MG Rover and Powertrain in July 2005, NAC-MG has mastered MG’s core technologies within only one year and has made a range of accomplishments including the export of the first batch of parts to Europe, production of the first N4 engine as well as the first MG7 and MG TF cars. Following the beginning of the project, NAC MG took an unprecedented and innovative route, creating twelve “firsts” in China: from owning the first ‘world renowned’ car brand to being the first Chinese car company recognised by the international automotive industry. NAC MG is also the first Chinese car manufacturer to introduce European environmental standards, the first enterprise to simultaneously establish production bases domestically and overseas and the first Chinese enterprise to get world class core technologies.

The first MG model ‘off the line’ not only demonstrates the successful implementation of the MG project - renowned as the number one industrial project for NanJing city, but also symbolises a key transformation point for the Chinese automobile industry. Through the brand strength, the assurance of quality and the use of technology and world class manufacturing techniques, MG is entering the international top league and will create the drive for Chinese automobile products to speed up their pace in the international market. NAC MG has created a true high-end international car brand led by the Chinese and will lead the way for the establishment of the truly international automotive firms.

2007-03-28      Global Auto Index

[mmret]

Hmm, next time I'm in Shanghai I should drop by a dealership just to check them out.

Not brave enough to take a test drive in that city, though. 

[Trainman]

[JSCC]

I can only see 1/4 of the picture!
You using a 1600 x 1200 hi-res screen?

[Mitlov]

I can only see 1/4 of the picture!
You using a 1600 x 1200 hi-res screen?

I was able to scroll over to see it all.  Basically, nothing is left of the front of the car--right up to the passenger compartment--after a Euro NCAP crash test.

[mdxtasy]

Yeah....that's not going to get too far outside the Great Wall....

[Scaerio]

The answer to a question nobody ever asked, "Waddaya get when you cross a Yaris with a Scion Xa?"



Other treats that Great Wall Motors will feature at the Shanghai Auto Show here:

http://www.globalautoindex.com/news.plt?no=1822#

They plan on showing 10 new cars and a self-developed engine...

[dorin]

So, as far as I can tell, out of the 7 cars pictured, there's a Nissan Frontier pick-up rip-off, a Scion xA rip-off, a Scion xB rip-off, a Renault Twingo rip-off, and a Renault Modus rip-off.

[mmret]

Gah, I don't get why they can't bother to come up with interesting designs.

I always ask my parents about this "copycat" syndrome, but they can never come up with a real answer.

[safristi]

Copycat...must be the DNA thingie...these yer folks

 I imagine many of the New Chinese buyers see our magazines,movies and tv shows and the Internet also shows OUR DESIGNS.....so thet are "Foreign ,hip & BAD man"...so they want something similar & familiar...........

[Scaerio]

World premiere at Auto Shanghai 2007: Buick Riviera - stunning coupe concept unveiled in Shanghai

The gullwing Riviera concept coupe was developed with global design input by the Pan Asia Technical Automotive Center (PATAC) in China, a design and engineering joint venture between General Motors and Shanghai Automotive Industry Corporation (SAIC).

More here: http://www.globalautoindex.com/news.plt?no=1827#

2007-04-20 Global Auto Index

[Scaerio]

More info: http://www.globalautoindex.com/news.plt?no=1826#

[G0dspd]

Two Copyright Violations For The Price Of One!
http://news.windingroad.com/countriesmarkets/china/shanghai-auto-show-huanghai-auto-ncv-its-two-copyright-infringements-for-the-price-of-one/

When they don't copy other manufacturers, they design some of the ugliest/weirdest car in the world.

[Mitlov]

World premiere at Auto Shanghai 2007: Buick Riviera - stunning coupe concept unveiled in Shanghai

The gullwing Riviera concept coupe was developed with global design input by the Pan Asia Technical Automotive Center (PATAC) in China, a design and engineering joint venture between General Motors and Shanghai Automotive Industry Corporation (SAIC).

