a sample of this report

Transcription

Chinese Vehicle Engineering Firms:
Drastic Business Expansion,
Reaping the Benefits of Product Diversification
IAT went even further a little by setting
up a joint venture company with CATARC
and Japan’s ENAX in April 2010 to
develop lithium-ion batteries, showing its
bulging ambition to gain business chance.
Globally,
Volkswagen
completed
majority takeover of Italdesign-Giugiaro
S.p.A. headed by Giorgetto Giugiaro in
2010,
indicating
that
even
a
long-established vehicle design firm have
difficulties to maintain its independence.
As the global automotive industry
undergoes restructuring, the reorganization
and integration of fellow global vehicle
development firms which engulfed China
is a point which should be closely watched
in the future.
Among them, IAT (China) Automobile
Technology Co., Ltd. is building up
momentum and has been using reverse
engineering. TJ Innova Engineering &
Technology Co., Ltd., which employs
many graduates from Harbin Institute of
Technology and Tongji University, and
CH Auto Technology Corporation Ltd.
which gained prominence with Geely’s
Panda hit model are also well recognized
companies.
In addition, the above-mentioned three
companies have concurrently announced
prototypes of electric and hybrid models,
indicating that they are aiming to respond
to green vehicle projects which have been
promoted by the Chinese government.
In China, as the automotive market
expands, the increase of products is
noteworthy. Among them, Chinese
automakers increased the number of their
passenger car products from six in 2001
to 89 in 2010. Due to limited product
development funds, many Chinese
automakers tend to use Chinese vehicle
design and engineering firms, as a result
of
which,
domestic
development
companies are rapidly expanding their
presence.
As of 2010, there are nine Chinese
vehicle development firms whose
business activities are relatively active
and most of them are located in the
capital Beijing or in the Shanghai area.
Outline of Leading Chinese Vehicle Engineering Firms
Company
Location
Established
IAT (China) Automobile
Beijing
Technology Co., Ltd.
TJ Innova Engineering
Shanghai
& Technology Co., Ltd.
CH Auto Technology
Beijing
Corporation Ltd.
Jasmin International
Beijing
Auto R&D (Beijing)
Co., Ltd.
Suzhou Auto
Suzhou,
Jiangsu
Wuhu Kaking
Wuhu,
Anhui
Shanghai Launch
Technical Automotive
Shanghai
Center
2002
1999
2003
2004
2003
2001
2003
Shanghai SJTC Co., Ltd. Shanghai
2001
Shanghai COTECH
1999
Shanghai
Reg. Capital Representative
2 million
Xuan Qiwu
CNY
110 million
Lei
CNY
Yucheng
60 million
Lu Qun
CNY
10 million
CNY
1,500
250
230
Su Jiamin
320
Lu Jianhui
150
Hu
Zhengnan
80
Chen Lixin
150
Wang
Youzhi
45
1 million
CNY
Notable Clients
Notes
Chery, Brilliance, Haima, JMC,
BAIC
Lifan, JAC, Dongfeng, Great
Wall, Changhe
GAC Changfeng, BAIC, Chery,
Geely
700
Chen
Yanping
2.5 million
CNY
5 million
CNY
1 million
CNY
1 million
CNY
Employees
(persons)
Hawtai, BAIC, Dongfeng,
Chery, JAC
Aims to supply EV modules.
Public listing under preparation.
Enhances die making capability.
Expertise in SUVs.
Traces its origin back to Beijing Jeep.
Expertise in truck cab and SUV
design.
Dongfeng, Chery, Haima, Great Specializes in chassis design.
Wall, Brilliance
Develops aluminum EVs.
Many employees from Dongfeng’s
Chery (QQ, B11, A15, T11)
technical dept.
BYD, Brilliance, Great Wall,
Huaxiang
Many employees from SAIC and
Dongfeng’s technical dept.
Gonow, Lifan, SAIC, Chery,
CHANA
Dongfeng, Foton, CHANA,
SAIC, JMC
Many employees from Tsinghua
University.
Expertise in CAE/CAD consulting.
(Compiled using company PR materials and media sources)
China: Number of Passenger Car Products by Origin (Actual: 2001-2009, Plan: 2010)
Origin
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
China
6
11
23
14
18
27
29
28
61
Japan
0
3
10
5
8
12
6
6
8
7
Europe
2
4
8
3
5
7
2
8
11
15
US
2
0
5
1
9
4
5
1
5
6
Korea
1
2
1
2
3
1
3
3
4
11
11
20
47
25
43
51
45
46
89
128
Total
89
(FOURIN research)
China: R&D Investments in the Automotive Industry (2001-2008)
㩷
Automotive Industry Sales
Revenue (million CNY)
R&D Personnel (persons)
R&D Investment
(million CNY)
Ratio of R&D Investment
of Sales Revenue (%)
2001
433,898.89
2002
608,219.56
2003
820,481.62
2004
930,614.16
2005
2006
2007
2008
1,024,112.13
1,374,691.37
1,706,552.39
1,872,781.78
44,836
53,074
61,587
71,061
89,830
91,282
109,482
124,118
5,861.68
8,618.86
10,726.51
12,951.75
16,776.35
24,486.80
30,877.91
38,871.49
1.4%
1.4%
1.3%
1.4%
1.6%
1.8%
1.8%
2.1%
(Compiled using data from CATARC)
FOURIN China Automotive Intelligence
IAT makes a strategic move making EVs its core business
IAT, established in 2002 in Beijing, is a vehicle design and
engineering company. Its founder Xuan Qiwu received a
bachelor㵭s degree from Tsinghua University and a doctor's
degree from Kyushu University and has nine years of work
experience as a technician working at FAW㵭s research institute
and Mitsubishi Motors㵭 development headquarters.
Although it was initially established as a human resources
consulting firm specializing in the automotive industry, it has
decided to change its business area after being approached by
several automakers requesting vehicle design and engineering
work. The company not only employs Chinese technicians, but
also hires overseas experts. As of 2010, it had over 700
employees of which 60 came from Japan, Korea, Europe and
the US.
IAT established its operating foundations when it developed
the QQ6 for Chery. IAT has not used reverse engineering for the
QQ6 which had been its mainstream development method, but
introduced a new method of creating everything from scratch.
As a result, the industry had great regard for IAT.
IAT’s development ability was recognized with the success of
the QQ6. Afterward, IAT received several orders from Chery,
Brilliance, FAW, Haima, Dongfeng, Foton and others,
becoming China㵭s most popular vehicle development firm.
IAT Designed Products
Chery Riich R2: Commercial production since 2007
Cross Wind II concept vehicle: Announced in 2008
Brilliance M3: Announced in 2006
Zu concept EV: Announced in 2010
IAT: Company Outline
Company name: IAT (China) Automobile Technology Co., Ltd.
(IAT stands for International Application Technology)
Location: Beijing
Established: Sep. 2002 (Formerly known as Beijing Jingwei
Quanneng Technology Co., Ltd.)
Founder: Xuan Qiwu (current chairman)
Annual business: 300 million CNY (2009)
Employees: Over 700, of which 60 are Japanese, Korean, European
and US specialists.
Activities: Design and development of complete vehicles, engines
and powertrains. Project planning. Total layout. Design. Clay
model/virtual design. Manufacturing and testing of white body,
interior, exterior, engines, powertrains, chassis, electronics,
prototypes and show models. Reverse engineering. CAE analytical
capacity.
Notes:
-Capable of planning, styling, engineering and testing.
-Operates offices in Changchun, Wuhu, Shanghai and Suzhou.
Established offices overseas in Japan, Europe, Korea, Hong Kong
and Taiwan.
Notable clients: Over 20 companies incl. FAW, FAW Xiali,
Dongfeng, Brilliance Auto, FAW Haima, Shaanxi Automobile,
Jiangling Motors and Beiqi Foton.
(Compiled using company PR materials and various media sources)
eTaxi concept EV: Announced in 2010
Outline of JV Partially Owned by IAT
Company name: Shanghai CENAT New Energy Co., Ltd.
Established: Apr. 2010 Start of operation: 2011 summer (plan)
Reg. capital: 1.8 billion JPY
Investment: 2.5 billion JY
Ownership: CATARC 48%, ENAX 26%, IAT 26%
Note: Annual production capacity of lithium-ion secondary batteries
for electric and hybrid vehicles is set to reach 5 million units.
In April 2010, IAT fully demonstrated its deep interest in
electric vehicle development by unveiling the Zu and eTaxi
concept vehicles at the Beijing motor show. Its immediate
response was the establishment of a Shanghai-based lithium-ion
battery joint venture company formed together with the
government㵭s technology certification organization China
Automotive Technology And Research Center and Japan’s
ENAX. In addition, IAT is considering acquiring electric
vehicle controller and in-vehicle CAD technology through
tie-ups with Japan’s Myway Plus, Tokyo R&D and PUES.
Through these joint ventures and technical cooperation, IAT is
aiming to become a supplier of electric vehicle systems.
In 2009, under the leadership of the China Association of
Automobile Manufacturers, ten leading automakers formed the
T10 committee which is in charge to set China’s technical
standards for electric vehicle development. In August 2010, the
State-owned Assets Supervision and Administrative
Commission of the State Council set up an organization for the
development of electric vehicles. These trends indicate that
there is a rapid development of supporting organization for the
electric vehicle industry both in the public and private sectors.
IAT is grabbing this trend as a business opportunity, taking hold
of lithium-ion battery and control technologies, making clear its
aim of using them for future business development.
Products Developed by IAT
䂹Chery QQ6
䊶Developed the Chery QQ6 (factory code: S21) mini passenger car.
-May 2003: Commenced development work of its first vehicle project.
-Sep. 2006: Launched the QQ6.
-Called the “Beetle’s Chinese edition,” it features European
neoclassical design. Powered by 1.3L ACTECO engine and equipped
with five-speed AT.
-Aug. 2007: Decided to position the QQ6 as its first model to be
manufactured and sold in Iran by its local joint venture.
䂹Chery Riich R2
䊶Developed the Chery Riich R2 (factory code: S22).
-Design philosophy centers on safety, fashion, energy efficiency and
environment protection. China’s first front-wheel drive mini MPV.
Powered by 1.3L ACTECO engine and equipped with five-speed AT.
-Jul. 2007: Exhibited at the Changchun motor show. The very first
1.3L model was named R213.
䂹Chery Higgo 2
䊶Adopting the design philosophy of North American pickups it is
developed for the North American pickup truck market.
-Based on FMVSS regulations implemented in the US in 2009,
passive safety features have been fully adopted.
-Apr. 2008: Exhibited at the Beijing motor show.
䂹Brilliance M3
䊶Developed the Brilliance M3’s body architecture.
-Nov. 2006: Exhibited at the Beijing motor show.
䂹Electric vehicles
䍃Apr. 2010: Exhibited three electric vehicle models at the Beijing motor
show.
䊶Established Shanghai CENAT New Energy Co., Ltd. with CATARC
and Japan’s ENAX. Cooperation with Japan’s Myway Plus in the
areas of motors, motor control systems, BMS, etc. Considers the
establishment of an R&D facility with Japan’s Tokyo R&D and PUES
to develop EV controllers and CAN technology. Based on these
tie-ups, IAT aims to supply EV systems to automakers.
㨯Development of battery exchange system for EVs. Exchange time is
90 seconds. Achieved over 30,000 trouble-free operations.
IAT: Business History and Recent Trends
㨯Sep. 2002: Beijing Jingwei Quanneng Technology Co., Ltd. was
㨯Plans to develop 4-5 models annually and set its 2009 and 2010 sales
established. Initially engaged in automotive industry consulting
revenue targets at 260 million CNY and 400 million CNY respectively.
work.
㨯Dec. 2004: Established a prototype manufacturing plant in Wuhu,
<Biography of Founder Xuan Qiwu>
Anhui by investing 40 million CNY. Commenced operation in the
㨯Oct. 30, 1966: Born in Changchun, Jilin.
same year.
㨯Jul. 1987: Acquired its bachelor’s degree from Tsinghua University’s
㨯May 2007: Changed its name to the current one. Various investment
funds injected 8 million USD in the company. Became a Cayman
Islands-registered company with subsidiaries in China and Japan.
㨯Aug. 2007: Established a prototype plant with Korean, Japanese and
other partners.
㨯Oct. 2007: Established a branch company in Shanghai’s Kangqiao
Industrial Zone.
㨯As of 2009: Number of employees exceeded 700, of which over 300
Automobile Engineering Department.
㨯Aug. 1987-Mar. 1992: Employed at Changchun FAW Automobile
Research Institute
㨯Apr. 1998: Graduated from Japan’s Kyushu University with doctor of
engineering degree
㨯 Apr. 1998-2002: Employed as director at Mitsubishi Motors’
development headquarters.
㨯2002-present: Chairman of IAT.
had seven years or longer experience in the automotive industry.
There are also 60 experts from Japan, Korea, Europe and the US.
<Human Resources >
㨯2009: Designated as excellent technical supplier by FAW-VW.
㨯Wang Yuejian (Transferred from FAW Car, currently president)
㨯Apr. 2010: Established an EV joint venture with CATARC and
㨯Chen Zhiting (Transferred from South East (Fujian) Motor in 2003, in
Japan’s ENAX.
㨯2010: Tie-up with a major Japanese electronics company is under
charge of engine design)
㨯Chen Qunyi (Transferred from TJ Innova in 2008, in change of design)
consideration.
TJ Innova’s Super Platform concept
TJ Innova, established in 1999 in Shanghai, is a vehicle
design and engineering company. Although its founder Lei
Yucheng was a teacher at Harbin Institute of Technology㵭s
vehicle engineering department, Mr. Lei’s attention turned to
the possibility of vehicle design and engineering work,
subsequently establishing a venture operation with some of its
co-workers.
The completely obscure company was approached by a deal
by Changhe Automobile (now part of the Chang’an
Automobile Group) in 2001 to develop a small van.
Development of the vehicle called Haitun was completed in
2002. The deal was said to have been worth 15 million CNY,
an unusually low price at that time. After establishing its name
in the industry, TJ Innova successfully took advantage of the
upcoming new vehicle development boom, securing orders
from Lifan Group, Jianghuai Automobile, Dongfeng Liuzhou,
Dongfeng Motor, Great Wall Motor and other clients. The
company was involved in the development of 30% (540,000
units) of all Chinese-brand vehicles sold in China in 2007,
indicating its great success. As of 2009, TJ Innova’s
workforce grew to 1,500 persons, becoming China’s largest
vehicle design and engineering firm.
TJ Innova has focused on Chinese automakers’ strong
TJ Innova Designed Products
Dongfeng Liuzhou Fengxing Joyear: Commercial production
since 2007
Great Wall Gwperi: Commercial production since 2009
S11 hybrid sports car: Announced in 2009
JAC Rein: Commercial production since 2006
TJ Innova: Company Outline
Company name: TJ Innova Engineering & Technology Co., Ltd.
Location: Shanghai
Established: Oct. 1999
Reg. capital: 140 million CNY (Mar. 2009)
Net asset: 250 million CNY (2009)
Ownership: China Science & Merchants New Material
Technology International Co., Ltd. 14.2%, Sino-JP Fund 13.8%, Lei
Yucheng 12.1%, others.
Founder: Lei Yucheng (current chairman)
Employees: 1,500 persons (2009)
Activities: Vehicle body and platform design. Tool and jig design.
Product testing.
Notes:
-Many employees from Harbin Institute of Technology and Tongji
University.
-Operates styling, model and 44 engineering design labs.
Manufactures exhibition models and prototypes. Prototype and
testing workshop is 7,000m².
-Applied for public listing in 2009, but was rejected.
Notable clients: Over 80 companies incl. FAW, Dongfeng, SAIC,
Shanghai GM, South East (Fujian) Motor, FAW Haima, JAC, Great
Wall, Hawtai, and BYD.
Dongfeng Liuzhou Balong 507: Commercial production
since 2007
demand for reduced development cost while they attempted to
diversify their products, launching the “Super Platform”
business concept in 2008. The concept is the following, based
on a platform whose IP rights are owned by TJ Innova an
independent passenger car product is developed corresponding
to the needs of the client. Initially, in anticipation of the
“Super Platform” concept getting on track, TJ Innova
simultaneously made preparations for going public on the
Shanghai stock exchange.
However, since the concept has not won strong support
from clients. Possibly as a result of this setback, its public
listing plan was refused by relevant authorities in 2009,
forcing TJ Innova to put its stock exchange listing project on
the backburner.
Looking at TJ Innova’s action in after 2009, the company is
building an integrated engineering process including the
establishment of a commercial production system by stepping
up its die making operation.
In addition, TJ Innova set up a joint venture business with the
municipal government of Huzhou City in February 2010. It was
also reported that the company will participate in the production
of a hybrid SUV unveiled the TJ Innova in 2009. According to
the announcement, the project will have annual production
capacity of 250,000 units. Since it is an unprecedentedly
Products Developed by TJ Innova
䂹Changhe Haitun
䊶Developed the Changhe Haitun utility vehicle.
-May 2001: Won a contract from Changhe Automobile to develop a
small van for 15 million CNY.
-2002: Completed development of the model which was named
Haitun by Changhe Automobile.
䂹Lifan 520
䊶Developed the Lifan 520 passenger car.
-2003: Won a contract from Chongqing Lifan to develop a
passenger car. The Lifan 520 is TJ Innova’s first sedan model.
䂹Dongfeng Liuzhou Balong
䊶Developed the Balong heavy-duty truck.
-2004: Won a contract from Dongfeng Liuzhou to develop the
Balong. It is spacious, comfortable, powerful and has improved
stability.
-End of 2007: Product launch.
䂹JAC Rein
䊶Developed the Rein SUV.
-2002: Established the JAC-TJ Innova Automobile United R&D
Center with Jianghuai Automobile. The center developed the Rein.
-Jul. 2006: Exhibited at the Guangzhou motor show.
Oct. 2006: Product launch.
䂹Dongfeng Xiaokang
䊶Developed the Dongfeng Xiaokang utility vehicle.
-May 2005: Unveiled the Dongfeng Xiaokang in Wuhan.
-Mar. 2007: Dongfeng Yu’an visited TJ Innova and made inquire
about the development of a next-gen product, the Dongfeng
Xiaokang.
䂹Others
䊶Developed the Dongfeng Jingyi passenger car, Dongfeng Fengxing
MPV, Dongfeng Duolika truck, JAC Binyue, Great Wall Gwperi,
Great Wall Cool Bear, Changfeng M1A, Lifan 520 hatchback, etc.
䂹Entry into the complete vehicle production business
䊶Apr. 2009: Unveiled the S11 hybrid 4WD sports car built on the
Super platform at the Shanghai motor show
䊶Feb. 2010: Signed a hybrid SUV project with Huzhou Municipal
Government, Zhejiang Province. The facility will have a maximum
production capacity of 600,000 units per year.
䊶May 2010: Signed a commercial production project of SUVs built
on the Super platform with Zhejiang Shangyu Industrial Park.
-First phase: Plans to invest 2.8 billion CNY to develop 250,000
units annual production capacity.
-Second phase: Plans to raise annual production capacity to 500,000
units.
TJ Innova: Business History and Recent Trends
䍃2001: Developed design software for GM in cooperation with a US
company called UGS.
䍃2002: Established JAC-TJ Innova Automobile United R&D Center
with Jianghuai Automobile.
䍃Apr. 2005: Exhibited the Laiting concept sports car.
䍃2007: Passenger cars developed by TJ Innova sold 540,000 units,
accounting for 30% of the self-developed brand market.
䍃Apr. 2008: Established TJ Innova-Lifan Automobile United R&D
Center in Shanghai.
䍃Jul. 2007: TJ Innova CEO Lei Yucheng announced that the company
plans to go public on the Shenzhen stock exchange in Jun.-Aug.
2008 and expects to raise 300 million CNY, becoming the first
automobile engineering house to become a listed company. (No
word on going public as of Aug. 2008).
䍃Aug. 2007: Through a subsidiary, TJ Innova launched a technical
service and parts network, entering the repair and maintenance parts
market in Shanghai.
䍃Mar. 2008: Began providing technical service to Nissan and other
Japanese automakers.
䍃May 2008: Established TJ Innova-BAW Automobile United R&D
Center with Beijing Automobile Works.
䍃Jun. 2008: Absorbed Wuxi Ruifeng Automobile Design
䍃 Mar. 2009: Commenced construction of Wuxi TJ Innova
Automobile Die Design Development Center
䍃As of 2010: Operates die making plants in Shanghai, Wuxi and
Shandong.
<Biography of Chairman and CEO Lei Yucheng>
䊶1963: Year of birth.
䍃1995: Graduated from Harbin Institute of Technology (HIT) with
doctor of engineering degree.
