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Will Chinese car maker Geely Auto buy Volvo ?

2009-07-08T16:58:00.000-07:00

Geely Holding Group on Thursday denied rumors that it was planning to purchase Ford Motor Co.'s Volvo unit, according to a report on Sohu.com.

Zhang Jiagan, assistant to Geely's president, said the company recently sent a team to investigate the auto market in Syria, not Sweden, according to the report. But he did not disclose any information about whether Geely was interested in buying Volvo from Ford Motor Co. of Detroit, which bought the Swedish automaker in 1999 for 6.45 billion.

Media reports have speculated that Geely officials had visited Volvo's headquarters in Gothenburg, Sweden and planned to go there again this week to negotiate a purchase of Volvo.

Ford indicated its willingness to sell Volvo last December to focus on its core brands and cut costs amid a sharp drop in car sales.

John Gardiner, a Ford spokesman, has refused to discuss any information regarding a sale of Volvo in recent interviews. But he has said Ford has not yet made any final decisions about selling the automaker.

Geely has long been considered to be interested in taking over Volvo. Hong Kong-listed Geely Auto Ltd., the holding company's auto subsidiary, previously announced that it did not have plans to buy Volvo. But the announcement did not specify that the parent company would not consider purchasing the automaker.
Source:chinadaily.com.cn

Geely (chinese carmaker) raises shareholding in Geely Automotive to over 30 Percent

2009-07-08T16:57:00.000-07:00

Geely Group Ltd recently raised its shareholding in Geely Automobile Holidngs<0175> to 31.83% from the previous 31.77%, according to the bourse operator Hong Kong Exchanges and Clearing (HKEx)
Information from HKEx showed that Geely Group bought 4.25 million H-shares of Geely Auto on Jul. 3 for HK$5.9 million. The average share price of the transaction was HK$1.38 apiece.

H-shares of Geely Auto rose 2.17% to end at HK$1.41 on Tuesday.

Source: chinaknowledge.com

Seven Million Cars Installed Navigation Devices in China during 2008

2009-07-08T16:56:00.001-07:00

Seven million cars installed navigation devices in China during 2008, despite only a 4.6% penetration of the total potential market for all cars. Compared to Japan, Europe and U.S.A, Chinese car navigation market was still in its early stage. In 2008, the market penetration rate of car navigation in china was only 4.56%, far lower than the 60% of Japan,
and 20%-30% of both Europe and U.S.A.

In 2008, The car ownership reached at 149 million in China, among which 40 million are private cars, and about 6.8 million cars have installed navigation devices. Also in 2008, Chinese car navigation market sharply increased, a total of 3.1 million navigation devices were sold during the year, more than doubled of 2007.
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Chinese car boom could last a few years

2009-07-08T16:49:00.001-07:00

HONG KONG (Reuters) - China is at the start of another boom in car sales that is being propelled by rising incomes in third-tier cities and could continue for a few years, JP Morgan said on Wednesday.

A 21 percent surge in car sales this year has caught Chinese car makers, which had curbed production on expectations the country's sharp economic slowdown late last year would depress demand for big-ticket items, off guard.

Frank Gong, JP Morgan managing director and China economist, attributes the boom to a surge in the number of people in third-tier cities like Xian and Chengdu who now earn more than $5,000-$6,000, the minimum needed to buy and maintain a car.

"The strongest growth in car sales now is in third-tier cities and low-end cars," Gong told a press briefing in Hong Kong. "We believe this is the start of a third auto boom in China."
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China to subsidize use of energy-efficient vehicles

2009-02-08T18:46:00.003-08:00

Shanghai, February 6 (Gasgoo.com) China will subsidize the use of energy-efficient and new-energy vehicles in 13 cities, the Ministry of Finance has announced. The government subsidy is intended to encourage the manufacture and use of "greener" energy-efficient vehicles, xinhuanet.com reported today.