More here: http://www.globalautoindex.com/news.plt?no=1827#

2007-04-20 Global Auto Index

Thread here for those who want to talk more about the Riviera concept:

http://www.canadiandriver.com/forum/index.php/topic,52089.0.html

[Scaerio]

http://www.autoblog.com/2007/04/16/china-shanghai-2007-autoshow-preview/

Official website:
http://www.autoshanghai.com.cn/english/

[safristi]

Auto_SHANGHAI.........do they Knock ya over tha HEAD and DRAG ya IN......fer Free!!! if ya POLISH tha SHO_KARS............. ..Wot is that BURNISHING sensation when i Pee_JINGS!!!!

[sirAQUAMAN64]

Don't recall if this was posted elsewhere? 

Brilliance plans U.S. sales as early as 2007

Reuters / April 23, 2007 - 9:00 am /

SHANGHAI (Reuters) -- Chinese automaker Shenyang Brilliance Jinbei plans to ship its first sedans to the United States as early as this year, potentially making it China's first home-grown carmaker to crack the world's largest vehicle market.

Brilliance Jinbei, a unit of Brilliance China Automotive Holdings, last year became the first of its Chinese peers to secure a major sales deal in Europe, beginning with its BS6 sedan priced at $25,750 to $31,180 (19,000 euros to 23,000 euros).

"We are making preparations currently and hope to ship the first batch of BS6s to the United States late this year or in early 2008," Brilliance Jinbei President Zhigang Liu told Reuters on the sidelines of the Shanghai auto show late on Sunday, April 22.

The initial sales target and other details have yet to be worked out, he said.

Brilliance, BMW's China partner, is among a growing army of ambitious Chinese auto manufacturers, such as Geely Automobile Holdings Ltd., that aim to emulate the global success of Toyota Motor Corp.

Brilliance plans to sell 158,000 sedans to Europe over the next five years, including the BS6, following up with a coupe, a smaller sedan, a compact car and an SUV by 2010.

Chery Automobile Co., which has made inroads into emerging markets in recent years, struck a deal with DaimlerChrysler in late 2006 to make Chrysler-branded models for Europe and other markets.

PHASED EXPANSION

Previously little-known Nanjing Automotive Group, which stunned the industry in 2005 by snapping up major assets of failed MG Rover for little more than $100 million, unveiled in March the first China-made MG cars. It plans to start selling them in British Commonwealth countries in the second half.

If these initial steps proceed smoothly, China's vehicle makers could become a force to be reckoned with in the global market, although they still rely heavily on low pricing to attract customers.

Brilliance, which also makes BMWs and Minis in a venture in northeast China, is building a new plant for its own-brand cars that will double its capacity of 150,000 units.

The group sold 200,000 vehicles, including BMW brands, in 2006 and aims to boost that figure to 300,000 units this year and to 500,000 by 2015, Liu said.

"We are restrained by capacity already but we have decided to avoid ramping up too quickly. The best strategy is to grow with the market," he said.

He added that Brilliance, having spent at least 10 billion yuan, or $1.29 billion at current exchange rates, on research and development for its sedans so far, would follow up by investing a similar amount in the next five years.

SAIC Motor Corp., a Chinese partner of both General Motors and Volkswagen AG, is spending $1.71 billion to develop its own brands.

SAIC, the country's biggest carmaker, last year rolled out its first brand of its own, the Roewe, based on acquired technology, and unveiled two more models -- the Roewe W2 and a Shanghai brand fuel-cell car -- at the auto show.

Liu did not rule out the possibility that Brilliance would acquire competing brands, domestic or foreign, when the opportunity arises.

"Some have already made big strides down that road and we would do likewise when we grow bigger," he said.

[safristi]

GM #1 in CHINA...............they have forgotten DETROIT   and the US Customers...cos they are too biatchy.....and EXPENSIVE...and spoiled...and Unionised.....Bye Bye Ms Americans DIE..............MAKERS.......tha Levee done flooded and we RICE_FRY.........GM management have their EYES turned to the EAST to save their skins/Options/JOBS................

[sirAQUAMAN64]

Falling prices vex Chinese automakers
Competition, higher volume are factors in downward spiral

James B. Treece  |  Automotive News
May 7, 2007 - 1:00 am   

SHANGHAI -- A senior General Motors executive says the new-car price declines of the past year in China may be moderating. But others aren't so sure.

"Pricing downward pressure seems to be leveling off a little bit," says Nick Reilly, president of GM Asia Pacific. He cites a mild slowdown in the decline of prices in the first quarter.