䍃 1989-1995: Teacher at HIT. Associate professor, later deputy
managing director and chief engineer at the university’s automobile
research institute.
䍃1996-present: Professor of the automobile department and director
of automobile design and manufacturing at Tongji University.
䍃Oct. 1999: Established TJ Innova with five others.
䍃 2003: Established TJ Innova Automobile Design Engineering
Research Institute.
䍃Present: Vice director of SAIC-TJ Innova Automobile Molding and
Interior Design Center. Member of the Society of Automotive
Engineers International. Member of the Suspension Industry
Committee and Brake Industry Committee of China Automobile
Engineering Academic Society. Vice director of the Computer
Industry Committee of Shanghai Automobile Engineering Academic
Society.
large-scale project for a vehicle design and engineering firm,
some doubt continuation of the operation.
CH Auto expanded its prestige with the Geely Panda hit
model
CH Auto, established in 2003 in Beijing, is a vehicle design
company. Originally the venture was established by ten
technicians
from
Beijing
Jeep
(now
Beijing
Benz-DaimlerChrysler) a subsidiary of Beijing Automobile.
At first, the company received a request from SUV
manufacturer Changfeng Automobile to develop an urban SUV
(C1). Later, Changfeng Automobile, which highly valued CH
Auto’s capability, made requests one after another as the
automaker expanded its product line. CH Auto was
exclusively in charge of the development of the CT5 pickup
truck, CM1 MPV, CS7 SUV and the front-wheel drive CP2
and CP3 passenger cars.
However, Changfeng Automobile’s business performance
worsened in 2008 and after and was unable to realize
commercial production of its products and was eventually
absorbed by Guangzhou Automobile (GAIG). GAIG
announced to use Changfeng Automobile’s main plant in
Hunan Province as the base of its joint venture with Fiat and
for the production of passenger cars under its independent
CH Auto Designed Products
Changfeng CS7: Announced in 2006
Changfeng CP2: Announced in 2008
CH Auto: Company Outline
Company name: CH Auto Technology Corporation Ltd.
Location: Beijing
Established: Aug. 2003
Reg. capital: 60 million CNY
Founder: Lu Qun (current president)
Annual business: 200 million CNY (2007 estimate)
Pretax profit: 50 million CNY
Site/building area: 51,000m²/30,000m²
Employees: 250 persons in 2009, 320 persons in 2010
Activities:
-Complete vehicle design and development incl. concept setup,
Geely Panda: Launched in 2008
exterior design, architecture design, simulation analysis, prototype
manufacturing and supplier search.
-Avoiding IP right disputes. Capable of reverse engineering of
benchmark vehicle products.
Notes:
-Had received over 20 vehicle development project by 2009.
-Operates a wholly-owned subsidiary.
-Technology exchange and tie-up with Pininfarina, Stola, Assystem
Brime and Magna. Joint development and other types of
cooperation with LMS and IDG.
Notable clients: Approx. 40 companies, incl. BAIC, Chery, Geely,
Changfeng, JMC and JAC.
Xintianhe concept sports car: Announced in 2010
Guangqi brand. For this reason, it is possible that Changfeng
Automobile’s passenger car assets will be used in some form
by GAIG. However, in 2009 and after there was no word on
any kind of cooperation deal between GAIG and CH Auto,
indicating that it is highly possible that GAIG will not use CH
Auto’s SUV and passenger car concepts.
In the meantime, the Panda passenger car, designed for
Geely Automobile, was unveiled at the Beijing motor show in
April 2008, getting considerably favorable reviews. The
Panda concept went into commercial production without any
major changes and became a hit seller in the A segment soon
after its launch. Thanks to the success of the Panda, CH Auto
is believed to have gained definite name and position in the
industry.
In addition, CH Auto established an in-house electric
vehicle development department in April 2008, quickly
aiming to take hold of the business opportunity offered by the
central government’s promotion of its “New Energy Vehicle”
national strategy. In April 2010, CH Auto exhibited the
Xiangrui concept vehicle which can alter its vehicle body
according to travel conditions at the Beijing motor show,
demonstrating its unique solution to automakers who plan to
switch to electric vehicles.
(Seiki SHU)
Products Developed by CH Auto
ƹFeibao CT5
ƹChangfeng CP2
㨯Researched the product potential of the Changfeng Yangzi Feibao
㨯Developed the Changfeng CP2 (sedan/hatchback) passenger car.
-According to Changfeng’s H1 2007 financial report, the company
injected 1.22 billion CNY into the Changfeng CP2 project and
selected CH Auto to be in charge of product development.
-As of Aug. 2008: Had injected 71.01 million CNY into the project,
completed phase one of design and established the CP2 version’s
model.
CT5 mini pickup truck.
-Its design philosophy combines the cargo and passenger carrier
capability of a pickup, mobility of an SUV and comfort of a sedan.
-Jan. 2007: Exhibited at the Detroit motor show.
ƹChangfeng MPV (CM1)
㨯Completed ACLASS analysis of the Changfeng MPV’s CM1 model.
-2006: Launched the 4x4 and 4x2 drive types. Design and
development of vehicle body styling are based on MPV features.
Improved powertrain system equipped with either gasoline or
diesel engine.
ƹChangfeng CP3
㨯Developed CP3 own-brand passenger car.
-Jul. 2008: According to a report by Changfeng, CH Auto is in
charge of development of the CP3.
ƹGeely Panda
㨯Designed the exterior of the Geely Panda.
-Apr. 2008: Unveiled at the Beijing motor show.
ƹChangfeng Liebao CS7
㨯Developed styling of the Changfeng Liebao CS7 (C1).
-Developed as an urban leisure SUV which can rival with the
ƹXintianhe concept sports car
㨯Apr. 2010: Exhibited at the Beijing motor show.
Honda CRV. Based on the C1 model which was exhibited at the
ƹE-Trip and Xiangrui
Shanghai motor show in Apr. 2005. Powered by the 4G94 engine.
㨯Apr. 2010: Exhibited the E-Trip “city commuter” and the Xiangrui
concept vehicle which can alter its vehicle body according to travel
conditions at the Beijing motor show.
-Nov. 2006: Exhibited at the Beijing motor show.
-Jan. 2007: Exhibited at the Detroit motor show.
CH Auto: Business History and Recent Trends
䊶Dec. 2005: Built an R&D center
which
include
molding
design,
interior/exterior
styling,
-Invested 160 million CNY in the first phase of construction.
development of some parts of chassis/vehicle body/vehicle body
Operates an automobile technical R&D system with three centers
accessories/exterior/electronics, sample vehicle manufacturing and
at its core, namely styling design center, engineering design center
and prototype vehicle manufacturing and testing center.
technical support after product launch.
䊶Apr. 2008: Established an in-house EV development department.
-Completed construction of the design and development building.
Capable of simultaneously work on four complete vehicle
projects.
䊶Jan. 2007: Received an offer from Changfeng to develop a pickup
truck and a utility vehicle for 40.78 million CNY.
-Pickup truck: Development expenses are 25.14 million CNY, of
<Human Resources>
䊶 Many engineers are from design departments of Chinese
automakers.
䊶President Lu Qun and nine co-workers left Beijing Jeep in Aug.
2003 and established CH Auto.
which development expenses of concept vehicle is 3 million CNY,
䊶 Vice presidents Peng Jiang and Wu Yanmin graduated from
vehicle body model is 1.2 million CNY and sample vehicle is
Beijing Institute of Technology and Tsinghua University
860,000 CNY.
respectively. Chief technician Yan Shiming graduated from Jilin
-Utility vehicle: Development expenses are 20.58 million CNY
University of Technology and worker at Sino-foreign automobile
Mainland-Taiwan Business Relations:
ECFA More Profitable for Taiwan;
Possible Division of Parts Industry Between the Two Entities
On June 29, 2010, the Association for
Relations Across the Taiwan Straits
(mainland China side) and the Straits
Exchange Foundation (Taiwan side)
signed the Cross-Strait Economic
Cooperation Framework Agreement
(ECFA) in Chongqing, the equivalent of a
bilateral free trade agreement (FTA). With
no diplomatic relations between mainland
China and Taiwan, the ECFA concluded
via the two private organizations is, in
effect, a proxy economic agreement
between both governments.
Under the ECFA, tariffs on 806
cooperation.
Although passenger car exports to
China, which was demanded by Taiwan,
was excluded from the early harvest, the
possibility of liberalized automotive parts
trade, along with division of mainland
China and Taiwan’s parts industry and
complementary cooperation, is growing.
Moreover, in the coming years,
subsequent negotiations and scrapping of
tariffs on vehicle imports are virtually
guaranteed, bringing expectations for a
revitalization of Taiwan’s automotive
industry.㩷
industrial items included in the “early
harvest” list of concessions are scheduled
to be abolished by January 1, 2013. The
number of items to have tariffs removed
by the mainland China side is twice that
of Taiwan. The considerable disparity
appears to be the result of the Ma
Ying-jeou administration’s economic aim
to bolster Taiwan’s economy which has
continued
to
see
its
global
competitiveness wane, while agreement
by mainland China seems politically
motivated in its drive to find a shortcut to
forming ‘one China’ through economic
China/Taiwan: Outline of Cross-Strait Economic Cooperation Framework Agreement
On Jun. 29, 2010, Chen Yunlin, Chairman of PRC Association for Relations Across the Taiwan Straits (ARATS), and Chiang Pin-kung, Taiwan’s envoy from the Straits
Exchange Foundation, signed the Cross-Strait Economic Cooperation Framework Agreement (ECFA), equivalent to a free-trade agreement (FTA), in Chongqing. Within
six months of effectuation of the agreement, tariff reductions under an early harvest plan are scheduled to commence.
<Preamble>
䊶In line with fundamental principles of the World Trade Organization,
considering respective economic conditions, both sides agreed to the
gradual reduction or removal of bilateral trade and investment barriers,
formulating a fair environment for mutual trade and investment.
<General Rules>
䊶Aim of Agreement
-To strengthen economic, trade and investment links of both sides.
-Promotion of liberalized goods and service sector trade between both
sides, creating a fair, transparent and convenient investment and
security framework.
-To expand areas of economic cooperation, and create cooperation
frameworks.
䊶Cooperation Measures
-Considering respective economic conditions, to boost cross-strait
economic exchange and cooperation through the following, but not
limited to, measures:
䋺Effect gradual reductions or removal of numerous goods tariffs and
non-tariff barriers.
䋺Gradually reduce or remove trade restrictions imposed in various
service sectors.
䋺Offer investment guarantees, with promotion of bilateral investment.
䋺Facilitate trade investment, with promotion of industry exchange and
cooperation.
<Trade and Investment>
䊶Goods Trade
-Based on the ‘Early Harvest for Goods Trade,’ both sides to negotiate
agreements to be implemented as swiftly as possible within six
months of signing.
-Future goods agreements include: Methods for reduction/removal of
tariffs; restrictions on country of origin; tariff formalities; non-tariff
and trade protection measures.
䊶Service Sector Trade
-Based on the ‘Early Harvest for Service Sector Trade,’ both sides to
negotiate agreements to be implemented as swiftly as possible within
six months of signing.
-Future service sector agreements include: Gradual reduction/removal of
various service trade restrictions; increased scope and depth of service
trade; promotion of cooperation.
䊶Investment
-Within six months of the final agreement coming into effect, both sides
to establish investment guarantee systems, negotiate items such as
promotion of investment regulation transparency and facilitation, with
signing of agreement as swiftly as possible.
<Economic Cooperation>
䊶Economic cooperation of both sides to include, but not limited to, the
following fields:
-Intellectual property rights
-Financial
-Industry
-Trade promotion/facilitation
-Trade organizations of each side to set up respective local
representative offices, etc.
<Early Harvest Plan>
䊶Early Harvest Plan gives consideration for mutual demand, achieving
appropriate scale of items, value and ratio.
<Other>
䊶Organization
-Both sides to conduct related matters outlined by the Cross-strait
Economic Cooperation Committee and the final agreement.
䋺 To enter necessary talks in order to achieve goals of the final
agreement.
䋺To monitor and evaluate implementation of the final agreement.
䋺To interpret, implement and resolve applicable disputes of the final
agreement.
䋺Committee to set up working teams, as required, to undertake related
matters in specific areas of the final agreement, and which are to be
supervised by the committee.
䊶Effectuation
-Following signing of the agreement, both sides to complete related
procedures, with written notice to the other party. Final agreement to
come into effect once both sides receive said notice.
Negotiation Schedule
Agreement Name
Goods Trade Agreement
Service Sector Trade
Agreement
Investment Agreement
Dispute Settlement
Agreement
Negotiation Period
Completion within 6 months of main
agreement coming into effect
(Compiled using China government PR materials and various media sources)
Change in Taiwan’s economic strategy
with signing of ECFA
The concept of the ECFA came to
fruition as a result of ambitions of the
Kuomintang’s
Ma
Ying-jeou
administration, which came to power in
May 2008, to improve the island’s
standing with its mainland neighbor. In
February 2009, the Ma Ying-jeou
administration’s announced its aim to
enter into talks with mainland China
regarding a cross-strait economic
agreement. After 16 months of
negotiations, the ECFA was signed on
June 29, 2010.
Background to the agreement in
Taiwan’s case stems from the island’s
declining economic power due to weak
domestic demand caused by large
numbers of middle-class migrating to
the mainland and a declining birthrate,
along with external factors such as the
effectuation of the China-ASEAN FTA,
and rapid growth in Korea, a major rival
of Taiwan’s electronics industry. On the
other hand, mainland China’s motive
appears
economic,
expecting
contributions to its own growth through
access to investment and technology
from Taiwan. Moreover, there is also
political speculation that promotion of
economic ties looks to bring closer
Beijing’s aim to restore a ‘unified’
China.
Since the mid-1990s, there has been
active foray across to the mainland by
Taiwanese enterprises, most commonly
noted by China Motor’s entry into
Fujian Province. With rapid growth of
mainland China’s economy, around 1
million Taiwanese middle-class citizens
are said to now be residing on the
China/Taiwan: Timeline of Negotiations for Passenger Car
Results of Negotiations
Mainland China Stance
䊶 Without incorporating early harvest list items, negotiations
䍃Taiwan still imposes restrictions on vehicle
covered agreement of trade for follow-on products.
imports from mainland China.
䊶At the current stage, Taiwan incorporated 33 auto parts items
䍃 Import quota management, calculation of
Demands by Taiwan Side
-Taiwan expects to improve
operating
rates
of
and 17 bicycle and parts items into the early harvest list.
added value, and determination/certification
䊶Passenger car CBU to be
included as part of early
harvest items.
its
existing automakers.
of both sides is complicated.
㩷
㩷
(Unit: Billion USD)
Taiwan Stance
No. of Items
䊶 Management of vehicle import volume,
including from China, through quotas.
䊶As Taiwan’s production capacity is limited,
CBU exports likely to have little effect on
Passenger Cars
2009 Import Value
(Ratio to Total Imports
from Taiwan
from Taiwan)
0
0
(0.00%)
Automotive Parts
33
66.29
(0.08%)
Vehicles, Parts
17
82.15
(0.10%)
Total
50
148.45
(0.17%)
the mainland China market.
䍃 Broad automotive industry, creating a
significantly large scale of employment in
Taiwan.
(Compiled using materials from the Ministry of Economic Affairs, R.O.C.)
China/Taiwan: Early Harvest Items and 2009 Export Value
China/Taiwan: Timeline of ECFA Negotiations
(Unit: Billion USD)
Taiwan Demand (China tariff cuts)
Main Industry
No. of Items Value
Petrochemical
88
Textile
136
Machinery
107
Transport Equipment
Other
Agriculture
Total
China Demands (Taiwan tariff cuts)
50
Main Industry
䊶Feb. 2009: Taiwan’s Ma Ying-jeou administration announced its aim to
enter talks with mainland China regarding a cross-strait economic
No. of Items Value
agreement between the two governments. In Nov. 2009, both sides
5.944 Petrochemical
42
0.329
completed independent study into the merits and demerits of the
1.588 Textile
22
0.116
1.143 Machinery
69
0.474
0.148 Transport Equipment
17
0.409
140
4.997
18
0.016
Other
117
1.53
539 13.838 Total
267
2.858
agreement.
䊶 Dec. 22, 2009: Agreement reached between the Straits Exchange
Foundation (Taiwan side) and the Association for Relations Across the
Taiwan Straits (mainland side) to begin ECFA negotiations.
䊶Jan. 26, 2010: First round of ECFA talks held in Beijing, China.
Agreement reached over basis of ECFA in areas such as opening of
Note: Value indicates reciprocal value of exports between China and Taiwan.
China/Taiwan: Early Harvest Tariff Reductions/Removal Plan
markets for trade in commodities and services, rules of origin, early
harvest, trade remedies, investment and economic cooperation.
䊶Mar. 31-Apr.1, 2010: Second round of talks held in Taoyuan County,
Taiwan. In terms of the early harvest plan, agreement reached over (1)
that Taiwan will not be required to further open up its market to
Mainland China
Proposed Tariff
Cuts for Early
Harvest Plan
Tariff Level
0<X㻡5
5<X㻡15
15<X
Year 1 (Jan. 1, 2011)
0%
5%
10%
not affect Taiwan’s weaker industries and small and medium enterprises.
0%
5%
Discussed mechanisms and timeframe for talks on rules of origin.
Year 2 (Jan. 1, 2012)
Year 3 (Jan. 1, 2013)
Tariff Level
Taiwan Proposed
Tariff Cuts for
Early Harvest
Plan
Year 1 (Jan. 1, 2011)
Year 2 (Jan. 1, 2012)
Year 3 (Jan. 1, 2013)
0%
0<X㻡2.5 2.5<X㻡7.5
0%
7.5<X
3%
5%
0%
3%
0%
mainland agricultural products, and (2) the mainland to do its utmost to
䊶Jun. 13, 2010: Third round of talks held.
䊶Jun. 29, 2010: Agreement signed by both parties. Following which, the
agreement to come into effect after passed in the Executive Yuan in
Taiwan. Should proceedings go according to plan, early harvest to begin
in Jan. 2011.
(Compiled using China and Taiwan government PR materials and various media sources)
mainland, with various business ties.
Spending by these migrants is done in
mainland China, while businesses
employing them are not only linked to
the mainland’s domestic demand, but
also to export business, making their
level of contribution to the mainland’s
economy higher than that of Taiwan’s.
Adding to its woes is a falling birth rate,
which, according to the Taiwan
government, dropped to an all-time low
of 1.0 in 2009, underscoring that of
Japan (1.37) and Korea (1.19) to be the
lowest rate among developed nations.
bio, medical and IT sectors — Hong
Kong — returned to mainland China
from
British rule in 1997, yet
maintaining its status as Asia’s leading
financial hub — and Korea — achieved
a sharp recovery in 2009 by
aggressively targeting overseas demand
— have each developed clear national
and regional strategies, while Taiwan’s
lack of direction has seen it left to
stagger behind. For the Ma Ying-jeou
administration and Taiwan, cross-strait
giant mainland China, which shares the
same cultural background, has become
China/Taiwan: Vehicle Trade (2004-2009 Actual, 2015 Projection by FOURIN)㩷
(Million USD)
㪈㪃㪉㪇㪇
With a significant drop in the number of
births, there is little forecast for any
long-term increase in domestic demand.
Meanwhile, with an FTA signed
between mainland China and six
ASEAN countries in 2010, along with
Korean electronics giants Samsung and
LG stepping up global ambitions,
including into China, Taiwan is
beginning to be left behind by its
neighbors. Of Asia’s four newly
industrializing
economies
(NIES),
Singapore — aiming to become a
‘virtual nation’ focusing on the genome,
With entry into mainland China by Taiwanese CBU and parts
makers, value of imports from Taiwan continues to decline.
On the other hand, exports from China to Taiwan are rising,
㪈㪃㪇㪇㪇
with China running a surplus in terms of automotive-related
trade with Taiwan since 2006.
Imports from Taiwan
Despite a 30% drop in trade to Taiwan due to economic
downturn from autumn 2008, trade value of both countries
㪏㪇㪇
expected to increase in the mid-term.
㪍㪇㪇
Export to Taiwan
㪋㪇㪇
㪉㪇㪇
㪇
2004
2005
2006
2007
2008
2009
2015
(Compiled using data from China Customs)
China/NIES (in Asia): Real GDP Growth (2000-2009)
(%)
16
14
12
10
China
8
Singapore
6
4
2
Taiwan
Korea
0
䂯2
Hong Kong
䂯4
2000
2001
NIES: Newly Industrializing Economies
2002
2003
2004
2005
2006
2007
2008
2009
(Compiled using various documents and media sources)
the last remaining avenue for growth,
recognition of the fact bringing the
decision to head for the ECFA.