According to a recent joint statement of the Ministry of Finance and the Ministry of Science and Technology, the central government will offer a one-off subsidy for buying hybrid, electric and fuel-cell vehicles. The subsidy will vary with the difference between the prices of new-energy vehicles and those powered by traditional fuel.

Chery's Jan sales up 36% y/y to 35,000 units

2009-02-08T18:46:00.001-08:00

Shanghai, February 6 (Gasgoo.com) China's automaker Chery Automobile Co reported all-time high monthly sales of 3, 5000 units in January, up 36.14% year on year and 31.5% month on month respectively.

Chery A5 sold 6,000 units. Chery QQ sales hit 15,000 units. A3, Chery's in-house developed model, saw sales reach 3,000 units last month. The A3 hatchback now is even short in supply due to hot selling.

GM to form JV with Harbin Light Truck Factory

2009-02-08T18:44:00.000-08:00

Shanghai, February 2 (Gasgoo.com) General Motors Corp is set to form a joint venture with northeastern China's Harbin Light Truck Factory Co. Ltd after the latter terminates partnership with FAW Group, said sina.com today. The venture may produce pickups, SUVs and light trucks for GM.

Harbin Light Truck Factory started as a military-industrial plant making heavy military trucks. Later it also came to make civilian-use trucks and mini-vans. In the mid-1990s, the factory ended its affiliation to Ministry of Space Industry and partnered with FAW Group to make pickups, Jiefang trucks and mini-vans for the Chinese auto giant. Many of the vehicles have been exported to the Middle East and Africa.

Chinese cars gear up for emerging Philippine market

2009-02-08T18:40:00.000-08:00

That was the first sentence from Wang Juhui, a representative from China-based Lifan Motors, at the launch of the auto brand's first showroom in the Philippines' capital of Metro Manila.

With the young and energetic assistant general manager, there came the LF520 mid-size sedan, a car model exported to more than 50 other countries, including Australia, Germany, Spain, Russia, Vietnam, Iran, Chile and Venezuela.

Dubbing LF520 as a "World Car," Wang said that the engine was designed by the renowned automobile design firm Ricardo Plc. Based in the United Kingdom. And Italian designers were employed by the manufacturer so that the model became top of the line in the looks department.

"We want to keep the design of the car sleek and stylish to appeal to the young at heart. It is loaded with features that will definitely appeal to the adventurous spirit," said William Agcaoili, general manager of Lifan Cars Philippines, the manufacturer's partner in the Philippines.

Lifan Motors, a motorcycle manufacturer-turned car company like Honda, entered the global passenger car industry in March 2007 with the release of the LF520 in Vietnam. In 2008, the company sold over 20,000 units in markets outside China.

Today, it "sailed" to the Philippine archipelago to seek new opportunities. As explained, the Lifan logo means "powerful sailing boat."

Last year, the Philippines posted a 5.6-percent growth of auto sales despite the global financial crisis. The sales reached 124,449 units in 2008, compared to the previous year's 117,903.

"We are bringing the LF520 in the Philippines so that Filipinos can also enjoy our world-class vehicle which is priced more affordably," said Nelson Ong, president of Lifan Cars Philippines.

The price is expected to be set around 500,000 pesos (10,600 U.S. dollars) for the 1.3-litre model.

Chinese Cars chery geely nanjing hafei zhonghua SAIC lifan zhongxing great wall motor FAW MG Rover Dongfeng Changfeng China Auto

Best 13 selling SUV's in China auto market, (Jan-Oct 2007)

2008-04-27T11:53:00.000-07:00

The table below shows top 13 best selling SUV models, in Chinese market, October.
Rank Automaker Model Jan-Oct sales Y/Y change Market share
1 Great Wall Hover 46,979 114.9% 15.8%
2 Chery Tiggo 41,996 101.7% 14.1%
3 Beijing Hyundai Tucson 36392 64.8% 12.2%
4 Dongfeng Honda CR-V 35014 61.5% 11.8%
5 ZOYTE ZOYTE 2008 24623 - 8.3%
6 Changfeng Liebao 13795 -1.7% 4.6%
7 Toyota Prado 8413 71.6% 2.8%
8 Go-now Go- now 8068 46.6% 2.7%
9 Dongfeng-Nissan Paladin 7668 36.05% 2.6%
10 Landwind Landwin 7269 -12.4% 2.4%
11 SG Auto Shugang 7563 7.2% 2.5%
12 Changfeng Pajero 5319 22.3% 1.8%
13 JAC Refine 5639 - 1.9%