"Perhaps there is some slowdown" in price declines, says Carlos Tavares, Nissan Motor Co.'s executive vice president in charge of product planning, corporate planning and market intelligence. "But it is less than what people forecast a few years ago.

"I would be very cautious before I said to my team, 'Guys, it's going to slow down.' I believe it's going to be a difficult market still for a while."

New-car prices have been falling, often steeply, for years. "The year 2006 was the worst," says Kenichiro Yomura, senior general manager of the sales and marketing division of Dongfeng Nissan Passenger Vehicle Co. "The background is obvious: Too many people came in."
 


--------------------------------------------------------------------------------
Spiraling down
Retail prices are falling in China. Here are a few key numbers.

5%: Annual new-car price decline expected in Nissan business plans

27%: Reduction from Nissan's initial price estimate of the Livina small car

30: Number of Chery models whose prices were cut on April 3


 

--------------------------------------------------------------------------------

Down 5% a year

When Dongfeng Nissan unveiled its new Nissan Livina small car at the Shanghai motor show, it priced the car starting at 73,000 yuan, or $9,456 at current exchange rates. Before the launch, the company had said the car's price would be around 100,000 yuan ($12,954). The difference is 27 percent.

"We want affordability to be part of the Nissan brand," says Tavares. Nissan has built into its business plan the assumption that new-car prices will fall by 5 percent every year, he says.

Chery Automobile Co. cut prices on 30 of its products on April 3.

"Competition in this market is more fierce and intense than elsewhere, so price has become a major competitive element in this industry," says Li Feng, a Chery vice president.

"The wavelike sales in China have really stumped the automakers. Customers' demands are continuous, but sales are in waves. Lots of automakers slash prices near holidays or auto shows to appeal to customers."

Falling prices combine with rising incomes in China to make cars affordable for a growing number of consumers. That has led to a booming market. In turn, higher volumes bring economies of scale to automakers in China.

Cut costs, and sell more

Reilly says GM China has been able to offset the fall in prices through higher volumes and vigilant cost reductions. Some of the latter have come from the "growing development of our supply base," he says.

Suppliers understand that their customers expect similar price reductions in parts prices. "We have to assume we will keep up with our customers' demands," says John Leech, vice president of business development, Asia Pacific, for Dana Corp.

The steady price declines also are affecting retailing plans.

"We need to minimize investment" costs for dealers, so they can recoup those costs more easily in an environment of falling prices, says Dongfeng Nissan's Yomura.

That was especially true for the Infiniti brand, which Nissan is launching in China this year.

Luxury brands often favor grandiose dealerships. Not Infiniti. Although Infiniti dealers must meet the brand's global standards in their facilities, "We don't force the dealer to invest a lot," says Tavares.

"It should be a little bit higher than an ordinary dealer, but it's not two times or three times as much," he says. "It's not as much as other luxury brands. We learned a lot from other luxury brands' experience."

[safristi]

How tha fack do Ya CUT PRICE by 27%...and at Holidays and auro show times...that's when prices GO UP...new models...rush fer gifts etc.....either the cars are CRAP..and only cost $4,000 to make OR THEY ARE NUTS....the Walmart effect in China Car Business....soon only be ONE Company eh!!! .......

  Read an interesting article (lost the URL) about China's future...........the GOV is holding onto ALL the Major industries (about 80% of everything) and local Party affiliates are screwing locals and the HEAD COMMUNIST OFFICE...by shady deals...money transfers outta tha country...and corruption is RAMPANT...good new PRIVATE businesses are either milked dry or taken over by local party bosses..(Kinda like tha Mafia stories).....health,education,environmental issues at al are being subsumed by the RUSH fer tha YUAN....there is an IMPLOSION waiting to happen...a BUBBLE if you will................(did u notice on all the recent chinese photos..SMOG bleak enuf to make post war LONDON look like an Alpine Meadow?)........the COMMUNISTS let the ECONOMY OUT THE CONTROLLED BAG O' TRICKS they have..now that CAT is gonna KILL EM or they are GONNA KILL the ECONOMY to get back absolute CONTROL....typical Marxist/communist conundrum......".we the people" are contolled so don't get TOO UPPITY......