Emergence of possible creation of
cross-strait division in the parts sector
Some 806 items are included in the
ECFA’s planned early harvest list of
tariff concessions. While CBU are
excluded, a total of 67 transport-related
items (Taiwan called for tariffs to be cut
on 50 items; 17 by mainland China) are
covered including automotive parts,
bicycles and bicycle parts, yet this
number is low in comparison to those
included for the petrochemical, textile
and machinery sectors. Nonetheless,
with a mere 150km separating the two
sides, for Taiwan which has a logistics
advantage over inland regions of
mainland China, a new potential has
surfaced which could see the island
becoming a link in the parts supply
chain of suppliers to automakers in
coastal provinces such as Fujian,
Zhejiang and Guangdong. Moreover,
should division of the parts industry
gain momentum, Taiwanese auto parts
makers, particularly in highly technical
fields such as electrical components,
will be able to switch their investment
focus back from the mainland and boost
capacity at mother plants in Taiwan,
bringing expectations for a revitalization
of the island’s automotive industry.
Taiwan’s domestic demand-sided
vehicle market has hovered in the
230,000-370,000 units range since 2006,
bringing
forth
a
diminishing
equilibrium. In order to address excess
vehicle production capacity, the
Taiwanese government has drawn up
Taiwan: Aiming for Industry Revitalization through CBU Exports to China
Compiled from a local interview held on Apr. 19, 2010 with three members of the Taiwan Transportation Vehicle
Manufacturers Association (TTVMA) — Min-Teh Chen, Secretary General; Wen Fang Hwang, Director Business Dept.;
Richard Wu, Senior Specialist Business Dept.
Q. When domestic demand is in a trough, bolstering the export industry
is seen as an option. Do you believe CBU exports will see an increase?
A. With mainland China’s automobile market continuing to grow, if
effectuation
of
the
ECFA
[Cross-Strait
Economic
Pacific,’ a ‘consolidated global base of Taiwanese enterprises’ and
‘consolidated Asia/Pacific base for overseas enterprises.’
Q. How are tariffs set for trade with countries elsewhere?
Cooperation
A. In terms of vehicle trade, tariffs are set in line with WTO rules, whereby
Framework Agreement, scheduled to be signed by June 2010] goes
this year [2010] the tariff on CBU will be reduced to 17.5%. Also, in 2011
through, mainland China will become the biggest export destination for
the tariff quota system is scheduled to be scrapped, removing the barriers
Taiwan’s auto industry. As different vehicle types will be required on both
to previously limited quantity CBU imports from countries such as Japan.
side of the strait, CBU exports are forecast to rise.
Kuozui Motor and Toyota are progressing with divisional cooperation.
Of Taiwan’s 300,000-unit vehicle in 2009, 20% or some 60,000 units
were imports, making the level relatively small.
Kuozui manufactures the Corolla Altis for the Middle East, exporting the
model as CBU.
Q. What effects do you feel the ECFA will have on Taiwan’s automotive
industry?
Q. Can you provide some recent trends regarding Taiwanese automakers
or of mainland China business activities by local parts companies?
A. Fujian Daimler Automotive Co., Ltd. which was jointly set up by China
A. Negotiations for the ECFA got underway last year [2009]. Signing is
Motor, Daimler and the Fujian Motor Industry Group through investment of
slated for June this year. Through the ECFA, tariffs between both parties
258 million EUR, saw both the Viano and Vito high-end commercial
on CBU are to be removed. Currently, CBU production capacity in
vehicles sold under the Mercedes-Benz officially come of the production
Taiwan stands at 700,000 units, yet last year actual production came to
line. This year, sales of 10,000-11,000 units are forecast, while in the future,
approximately 220,000 units. With exports to mainland China, the current
the base is to be the Asia/Pacific regional base for production of light buses.
over-capacity of around 500,000 units can be utilized, bringing
Hangzhou
Xiaoshan-based
Dongfeng
Yulon
which
Yulon
has
expectations for improvements to operating rates. On top of being able to
shareholding in is still waiting for evaluation by its mainland partner.
export CBU to the mainland, it is believed Taiwanese products will be
While Taiwanese auto parts makers continue to invest in mainland China,
competitive.
capacity is being boosted with an increase in production bases.
Removal of bilateral tariffs is likely to have a significant impact on
In terms of entry into Taiwan by Chinese automakers, King Long Bus has
Taiwan’s auto industry. Under the ECFA, tariff quotas are to be introduced,
plans to set up a joint base with Sanyang Industry. Also, Chery Automobile
with the level expected to be gradually increased over time. In the initial
is planning to invest in Shengrong Auto for the manufacture of Chery
year, while exports into mainland China from Taiwan are planned to be set at
models.
100,000 units, export from mainland China to Taiwan is set at 10,000 units.
In contrast to Taiwan’s small market, that of mainland China is massive,
Q. Please explain about the automotive parts industry.
requiring the ten-fold disparity in import quota. Similar to other FTAs, the
A. Export of automotive parts from Taiwan is centered on the aftermarket,
ECFA is likely to see rules of origin being applicable. Moreover, the early
accounting for approximately 80% of total, whereas OEM volume is
harvest to be implemented ahead of the ECFA is likely to include a variety of
around 20%.
automotive-related products, such as small passenger cars and transmissions.
Hit by the financial crisis, parts export value in 2009 dropped 8.5%
By signing the ECFA with mainland China, Taiwan gets preferential
year-on-year to 139.7 billion TWD, yet the margin of decline was mild. The
access to the massive Chinese market, enabling it to extend the limits of
US, Taiwan’s biggest export destination for auto parts, accounted for 37.2%
its small domestic market. The Taiwan market can bring expansion to a
of total. Next came Japan on 6.8%, mainland China 4.1% and Germany
cross-strait common market, along with looking to step into the global
3.0%. Mainland China-bound export is not as high as Taiwanese companies
market. Moreover, the ECFA enables Taiwan to attract overseas
are making progress in gearing towards local production across the strait.
investment, and prevent an exodus offshore of its industry backbone. The
Automotive parts import value in 2009 of 60 billion TWD was down 4.1%
Taiwanese government sees the cross-strait economic agreement as
on 2008. Imports from Japan accounted for 56.2% of total, with a growth
chance to ‘form a bold Taiwan, strengthen ties on both sides of the strait,
rate of 5%, indicating a high dependence in Taiwan for parts manufactured in
and to foray onto the world stage.’ It is also looking to foster Taiwan as a
Japan. Of other countries, imports from mainland China accounted for
‘global innovation center,’ an ‘economic and trade hub for Asia and the
14.5%, Thailand 6.1%, Germany 5.0%, Korea 4.2% and the US 2.6%.
(Compiled by FOURIN)
plans to set quotas and include CBU
imports in the list of early harvest items.
While dates are still undecided, in the
future, it is more than likely that quotas
for automotive related items will be
incorporated into final agreements.
For this purpose, foreign automakers
looking to expand business in mainland
China and Taiwan will come under
pressure to redistribute business
resources in accordance with the
framework of a joint cross-strait
economy and review product strategies.
In June 2010, Wu Dunyi, chief of
Taiwan’s Executive Yuan, suggested
VW is considering investing 1 billion
TWD to set up a new plant in Taiwan.
Contemplating reentry into the Taiwan
market, VW would likely see conclusion
of the ECFA and setting up of a unit in
Taiwan as part of a new business
opportunity for its China operations.
Meanwhile,
mainland
China
automakers such as Geely and Chery are
looking to capture new demand in
Taiwan by beginning sales of low-cost
models (A segment) in the range of
400,000 TWD, more than 20% lower
than models of foreign automakers. In
Taiwan, where mainstream needs call
for C segment and larger sedans, a lack
of parking and a growing trend toward
purchasing a motorcycle as a second car
leaves uncertainty for the prospect of
sales of small, low-cost cars. With
Taiwan’s vehicle market matured to the
likes of developed countries, stepping
across the strait is likely to prove a key
test as prelude to entry into developed
markets such as in Europe and North
America.㩷㩷㩷㩷㩷㩷㩷㩷㩷㩷㩷
(Jincheng ZHOU)
Taiwanese Automotive Parts Manufacturers: Business Developments in Mainland China (Jun. 2009-Jun. 2010)
Manufacturer
Business Development
䊶Jun. 2009: Began construction of a wholly invested plant in Nanjing. To manufacture plastic bumpers and radiator grilles for the aftermarket.
-Initial investment of 9 million USD, with completion in February 2010. Slated for mass production to begin the following April. Becomes
Tong Yang’s first wholly-owned base in mainland China.
䍃Looks to acquire collective orders of plastic parts from Dongfeng Nissan and Dongfeng Honda.
䍃Localized Sales Expansion: Received orders for plastic parts from Chery, Hongqi and Hafei. In order to reduce transport costs, to set up a
production bases in the vicinity of customers.
Tong Yang
䊶May 2010: Announced plans to set up a joint automotive parts company in Guangzhou, Guangdong with FAW Group. With an increasing
Industry
number of automakers setting up plants in China’s south, Tong Yang aiming to expand business in mainland China by strengthening business
in the same region.
䊶2010 H1 sales revenues up 16.7% year-on-year to 4.64 billion TWD, supported by active new vehicle market in Taiwan and buoyant business
in mainland China.
-June sales of Changchun FAW Tong Yang Plastic, a joint venture set up with FAW Group, topped the 100 million CNY mark, posting a
record for single-month sales.
䊶In 2009, set up a drive shaft manufacturing plant in Wuhan, Hubei, with aims to begin operation during the year. Set up for annual production
Chie Shen
capacity to supply 250,000 vehicles, with adjoining press facilities.
Machinery
䊶Products supplied to Dongfeng Peugeot Citroën and independent brand passenger cars of Dongfeng. Forecasts annual sales of 230 million
CNY following start of full operation.
Kenda Rubber 䊶Apr. 2009: Brought on-stream a motorcycle tire production plant newly established in Tianjin through investment of 36 million USD.
Lioho Machine 䍃In 2008, investing 13.7 million USD, set up an automotive parts manufacturing plant in an economic development zone in Qingdao.
Works
Manufactures parts for precision machinery.㩷
䍃Increased Orders: Set up an automotive lamp fitting plant in Fuzhou, Fujian to keep pace with orders from Southeast Motor. Also received
Ta Yih
orders from Tianjin Toyota in 2004. From 2007, has been aiming to expand orders from Japanese automakers in mainland China through its
Industrial
ties with Koito Manufacturing.
䊶Nov. 2007: Began design of new products aimed at Japanese automakers.
䍃Increased Orders: Has received orders from SAIC, Haima, Dongfeng Peugeot Citroën, Chang’an Ford Mazda and Southeast Motor. Set up a
sheet metal plant in Shanghai in an aim to expand orders from SAIC, undertaking manufacturing of made-to-order dies.
Jui Li
䍃Profitability: Higher earnings from the Hainan plant supplying Haima Motor significantly contributed to solid consolidated results in FY2007.
Enterprise
In 2008, set up a joint sheet metal parts production plant in Kaifeng, Henan to keep pace with Haima Motor’s foray into Zhengzhou.
Investment of 100 million TWD. Set up for monthly production capacity to supply 5,000 vehicles.
䊶Jun. 2009: Increased daily production capacity for passenger car tires at the Kunshan plant from 45,000 units to 54,000 units.
Chen Shin Tire 䊶Dec. 2009: Announced plans to set up a new passenger car tire plant in Chongqing through investment of 1 billion TWD.
Industry
䊶By 2012, aiming for sales revenues of 317 million USD. For this purpose, during 2011 to invest a total of 1 million USD in Taiwan, China,
Thailand and Vietnam under plans to boost production capacity. Through the move, aims to expand share in the ASEAN market.
䊶Aug. 2009: Reached agreement with Taiwan Yulon Group affiliate HTC Corporation for joint development of electric vehicle (EV) batteries.
Aiming to enter the mainland China market.
Simplo
䊶Feb. 2010: Announced the set up of a joint company with mainland China IT parts maker China Potevio. New company to develop,
Technology
manufacture and sell EV-use battery modules and charging systems. Capitalized at 100 million CNY, with 48% shareholding by Simplo and
52% by Potevio. Slated to begin production in 2011. Aiming for sales of over 10 billion CNY in 2013.
䊶Jun. 2009: Increased its stake in the joint Changchun E-Chi Shi Huan Auto Lamps from 64.5% to 100%, making it a wholly-owned
subsidiary. Announced company name change to Tisheng Auto Lamp, and switch from OEM supply of automotive lamp fittings to
TYC Brother
aftermarket sales.
Industrial
䊶Mar. 2009: Boosted production of automotive HID lights at the Kunshan TYC Auto Lamp base in Jiangsu through increased investment of 5
million CNY.
䊶Jun. 2009: ALEEES (Advanced Lithium Electrochemistry) indicated the possibility of setting up a base in mainland China for production of
ALEEES
EV-use positive-electrode material (lithium iron phosphate.
䊶Oct. 2009: Entered into a basic agreement with Chinese company Gold Dragon Precise Copper Tube Group Inc. to jointly set up a production
plant in Xinxiang, Henan for the manufacture of EVs and EV-use battery modules. Investment of 5 billion CNY. Construction to start in 2010,
Pihsiang
beginning 300,000-unit annual EV production in 2012.
Machinery
䊶Dec. 2009: Entered into a strategic agreement with SAIC. Pihsiang to supply SAIC with lithium iron phosphate batteries and battery modules.
Manufacturing
For the future, suggested the possibility of setting up a joint plant in mainland China, with Pihsiang to supply technology, while SAIC to
provide financial backing.
Power Source
䊶Dec. 2009: Signed a MoU with Chinese EV maker Citic Guoan Mengguli to undertake joint development of EV-use batteries.
Energy
䊶Feb. 2010: Announced plans to set up an automotive glass manufacturing and sales company in Jiangsu jointly with Jiangsu Yueda Group.
Taiwan Glass
Capitalized at 30 million USD, with shareholding of 60% by the Taiwan Glass Group and 40% by Jiangsu Yueda. Aims to become
Industry
operational by the end of 2011. Slated for initial production capacity of 220,000 units annually. To supply the Cerato mid-size sedan of
Dongfeng Yueda-Kia.
䊶Jun. 2010: Reported that mass production at its joint ABS production base set up with Wabco in Shandong started in July, four months earlier
Actron
than initially scheduled.
Technology
-Apparently due to orders from Wabco increasing to double that of initial plans.
(Compiled using various media sources)
China-Taiwan Automotive Industry Policy Administration and Business Developments of Automakers
Manufacturer
Others
Taiwanese Automakers
Mainland China Automakers
China-Taiwan
Government
Automotive
Industry
Development
Cooperation
Business Development
䍃Nov. 2009: At a China-Taiwan automotive industry and cooperation conference held in Taipei, the Taiwan and mainland China
governments signed an MoU to promote joint development and exchange in the following three areas:
(1) Joint development of EV-use batteries; (2) Research exchange and strengthened cooperation for critical industry issues; (3) Exchange of
information, laws, regulations and testing technology.
䍃Nov. 2009: Signed a framework agreement with Yulon Motor regarding cooperation for CBU business. Tobe brand set up, becoming the
first joint passenger car business in Taiwan with an automaker from mainland China. Agreed to work together in areas from CBU
development through to production and sales, with products based on Geely models, while Yulon to carry out technical improvements and
supply added electronic features.
-Tobe is the second brand for Yulon, and is to be developed as an affordable brand of compact cars. Brand concept of Cool & Fun.
-Taiwan Business: In 2009, set up Yulon Tobe Motor Co., Ltd. (100% owned by Yulon Motor, capitalized at 20 million TWD) to
Geely
undertake sales of the Tobe brand. Invested 150 million TWD into the Tobe brand in 2009 to establish a local sales network.
䍃Sales Trends
-Dec. 2009: Began sales of the Tobe M’car in Vietnam. Local distribution by the Kylin Group.
-Jan. 2010: Began sales of the M’car in Taiwan. Priced at 400,000 TWD. Aims for monthly sales in 2010 of 500 units.
-As of Jun. 2010: Under negotiations to begin sales of Tobe brand models in the Philippines.
-2010 Q4: Slated to launch a compact RV in Taiwan based on the Geely GX2.
-2011 and after: Plans to begin sales of a Tobe EV model in mainland China. To be exported from the Sanyi plant in Taiwan.
䍃Jun. 2009: Announced that in collision tests conducted by Taiwan’s Automotive Research & Testing Center (ARTC), the A3 received a
five-star assessment for both frontal and side impact collisions. Chery emphasized that the A3 model used in the testing is exactly the
same as that sold in mainland China, with no modifications made (according to Chery’s PR manager on Jun. 1).
䊶Nov. 2009: Announce the set up of an EV R&D center in Taiwan.
䊶During 2010: Looking to begin production of a model based on the Chery QQ.
䍃May 2010: Hatchback versions of the A1 and A3 went on sale in Taiwan, sold as the Fresh and Apola respectively. In H2 2010, plans to
begin sales of the mini truck Awin, while in 2011, to sell the MV and X1 compact cars (no details released), and EV versions of the two
Chery
models.
-The Fresh (A1) 1.3L AMT on sale in Taiwan at 398,000 TWD (approx. 88,400 CNY); the Apola (A3) 2.0L AT priced at 568,000-598,000
TWD (approx.126,000-133,000 CNY). In mainland China, the A1 priced at 45,800-56,800 CNY, with the A3 hatchback (2.0L) at
90,800-100,800 CNY.
-Aims to procure 60% of parts for the A3 in Taiwan, with Chery expressing its intention to increase procurement of electronic control
parts from Taiwan in the future.
䊶Mainland China-based affiliate of Taiwanese electronics firm Foxconn ordered a total of 1,000 EV versions of the QQ3 and Riich M1.
䍃Nov. 2009: Reached agreement with Dongfeng to jointly develop medium and large electric buses. Plans to manufacture and sell medium
Dongfeng
and large buses with Dongfeng.
䍃Jun. 2009: Received orders for 75 hybrid buses from Taiwan Chengyun Automobile Company. According to announcement by Foton,
Foton
complies with Euro5 emission standards. No details on Taiwanese customer.
䊶Jun. 2010: Announced the XML6128 large luxury bus fitted with Taiwanese electronic technology at the 8th China Cross-Straits
Golden
Technology and Projects Fair.
Dragon
-Adopts the latest technology from Taiwan industries association including CAN BUS system, cruise control, TPMS, automatic lights,
wiper sensors, lane departure warning system, and warning system for side intrusion & rear-end collision.
䊶May 2010: Announced aims to sell the Florid and Cool Bear models in Taiwan.
Great Wall
-Mar. 2010: To export the Florid CVT and Cool Bear CVT to Taiwan, with plans to expand export sales following signing of the ECFA.
䊶Apr. 2010: Announced Taiwan’s Shengrong Auto to manufacture 3.5t commercial vehicles on consignment, with sales in Taiwan under
JAC
the JAC brand.
䊶Apr. 2010: Wu Dunyi, chief of Taiwan’s Executive Yuan, suggested Sinotruk to construct a plant in Taiwan with eyes on export to Europe
Sinotruk
and North America, however, Sinotruk denied the news.
䍃Nov. 2009: Received government approval for the Dongfeng Yulon Motor Co., Ltd. project, a 50-50 joint venture set up with Dongfeng
Motor. Capitalized at 1.55 billion CNY. Responsible for manufacturing and sales of Luxgen brand models in mainland China.
䊶2011 Q1: Aims to begin production of Luxgen models in mainland China. Plans to invest 465 million CNY to set up plant etc. Initially
aiming for annual production capacity of 120,000 units, with expansion to over 200,000 units in the future.
Yulon
䊶Dec. 2009: Suggested the possibility of exporting the Nissan Bluebird Sylphy to mainland China’s Dongfeng Nissan following signing of
ECFA.
Ref: Following the comprehensive partnership formed by Nissan and Dongfeng in 2002, Yulon handed over its share in the joint
Fengshen Motor production base in Guangzhou, withdrawing from passenger car production business in mainland China.
䍃1995: Jointly formed Southeast Motor, a passenger car production base, with Fujian Motor Industry. Also expanded into MPV assembly at
China
Southeast Motor on consignment from Chrysler.
Motor
䍃Non-automobile manufacturing business includes Sichuan Huali Hanwei Vehicle Maintenance and Jingde (Suzhou) Technology (aluminum
alloy, magnesium alloy).
䍃Bus Assembly: In Dec. 2008, announced the Sanyang King Long XMQ6858 medium bus to be manufactured in Taipei jointly with King Long
Sanyang
Bus. Also, plans to begin import of knocked-down medium bus parts to Taiwan from 25% shareholder King Long Bus. By 2010, aims to
capture a 20-25% share of Taiwan’s medium bus segment.