Chinese Cars chery geely nanjing hafei zhonghua SAIC lifan zhongxing great wall motor FAW MG Rover Dongfeng Changfeng China Auto

Chinese Cars spark in South Afican Auto Market more and more

2008-02-28T19:17:00.000-08:00

We may set up a manufacturing plant in South Africa,” says Geely South Africa chairperson Jacqui van Heerden. “If we achieve sales of around 10 000 units a year, we’ll consider it. Markets such as the US and Europe may also offer lucrative export opportunities.”

Geely is only one in a series of Chinese vehicles which have entered the country over the last two years, all through entrepreneurs aiming to snatch market share in the largest economy in Africa.

Geely’s plans are indicative of a new phase in Chinese vehicle manufacturing. It’s no longer only about making and selling vehicles in China. It’s about making and selling vehicles in China, and everywhere else in the world. And not a Chinese-made Honda or Ford either, but a true Chinese brand.

Geely is one of the first movers in this regard. It can afford to do this as it has no bureaucratic ties.

Geely is privately owned, with no shareholding by the Chinese govern- ment – which erases the argument of unfair competition owing to State subsidies. (The only other privately owned Chinese vehicle manufacturer, Chery, will start exporting vehicles to South Africa later this year, with the distribution rights going to McCarthy.)

What this means for Geely South Africa is that the Chinese parent company holds a direct stake in the local company, as it considers South Africa an important part of its future export growth strategy.

Geely South Africa is, therefore, 40% owned by the Chinese parent company, and 60% by local company TJM Holdings.

Van Heerden says TJM Holdings looked at trends worldwide, and decided “that Chinese vehicles are going to be the next big thing”.

JAPAN, KOREA, CHINA?
These days, South African business says ‘China’ is preceded by the same audible gasp once reserved for South Korea or Malaysia, or any other so-called Asian tiger.

Chinese Cars chery geely nanjing hafei zhonghua SAIC lifan zhongxing great wall motor FAW MG Rover Dongfeng Changfeng China Auto

Chinese cars win increasing buyers in ME, N Africa markets

2008-01-05T12:25:00.000-08:00

CAIRO, Dec. 26 (Xinhua) -- For years, consumers in the Middle East and North Africa (MENA) have become used to buying small and low-tech made-in-China commodities. But now, they are showing increasing interest in trying something bigger -- China's home-grown sedans.
Within just several years, cars with Chinese brands are quickly leaving their own marks on streets in MENA countries, from Jordan to Egypt, which had been traditionally dominated by cars from Europe, Japan and South Korea.
Like many other made-in-China goods, Chinese brand cars have a formidable edge over their competitors with lower prices and high quality.
In the Jordanian capital Amman, Ala Suleiman who had just by a Chery sedan told Xinhua that he chose Chery because of its competitive price, soft installment payment and fuel economy. Chery Automobile Co. Ltd., one of the biggest home-grown carmakers in China, began to sell its car in Jordan about three years ago. And by now, Chery has sold more than 3,000 units in this Arabnation, said Moutaz al-Shaweish, sales manager of the franchise store set up by Chery Jordan Company Ltd.
Such sales volume was quite satisfactory given the fact that Chery, as a newcomer in the world's fiercely-competitive auto industry, was totally unknown in the Jordanian car market several years ago, said al-Shaweish.
"Actually, we were (then) facing many difficulties to convince consumers to buy our cars when they were offered for the first time in the market," al-Shaweish recalled.
But now, "we are not facing such difficulties as Chery isgrowing stronger and more competitive. Jordanians are willing to buy (Chery cars) for their quality and prices," he told Xinhua, adding that Chery car prices were competitive in comparison withany other brand including those from South Korea. Eng. Mohamed al-Qalam, chairman of Chery Jordan Company Ltd., said that demand for Chinese-made cars, including Chery, was remarkably good in Jordan this year.
"Chery gave consumers freedom of movement and choice in addition to specifications which meet demands of low-income brackets," al-Qalam told Xinhua.
Chinese Cars chery geely nanjing hafei zhonghua SAIC lifan zhongxing great wall motor FAW MG Rover Dongfeng Changfeng China Auto

China Auto Controversy in Europe

2007-12-02T11:00:00.000-08:00

The trucks were widely panned at the 2007 Frankfurt Auto Show in September as being shameless copies of the BMW X5 and Toyota RAV4. China Auto's vehicles seemed to draw more attention from corporate lawyers than any potential customers. Plans to import the Smart Fortwo-aping Noble city car have already been put on indefinite hold following legal threats from Smart's parent company, Mercedes-Benz. The Noble was a notable no-show in Frankfurt.

However, Karl Schlössel, chief executive of Augsburg-based China Automobile, recently told Inside Line that 1,700 vehicles will soon be arriving from China and for sale in Europe by early to mid-December. Built by Shuanghuan Automobile in Shijiazhuang, China, the CEO and UFO are sold in their home market as the Shuanghuan SCEO and the Laibao.

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Chinese cars to come to UK next spring

2007-10-20T14:46:00.000-07:00

Chinese manufacturer Landwind says it will be ready to launch two models in the UK by next May.Managing director Paul Williams told whatcar.com that the seven-seater Fashion MPV and Expedition 4x4 have passed the European type approval tests that are required for mass-market sales.Mr Williams said the cars had gone through hundreds of changes and improvements to pass the tests and would get a three-star Euro NCAP rating. That's a far cry from the disastrous performance of the Landwind X6 4x4, which scored zero stars when tested by the German ADAC body for Euro NCAP in 2005.Williams said both petrol and diesel models would be available for the cars, which are likely to cost from around £9000. The ultimate ambition, said Williams, is to appoint 80 dealers across the UK and sell 8000 cars a year in this country.
chery geely nanjing hafei zhonghua SAIC lifan zhongxing great wall motor FAW MG Rover Dongfeng Changfeng China Auto

China's Chery to supply Fiat with 100,000 engines annually

2007-08-19T20:57:00.001-07:00

HEFEI, Aug. 6 (Xinhua) -- China's fast-growing Chery Automobile Co., Ltd. and Italy's Fiat Auto have signed an agreement for Chery to supply Fiat with 100,000 engines a year.
The agreement was reached eight months after the two sides signed a memorandum of understanding on the deal. Chery also signed a deal with Chrysler Group last month to export the first Chinese-made cars to the United States.
"The agreement means that Fiat, which has been testing Chery's engines during the past year, has recognized the technologies and quality of the engines developed by Chery," said Zhou Biren, deputy general manager of Chery.
The 1.6 and 1.8-liter engines will be used in cars manufactured by Fiat in China and abroad, according to a statement on Chery's website www.chery.cn.
The agreement showed confidence by Chery and Fiat in cooperation and paved the way for further cooperation, Fiat chief executive Sergio Marchionne was quoted as saying.
Yin Tongyao, chairman and general manager of Chery, said, "The cooperation will help improve Chery's competitiveness on the international market. We are glad to cooperate with Fiat and look forward to developing together."
Chery became China's fourth largest producer of passenger cars in 2006, with sales of 305,200 vehicles and a 7.2-percent market domestic market share.
Chinese Cars chery geely nanjing hafei zhonghua SAIC lifan zhongxing great wall motor FAW MG Rover Dongfeng Changfeng China Auto

Chinese cars: Toyota's warning

2007-08-02T17:27:00.001-07:00

Cape Town - Toyota South Africa has distanced itself from any Chinese car brand in South Africa following media reports that some of them use Toyota technology.