䍃A3 Assembly: Set up wholly-owned subsidiary, Shengrong Auto in 2009, securing consignment assembly and sales rights in Taiwan from
Chery. Plan to acquire Formosa Automobile’s Dadu plant in Taichung County, Taiwan and carry out assembly production.
Shengrong
䍃According to news reports, Shengrong Auto gained membership into the Taipei City Automobile Dealers Association, displaying passenger
cars of Chery at the Taipei motor show in December 2009.
VW
䊶Jun. 2010: Wu Dunyi, chief of Taiwan’s Executive Yuan, suggested VW is considering investing 1 billion TWD to set up a new plant in
Taiwan. With the removal of tariffs following signing of the ECFA, there is a possibility that local production in Taiwan to be structured
as a division of mainland China business.
-In 1989, VW set up Qingzhong jointly with the Qingfeng Group as a production and overseas export base for the T4 commercial van.
However, not being able to utilize the base and a business downturn saw the unit dissolved in 1997.
Enhances Self-development Capability Based on FAW
FAW Group
FAW Group Corporation (hereinafter
referred to as FAW Group) increased
annual development expenditure from 1.36
billion CNY in 2002 to 3.56 billion CNY in
2008 as it pushes ahead with building up
its own development business centered at
the FAW Technology Center. Already
investing 12.91 billion CNY between 2006
and 2010, FAW Group plans to inject a
further 19 billion CNY in development in
the five years from 2011 through to 2015.
Between 2011 and 2020, the group, along
with the likes of Dongfeng and CHANA,
are slated to obtain green vehicle subsidies
from the central government.
Established in 1995, FAW Technology
Center is the group’s base for core
development. By 2010, it comprised of
units in Changchun, Tianjin, Qingdao and
Wuxi, with total annual development
expenditure increasing from 450 million
CNY in 2005 to 1.58 billion CNY in 2009.
The center supplies independently
developed technologies to group affiliate
automakers including FAW Car and FAW
Xiali. In November 2009, FAW Group
expanded the center with addition of an
on-site doctoral engineering academy, in
order to boost development in areas such as
energy reduction, safety, automotive
electronic intelligent technology and
materials.
FAW Car primarily entrusts the center for
its independent development business such
as for the Hongqi brand. The automaker’s
development expenditure was increased
from some 180 million CNY in 2007 to
approximately 295 million CNY in 2009.
FAW Car developed a new Hongqi brand
model from 2006 through cooperation with
Austrian company Magna Steyr, while in
August 2008 announcement was made of
joint development on an upper grade
model. Beginning with medium and
executive grade models of the Hongqi
brand, both parties look to press ahead with
development of Hongqi brand models, with
FAW Car apparently to develop new
models based on existing ones and new
platforms based on the new models. Of
which, core power train assemblies are
being developed at the FAW Technology
Center.
FAW Xiali undertakes development of
basic cars and platforms based on
technology from Tianjin FAW Xiali
Product Development Center (established
FAW Group: Development Expenditure and Related Personnel by Base (2002-2008)
Base
FAW Group
FAW Car
FAW Xiali
㩷 FAW-VW
FAW
Toyota
FAW
Hongta
Item
Expenditure (mn CNY)
Personnel (persons)
Personnel (persons)
Personnel (persons)
Personnel (persons)
Personnel (persons)
Personnel (persons)
2002
1,355.59
2,594
N.A.
N.A.
N.A.
N.A.
474.00
318
4.71
96
2003
1,283.10
3,344
N.A.
N.A.
5.42
151
474.00
327
5.28
81
2004
1,283.10
3,344
N.A.
N.A.
1,3.17
347
114.03
328
9.56
123
2005
1,257.28
2,147
N.A.
N.A.
1,4.21
225
N.A.
N.A.
8.61
59
2006
2,500.93
2,254
N.A.
N.A.
4,0.17
309
1,279.00
329
5.72
57
2007
1,549.56
3,024
Approx. 180.0
N.A.
8,4.06
428
1,040.76
579
8.23
59
2008
3,558.39
3,269
Approx. 233.0
N.A.
5,8.10
457
735.81
544
13.68
55
(YOY Growth)
(129.6%)
(8.1%)
(29.4%)
N.A.
(▼30.89%)
(▼6.8%)
(▼29.3%)
(▼6%)
(66.2%)
(▼6.8%)
Note: Figures for FAW Car use data from the company’s annual reports. CATARC has no data recorded for FAW Toyota. Due to expansion, development expenditure may differ to actual figures.
(Compiled using data from CATARC and annual reports of FAW Car)
FAW Group: R&D Plans and Trends (2008 and After)
<Outline of Mid/Long-Term Technology Development Plan (2008-2020)>
(Jul. 2007 announcement)
䂹Target
䊶 To develop passenger car-related technology (6 items) including engines and turbo
technology, commercial vehicle technology (4 items) including large platform technology,
and other technology (4 items) including automotive electronics.
䊶During 2008-2015, to develop a full series of passenger car platforms, with development of
independent passenger cars (A00, A0, A, B, C, and D classes) based on four platforms.
䊶 By 2020, aims to build up competitiveness and superiority, acquiring independent
development function capable of supporting the entire group.
䂹Objective
䊶Pursues energy reduction, lower environmental impact, increased safety, durability and
comfort, and weight reduction.
䊶To strengthen own product development in response to market demand.
䊶 Importance on the three fields of product development, technology development and
manufacturing technology, split between 21 technology projects of the three fields and 229
items of core technology.
䊶Introduction of support policies, including investment, financing, management and fostering
personnel, implementation of promotion measures such as science and technology innovation
prizes, promotion of technical innovation, establishment of development systems,
strengthening efforts to make commercially-viable technology, set up a strategy for
intellectual property, and expand ties with academia and overseas automakers.
䊶Development Plan by Vehicle Type
-Passenger Cars: By 2015, develop 50 models on four platforms.
-Commercial Vehicles: By 2015, independently develop 20 different products on five
platforms in the three segments of med/heavy, light and mini.
䂹Development Expenditure
䊶2008-2015: To invest approx. 13 billion CNY (over 3% of own-brand product revenues) into
independent development and technology innovation.
-Product development expenditure of approx. 8.8 billion CNY, with approx. 1.7 billion CNY
for development of 229 technology items.
-R&D facilities (software, hardware) expenditure of approx. 2.5 billion CNY.
<Development Trends (2008-2010)>
䂹Current Development
䊶Sep. 2008: Announced joint development for successor models of the Hongqi brand with
Austrian automotive design, engineering and manufacturing company Magna Steyr. Both
parties began development for Hongqi from 2006.
䊶Sep. 2009: Development facilities in Changchun, Tianjin, Wuxi and Qingdao, acquiring
technologies including product and development, fundamental, and manufacturing.
䂹Results
䊶By Apr. 2010 undertaking road testing of 16 electric-gasoline hybrid buses in Dalian, and 50
gas-electric hybrid buses in Changchun, along with undertaking product development of both
hybrid and electric passenger cars.
䊶2009: Received high acclaim for the Hongqi brand troop inspection vehicle, while the Jiefang
J6 heavy tractor unit and diesel engine awarded the China Automotive Industry Science and
Technology Prize.
䊶2008: Market launch of the Besturn and Weizhi 09 versions, the Xiali N3, and State-3
compliant med/heavy trucks CA6371 and L501. In May, road testing of six hybrid versions
of the Besturn and 12 hybrid buses was carried out in Beijing.
䂹Industry/Academia/Research
䊶Jul. 2009: Signed a comprehensive cooperation agreement with Jilin University. FAW
president Xu Jianyi and head of Jilin University Zhan Tao in charge of the tie-up.
Cooperation committee to be set up comprising of teams of engineers and researchers from
both parties, with joint cooperation in fields such as fostering and utilizing personnel, and
technology development and utilization. Set up to automobile and auto parts research units,
and looks to promote cooperation in the fields of green vehicles and automotive electronic
control systems technology.
䂹Green Vehicle Development
䊶 Mar. 2010: At a meeting of China’s top ten automakers, submitted initiatives for
low-/new-energy vehicle development strategy along with the likes of Dongfeng and SAIC.
Of which, set development expenditure in and after 2010 at 3% or more of sales revenues.
<Own Brand Strategy (2011-2015)>
(Apr. 2010 announcement)
䂹Strengthening R&D
䊶Focusing on durability and environmental impact, to develop electronic and materials
technology related to safety, and energy and emission reduction.
䊶To boost competitiveness of own brand products in segments including passenger cars,
med/heavy trucks, small vehicles, utility vehicles and buses.
䊶Additional development investment of 19 billion CNY over during 2011-2015
-10th Five-year Plan (2001-2005) allocated 7.5 billion CNY.
-11th Five-year Plan (2006-2010) allocated 12.9 billion CNY (budget of 13 billion CNY).
䂹Development Plan by Vehicle Type
䊶Commercial Vehicles: To develop technology in the five fields of energy reduction, reduced
emissions, durability, AMT and materials.
䊶Passenger Cars: To develop technology in the five fields of energy reduction, DCT, chassis,
safety and automotive electronics.
䊶In terms of new-energy vehicle technology, FAW Group attached importance on development
of reduced low-/new-energy vehicles. In Oct. 2010, to launch a limited quantity of plug-in
hybrid and electric vehicles, with formation of a manufacturing, sales and after sales service
system for electric vehicles in 2012.
(Compiled using PR materials of FAW and various media sources)
Technical Center; Advances Tie-ups in Various Fields
Vehicle Makers㩷
May 1978) and Tianjin FAW Automotive
Research Institute (September 2008), with
supplementary technology from the FAW
Technology Center. To meet the increase in
independent development business, the
automaker raised its development
expenditure from 5.42 million CNY in
2003 to 58.1 million CNY in 2008.
Meanwhile, FAW Haima has been
strengthening its own development
business via Haikou Technology Company
(established in 2000) and Haima
Automotive R&D Institute (February
2007).
On the other hand, FAW Toyota, which
previously introduced technology from
Toyota, had not built up its own local
development
business.
Nonetheless,
looking to improve in areas such as energy
reduction, emissions and safety, in July
2010 the company opened the Tianjin FAW
Toyota Technology R&D Center where it
plans to supply technology for existing
models, facelifts, local development of
parts, promotion of new-energy business,
and vehicle testing. In line with the new
center beginning operation, Tianjin FAW
Toyota is expecting an increase in
introduction of technology from Toyota.
FAW-VW operates as a production and
R&D base, in cooperation with Magna
Steyr beginning in 2004. In April 2008,
announcement was made regarding joint
development of the new Baolai truck.
Moreover, the unit set up a design center in
April 2006.
Since 2009, the group has been
accelerating its development strategy of
strengthening ties between industry,
academia and research, such as with
Tsinghua and Jilin universities. Of which,
FAW Group signed a comprehensive
cooperation
agreement
with
Jilin
University in July 2009 which looks to
promote joint development in the fields of
manufacturing green vehicles and
technology for automotive electronic
control systems. Furthermore, Qiming
(Beijing) Research Institute was set up in
July 2010 making use of resources at
Tsinghua University in the aim to develop
core
technology
for
automotive
electronics. In the coming years, FAW
Group is likely to increase its
development function based on industry,
academia and research relationships.
㩷㩷㩷㩷㩷㩷㩷㩷
㩷 (Jing PING)
FAW Group: Outline of Main Subsidiary Development Bases
■CBU Development Business■
<FAW Technology Center> (Base for core development)
䂹Outline
䊶Establishment: 1995
䊶Fixed Asset: 1.66 billion CNY
䊶Location: Changchun, Jilin
䊶Site/Building Area: 355,000m²/130,800m²
䊶Employees: 2,080 (of which, 49 with PhD and 224 with Masters degrees)
䊶Aim: To lift the ratio of independently developed models to own-brand sales
revenues above 5%.
䂹Subsidiary Bases
䊶Prototype Base
-Site Area: Over 20,000m², with prototype plants for trucks, buses, cars, etc.
-Consists of four plants with processing capacity for 3,000 vehicles, including
machining, system parts assembly and sheet metal.
䊶Collision Testing Unit
-Set up in Nov. 2005, offering collision testing for automakers.
䊶Hainan Automobile Testing Ground
-Set up in 1958 in Qionghai, Hainan. Test facilities cover 21,000m².
-High-speed 6,040m course with straights and curves, as well as a 10km course
consisting of 16 different curves.
䊶Nong’an Automobile Testing Ground
- Location: Changchun, Jilin
-Business Activities: Testing of CBU and assemblies developed by FAW, testing of
main products and imports of various domestic automakers.
-Facilities: Covering an area of 960,000m², includes a high-speed 4,000m oval test
course (3 lanes) designed for speeds of 160km/h (max. speed of 200km/h), an
8,436m certification course enabling testing of 18 different road conditions, a
2,437m general course, a course for testing driving on four different types of slopes
(8%, 12%, 20%,29%). Also includes China’s only cross-wind testing facility.
䊶FAW Doctoral Engineering Academy
-Establishment: Nov. 2009
-Location: Changchun, Jilin (within FAW Technology Center site)
-Main Development Activities: Energy reduction (3 projects), safety (1 project),
automotive electronic intelligent technology (1 project), materials (2 projects).
-Reference: Annual development budget of 1 million CNY per academy member
given to promote cooperation ties overseas and accelerate new technology.
䂹Development Expenditure (2005-2009)
Item
Expenditure (Mn CNY)
(Growth YOY)
2005
4.5
N.A.
2006
7.2
(60.0%)
2007
N.A.
N.A.
2008
9.8
N.A.
2009
15.8
(61.2%)
(Compiled from details of announcement by Chang Lijun, head of the FAW Technology
Center and Changchun Automotive R&D Institute, in Jun. 2009)
<Tianjin FAW Xiali Product Development Center>
䊶Establishment: May 1978 (formerly Tianjin Car Research Institute)
䊶Location: Tianjin. Site/Building Area: 40,100m²/19,400m²
䊶Main Business: Design, development and testing of basic cars, mini vehicles, light
vehicles and parts.
䊶Target: To launch at least one model per year during 2006-2010.
䊶Reference: National level business technology center and own development base for
FAW’s independent brand basic cars.
<Tianjin FAW Automotive Research Institute>
䍃Establishment: Sep. 2008. Location: Tianjin Development Zone
䍃Investment: 500 million CNY by Tianjin FAW Xiali
䍃Site Area: Approx. 117,000m²
䍃Main Business: Passenger car, power train assembly and platform research.
< Development Base of FAW Haima >
䊶Haikou Technology Company (formerly Haima Technology Division formed in
1991)
-Establishment: 2000
-Location: Haikou, Hainan
䊶Haima Automotive R&D Institute
-Establishment: Feb. 2007
-Formerly Shanghai Research & Development Center.
<Tianjin FAW Toyota Technology R&D Center>
䊶Establishment: Aug. 2008 (Jun. 2009), with operation from Jul. 2010.
䊶Site Area: 7,500m²
䊶Location: Tianjin Development Zone (within Tianjin FAW Toyota base site)
䊶Shareholding: Tianjin FAW Toyota 100%
䊶Facilities: Design workshop, vehicle test room, experiment lab, prototype factory,
etc.
䊶Main Business: Technology supply for existing models, facelifts, local development
of parts, promotion of new-energy business, vehicle testing, etc.
䊶Reference: Over 100 employees (aims to increase to 200)
<FAW-VW Design Center>
䊶Establishment: Apr. 2006
䊶Division in Charge: FAW Dazhong Industrial Engineering Division
<FAW Qingdao Automotive R&D>
䊶Establishment: Dec. 2007
䊶Main Business: R&D and technical/consultancy service for mini and light vehicles.
■Automotive Parts Development/Vehicle Design■
<Changchun Auto Industry Development Zone Design and Research Institute>
䊶Establishment: Jan. 2006
䍃Location: Changchun, Jilin
<Tianjin FAW-STMicroelectronics Joint Automotive Application Laboratory>
䊶Establishment: Feb. 2008
䊶Location: Tianjin. Shareholding: Tianjin FAW Xiali, STMicroelectronics
䊶Reference: By 2010 or 2011, to adopt automotive electronic semiconductor device in
Tianjin FAW Xiali models.
<Chengdu Qiming Chunrong Information Technology>
䊶Establishment: Dec. 2009. Location: Chengdu, Sichuan
䊶Shareholding: Qiming Information Technology100%
䊶Reference: Through set up of the base, Qiming Information Technology aims to
expand into China’s southwest.
<FAW Tianqi Harbin University of Science and Technology Research Center>
䊶Establishment: Jun. 2010. Location: Changchun, Jilin
䊶Shareholding: FAW Tianqi (FAW subsidiary), Harbin University of Science &
Technology
䊶Main Business: Development of tool technology etc. for FAW.
<Qiming (Beijing) Research Institute>
䊶Establishment: Jul. 2010. Location: Tsinghua University Technology Park, Beijing
䊶Shareholding: Qiming Information Technology 100%
䊶Main Business: Based on resources of Tsinghua University, R&D of core technology
for automotive electronics.
䊶Reference: Qiming Information Technology was set up in 2000. A publicly-listed
company of the FAW Group (listed May 2008 on the Shenzhen Stock Exchange), the
institute is China’s only specialized manufacturer developing and producing automotive
software and automotive electronic products. With support from the government,
corporate and academia, FAW set up the base through consolidation of its automotive
electronic technology and development functions, thus expanding development business
into the automotive electronics industry.
(Compiled using FAW Group PR materials)
Firmly
Maintains
Overseas
Expansion
Strategy
Brilliance Auto
Regardless of safety issues in
Germany,* Huachen Automotive Group
Holdings Co., Ltd., the majority
shareholder of Hong Kong-listed
Brilliance China Automotive Holdings
Limited (Brilliance Auto), revealed in
April 2010 that it aims to continue its
“3+1” foreign business strategy (3 stands
for Europe, Russia and the US and 1
represents other markets including the
Middle East) which was introduced in
2003. The company aims to export
50,000 complete vehicles in 2010.
In 2003, Brilliance Auto announced its
overseas business strategy with Europe,
Russia, the US and other markets, which
includes the Middle East, at its core. In
October of the same year, Brilliance
Auto established its foreign business
department, making a full-scale entry
into
foreign
markets.
Regarding
operation, the company simultaneously
pursues export sales and overseas CKD
assembly. The company increased the
number of foreign sales partners from 38
in April 2007 to 83 in January 2009.
Brilliance Auto operates four plants
around the world, two in Egypt, one in
Vietnam and one in North Korea and is
apparently building another four at
various locations. In order to enhance
exports and improve overseas brand
awareness,
Brilliance
Auto
has
established an international sales
company based on its former overseas
business department and actively
displays Zhonghua brand passenger cars
at major global motor shows in Paris,
Detroit and other locations.
However, in June 2007 and March
2009, the Zhonghua Zunchi (BS6 in
Europe) and the Zhonghua Junjie (BS4)
received one star and zero star
respectively – out of the possible five
stars – on Euro NCAP’s collision test
which was administered by the German
Automobile Association (abbreviated as
ADAC in German). As a result, sales
were dull in Europe, which was one of
Brilliance Auto’s strategic markets, due
to safety concerns. According to JATO
Dynamics, a UK-based market research
firm, Brilliance Auto sold a total of 502
Zhonghua passenger cars in Europe
Brilliance Auto: Outline of Overseas Operation
<General Strategy>
䍃2010 export target: 50,000 units of which Zhonghua cars 12,000 units,
Jinbei Haishi small buses 18,000 units, Jinbei light-duty trucks 15,000
units and Jinbei SUVs and pickups 5,000 units (Announced by Brilliance
Automobile International Trading Corporation president Yang Yongjing in
Apr. 2010). 2009 export result: approx. 20,000 units (up 147.9%
year-on-year).
䍃 Export strategy: Firmly maintains its export strategy called “3+1”
(Europe/Russia/US + Rest of world which includes the Middle East)
through Brilliance Automobile International Trading Corporation
(Announced by Huachen Automotive Group chairman and president Qi
Yumin in Jun. 2010).
<Overseas Operation History and Trends>
䍃Beg. of 2003: Set up its overseas strategy called “3+1.”
䍃Oct. 2003: Established an overseas business department. Includes a CKD
work team which is responsible for SKD and CKD exports.
䍃Aug. 2004: Revealed its overseas market strategy of making the Zhonghua
and Jinbei brands the core of overseas operation. Set the Middle East and
Europe its primary targets.
-As part of its strategy, Brilliance signed a memorandum of understanding
on cooperation with Israel’s G.M.V. Group
䍃Dec. 2004: Officially signed a cooperation agreement with G.M.V. Group.
-G.M.V. Group is responsible for sales of Zhonghua cars and Jinbei Buses
in the Middle East, Russia and Central and South America.
䍃Dec. 2004: Exported 20 Zhonghua cars to Kuwait.
䍃Apr. 2005: Set up its first overseas assembly plant in cooperation with
Bavarian Auto Group in Egypt to produce Zhonghua cars.
䍃Dec. 2005: Exported134 Jinbei Haishi buses to Cuba and 120 units to
Nigeria.
䍃Nov. 2006: Concluded a contract with German logistics company HSO
Motors Europe on export sales of 158,000 units of Zhonghua cars in five
years.
䍃Feb. 2007: Concluded an agreement with South Korea’s Pyeonghwa
Motors to set up an assembly plant in North Korea. Aims to sell 12,000
Jinbei Haishi buses in North Korea in five years.
䍃Mar. 2007: Agreed with a Russian trading company to export 80,000
Jinbei Haishi buses to Russia in the next five years for the Russian
government and regional traffic and health departments.
䍃Apr. 2007: The number of overseas trading partners reached 38.
䍃Sep. 2007: Exhibited the Zhonghua Zunchi, Junjie, Coupe and Junjie FRV
at the Frankfurt motor show.
䍃 Apr. 2008: Established Brilliance Automobile International Trading
Corporation to boost overseas operation.
䍃Oct. 2008: Exhibited the Zhonghua Zunchi, Junjie, Coupe and Junjie FRV
at the Paris motor show.
䍃Jan. 2009: Exhibited at the Detroit motor show. The number of overseas
trading partners reached 83.
䍃Mar. 2009: Exhibited the Zhonghua Junjie Wagon and other car products
at the Geneva motor show.
䍃 Oct. 2009: Signed a strategic cooperation agreement with The
China-Africa Development Fund (CADFund) and Bavarian Auto Group
(BAG) to set up a joint venture in Egypt.
-Investment: Brilliance and CADFund 45 million USD, BAG 30 million
USD.
-Outline: Establishment of Brilliance Egypt Automobile Manufacturing
Co., Ltd. and Brilliance Egypt Automobile Sales Co., Ltd. in the Suez
Economic Zone to manufacture and sell Zhonghua brand cars and Jinbei
brand small buses.
-Chinese side will purchase an 80,000m² land (first phase) to build
production lines for Zhonghua brand cars and Jinbei brand small buses.
Production was scheduled to start in Jan. 2010 and end in Jun. 2011.
After going on stream, the plant is intended to manufacture Zhonghua
Zunchi and Junjie cars and Jinbei Haishi small buses with annual
production capacity of 20,000 units.
䍃Apr. 2010: Concluded agreements for the exportation of approx. 3,000
vehicles to Africa, the Middle East and Central and South America at the
Beijing motor show. Also signed sales representative deals.
䍃Jun. 2010: Exported 600 right-hand-drive Jinbei Haishi buses to South
Africa.
䍃Jun. 2010: Commenced construction of the second plant of Brilliance
BMW at the Shenyang Economic and Technological Development Zone.
Production models are planned to be supplied to the domestic as well as to
foreign markets.
-Plans to manufacture BMW’s X1 SUV and the stretched version of the 3
series. Production of the 1 series is under consideration.
䍃Jun. 2010: Signed a joint venture agreement with CADFund in Shenyang.
-Outline: Establishment of China-Africa Brilliance Investment Co., Ltd.
which will be in charge of vehicle related investment and operation in
Africa, such as manufacture and sales of Zhonghua and Jinbei brand
vehicles.
-After the venture commences operation, it plans to boost share of the
Zhonghua and Jinbei brands in Egypt and other African markets by
expanding investment in Africa, especially in Egypt’s automotive
industry (production, R&D, design, supply, sales, after-sales service,
etc.). Brilliance Auto’s overseas business operation will be changed from
the current consignment production/sales representative style to the new
method.
<Distribution of Global Sales and Assembly Locations>
Sales tie-up
Assembly
Assembly in prep.
Kuwait
Germany
Canada
USA
Russia
Netherlands
Cuba
Syria
Iran
Iraq
Egypt
Brazil
Colombia
Nigeria
N. Korea
S. Korea
Vietnam
Malaysia
Angola
S. Africa
Despite Failure in Europe; Enhances Operation in Africa
Vehicle Makers㩷
In June 2010, Brilliance Auto signed a
joint venture agreement with CADFund in
Shenyang. The
two
established
China-Africa Brilliance Investment Co.,
Ltd. which will be in charge of vehicle
related investment and operation in
Africa, such as manufacture and sales of
Zhonghua and Jinbei brand vehicles.
Looking at these developments, it seems
that Brilliance Auto is turning its focus
from uncertain European business
operation to Africa which produces stable
growth. (Yan WANG)
Africa, Egypt and other parts of Africa
and the Middle East. The company
concluded agreements for the exportation
of approximately 3,000 vehicles to
Africa, the Middle East and Central and
South America in April 2010 and
exported 600 right-hand-drive Jinbei
Haishi buses to South Africa in June
2010. In October 2009, Brilliance Auto
signed a strategic cooperation agreement
with The China-Africa Development
Fund (CADFund) and Bavarian Auto
Group (BAG) to set up a joint venture
plant in Egypt to manufacture Zhonghua
brand cars and Jinbei brand small buses,
boosting
the
company’s
annual
production capacity in Egypt from 10,000
units to 30,000 units.
between 2007 and 2009. Additionally,
sales in Europe were suspended after
HSO Motors Europe, Brilliance Auto’s
regional sales representative, went
bankrupt in November 2009. In April
2010, Brilliance Auto’s listed subsidiary
Shanghai Shenhua Holdings Co., Ltd.
established Shenhua Europe GmbH to
take over sales and after-sales service
responsibilities in Europe from the
bankrupt HSO Motors Europe. However,
as long as the company does not comply
with local emission and safety regulations
and does not improve quality, Brilliance
Auto will face the same problems.
In contrast to its setback in Europe and
other advanced markets, Brilliance Auto
is seeing brisk export trend in South
*In June 2007 and March 2009, the Zhonghua Zunchi (BS6 in
Europe) and the Zhonghua Junjie (BS4) received one star and
zero star respectively – out of the possible five stars – on Euro
NCAP’s collision test which was administered by the German
Automobile Association.
Brilliance Auto: Collapse of Business in Germany
䍃Nov. 2006: Concluded a contract with German logistics company HSO Motors
Europe on export sales of 158,000 units of Zhonghua cars in five years.
-Out of the 158,000 units, the deal outlines the exportation of 3,000 units in
2006, 15,000 units in 2007, 20,000 units in 2008, 30,000 units in 2009,
40,000 units in 2010 and 50,000 units in 2011. Exports of the 3,000 units in
2006 were planned to primarily go to Germany and the 15,000 units in 2007
to eight European countries namely Germany, Belgium, the Netherlands,
Luxembourg, Austria, Switzerland, Poland and Liechtenstein. Export between
2007 and 2011 were planned to go to 22 European countries.
㨯Jun. 2007: The Zhonghua Zunchi (BS6 in Europe) received one star – out of the
possible five stars – on Euro NCAP’s collision test which was administered by
the German Automobile Association (abbreviated as ADAC in German).
-Based on the results, ADAC strongly expressed that sales by Brilliance Auto
should be banned in Germany.
-Apparently based on the same results, Brilliance Auto’s sales representative in
Belgium ended sales of the BS6.
㨯Mar. 2009: The Zhonghua Junjie (BS4 in Europe) received zero star on Euro
NCAP’s collision test which was administered by ADAC, due to problems with
active safety technology. Brilliance Auto refused the result saying that the tested
model was exported to Europe in Aug. 2008, but Euro NCAP’s new active
safety technology was introduced in Feb. 2009.
㨯Nov. 2009: Exports to Europe were suspended after HSO Motors Europe went
bankrupt.
㨯Apr. 2010: Brilliance Auto’s listed subsidiary Shanghai Shenhua Holdings Co.,
Ltd. established Shenhua Europe GmbHin Ginsheim, Germany. The company
took over sales and after-sales service responsibilities in Europe from the
bankrupt HSO Motors Europe
Brilliance Auto: Outline of Overseas Production Bases (As of Aug. 2010)
Country
Plant
Location
Tieup Date
No. 1 plant
Cairo’s
west side
Apr. 2005
Zhonghua Zunchi (May 2006)
Bavarian Auto Zhonghua Junjie (Nov. 2007)
Zhonghua Junjie FRV (Oct.
Group
2008)
10,000 units
(two shifts)
No. 2 plant
Suez Economic
Zone
Oct. 2009
Bavarian Auto Zhonghua brand cars,
Group
Jinbei Haishi series
20,000 units
Vietnam
CKD plant
Hanoi
Beg. of
2005
Xuan Kien
Automobile
Jinbei light-duty trucks
North
Korea
CKD plant
Nampo
Feb. 2007
Pyeonghwa
Motors
Jinbei Haishi
CKD plant
CKD plant
CKD plant
CKD plant
CKD plant
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
Egypt
Malaysia
Russia
Iran
Brazil
Partner
Products
APC
Notes
䊶Consignment production
䊶Site area: 39,000m²
䊶Total investment: 32 million EUR
䊶Employees: 486 (Egyptian only)
䊶Local procurement rate: 45%
䊶Sales in YTD Sep. 2009 were 3,305 units.
䊶End of 2005: Launched three models of light-duty trucks
with load capacity ranging between 0.86t-3.5t.
䊶Cooperation period is five years between 2007 and 2012.
Sales target is 12,000 units.
䊶Under preparation
15 units
N.A.
Jinbei Haishi
Zhonghua brand cars
Jinbei Haishi
2,000 units
50,000 units
2,000 units
10,000 units
8,000 units
Brilliance Auto: Export by Domestic Production Base (2005-2008)
Production Base
Products
Jinbei light duty trucks
CKD kits of Jinbei light duty trucks
Shenyang Jinbei Automotive Industry Co., Ltd.
Jinbei small buses
Radiators, wheels, seats
Small buses
Zhonghua passenger cars
Shenyang Jinbei Automotive Co., Ltd.
Light-duty trucks and their chassis
(SH600609)
Propeller shaft forks
Aluminum alloy wheels
Zhonghua passenger cars
Shenyang Brilliance Jinbei Automobile Co., Ltd.
Haishi buses
Shenyang Jinbei Vehicle Manufacturing Co., Ltd. Light-duty trucks and their chassis
Window lifters
Shenyang Jinbei Guangzhen Auto Parts Co., Ltd.
Cable assemblies
Shenyang Durui Wheel Hub Co., Ltd.
Aluminum alloy wheels
2005
Volume
1,430
878
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
101,941
2006
Value
6.57
4.96
N.A.
3.64
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
6.70
Volume
2,842
N.A.
1,011
1,419
1,073
4,011
131,291
114,981
N.A.
N.A.
4,011
190,290
2,294,790
114,981
(Volume in units; value in million USD)
2007
Value
12.80
N.A.
6.30
8.25
17.10
3.85
18.16
0.39
6.28
N.A.
N.A.
18.16
2.41
0.50
6.28
Volume
N.A.
N.A.
N.A.
N.A.
4,820
2,983
7,006
N.A.
N.A.
2,983
4,820
N.A.
207,784
N.A.
64,709
2008
Value
N.A.
N.A.
N.A.
N.A.
30.52
18.25
32.84
N.A.
N.A.
18.25
30.52
N.A.
3.62
N.A.
2.71
Volume
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
101,651
Value
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
2.44
Principal Export Destination
Vietnam, Kuwait, Syria, etc.
Vietnam
Syria, Egypt
USA, Netherlands, Canada
Syria, Nigeria, Egypt, etc.
Egypt, Germany, Syria, etc.
Vietnam, Syria
Colombia
USA
Germany, Syria, etc.
Nigeria, Egypt, etc.
Vietnam, Syria, etc.
USA, Germany
USA, S. Korea, Germany
Aims for 150,000-unit Green Vehicle Production
BAIC
Beijing Automotive Industry Holding
Company Limited’s (BAIC) green vehicle
business to date had developed around
Eaton technology-based hybrid bus
business of subsidiary Beiqi Foton Motor
Co., Ltd. a major commercial vehicle
maker. However, since the second half of
2009, BAIC has been looking to expand
and strengthen its green vehicle business to
also include passenger cars, commercial
vehicles and core parts.
As a medium and long-term target for
green vehicle business, in 2015 BAIC is
aiming to manufacture 150,000 such CBU
and core parts for 320,000 vehicles,
accounting for 5-10% or 15 billion CNY of
the automaker’s total revenues. Moreover,
looking to promote development of new
products, 3.78 billion CNY is slated for
investment into green vehicles by 2013, of
which 1.5 billion CNY to be injected into
green commercial vehicles, 1.7 billion
CNY for passenger cars, and 580 million
CNY for core parts.
To strengthen its green passenger car
business, Beijing Automotive New Energy
Vehicle Co., Ltd. was formed in November
2009. The new unit primarily undertakes
development of electric and hybrid
passenger cars based on BAIC’s own
A0-class platform and a Saab platform
acquired in 2009, with plans to promote the
group’s new-energy vehicle business in
conjunction with commercial vehicle
platforms of Beiqi Foton.
Along with the plans, announcements of
electric versions of BAIC’s complete
vehicles, including passenger cars, buses
and trucks, have gained speed since the
second half of 2009.
In terms of green passenger car products,
Beiqi Foton’s own-brand Midi EV was
unveiled at the Guangzhou motor show in
November 2009. In 2010, 500 units of the
model are to go on sale in Beijing targeting
the taxi market, with plans to begin mass
production within the year. Elsewhere, at
the Beijing motor show in April 2010,
BAIC debuted the C71, C701 and C30
models as concept electric vehicles, yet has
given no details of market launch dates.
BAIC: Green Passenger Car Business Strategy
<Public Listing Plan>
䊶Local news media in Jul. 2010 reported that BAIC plans to set up an
incorporated company by consolidating the BAIC passenger car division, its
Beijing R&D institute, and power train, new-energy and investment
management divisions, following which looks to go public on the stock
exchange.
-The plan also aims to foster core competitiveness of passenger cars, along
with new-energy vehicles.
<Beijing Automotive New Energy Vehicle Co., Ltd.>
䊶Nov. 2009: BAIC set up the 100% owned Beijing Automotive New Energy
Vehicle Co., Ltd. Responsible for technology development of new-energy
vehicles of the Beijing Automotive Group.
䊶Investment Plan:
-By 2013, slated to invest 3.78 billion CNY for development of new-energy
vehicles.
-Of which, 1.5 billion CNY for commercial vehicles, 1.7 billion CNY for
passenger cars, and 580 million CNY for core parts.
䊶Mid-term Target:
-To foster China’s biggest new-energy vehicle R&D and production base.
While gaining core technology, to establish a complete industry chain. In
2010, aims to make commercially-viable battery products.
䊶Product Development:
(1) To include own-brand new-energy passenger car and core parts business.
(2) CBU business to center on electric and hybrid passengers.
(3) To be based on the BAIC-developed A0 class platform and a Saab
passenger car platform purchased in 2009.
(4) Core parts development to include that for CBU controllers and
electronic drive systems.
䊶Sales Target:
-In 2011, aims for sales of 20,000-40,000 various new-energy vehicles.
-In 2015, aims for sales revenues of 15 billion CNY, accounting for 5-15%
of total sales of the Beijing Automotive Group.
-In 2015, aims to manufacture 150,000 new-energy vehicles, and core parts
for 320,000 vehicles.
<Product Announcements>
䊶At the Beijing motor show in 2010, announced the C71, C701 and C30
models as electric-powered concept vehicles.
-C71 developed based on the Saab 95 platform.
(Compiled using company PR materials and various media publications)
BAIC: Outline of Green Vehicles
Type
Model
Electric Bus
Hybrid Bus
Electric Truck
C30 EV
Electric Passenger Car
Midi EV
BJ6123C6B4D
BJ6113C7M4D
N.A.
Photo
Production Base
BAW
Foton Motors
Foton Motors
Foton Motors
Foton Motors
Initial Launch/Start of
sales
Apr. 2010
Nov. 2009
Apr. 2010
N.A.
Sep. 2009
L×W×H
4,038×1,720×3,050/
1,500mm
4,338×1,725×1,768mm
11,850×2,540×3,300mm
11,400×2,540×3,150mm
5,310×1,995×2,225mm
Wheelbase
2,500mm
N.A.
5,800mm
5,650mm
3,360mm
Top Speed
160km
N.A.
80km
80km
-
Engine
-
-
-
ISBE22031 (Cummins)
-
Displacement
-
-
-
5,883cc
-
Battery
N.A.
Lithium-ion (total capacity
24kW; fitted in trunk)
Lithium-ion (supplied by
Citic Guoan MGL)
IMC6-48 lithium-ion
(supplied by US company Iron phosphate lithium-ion
Eaton)
Motor
47kW, 82Nm motor
80kW, 280Nm motor
100kW JD132A drive
motor (supplied by CSR
Zhuzou Institute)
44䌫W A-7811 permanent
magnetic
110kW BOMM060/110-I
permanent magnetic
Controller
N.A.
N.A.
TGN14 (supplied by CSR
Zhuzou Institute)
-
BOMK060/110-1
Per Charge Distance
200km
150-200km
N.A.
-
200km
Scale by 2015; Rapid Development of New Products
Vehicle Makers㩷
Meanwhile, with regard to the launch of
new green commercial vehicle products,
Beiqi Foton announced an electric version
of the Aumark light duty truck in
September 2009. However, so far the
model has only seen use as a sanitation
vehicle, with the first 24 units going into
operation in Beijing. Furthermore, 50 units
of the BJ6123C6B4D electric-powered
fixed-route bus which was developed in
cooperation with Beijing Institute of
Technology and Beijing Public Transport
Group and officially unveiled at the
Beijing motor show in April 2010 were
delivered to Beijing Public Transport
Group at the end of 2009.
In the domain of medium and low
speed, short distance electric vehicles,
BAIC took a 50% stake in a joint venture
formed in April 2010 with two Korean
companies, electric vehicle maker CT&T
and SK Energy, for the manufacture and
sale of electric vehicles. During 2010, the
new company is to invest approximately
600 million CNY, with plans to set up a
50,000-unit annual production capacity
CBU plant in Miyun, Beijing. Initially,
knocked-down electric vehicle parts are to
be imported from CT&T, to be assembled
for use as city sanitation vehicles. In the
future, the company looks to localize
production in China. Lithium-ion batteries
for the vehicles are planned to be
procured from SK Energy.
Elsewhere, in efforts to expand
production capacity, in May 2010 Beiqi
Foton began work on a 550 million CNY
technology upgrade project at its Nanhai
medium and large new-energy bus plant.
In June 2010, construction of Beiqi Foton
Weifang Vehicle Factory got underway.
The new facility looks to build up
capacity to 100,000 units by 2011,
doubling the figure to 200,000 units in
2013, which apparently includes 90,000
units slated for green vehicles. In the
coming years, large-scale investment by
BAIC is likely to draw attention to its
development of new products and trends
towards bringing out commercially viable
products.㩷㩷㩷㩷㩷㩷㩷㩷㩷㩷㩷 (Huifang ZHANG)
Beiqi Foton Motor: Green Commercial Vehicle Business Developments
Area
Details
䊶Dec. 2008: Built at the company’s hybrid bus plant, inaugurated the Beijing New Energy Vehicle Design and Manufacturing Industry Base.
-Site covers 667,000m², with total investment of 5 billion CNY. Plans to set up annual capacity to produce 5,000 green vehicles, including
hybrid buses, and 400,000 low-energy engines.
䊶Aug. 2009: Completed construction for the green vehicle design and manufacturing base, Beijing New Energy Vehicle Engineering and Design
Development
Co., Ltd.
-Oct. 2008: Set up within the Beijing New Energy Vehicle Design and Manufacturing Industry Base on a site covering 25,000m², with total
investment of 144 million CNY.
-Undertakes design and manufacturing of hybrid vehicles, electric vehicles, and hydrogen fuel- and low-energy engines.
Sales/
䊶In 2010, Beiqi Foton aims to manufacture and sell 703,700 CBU, of which, 100,000 new-energy vehicles.
Manufacturing -2015: Forecasting new-energy vehicles to account for around 15% of Beiqi Foton’s sales and manufacturing, increasing to 25-30% in 2020.
Plan
-New energy vehicle sales in 2009 of 956 units.
䊶At the Beijing motor show in Apr. 2010, unveiled the BJ6123C6B4D State-5 compliant electric fixed route bus.
-Production testing in Oct. 2009. At the end of the same year, delivered 50 units to Beijing Public Transport Group.
-Recharging Time/Distance Per Charge: Four hours/200-250km.
-Developed in partnership with Beiqi Foton, Beijing Institute of Technology and Beijing Public Transport Group. Fitted with lithium-ion
Products
batteries.