"Toyota South Africa believes that this is an inappropriate link to make," says Andrew Kirby, Toyota?s senior vice president for sales and marketing.

"Toyota South Africa is not aware of any formal technology transfer between Toyota Motor Corporation and the manufacturers of these vehicles.

"We should also point out that the technology alluded to, is now more than 25 years old.

"There is no relationship between Toyota and the manufacturers of these vehicles and as such the Toyota dealer network is not able to provide any form of service or parts supply for owners of these vehicles," he said.

"We feel that the implied link to Toyota is unfortunate."

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Chinese carmakers going it alone and getting past 'Hongda'

2007-07-26T19:34:00.000-07:00

BEIJING--In the city of Wuhu in Anhui province, factories of Chery Automobile Co. stand along the Yangtze River on a plot 100 times the size of Tokyo Dome.

Chery Automobile Co.'s compact car A1 is displayed in Shanghai in April. (REI KISHITSU/ THE ASAHI SHIMBUN)
Factory workers whose average age is in the early 20s appear in blue uniforms, and next to the plants sits a research institute operated with the support of China's Ministry of Science and Technology.

Chery was established in 1997 with a capital of 27 billion yen from five public enterprises run by local governments.

"We are still in a boyhood stage," said Yin Tongyao, 44, chairman and president of the company.

But the "boy" is quickly growing up.

Until now, the Chinese car industry has been led by makers jointly set up by Chinese state-run companies and foreign manufacturers.

In recent years, however, Chinese firms, such as Chery Automobile, Geely Group and Lifan Group, have not depended on foreign companies. Now, they are improving sales by manufacturing cheap vehicles, and some of them are looking to increase their exports.

According to Yin, the company's sales have shown continuous growth, increasing by 62 percent from 2005 to 310,000 units in 2006. Sales have expanded more than 10-fold in the first five years since it started to sell cars on a full scale.

In March this year, Chery took the top spot in terms of monthly sales of passenger cars in the Chinese market. It is the first time in 20 years that a Chinese company that is not a joint venture with a foreign maker was No. 1.

Slogans are posted inside Chery factories that say, "Let's make new products by ourselves," and "Let's become a world-leading company."

Three popular models--the Dongfangzhizi sedan, the V5 station wagon and the Ruihu SUV--move down the production line.

Other posters on the wall explain details of Toyota Motor Corp.'s production system.

"Toyota is our teacher. We are students," Yin said.

An executive of a Japanese carmaker recounted the day when he visited one of Chery's factories. Yin asked about what makes a good layout for a factory, and then diligently noted down the executive's reply.

Chery executives work hard. They have been given the nickname "7-15," which means "working 7 days a week, 15 hours a day."

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Chinese carmaker Chery's exports quadruple in first half year

2007-07-12T16:27:00.000-07:00

Chinese carmaker Chery Automobile said its exports quadrupled in the first half of the year, with overseas sales likely to top 100,000 vehicles for the whole year. Its exports soared to 52,712 vehicles in the first six months of this year from 13,548 in the first half of 2006, an increase of 290 percent, the company said in a statement. Chery, based in the eastern Chinese city of Wuhu, sold 30,638 vehicles in the second quarter, up from 22,074 in the first quarter. The 10-year-old flag-bearer of Chinese indigenous brands has accelerated its expansion in the overseas markets in recent years, with exports rising from 18,000 vehicles in 2005 to 500,000 in 2006. The company currently holds a 7.2 percent market share in the domestic market, while it has sold cars to 50 countries, with Russia, Iran, Egypt, Indonesia and Argentina its major markets overseas. To break into the North American and European markets, it signed a cooperation deal last week with Chrysler Group, which would select four to six compact models developed by Chery for exports under Chrysler Group brands. Source: Xinhua

chery geely nanjing hafei zhonghua SAIC lifan zhongxing great wall motor FAW MG Rover Dongfeng Changfeng China Auto

Chinese cars first in Mexico, then U.S?