䍃Sep. 2009: Announced the electric version Aumark light truck. First 24 units went into operation as sanitation vehicles in Beijing.
䊶May 2010: Beiqi Foton announced that by the end of 2010, 500 units of the Midi planned to go into operation as taxis in Beijing.
-Local news in Jun. 2010 reported that mass production of the Midi EV to begin within the year.
䊶Local news in May 2010 reported on the start of construction to the Nanhai medium and large new-energy bus plant. No specifics on operation
date.
-Decision made in 2009 to shift the medium and large new-energy bus plant to the former Nanhai plant. Total investment of 550 million CNY,
with plant to set annual production capacity for medium and large new-energy buses at 10,000 units.
䊶Local news in Jun. 2010 reported that Beiqi Foton announced it had invested 3.2 billion CNY to set up a 200,000-unit new-energy vehicle
production base in Changsha, Hunan.
Production
-Construction for the new base to begin in Oct., with operation slated in 2011. Annual production capacity of 100,000 medium and heavy duty
Capacity
trucks, and 100,000 pickup trucks and SUVs.
䊶Jun. 2010: Construction of the Beiqi Foton Weifang Vehicle Factory began in the Weifang High-Tech Industry Park. Total investment of 4.5
billion CNY. Planned annual production capacity of 300,000 CBU, of which, new-energy vehicles to account for 30% or 90,000 units, and 3
million core pressed parts. Following the start of operation, aims for annual sales revenues of 34.5 billion CNY and profit of 1.7 billion CNY.
-1st Phase (Sep. 2010-Dec. 2011): CBU annual production capacity of 100,000 units; total investment of 1.5 billion CNY.
-2nd Phase (Mar. 2012-Apr. 2013): Increase annual capacity to 200,000 units; total investment of 3 billion CNY.
䊶Nov. 2009: Beiqi Foton, Pulead Technology Industry and Dongguan Amperex Electronics Technology jointly formed a company for the
manufacture and sale of lithium-ion batteries for green vehicles.
-Capital: 100 million CNY. Shareholding: BAIC 24%, Beiqi Foton 10%, Pulead Technology 41%, Amperex 25%.
-Business Activities: Design, development, manufacture and sales of lithium-ion battery modules and systems, and battery management
systems.
-Business Target: Aims to set up operations for manufacture/sales of power battery packages for 30,000 vehicles during 2009-2013, and for
70,000 vehicles in 2014-2015. Over the long-term, aims to develop as China’s biggest automotive lithium-ion battery production base.
Joint Bases
䊶Local news in Apr. 2010 reported that BAIC signed a cooperation memorandum with two Korea companies — medium/low-speed, short
distance electric vehicle maker CT&T and SK Energy — to jointly set up a company for the manufacture and sale of electric vehicles.
-Shareholding: BAIC 50%, CT&T 25%, SK Energy 25%.
-Plan for BAIC and CT&T to be responsible for production of electric vehicles, with procurement of lithium-ion batteries from SK Energy.
-Approximately 600 million CNY to be invested into the joint venture during 2010, with plans to set up a CBU plant with annual production
capacity for 50,000 units in Miyun, Beijing. Initial imports of CBU parts from CT&T, with assembly of electric vehicles for use as city
sanitation vehicles. Med/long-term aims to undertake production locally.
䊶Oct. 2009: Reached agreement with Broad-Ocean Motor, Beijing Institute of Technology and Beijing Jiaotong University for a technology
Development
partnership for the development and production of Foton electric vehicles, with plans to jointly develop electric drive and control systems for
Partnership
green vehicles.
䊶Jun. 2009: Order received from Taiwan Chengyun Automobile Company for 75 hybrid buses.
䊶Feb. 2010: Order received from Beijing Public Transport Group for 200 State-5 hybrid buses.
Orders
䊶Apr. 2010: Order received from Changsha Public Transport Group for 50 State-5 hybrid buses.
䊶Jul. 2010: Order received from a public transport group in Ordos for 30 State-5 compliant BJ6100 CNG-powered buses and 20 BJ6121
CNG-powered buses.
Listed Unit Absorbs Heavy-duty Truck Business;
Xingma Group
Automobile saw manufacturing and sales
in 2009 jump 21.2% on the previous year
to 7,102 units, of which, mixer truck sales
of 4,878 units helped maintain the
company’s number one ranking held since
2004.
For 2010, Hualing Automobile and
Xingma Automobile have set sales targets
of 30,000 units (up 66.7% year-on-year)
and 10,000 units (up 40.8% year-on-year)
respectively. To achieve the volumes,
Xingma Group is currently expanding
annual production capacity, along with its
product lineup. Among which, forecasting
Anhui Xingma Automobile Co., Ltd.
(hereinafter referred to Xingma Group) is
a commercial vehicle holding company.
The group holds two subsidiaries, heavy
duty truck maker Hualing Automobile and
refitted
vehicle
maker
Xingma
Automobile, the latter which is a
publicly-listed company, and also delved
into bus manufacturing in 2006 via
Hualing Automobile. In 2009, Hualing
Automobile’s sales surpassed its initial
forecast of 15,000 units, recording 18,271
units to rank eighth in China in terms of
heavy-duty truck volume. Xingma
growth in the heavy duty truck market in
2010 of 30% more, the group is actively
investing into Hualing Automobile.
In December 2009, Xingma Group
began construction under a project to
boost heavy duty truck capacity at
Hualing Automobile to 30,000 units. In
addition, a construction project for the
production of heavy duty trucks and
chassis got underway at the Hengyang
base in Hunan in January 2010. Through
the expansion projects, Xingma Group’s
annual heavy duty truck production
capacity is forecast to increase from the
Xingma Group: Corporate Outline and Business
䂹Corporate Outline
䊶Name: Anhui Xingma Automobile Group Co., Ltd. (Xingma Group)
䊶Location: Ma’anshan, Anhui㩷
䊶Established: May 2003
䊶Capital: 200 million CNY
䊶Shareholding: Ma’anshan Industrial Holdings 51%, others 49%
27.7%
Xingma Automobile
100%
Xingma Group
51%
Hualing Automobile
13.7%
䊶Technology Source: Signed a 10-year licensing agreement with Mitsubishi Fuso
costing 20 million CNY, with introduction from 2003.
䊶Procurement Strategy: Engines supplied from Mitsubishi Fuso, Cummins (ISM II),
Caterpillar (C9), Dongfeng Cummins (M11, L series, ISLe series), Weichai,
Shanghai Hino (P11C), Hangzhou Engine (WD615), SAIC Fiat Powertrain Hongyan
(CURSOR9), etc. Chassis manufacturing switched in-house from 2004, with some
imports from Scania. Transmissions supplied from ZF and FAST.
䂹Refitted Vehicle Business
䊶Companies: Anhui Xingma Automobile Co., Ltd. (Xingma Automobile), Hunan
Xingma Heavy-Duty Truck Co., Ltd. (Hunan Xingma Truck), Tianjin Xingma
Automobile Co., Ltd. (Tianjin Xingma).
䊶Production Capacity: Each unit fitted for annual capacity of 5,000 refitted vehicles.
Mainly undertakes refitting business for dry cement trucks, mixers, concrete pump
trucks and garbage collection trucks.
䊶Technology Source: Mitsubishi Fuso technology appropriated from group affiliate
Hualing Automobile. Has a chassis technology tie-up with Isuzu.
䊶 Procurement Strategy: Engines supplied from Dongfeng Cummins, Weichai,
Yuchai, Shanghai Hino, Hangzhou Engine, etc. 78.93% of all chassis procured from
Hualing Automobile, of which, 90% of mixers built on Hualing chassis.
䊶Sales: Xingma Automobile mainly covers China’s eastern and southeast regions, while
Hunan Xingma Truck covers the southern, southwestern and central regions, and
Tianjin Xingma covers the northern, north eastern and northwestern markets. From
2004, has held top share of the mixer segment.
Hualing Light Car
49%
66.7%
Hunan Xingma
Hefei Ankai Light
Vehicle
100%
Tianjin Xingma
䂹Heavy Truck/Chassis Business
䊶Company: Anhui Hualing Automobile Co., Ltd. (Hualing Automobile)
䊶Establishment: Formed in 2003 by the Xingma Group to supply chassis for refitted
vehicles to Xingma Automobile.
䊶Chassis Supply: 30-40% to Xingma Automobile, along with for in-house use and
group affiliates.
䊶Production Capacity: 30,000 units annually.
(Compiled using Xingma Automobile annual reports and various media sources)
Xingma Group: CBU Sales by Production Base and Vehicle Type (2004-2009, YTD Jun. 2009/2010)㩷
Base
Type
Segment
2004
Tractor
Heavy Trucks
Total
Mixer Trucks
Dry Cement Trucks
Xingma
Refitted
Concrete Pump Trucks
Automobile Vehicles
Others
Total
Group Total
Hualing
Automobile
2005
401
Truck
401
2,333
761
29
51
3,174
3,575
488
2,664
3,152
1,169
471
16
13
1,669
4,333
2006
2007
992
4,434
5,426
3,413
1,097
33
189
4,732
9,166
2008
2413
8,820
11,233
4,089
983
48
339
5,755
14,575
2009
2946
9,882
12,828
3,344
1,182
49
1287
5,862
18,690
Note: Xingma Automobile data unreleased for YTD Jun. 2009/2010.
(Unit: Vehicles)
YTD Jun. 2009 YTD Jun. 2010 (YOY Growth)
4,040
14,231
18,271
4,878
1805
28
391
7,102
25,373
1,373
7,147
8,520
N.A.
N.A.
N.A.
N.A.
N.A.
8,520
5,042
12,404
17,446
N.A.
N.A.
N.A.
N.A.
N.A.
17,446
(267.2%)
(73.6%)
(104.8%)
( - )
( - )
( - )
( - )
( - )
(104.8%)
(Compiled using CAAM data and Xingma Automobile annual reports)
Xingma Group: Financial Summary of Publicly-Listed Subsidiary Xingma Automobile Co., Ltd. (2003-2009, YTD Jun. 2009/2010)
Ma’anshan, Anhui
Public Listing Date
Apr. 1, 2003
Sales
Stock Exchange
Shanghai
Gross Profit
12,990
7,533
8,981
14,764
n.a
3,485
10,381
4,268
Securities Code
600375
Operating Profit
7,672
2,921
3,409
4,821
6,429
3,466
10,357
4,218
17,338 (311.1%)
Net Profit
6,225
1,303
2,165
3,034
3,955
2,267
8,283
3,378
14,906 (341.2%)
4%
1%
2%
2%
2%
1%
30.73%
Earnings
Ma’anshan Huashen Materials Manufacturing*
Indicator
Ma’anshan Economic Development Zone
5.98%
Net Profit Ratio
Mixer Trucks
71.24%
Current Assets
Dry Cement Trucks
21.39%
Concrete Pump Truck
2.14%
Others
5.24%
Total
265,020
Assets/Liabilities
2009
Sales Ratio
Shareholding
(Unit: Million CNY)
YTD Jun. YTD Jun.
(Growth YOY)
2009
2010
169,123 135,415 117,318 171,991 211,686 187,657 265,020 127,324 207,489
(63.0%)
Headquarters Location
2003
2004
2005
2006
2007
2008
2009
17,274 (304.7%)
3%
3%
7%
(4P)
74,893 102,170
90,085 112,968 119,810 114,777 129,013
142,005
178,951
(26.0%)
Fixed Assets
20,172
22,107
38,417
35,981
39,050
(8.5%)
Total Assets
98,804 126,025 115,885 146,528 161,903 158,153 173,797
185,568
224,011
(20.7%)
Current Liabilities
42,791
73,427
67,249
135,476
154,109
(13.8%)
Long-term Liabilities
7,000
7,000
4,000
0
0
( - )
20,087
29,054
35,029
36,585
95,312 109,707 109,565 118,801
5,000
4,000
0
0
Note: *Xingma Automobile leading shareholder, Ma’anshan Huashen Materials Manufacturing, a subsidiary of Xingma Group. In 2003, Xingma Group made capital participation into Xingma Automobile via
Ma’anshan Huashen Materials Manufacturing.㩷 P: Percentage Points.
(Compiled using Xingma Automobile annual reports)
Capacity Enhancement of Bus Operation
Vehicle Makers㩷
current 30,000 units to 70,000 units at the
end of 2011.
Product-wise, Hualing Automobile
launched the Xingkaima, designed by
Italy’s Bertone, in May 2009 which
targets the overseas market and looks to
boost the brand’s image. In July 2009, a
weight-reduced version, the Hualing
Zhixing, came on sale which aims to
increase sales in the domestic logistics
vehicle market. Also in the company’s
product lineup is the Hualing Zhongka
tipper truck.
With interest in the group’s financial
resources, announcement was made in
November 2009 of restructuring plans
which would see Xingma Automobile
absorb assets of Hualing Automobile.
Capital reorganization by publicly-listed
Xingma Automobile aims to secure
funding necessary to expand the heavy
duty truck business of Hualing
Automobile. Moreover, the plan is also
likely aimed at reducing chassis
procurement costs between the two
companies, along with expanding
overseas business of Xingma Group.
Meanwhile,
through
subsidiary
Hualing Automobile, Xingma Group
established Hualing Light Car in August
2009 in a joint venture with Hefei Ankai
Light Vehicle, foraying into bus
manufacturing business. In 2009, the new
unit posted annual sales of 2,000
32-seater buses. In December 2009, a
construction project got underway which
is to increase production capacity of
50-seater and smaller buses to 5,000
units. From here on, attention is likely to
focus on M&A trends with other
companies to support its bus business.
(You LI)
Xingma Group: Outline of CBU Bases
Base
Location
Established
Ma’anshan,
Anhui Hualing Automobile Co., Ltd.
May 2003
Anhui
Dec. 1999
Ma’anshan,
Anhui Xingma Automobile Co., Ltd.
(listed
Anhui
2003)
Hunan Xingma Heavy-Duty Truck Co., Hengyang,
Jun. 2003
Ltd.
Hunan
Capital
240 Mn
CNY
Shareholding
Xingma Group
13.68%
Products
APC (units)
Heavy trucks
30,000
Reference
䍃 Nov. 2009: Announced reorganization of assets by Xingma
Automobile.
Mixers, dry
䍃Previously Ma’anshan Xingma Automobile Co., Ltd., changing to
125 Mn
Xingma Group
cement
5,000
the current company name in 1999 with listing on the stock
CNY
27.7%
trucks, etc.
exchange.
45 Mn
Xingma Group
Tractor units,
䍃Xingma Group’s production base to cover the southern, western and
5,000
CNY
66.7%
tippers
central regions. Hunan branch of Anhui Xingma Automobile.
䍃Xingma Group’s production base to cover the northern, northeastern
90 Mn
Xingma Automobile Dry cement
Tianjin Xingma Automobile Co., Ltd.
Tianjin
Jan. 2004
5,000
and northwestern regions and exports. In Feb. 2008, Xingma Group
CNY
100%
trucks etc.
increased its investment in the company to 67.36 million CNY.
䍃Established jointly with Hefei Ankai Light Vehicle, set up with
Ma’anshan,
20 Mn
Hualing Automobile 50-seater and
Ma’anshan Hualing Light Car Co., Ltd.
Aug. 2009
5,000
annual 32-seater bus capacity of 2,000 units. In Dec. 2009, began
Anhui
CNY
51%
smaller buses
construction under a project to increase capacity to 5,000 units.
Note: As of Jul. 2010, the China Securities Regulatory Commission had approved application by Xingma Automobile to make a complete takeover of Hualing Automobile.
(Compiled using Xingma Automobile PR materials and various media sources)
Xingma Group: Business Developments by Base (Jan. 2009-Jul. 2010)
Xingma
Automobile
Base
Outline
2010 Business
Plan/Target
M&A
Business Target
Hualing Automobile
Procurement
Development
Launch of New
Models
Sales Network
Buildup
Overseas
Business
Hunan Xingma
Heavy-Duty
Truck
Xingma Group (equity method company)
Capacity
Expansion
Capacity
Expansion
Details
䊶Refitted vehicle sales of 10,000 units, revenues of 4 billion CNY, and net profit of 100 million CNY.
䊶Nov. 2009: Announced restructuring plan to form Hualing Automobile as a wholly-owned subsidiary.
-Shareholders including Anhui Xingma Automobile Group and Anhui Province Investment Group to make a complete takeover of Hualing Automobile using 205
million of the company’s shares.
-Asset value of Hualing Automobile estimated at 1.68 billion CNY. Unlisted shares valued at 8.18 per share.
-Through restructuring of Hualing Automobile, Xingma Automobile gains heavy duty truck CBU and chassis production capacity.
䊶Jan. 2010: Chairman Liu Hanru announced the group aims to sell 30,000 heavy duty trucks in FY2010, of which 20,000 units domestically, while exports and
refitted vehicles of 10,000 units.
-News in Dec. 2009 that the company set a sales target for 2010 of 25,000 units, aiming for revenues of 6 billion CNY and profit of 200 million CNY.
䍃Dec. 2009: Began construction for a 30,000-units heavy duty truck project within the Ma’anshan South Economic Development Zone. Construction in two phases.
-1st Phase: Site area of 140,000m², with investment of 1.184 billion CNY. Scheduled for completion at the end of 2011. To be fitted with four production lines (press,
welding, painting, assembly) and a technology development center. Annual production capacity after coming on stream of 30,000 units in one shift, 50,000 units
over two shifts. Aiming for sales revenues of 12 billion CNY.
-2ns Phase: Site area of 80,000m², with investment of 500 million CNY. Construction to begin in H2 2010, scheduled for completion at the end of 2011. To be fitted
with the China’s most advanced press, welding, processing, assembly and painting lines for production of axles. Annual production capacity after coming on
stream of 100,000 drive axles and 50,000 front axles. Aiming for sales revenues of 2 billion CNY.
䊶Dec. 2009: Ma’anshan Hualing Light Car began construction for the 5,000-unit project in the Dangtu Development Zone in Ma’anshan.
-Formed through joint investment by Hualing Automobile and Hefei Ankai Light Vehicle, with Hualing Automobile the leading shareholder.
-Site area covers 1.3km², undertaking production and sales of 50-seater and smaller buses and chassis, and related parts. As of Dec. 2009, began 1st-phase operation, with
production/sales of 2,000 32-seater buses bringing revenues of 300 million CNY. 2nd-phase investment of 100 million CNY to enable annual production capacity of 5,000
50-seater and smaller buses, with aim for sales revenues of 1.2 billion CNY.
䊶Dec. 2009: Held the FY2010 supplier’s conference in Ma’anshan. Participation by approx. 500 representatives from 400 parts makers including Weichai, Dongfeng
Cummins and FAST.
䊶H1 2009: Introduced ERP and DMS systems, with aims to reduce costs through nationwide procurement.
䊶Jan. 2010: Procurement manager Liu Shiliang announced the company aims to manufacture 90% of axles in-house.
䊶Procures the CURSOR9 engine from SAIC Fiat Powertrain Hongyan.
䊶Apr. 2010: Began construction under a state-level business technology center project located within the Xingma Automobile Park in Ma’anshan.
-Site area covers 46,000m², with investment of 270 million CNY. Scheduled for completion at the end of 2011. Planning to undertake development of heavy duty
truck chassis, special purpose vehicles, buses, etc., and related parts.
䊶May 2009: Began sales of the Xingkaima series high-end heavy duty truck targeting the overseas market.
-Designed by Italy’s Bertone, fitted with engines from Weichai, Cummins, Mitsubishi and Shanghai Hino, and transmissions by ZF and FAST. Fuel economy of
38L/100km, and priced at 250,000-600,000 CNY. Aiming for sales in 2010 of 5,000 units.
䊶Jul. 2009: A weight reduced version of the Xingkaima heavy duty truck, based on Mitsubishi technology, went on sale. Sales in 2009 of 3,000 units. In 2010, aims to
increase sales of logistics-use vehicles, lifting the ratio to 60% of total.
䊶As of May 2010, has sale/service bases in 220 countries.
-2009: Set up ten new 4S stores. In 2010, offering cash incentives of 2-3 million CNY to dealers setting up new 4S stores.
㵥From 2010: To offer fixed payment cash support to dealers selling over 100 units per year.
䊶Feb. 2009: Exported 100 CNG-powered heavy trucks to Thailand.
-Jun. 2008: Signed an agreement worth approx. 30 million USD with Thai company DOUBLE A to supply 1,000 CNG-powered trucks.
䊶Apr. 2009: Customers from Venezuela visited Hualing Automobile, signing a business agreement.
䊶Jul. 2009: Received orders from an Algerian dealer for 500 Xingkaima heavy duty truck. Subsequently reached agreement to supply an additional 1,200 units.
-Nov. 2009: Exported 300 heavy duty trucks fitted with Dongfeng Cummins engines and ZF transmissions to Algeria.