2007-06-19T18:27:00.001-07:00

We’ve been hearing stories that Chinese automakers are ready to sell in the U.S. for years, so here goes: A Chinese automaker will begin exporting pickups and sport/utility vehicles to Mexico this year, the first step in an attempt to enter the U.S. market. The plan calls for the SUVs to sell for $12,000 in Mexico and will be the first Chinese vehicles to sell in U.S. showrooms.That’s the claim of Bill Pollack, chairman of New Jersey-based Chamco Auto. According to Automotive News, Pollack has completed a deal allowing China’s Zhongxing Automobile to export 50,000 vehicles duty-free to Mexico, and then build a plant in the border city Tijuana to assemble models for export to the U.S.“Our plan is to average 20 percent below comparably equipped brand-name competitors,” Pollack told Reuters.Assembling the Zhongxing vehicles in Tijuana will make them Mexican under North American free trade rules, so they can be exported to the United States duty free, Pollack said. His company is Zhongxing’s distributor in the U.S. Zhongxing is located in the northern province of Hebei near Beijing. It sells almost a third of its vehicles to customers in 50 developing nations but has little experience in wealthier markets.Pollack said its models meet European and Mexican safety and emissions standards, and vehicles produced in Mexico will meet U.S. regs.
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Chery China Automobile on top for the UAE

2007-06-19T18:18:00.000-07:00

As Dubai’s roads continue to become increasingly congested, a number of the emirate’s drivers are leaving behind their 4X4s and opting for a more compact driving option. A market niche for the the Chery QQ, perhaps? The economical mini car is a new offering from the Chinese manufacturer which is ramping up production.
The QQ, distributed by Knowledge Automobiles & Trucks (KAT), offers 800cc and 1100cc engines with alloy wheels as standard. “The QQ is proving especially popular with those living in congested areas, or who have to fight to find a parking space,” said Ali Huang, general manager of KAT.KAT offers free registration, free 24-hour roadside assistance and a free maintenance programme on all purchases of a new QQ.
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MG car line reborn with a made-in-China label

2007-06-10T11:36:00.000-07:00

SHANGHAI -- Nanjing Automobile Group Corp. unveiled its made-in-China MG sports cars and sedans recently, the first step in a plan to use the iconic British brand as a platform for global expansion.

China's oldest automaker introduced the 1.8-liter MG TF roadster and its MG 7295 and MG 7275 sedans at its $450 million plant near the eastern city of Nanjing . The brand, renamed "Ming Jue" or "Modern Gentleman," will go on sale in China in the second half of the year.
Nanjing Auto, SAIC Motor Corp., and other automakers have added their own brands and begun targeting overseas sales, as increasing competition squeezes profit margins in the world's second-largest auto market. MG's new owner plans to invest $2 billion in the brand, including opening plants in the United Kingdom and United States.
"MG, as an established brand worldwide, will help Nanjing Auto attract customers' attention," said Huang Zherui, an analyst at CSM Asia, which advises carmakers in China.
The 7-Series sedans, with 1.8-liter and 2.5-liters engines, are "reachable classics" aimed at the mid-market, Nanjing Auto's president Yu Jianwei said . He declined to disclose the carmaker's production plans and retail prices. By comparison, the 2.4-liter Shanghai General Motors Co. Buick La Crosse sells from about $27,500.

Tags: Chinese Cars -
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Saleen to pave way for Chinese Automaker Zhongxing

2007-06-10T11:28:00.000-07:00

Steve Saleen made his name selling hyperfast, hyperexpensive cars that were hand-built at his company's Irvine factory.The auto industry will be watching to see how that high-end expertise translates to Saleen's new career: running a company that aims to import the first Chinese cars to the American market.The former race driver is the new chief executive of Irvine-based ZX Automobile Co. of North America Inc., which was formed to import low-priced cars and trucks from China. It hopes to have its first vehicles — an SUV and a pickup, both priced at less than $14,000 — in U.S. showrooms next year. Saleen is tasked with setting up a dealer network and making sure that the Chinese vehicles meet U.S. engineering standards and government regulations.ZX Auto snagged Saleen about three weeks ago, around the time he resigned as president of Saleen Inc., the exotic-car company best known for the Saleen 7, a $580,000, 750-horsepower supercar that can go from zero to 60 in less than three seconds.Saleen, interviewed Friday as he left for France to attend the 24-hour LeMans auto race, acknowledged that his name wasn't exactly synonymous with Asian economy cars. "But I think what we've done with smaller-volume, high-end vehicles is the right kind of experience to understand what we have to do here to set up the dealer base and get the cars up to American standards in a relatively short period of time," he said.Bill Pollack, head of ZX Auto's New Jersey parent company, said he hoped to begin selling the Chinese-built SUV and pickup in Mexico by September and in the U.S. and Canada sometime next year. If he keeps that timetable, his company would be months ahead of the major automakers that are aiming to bring Chinese vehicles to the U.S.The Grand Tiger pickup and the Landmark SUV — neither model name will be used in the U.S. — are produced by Hebei Zhongxing Automobile Manufacturing Co. and sold in China and dozens of other countries, Pollack said.

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China’s envy of US, Japan means world will drive Chinese cars by 2020

2007-05-19T11:58:00.001-07:00

A reader, Gary P from Canada, says: “We have a perfect model for forecasting an extended boom in commodities by the example of Japan which went from war torn collapsed economy to the second largest economy in the world by the 1980s. Had the boom not come to an end there, Japan would have overtaken the USA. Now we have the world’s most populous country going from a smoky destitute communist state with pre WWII industrial technology heading to overtake everybody added together in under a couple of decades.
“Also, the Chinese envy Japan (and the USA) and their strong emulation of these countries is evident down to the finest detail. They adopted platinum for their jewellery, they are jumping into the auto industry, IT, etc. with gusto, they have put a man in space and are planning to be the first to land on Mars- which I believe they will do. Where have we seen this before?
Japan’s envy and emulation of USA- which incidentally was the premier platinum jewellery consumer before Japan became 90% of the market- led us to the commodities boom between 1950s and 1970s. Oh, and by the way, the long cycle before the Japanese one was the industrial expansion of the USA itself.
“When China’s economic growth drops to 5-7% we will see this as relative recession. At the present time, only a small percentage of Chinese are participating in the economy so they could grow 8%-10% annually for a century if participation in the economy were a measure. Hang on to your hats at least to 2020 and don’t take them off at least until 2030. In 1960, it would have seemed impossible to predict that Toyota would supplant General Motors as the world’s largest automaker which it did this past year. Having missed out on this prediction I’m jumping in here to state the certainty that most of us will be driving Chinese cars by 2020-2025. Oh commodity prices won’t be growing at crazy rates then but they will remain good. We will be crying in our beer when nickel drops down to $30 a kilogram - not long ago it was a couple dollars a pound?
“Let’s not also forget that if China starts to flag the world economy will be getting a boost with India reaching its potential. Kondriatief and other eggheads can’t take credit for this. When Africa, Latin America and Russia each finally come to their industrialising potential - that will be the last of the big cycles - we will all then hopefully chug along at 3% and economists can go the way of geographers and cartographers. I think this brief note injects a much wanted bold thrust into the characteristically timorous, equivocal type forecasting we become used to in the commodities field.”

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China's cars to reach U.S. gradually

2007-05-19T11:55:00.000-07:00

Don't expect to see an influx of Chinese automobiles in the United States any time soon, China's deputy minister of commerce said Wednesday during a visit to Detroit.
Ma Xiuhong said China's domestic automakers are busy feeding demand from Chinese consumers and do not have the dealer relationships necessary to expand on a large scale to the
"I don't think it is the right time to export a lot of cars into the United States from China," Ma told the Free Press. "The Chinese auto market is the fastest-growing market in the world. I believe for some period of time, Chinese automakers will be preoccupied with this."
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Chinese cars challenge industry leaders