䊶Jul. 2009: Exported six HN3250 heavy duty trucks to Swaziland.
䊶Apr. 2010: Signed an agreement to export 100 heavy trucks to Peru.
䊶Jan. 2010: Began construction in the Hengyang Baisha Industrial Park for a 10,000-unit heavy duty truck and 70,000-unit axle project.
-Site area covers 2km², with investment of 415 million CNY. Scheduled for completion in Jun. 2011. Following coming on stream, aims for revenues of 3 billion
CNY.
(Compiled using Xingma Automobile PR materials and various media sources)
Forms JV with JAC; Signs Cooperation Agreement
HK Motors
Yang Rong, the former head of
Brilliance Auto who fled from China to
the US in 2002 following accusations of
business crimes, announced plans in June
2009 to set up Hybrid Kinetic Motors and
manufacture some 6 million vehicles
annually in China and the US, drawing
industry-wide attention (refer to China
Automotive Intelligence Issue No. 9,
September 2009, pages 40 and 41 for
FOURIN’s initial report on the company).
As of August 2010, business plans appear
to be making forward progress, with a
partnership agreement signed with the
State of Alabama in the US, and a
framework agreement with Jianghuai
Motor (JAC) to set up a joint base in
Hefei, Anhui.
HK Motors’ vehicle project is a plan
which, should financing be secured, looks
to set up manufacturing bases through
preferential allowances from regional
governments, and develop production
with the acquisition of technology
through tie-ups with other firms. In
January 2010, Hong Kong-based listed
company Far East Golden Resources
Group changed its name to Hybrid
Kinetic Group Limited and subsequently
set up HKMC Equity Investment Fund
Management Co., Ltd. in Tianjin to take
charge of projects in China. Within the
year, four A-stock listed companies are to
be acquired, apparently under plans to
procure domestic financing.
In selecting bases, news media reported
that HK Motors was negotiating with
various
provincial
governments,
establishing conditions based on sufficient
land for construction, a CBU production
ceiling, and financing support for
acquiring one or more listed companies.
Meanwhile, in May 2010, the company
acquired total shareholding in Zhejiang
GBS Energy Co., Ltd. for 180 million
HK Motors: Business Strategy and Developments in China (as of Aug. 2010)
Area
Details
䊶According to news reports in Feb. 2010, HK Motors plans to invest 60 billion CNY in China for production of powertrain and 3 million CBU.
-Phase 1 investment of 40-45 billion CNY to set up production for 3 million engines and 1 million CBU. Slated for operation in 2012.
Business
䊶According to news reports in Feb. 2010, HK Motors negotiating with various provincial governments to establish conditions for base selection based on (1)
Plan
sufficient land for construction, (2) CBU production ceiling, and (3) financing support for acquiring one or more listed companies.
䊶Jan. 26, 2010: Hybrid Kinetic Group Limited (formerly Far East Golden Resources Group) set up HKMC Equity Investment Fund Management Co., Ltd. in
Tianjin to take responsibility for financing of projects in China.
-Total investment of 2.8 million USD and capitalized at 2 million USD, responsible for trust investment management and investment advisory services. Dr.
Huang Chunhua posted as Director, with Fang Dianjun as CEO and Jiang Huicheng as Deputy Director.
䊶In 2010, plans to acquire four A-stock listed companies, including companies from non-automotive fields (according to HK Motors CEO Wang Chuantao in
Financing
Jun. 2010).
-Jul. 2010: Media reported that apparently the first company, Xinchao Industry had been acquired.
- According to news reports in Jun. 2010, Ningbo Bird working to build profitability through reorganization in 2010, with negotiations underway at the time
with a foreign automaker. Decision expected by Aug. (according to Ningbo Bird Director Xu Lihua). Reports of a high possibility for Ningbo subsidiary
Shenma Electric Technology to be reorganized into HKMC.
䊶According to news reports in May 2010, HK Motors was in negotiations with Tianjin Economic Development Area (TEDA), Hefei Economic Development
Area in Anhui and Hangzhou Bay New Zone in Ningbo to form partnerships for the formation of CBU production bases.
-Of which, the Hefei base slated to manufacture passenger cars to be registered in China, while the Tianjin and Hangzhou bases to produce products for
export to the US.
-Tianjin base to house HK Motors’ global press, logistics and export centers, with total investment of over 26 billion CNY.
䊶Nov. 17, 2009: HK Motors signed a MoU with Shenyang Oumeng Economy Development Zone for production of hybrid powertrains.
-HK Motors invested 10 billion CNY, with agreement reached for production of engines, transmissions and motors for 1 million vehicles.
-Should a production ceiling under support from Shenyang Oumeng Economy Development Zone be gained, a further 10 billion CNY to build a plant for
the manufacture of 1 million CBU is planned.
-In the case that the production ceiling is not gained, plans to set up a plant to manufacture 200,000 SKD sets of passenger cars.
Production
䊶May 2010: Hybrid Kinetic Group announced it had acquired 100% shareholding in Zhejiang GBS Energy Co., Ltd. for 180 million CNY.
-Zhejiang GBS Energy was formed in Jul. 2007 to manufacture lithium-ion batteries. Set up with a 4,000m² plant in Yuyao County, Ningbo, fitted with one
lithium-ion battery production line with annual production capacity of 40,000 KAH. As at the end of 2009, total assets of 17.97 million CNY, with income
during the year of 1.59 million CNY.
䊶Aug. 2010: Tianjin-based HKMC Equity Investment Fund Management signed a framework agreement with Jianghuai Motor (JAC) to set up Anhui HK
Motors in Hefei, Anhui. Submitted approval consent to the government.
-50-50 investment by both companies, to be capitalized at 700 million CNY. Total investment of 2 billion CNY to set up a new company with business
contract period of 25 years.
-Over the coming eight years, plans to manufacture 1 million CBU, powertrains for 1 million vehicles, and 1,200 KWH lithium-ion batteries. Forecast to
invest 30 billion CNY to set up production facilities.
Sales
䊶To set up a new sales company to be responsible for establishing sales network.
䊶Jan. 2010: Hong Kong-based listed company, Far East Golden Resources Group changed its name to Hybrid Kinetic Group Limited.
䊶May 18, 2010: Hybrid Kinetic Group appointed Tsinghua University chair professor, Song Jian, as independent non-executive director.
Other
-Song Jiang, deputy chief of the university’s automotive engineering R&D institute, also deputy executive of the State Key Laboratory of Automobile Safety
and Energy Reduction and expert supervisor for the Beijing government.
(Compiled using PR materials of HK Motors and various media sources)
HK Motors: Project Outline and Plan for China (as of Aug. 2010)
Hybrid Kinetic Motors
Zhejiang GBS Energy Co., Ltd.
Tianjin HKMC Equity Investment Fund Management Co., Ltd.
Global press, logistics, export center
Partnership with Yantai Municipality
(TEDA)
Three A-stock Listed Partnership with provincial government
Companies
Four A-stock Listed Partnership with provincial government
Companies
Note: Dotted lines indicate in the planning stage.
Production
Partnership with Ningbo Municipality
(Ningbo Bird)
Financing
(Xinchao Industry)
Base to gain CBU production ceiling
(Anhui Hefei)
Production for export to the US
(Hangzhou Bay New
Zone, Ningbo)
Powertrain production base
(Shenyang Oumeng)
with US State; Challenging Tie-up with Engineering Firm
Vehicle Makers㩷
CNY, a strategic move for HK Motors to
gain a lithium-ion battery base as part of
its aims to manufacture hybrid vehicles in
China. Moreover, in August 2010, HK
Motors formed a partnership with JAC to
set up Hybrid Kinetic’s first production
base in China, progress of which is
expected to run smoothly. Nonetheless,
with total investment amounting to a
massive 30 billion CNY, fears are
brewing over HK Motors’ ability to
procure necessary financing.
In the US, 1.32 billion USD is to be
invested during 2010 to set up annual
production capacity of 1 million units in
Alabama by 2016, with plans to introduce
facilities including press, body, painting
and CBU assembly lines. For this end,
HK Motors looks to procure financing of
1 billion USD in 2010 via subsidiary
investment fund Alabama Center for
Foreign Investment, LLC (ACFI). It is
planned to solicit 2,000 immigrant
investors — to qualify for the US EB-5
visa for permanent resident status as an
immigrant investor, applicants are
required to make investment of 1 million
USD in urban cities, or 500,000 USD in
rural areas — with EB-5 visas received
from the US Citizenship and Immigration
Services in June 2010 part of ACFI’s first
step in its immigrant investor project.
However, in fiscal 2009, a total of 4,218
people received approval to enter the US
as immigrant investors, thereby for HK
Motors, gathering almost half this number
is likely to prove difficult.
Meanwhile, with announcement made
in June 2010 that ties with Italian
engineering firm Italdesign Giugiaro had
been dissolved, another issue for HK
Motors, which lacks its own development
capacity, is to search for a new
engineering partner.㩷㩷㩷㩷㩷㩷
(Yixian WANG)
HK Motors: Business Strategy and Developments in the US (as of Aug. 2010)
Area
Details
䍃According to news reports in Feb. 2010, HK Motors plans to invest 10 billion USD in the US for the construction of production bases in Alabama,
Mississippi and Georgia to manufacture 1 million hybrid vehicles respectively.
Business
䍃Plans to invest 4.31 billion USD to build up annual production capacity (APC) in Alabama to 1 million units by 2016.
Plan
-Of which, planning to inject 3.43 billion USD into production facilities and 880 million USD into R&D.
-In 2010, plans to invest 1.32 billion USD in Alabama to set up production facilities, including press, body, painting and CBU assembly plants.
䍃Feb. 2010: Through Hybrid Kinetic Group Limited (formerly Far East Golden Resources Group) subsidiary Alabama Center for Foreign Investment, LLC
(ACFI), planning to solicit 1 billion USD. Funds to be appropriated to the construction of a production base in Alabama and a portion to R&D costs.
-ACFI aims to gather 2,000 immigrant investors in 2010 (Calculated at 500,000 USD investment per person, possible to reach 1 billion USD).
Financing
-In 2011, plans to solicit 5,000 immigrant investors, raising a further 2.5 billion USD.
-According to the website of the US Citizenship and Immigration Services (USCIS), approved immigrant investors in FY2009 (Oct. 2008-Oct. 2009) increased
by 4,218 persons from the 1,443 in the preceding year.
䍃Jun. 2010: As the first item of the ACFI immigrant investor project, received EB-5 visas from USCIS.
䍃By 2016, plans to set up APC in Alabama for 1 million CBU, with three production lines for passenger cars, off-road vehicles and MPVs, and light trucks
(Unit: 1,000 vehicles)
(according to HK Motors CEO Wang Chuantao in Jun. 2010).
Production Line
Model
2012 2013 2014 2015 2016 2017 2018 Total
ZD-J3
3 150 160 160 160 160 160 953
-Passenger car unit includes entry level mid-size cars, mid-size cars and
No.1 Line
ZD-T
3
62
62
70
80
80
80 437
luxury cars. Off-road/MPV unit includes off-road vehicles, SUVs and MPV.
0
45
77
80
90
90
90 472
(Passenger Car) ZD-J2
ZD-J1
0
43
77
80
80
80
80 440
Production
Truck unit includes 5t and smaller pickup and light trucks.
ZD-CUV
0
0
30
70 100 100 100 400
No.2 Line
ZD-SUV
0
0
30
70 100 100 100 400
-Phase 1 project APC planned to reach 300,000 units by 2013, phase 2 to
(Off-road/MPV) ZD-MPV
0
0
30
70
95
95
95 385
reach 600,000 units by 2015 and 1 million units by 2016.
ZD-L Truck
0
0
0
3 110 110 110 333
No.3 Line
ZD-L VAN
0
0
0
3 100 100 100 303
(Light Truck)
㵥In 2016, aims to employ 18,688 persons, of which assembly worker number
ZD-L Combi
0
0
0
3
85
85
85 258
Total
6 300 466 609 1000 1000 1000 4381
to reach 10,400.
䍃Of vehicles manufactured in the US, 70%, 20% and 10% to go on sale in the Americas, Asia and Europe respectively.
Sales
䍃Plans to offer users 50,000 miles or four years worth of free natural gas.
䍃According to news reports in Jan. 2010, HK Motors announced agreement had been reached with major German powertrain R&D company, FEV to work
together in the development of vehicle powertrains (announcement by Yang Rong).
-Toyota’s original concept hybrid technology and 1st generation hybrid technology introduced from FEV.
䍃Jul. 2009: Acquired nanotechnology engine technology from The University of Birmingham (announcement by Yang Rong).
Development
- Nano technology of The University of Birmingham commonly used in the IT sector.
䍃Jun. 2010: Italian engineering firm, Italdesign Giugiaro, announced it had dissolved ties with HK Motors due to becoming a subsidiary of VW.
- Jan. 19, 2010: HK Motors and Italdesign Giugiaro signed a four-year partnership deal for CBU design and development in Alabama worth a total of 500
million USD. Italdesign Giugiaro was to develop 10 hybrid vehicle models, with plans to launch in 2013.
HK Motors: Project Outline and Plan for the US (as of Aug. 2010)
Hybrid Kinetic Motors
Financing
Immigrant Investor
Project
Production
Alabama State
Mississippi State
Georgia State
2012 Operation
Sales
Of vehicles
manufactured in
the US, 70%,
20% and 10% to
go on sale in the
Americas, Asia
and Europe
respectively.
Note: Dotted lines indicate in the planning stage. Ties with Italy’s Italdesign Giugiaro dissolved in Jun. 2010
Technology
Powertrain
FEV (Germany)
Engine Technology
The University of Birmingham
Engineering
Italdesign Giugiaro
㬍㩷
Ford: Aims to Transform China Business After
Foreign Automaker
Ford’s China strategy will take a
different turn with the breakup and
restructuring of Chang’an Ford Mazda.
Although currently Ford and Mazda jointly
operate the venture with Chang’an
Automobile, Mazda is scheduled to pull
out of the company in 2012 and the venture
will be evenly divided between Chang’an
Automobile and Ford. In March 2010, Ford
sold Volvo Cars, whose products have been
produced at Chang’an Ford Mazda, to
Geely Automobile. In the coming years,
Ford will have no relationship with Mazda
and Volvo Cars and will have to operate in
China on its own.
In January 2003, Ford commenced
production of the Fiesta passenger car
model at Chang’an Ford, a 50/50 joint
venture with Chang’an Automobile in
Chongqing. In March 2006, Mazda
acquired 15% of the venture as a result of
which its name was changed to Chang’an
Ford Mazda. The Chongqing plant
manufactures the Ford Mondeo and Focus
models, as well as the Volvo S40 and
Mazda3. In September 2007, the venture’s
Nanjing plant commenced operation,
manufacturing the Ford Fiesta and
Mazda2, using stamping, welding, coating
and other technologies from Mazda.
Although the Chongqing and Nanjing
plants have been operated by Chang’an
Ford Mazda, the Chongqing plant will be
Ford: Business Operation in China
˘Shifting Focus to China˚
䯂 Dec. 2009: Transferred its Asia-Pacific Regional Headquarters from
Bangkok to Shanghai.
˘Chang’an Ford Mazda˚
■Change in joint venture partners
䊶Scheduled breakup of the Chang’an Ford Mazda tripartite joint venture. Each
partner wants to become to be able to set up production planning under its
own term. After restructuring, Chongqing plant will be home of Chang’an
Ford, a 50/50 JV between Ford and Chang’an Automobile, and Nanjing plant
will accommodate Chang’an Mazda, a 50/50 JV between Mazda and
Chang’an Automobile.
-May 2010: Chang’an Ford Mazda submitted an application to the National
Development and Reform Commission regarding the venture’s structural
change.
-Restructuring is expected to be completed by 2012.
-According to media sources, there have been many difficult production
adjustment cases under the current joint management by Chang’an
Automobile, Mazda and Ford.
■Product strategy
䊶Plans to launch four models by 2013 (announced by Chang’an Ford Mazda
president Shen Yingquan in May 2010)
䊶Sep. 2009: According to media sources, production of the new Global C-based
Focus is planned in 2012 at Chongqing No. 2 plant. Also plans to launch
high-end sedans and SUVs.
-The Global C-based Focus is 10% larger than the old version. Planned to be
simultaneously launched in Europe and the US in the beginning of 2011.
-Among high-end sedans, it is set to rival with GM’s Buick.
䊶May 2010: According to media sources, Ford plans to develop its own
independent brand and deepen its relationship with Chang’an Automobile in
the new energy sector.
䊶Plans to equip the Mondeo-Zhisheng, which is scheduled to be launched in
2010, with Eco Boost GTDI engine and Power Shift dual clutch. Improved
fuel consumption by 20% and reduced carbon dioxide emission by 15%.
-Apr. 2010: Announced the world premiere of the 1.0L Eco Boost GTDI
engine-equipped Start concept car at the Beijing motor show. The Eco Boost
GTDI engine is the core of its powertrain strategy.
■Production related trends
䊶Sep. 2009: Decided to build a second plant in Chongqing by investing 490
million CNY. Plans to manufacture 150,000 units of the Focus annually from
2012. The facility is designed to have a maximum annual capacity of 300,000
units.
䊶Aims to increase local procurement ratio of Chang’an Ford to 90% or higher.
䊶Dec. 2009: According to media reports, the production contract of Ford,
Chang’an Automobile and Volvo Cars outlines the planned production of the
Volvo S40 until 2015 and the Volvo S80 until 2018 by Chang’an Ford.
䊶Feb. 2010: According to media reports, Chang’an Automobile has already
concluded a ten-year production deal of the Volvo S60 with Volvo Cars.
䊶Aug. 2010: Geely Automobile decided to establish a production base for
Volvo brand cars in Shanghai. Plans to manufacture 300,000 units of the C30
and V70 from 2012.
˘Jiangling Motors˚
䊶Jan. 2010: Ford temporarily halted production of the Transit at Jiangling
Motors after Toyota recalled some of its products due to accelerator pedal
problems. Ford procured accelerator pedals for its China-made Transit model
from US company CTS which also supplied the recalled Toyota models.
Approx. 1,600 units of the Transit have been already equipped with
accelerator pedals from the same source.
䊶Plans to complete construction of a new MPV plant around the end of 2012.
Plans to use Ford technology and manufacture MPV products under Ford and
JMC brands.
-First phase: Plans to complete the plant by the end of 2012 and commence
full-scale production in 2013 with annual production capacity of 200,000
units. Investment: 2 billion CNY.
-Second phase: Plans to add another 100,000 units annual production capacity
in 2014. Follow-on investment: 1 billion CNY.
䊶Plans to boost production at Jiangling Motors existing plant from 170,000
units to 210,000 units in 2013.
-Consequently, Jiangling Motors’ annual production capacity is expected to
increase from 170,000 units at beginning of 2010 to 50,000 units in 2015.
㩷 (Compiled using various media sources)
Ford: Partition Chart of Chang’an Ford Mazda (As of Aug. 2010)
Chang’an Group
FAW
52.96%
Suzuki
PSA
50%
49%
Chang’an Suzuki
Jiangling Holding
50%
Chang’an PSA
51%
50%
FAW Car
4%
41.03%
Jiangling Motors
FAW Mazda Sales
30%
56%
40%
Consignment
Chang’an Automobile
Ford
Mazda
45.55%
50%
35%
15%
Chang’an Ford was established as a 50/50 JV by Chang’an Automobile and Ford. Changed name to Chang’an Ford Mazda after capital participation by Mazda in Mar. 2006.
䂰Produced Brands
Volvo
Ford sold Volvo Cars to Geely in
Mar. 2010. Geely plans to build a
Volvo production plant in China.
Ford
䂰New Owner
Geely Automobile
Chang’an Ford
Chang’an Ford will
be 50/50 owned by
Ford and Chang’an
after approval by the
Chinese government.
Mazda
Chang’an Mazda
Note 1: Suzuki’s share in Chang’an Suzuki includes Sojitz’s 14% stake. Note 2: Changhe Suzuki, a JV between Suzuki and Changhe Automobile is omitted.
Chang’an
Mazda
will be 50/50 owned
by
Mazda
and
Chang’an
after
approval by the
Chinese government.
(Compiled using various media reports)
Dissolution of JV with Mazda, Sale of Volvo Cars
Vehicle Makers㩷
home of Chang’an Ford and the Nanjing
plant will accommodate Chang’an Mazda,
Ford and Mazda forming two separate
joint ventures with Chang’an Automobile
as their local partner. In May 2010, Mazda
completed production transfer of the
Mazda3 from Chongqing to Nanjing and
restructuring is expected to be completed
by 2012.