2007-04-19T19:56:00.000-07:00

SHANGHAI, China (AP) - With models like the Hover and Roewe, Chinese-brand cars aren't household names in the U.S. and other big markets - not yet, at least.
But Chinese upstart automakers with equally obscure names such as Chery, Geely and SAIC are challenging industry leaders like General Motors, Volkswagen and Toyota in the fast-growing China market. And they're making inroads throughout the developing world with an eye toward eventually breaking into big Western markets.
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China's homegrown automakers vie for attention with global giants like GM at the April 22-28 Shanghai Auto Show, a biennial event that will showcase China's phenomenal rise to become the world's No. 2 vehicle market.The tenfold jump in China passenger car sales in the past decade has proved a big boost to General Motors Corp., which has become the market leader in China even as it loses market share at home. GM's sales in China last year rose 32 percent to 876,747 vehicles, while Ford Motor Co.'s jumped 87 percent to 166,722 units."Detroit is so cold, but here it's so, so hot," says Yale Zhang, a Shanghai-based auto analyst with CSM Worldwide.Demand from newly affluent drivers in China lifted passenger car sales by 37 percent last year to 3.8 million units. All told, China's vehicle market - including trucks and buses - grew to 7.2 million last year, putting it second behind the U.S. with 16.5 million autos sold but ahead of Japan, with 5.7 million.Last year's top-selling model was the Jetta, made by FAW-Volkswagen, one of Volkswagen AG's joint ventures. Even Toyota, a relative latecomer to China, is gaining ground, with a 66 percent jump in first-quarter sales.China has required foreign automakers to partner with local companies, and the boom has fattened profits for nearly all, says Zhang.Domestic manufacturers are also getting a lift. Sales of small cars have surged after the government phased out urban restrictions last year on sales and use of minicars like Chery's popular QQ and rival Changan Automobile Group's CV6, a similarly egg-shaped minicar with a 1.3 liter engine.Chery, Changan and others are also ramping up exports, especially to developing countries where low prices count most.China's automakers exported about 325,000 vehicles last year, about 80 percent of them low-priced trucks and buses bound for markets in Asia, Africa, the Middle East and Latin America.Chery, based in Wuhu, a city in eastern China's Anhui province, has led the export push for passenger cars, selling 50,000 units overseas last year.The company assembles vehicles in facilities run with local partners in Iran, Malaysia, Russia, Ukraine, Brazil and Egypt and recently announced it has teamed up with Bognor SA to make bullet-proof sedans in the Uruguayan capital of Montevideo.But like many other Chinese automakers, Chery has its sights set on bigger targets.At the Shanghai show, it will show an updated version of the QQ, dubbed the "Chery A1," made in a new partnership with DaimlerChrysler AG. The Chinese side says it expects the alliance to eventually build compact cars for export to North America and Europe.Little-known overseas, SUV maker Hunan Changfeng Motors Co. put on a display at the North American International Auto Show in Detroit in January, saying it hopes to begin exports to the U.S. within two years.Rival Great Wall has gained a quirky reputation for its Hover model after shipping 500 of the SUVs to Italy last summerTags: chery geely nanjing hafei zhonghua SAIC lifan

Volkswagen to make Chinese cars more energy efficient

2007-04-04T16:29:00.000-07:00

Beijing, April 1 (Xinhua): German automaker Volkswagen AG is planning to reduce oil consumption and emissions by 20 percent in all its Chinese-made cars by 2010.
Winfried Vahland, chief executive officer of Volkswagen China, made the announcement on Friday at the production launch of an engine plant in Dalian, northeast China's Liaoning Province.
The new plant, a joint venture between Volkswagen and the Chinese automaker FAW, was built to produce turbo direct injection gasoline engines in order to "introduce the newest-generation engines into China".
Volkswagen also planned to introduce the latest technology for automatic gearboxes and light auto parts into the country.
China became Volkswagen's fastest growing market last year with annual sales soaring 24.3 percent to 711,000 units. Tags: chery geely nanjing hafei zhonghua SAIC lifan