Ford’s China operation seemed like it
was hampered by late start, although its
Ford: Passenger Car Production and Market Share in China
(2005-2009, YTD May 2009/2010)
(1,000 vehicles)
500
9.1% 8.7%
450
400
350
Ford/Mazda
300
250
3.5%
200
2.8%
150
100 Mazda
50
Ford
0
2005
2006
GM (reference)
7.9%
7.1%
8.1%
4.4%
7.4%
3.9%
7.1%
3.8%
3.7%
3.9%
2007
2008
2009
capacity is planned to be increased by 50%
in the future. The new plant is scheduled to
launch the Global C platform-based Focus
and Ford aims to position the Global B
platform-based Fiesta, launched in China
in January 2009, as its core product.
However, since the launch of four models
is too few until 2013, the key to success is
the sales expansion of B and C
platform-based models.
small vehicle production volume in the US
surpassed GM in 2009, but production in
China was less than half of GM. However,
Ford aims to resume offensive in the
coming years centered on production
capacity expansion and the Global B and C
platforms.
Ford’s second plant with annual
production capacity of 150,000 units is
under construction. After going on stream
in 2012, the new plant’s annual production
YTD
May
2009
(Kiyoko YAMAMOTO)
Ford: Principal Locally-Made Passenger Cars in China
Model
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
YTD
May
2010
Note: Columns indicate production volume (left scale). Lines indicate market share (right scale).
(Compiled using data from CAAM)
Platform/Segment
Production Start
Fiesta hatchback/sedan
C195→Global B
B
Jan. 2009
Focus
C1
C
Aug. 2006
New Focus
Global C
C
2012
Mondeo
C1-Plus (EUCD)
D
Mar. 2004
S-MAX
C1-Plus (EUCD)
MPV Mar. 2007
Ecosport
Global B
SUV Sep. 2010
Note: Includes some estimates by FOURIN.
Ford: Outline of Complete Vehicle and Powertrain Production Bases in China
Current
Production
Base
Future Production Base
Location
Established
(Operation Start)
Chang’an Ford
Chongqing
(Chongqing No.1 plant)
Apr. 2001
䋨Jan. 2003䋩
Chang’an Ford
Chongqing
(Chongqing No.2 plant)
2009
䋨2012 plan䋩
Chang’an
Ford Mazda
Chang’an Mazda
(Nanjing Plant)
Nanjing,
Jiangsu
Apr. 2005
䋨Sep. 2007䋩
Chang’an Ford Mazda
Engine
Nanjing,
Jiangsu
Sep. 2005
䋨Apr. 2007䋩
Nanchang,
Jiangxi
Listed since
Nov. 1993
Jiangling Motors
Products
Annual Production
Capacity
Mondeo, Focus,
Volvo S40, S-MAX,
Mondeo-Zhisheng,
Volvo S80
290,000 units
Ownership
Notes
䍃 Mar. 2006: Capital participation by
Mazda.
䍃 Chongqing No. 1 plant manufactures
medium/large vehicles, while Nanjing
150,000 units
plant produces small vehicles.
(initial)
䍃Chongqing No. 2 plant will be able to
↓
manufacture all models built on the C1
300,000 units
platform.
(target)
䍃Engine plant is simultaneously built with
Fiesta (transfer to
Chongqing No. 2 plant.
160,000 units
Chang’an
Chongqing
䍃 Chongqing plant will be home of
(2010)
Automobile
scheduled), Mazda2,
Chang’an Ford and Nanjing plant will
↓
50%, Mazda
Mazda3 (transfer
accommodate Chang’an Mazda by around
200,000 units
50%* after share
from Chongqing in
(2012 and after) 2012.
transfer
May 2010)
Chang’an
Mazda BZ series
䍃 Supplies Chang’an Ford Mazda’s
Automobile
(1.3L/1.6L) engines
350,000 units
Chongqing and Nanjing plants, Chang’an
50%, Ford 25%,
and their parts
Automobile, FAW Car, etc.
Mazda 25%
䍃1995: Tie-up agreement with Ford.
Jiangling Motor
170,000 units of
䍃Dec. 1997: The Transit came off the line.
Holding 41.03%, Transit
which 50,000
䍃Also manufactures JMC brand trucks and
Ford 30%, others
Transits
pickup trucks.
Chang’an
Automobile
50%, Ford 50%*
after share
transfer
Focus etc.
Note: As of Jul. 2010, Chang’an Ford Mazda was 50% owned by Chang’an Automobile, 35% by Ford and 15% by Mazda.
Ford: Vehicle Production by Automaker, Brand and Plant in China (2005-2009, YTD Jun. 2009/2010)
(Unit: vehicles)
Automaker
Chang’an Ford
Mazda
Brand
Plant
Volvo
Ford
Volvo
Ford
Mazda
Ford
Mazda
Ford
Chongqing No.1
Chongqing No.1
Chongqing No.1
Chongqing No.1
Chongqing No.1
Nanjing
Nanjing
Chongqing No.1
Jiangling Motors Ford
Ford Brand Total
Nanchang
Segment
E2
Model
Volvo S80
Mondeo
D
Volvo S40
Focus
C
Mazda3
Fiesta
B
Mazda2
MPV
S-MAX
Total
of which Ford share
Small Bus Transit
2005
0
38,600
0
12,760
0
8,467
0
0
59,827
100%
19,441
79,268
2006
2007
2008
2009
(YOY Growth)
0
48,670
3,800
79,482
3,541
2,420
0
0
137,913
95%
22,949
153,521
0
48,073
6,307
126,650
37,621
0
2,466
5,224
226,341
82%
26,059
206,006
0
38,040
5,452
113,792
25,792
334
13,956
3,726
201,092
80%
26,160
182,052
8,798
(-)
44,100
(15.9%)
6,178
(13.3%)
135,760
(19.3%)
49,694
(92.7%)
49,050 (14,585.6%)
22,250
(59.4%)
4,400
(18.1%)
320,230
(59.2%)
75%
(䂯5P䋩
33,186
(26.9%)
266,496
(46.4%)
YTD Jun.
2009
2,803
20,026
2,840
60,549
20,940
18,870
8,650
1,747
136,425
77%
13,871
115,063
YTD Jun.
2010
6,127
27,224
3,068
81,678
22,048
39,825
15,911
2,938
198,819
79%
24,252
175,917
(YOY Growth)
(118.6%)
(35.9%)
(8.0%)
(34.9%)
(5.3%)
(111.0%)
(83.9%)
(68.2%)
(45.7%)
䋨2P䋩
(74.8%)
(52.9%)
Daimler:
Expands
Localization
to
Commercial
Foreign Automaker
In 2009, Daimler AG’s passenger car
sales
(Mercedes-Benz,
Smart
and
Maybach) in China increased 77%
year-on-year to 68,500 units according to a
Daimler announcement. The driver of
overall growth was the Mercedes-Benz S
class which sold 15,000 units accounting
for over 20% of all sales. Amid dwindling
demand for luxury cars in advanced
countries due to the global economic
downturn, the buying spree of China’s
wealthy class remained high, China
becoming the largest market for the S class.
Daimler is clearly challenging BMW
whose sales target in China is 120,000
units for 2010. Daimler aims to boost sales
by 45% year-on-year in 2010 to 100,000
units centered on the new E class. It plans
to surpass BMW around 2011 and expand
sales to 300,000 units in 2015.
As Daimler’s global sales volume fell by
a whopping 25.2% year-on-year in 2009, it
can be said that the German automaker at
last began to focus on its operation in
China which has become the world’s
largest vehicle market. In order to make up
for its late start in China, Daimler is
actively investing in its China operation
and aiming to inject 3 billion EUR into
China in the next few years in 2010 and
after.
Daimler has indicated that it has
recognized that it is indispensable to
expand its local lineup and enhance its
local production system in order to increase
sales in China. Daimler introduced the
stretched version of the E class,
specifically developed for the Chinese
market, at Beijing Benz-DaimlerChrysler
Automotive Co., Ltd. in July 2010 and
plans to raise its annual production
capacity from 25,000 units as of early
2010 to 100,000 units by 2012 and to
300,000 units by 2015. Daimler
introduced the Vito and Viano MPV
models at Fujian Daimler Automotive
Co., Ltd. which began full-scale
operation in June 2010. The venture aims
to enter China’s high-end small
commercial vehicle market and raise
annual production capacity from 20,000
units to 40,000 units in the future.
Additionally, Daimler is planning to
build a new engine plant which is
Daimler: Business Plans in China
䋼Business Plan䋾
䊶With the expansion of sales of the S class, sales volume in China went up
77% year-on-year to 68,500 units in 2009 (Daimler’s announcement). S
class sales reached 15,000 units.
䊶Centered on the E class, Daimler aims to boost sales 45% year-on-year to
100,000 units in 2010 and to 300,000 units (50% domestic made) in
2015.
䊶Plans to invest 3 billion EUR in passenger car, commercial vehicle and
engine projects in China in 2010 and after.
䋼Product Strategy䋾
䊶Focus on product line expansion from the luxury S class through sports
cars, SUVs, the AMG series to the Maybach ultra luxury brand.
Furthermore, introduction of the small Smart brand.
䊶The S series controls over 40% of China’s luxury car market. China has
become the largest market of the S series. Plans to expand the product
portfolio of the model.
䋼Product Launches (Domestic Made)䋾
䊶May 2010: Launched the Vito and Viano MPVs manufactured by Fujian
Daimler. Entry into the high-end small commercial vehicle market.
䊶May 2010: Introduced the C180, entry edition of the C series (powered
by 1.6L Kompressor engine).
䊶Jul. 2010: Launched the E300L, stretched version of the new E class
(140mm longer).
䊶Plans to introduce the Sprinter MPV at Fujian Daimler.
䋼Sales Network䋾
䊶Plans to expand the sales network of Mercedes-Benz passenger cars from
141 dealerships as of the end of 2009 to 180 in 2010.
䊶Plans to expand the sales network of Fujian Daimler to 42 dealerships by
the end of 2010, to 54 in 2011 and 77 by the end of 2014. In addition to
primary cities, such as Beijing and Shanghai, Daimler plans sales
network development in secondary and tertiary cities as well.
䋼Green Vehicle Strategy䋾
䊶May 2010: Signed a contract with BYD on a joint venture to develop
electric vehicles. The venture was set up in Shenzhen to develop electric
vehicles for the Chinese market.
-Company name: Shenzhen BYD Daimler New Technology Co., Ltd.
-Ownership: Daimler 50%, BYD 50%.
-Registered capital: 600 million CNY.
-Activities: Uses Daimler’s architecture development technology and
BYD’s battery and E drive technology which meets China’s
battery-related technical standards. The facility, which is jointly
established by the two partners, will sell products under a new brand
shared by the two companies.
-Plans to enter the Chinese market in 2013.
-Plans to use parts of BYD’s existing sales network.
As of Apr. 2010, Daimler had already dispatched ten technicians to BYD
in order to begin full-scale development work in 2010.
䊶Daimler plans to introduce the electric version of the Smart in China in
2010 for testing purposes (Announced by Ulrich Walker, Chairman of
Daimler Northeast Asia Ltd.).
䋼Capacity Expansion䋾
䊶May 2010: Beijing Benz announced its plan to build an engine plant,
scheduled to go on stream in 2013, for an investment of approx. 2 billion
CNY.
-Through the localization of engines, Daimler can greatly improve local
content from the current approx. 40%, raise competitiveness and aim for
supplying government entities.
䊶Beijing Benz aims to raise annual production capacity of complete
vehicles from the current 25,000 units to 80,000-100,000 units by 2012
and to 300,000 units by 2015.
䋼Procurement Trends䋾
䊶 As of the beginning of 2010, the local procurement rate of
Mercedes-Benz was over 45%. Beijing Benz procures parts from 600
companies, of which 84 are Chinese.
䊶As of Jun. 2010: China-made products, such as radios and wire harnesses
are already being shipped to Daimler in the US and Germany.
䋼Commercial Vehicle Business䋾
䊶Jul. 2010: Daimler announced the establishment of a 50/50 joint venture
in China with Beiqi Foton to manufacture medium and heavy-duty
trucks. Both companies invested approx. 720 million EUR in the project.
-Company name: Beijing Foton Daimler Automotive Co., Ltd.
-Daimler will supply diesel engine and non-gasoline technologies. The
venture will develop low-price commercial vehicles based on Foton’s
Auman brand. Aims to venture into other Asian markets besides China.
Plans to start engine (OM457) production in 2011 and begin installation
of engines in 2012. Plans to manufactures engines at Foton’s existing
engine plant.
-Sales target for the 2012 to 2015 period is 100,000 units per year.
-Both companies announced the establishment plan of the venture which
took four and a half years to be realized.
㩷 (Compiled using various media sources)
Daimler: Outline of Products Aimed to Boost Sales in China
Model: E class stretched version
Domestic made: Beijing Benz
Engine: 1.7L
Production start: Jul. 2010
Retail price: From 515,000 CNY
Model: C180
Domestic made: Beijing Benz
Engine: 1.6L
Production start: May 2010
Retail price: From 308,000 CNY㩷
Model: S class
Imported
Engine: 2,996/3,498/5,461cc
Retail price: From 1.1 million CNY
Model: Viano
Domestic made: Fujian Daimler
Engine: 2,496cc
Retail price: From 393,000 CNY㩷
Model: Vito
Domestic made: Fujian Daimler
Engine: 3,199cc
Retail price: From 361,000 CNY
Vehicles, Engines, EVs; Complete Focus on China
Vehicle Makers㩷
scheduled to start operation around 2013
and supply Beijing Benz and Fujian
Daimler. The establishment of an engine
plant outside its home country of Germany
is the first for Daimler, expressing the
German automaker’s keen focus on China.
The move will greatly improve Daimler’s
local parts procurement ratio which has
been around 40%.
Daimler not only focuses on the luxury
car segment, but also actively invests in the
green vehicle sector. In May 2010,
Daimler agreed with BYD Co., Ltd. to
establish a joint venture company to jointly
develop electric vehicles for the Chinese
market under a new brand. Their tie-up is
deeper than the one between BYD and
Volkswagen AG which signed a
memorandum of understanding on joint
development of electric vehicles in June
2009. With the use of BYD’s battery
technology
which
meets
Chinese
standards, Daimler aims to promptly enter
and establish its presence in the Chinese
electric vehicle market which is expected
to gain momentum in 2011 and after.
Regarding passenger car production with
BYD, it will be difficult to gain approval
from the Chinese government because
Daimler already had two local joint
venture
partners
namely
Beijing
Automotive Industry Holding Co., Ltd.
(BAIC) and Fujian Motor Industry Group
Co., Ltd. (FJMG) as of July 2010.
Although FJMG agreed in July 2009 with
BAIC to transfer its share in Fujian
Daimler, talks were on hold as of July
2010. If the share transfer goes underway,
Daimler can form a passenger car joint
venture with BYD, however, it appears
that their relationship worries BAIC which
might be why talks have stalled between
BAIC and FJMG.
In the commercial vehicle sector,
Daimler at last established a joint venture
in July 2010 with Beiqi Foton Motor Co.,
Ltd. to manufacture medium and
heavy-duty trucks and engines. The
venture will develop low-price medium
and heavy-duty trucks based on the Foton
brand’s Auman series. Products are
planned to be sold not only in China, but
also in other Asian markets.
(Kiyoko YAMAMOTO)
Daimler: Business Relationships in the Complete Vehicle Sector in China (As of Jul. 2010)
䇴Local partners䇵
䇴Joint venture bases䇵
Beijing Benz-DaimlerChrysler Automotive Co., Ltd.
(Est: Aug. 2005) E/C class production. APC: 25,000
units (100,000 units in 2013). Plans new engine plant.
Daimler㩷 AG
50%
Daimler Vans Hong
Kong Ltd.
Daimler and Foton announced their JV plan in Nov.
2006. After Daimler’s failure to acquire a stake in
Foton in 2007, the JV was established in Jul. 2010.
Medium/large commercial vehicle joint venture
(Announced est. in July. 2010) APC: 100,000 Auman
brand trucks, 45,000 OM457 engines.
50%
68%
50%
50%
Fujian Daimler Automotive Co., Ltd. (Production
start: Jun. 2010) APC: 20,000 Vito/Viano vans.
50%
Although BAIC concluded an agreement to acquire a
40% stake in Fujian Daimler from FJMG, talks were
broken off as of Jul. 2010.
㬍
Fujian Motor Industry
GroupCo., Ltd. (FJMG)
50%
50%
Media
report on
FJMG’s
purchase
by BAIC.
37.74%
Beiqi Foton Motor
Co., Ltd.
32%
Taiwan’s China
Motor Corp.
Beijing Automotive Industry
Holding Co., Ltd.(BAIC)
Shenzhen BYD Daimler New Technology Co., Ltd.
Research and technology center to develop electric cars
under a new brand in China. Planned launch: 2013.
BYD Co., Ltd.
50%
Daimler: Passenger Car Production by Brand, Segment and Model in China (2005-2009, YTD Jun. 2009/2010)
Brand
Beijing Benz
Fujian Daimer
Segment
E2
E1
Total
MPV
Total
E class
C class
Model
2,005
Viano
Vito
Total
912
912
912
2,006
5,598
5,598
5,598
2,007
7,018
7,018
7,018
2,008
7,883
7,502
15,385
15,385
2,009
1,040
13,594
14,634
14,634
YTD Jun. 2009
1,032
6,530
7,562
7,562
(Unit: vehicles)
YTD Jun. 2010
85
12,524
12,609
2,223
965
3,188
15,797
(YOY Growth)
(▼91.8%)
(91.8%)
(66.7%)
( - )
( - )
( - )
(2.1times)
Daimler: Imported Passenger Car Registration by Brand, Segment and Model (2005-2009, YTD May 2009/2010)
(Unit: vehicles)
Brand
Segment
F
E2
E1
Sports
Mercedes-Benz
MPV
C-MPV
SUV
Total
B
Smart
A
Total
Maybach
F
Total
Total
Model
S Class
E Class
CLS Class
Mercedes-Benz
C Class
SLK Class
CLK Class
SL Class
CL Class
Vito
Viano
MB100
Sprinter 313
B Class
A Class
ML Class
GLK Class
R Class
GL Class
G Class
Forfour
Fortwo
City Coupe
Maybach 62
Maybach 57
2005
5,712
2,251
416
36
277
516
338
99
1
0
0
0
0
0
21
722
0
0
0
27
10,416
0
8
1
9
6
1
7
10,432
2006
6,015
466
479
15
1,146
510
515
119
1
0
0
0
0
0
6
2,100
0
102
26
24
11,524
0
0
0
0
19
1
20
11,544
2007
10,223
124
674
27
2,234
747
806
159
0
0
0
0
0
0
12
3,461
0
1,433
1,109
131
21,140
0
2
0
2
22
0
22
21,164
2008
14,060
66
698
115
1,656
854
1,192
138
1
2
267
1
9
0
6
3,748
0
2,962
1,857
248
27,880
0
0
0
0
20
1
21
27,901
2009
12,961
4,809
884
3
2,498
1,091
839
189
38
0
210
0
0
3,686
8
4,506
3,065
5,171
2,662
151
42,771
19
1,629
0
1,648
10
2
12
44,431
YTD May 2009
5,335
10
294
3
1,049
494
443
70
5
0
67
0
0
713
3
1,812
604
1,823
925
43
13,693
1
0
0
1
6
0
6
13,700
YTD May 2010
7,411
6,475
575
0
688
581
160
81
11
0
0
0
0
2,633
1
2,721
2,393
2,720
1,146
74
27,670
36
991
0
1,027
11
0
11
28,708
(YOY Growth)
(38.9%)
(647.5 times)
(95.6%)
(▼100.0%)
(▼34.4%)
(17.6%)
(▼63.9%)
(15.7%)
(2.2 times)
( - )
(▼100.0%)
( - )
( - )
(3.7 times)
(▼66.7%)
(50.2%)
(4 times)
(49.2%)
(23.9%)
(72.1%)
(2.1 times)
(36 times)
( - )
( - )
(1,027 times)
(83.3%)
( - )
(83.3%)
(2.1 times)
(FOURIN research)
Motorcycles: Prod Up 25.3%; Prod Adjustment in
Motorcycles etc.
In the first half of 2010, China㵭s
motorcycle production (two and three
wheelers) rose 25.3% compared to the
same period of 2009 to 14,854,430 units
on the back of global economic recovery
and rise in domestic demand triggered by
incentives in rural areas. Of which, two
wheelers went up 25.1% to 13,796,630
units and three wheelers increased 27.9%
to 1,057,800 units. More concretely,
among two wheelers, the 100cc and
110cc segments achieved 2,600,311 units
and 6,436,349 units respectively, the two
accounting for approximately 65% of
total production.
Looking
at
production
by
manufacturer in the first half of 2010, as
domestic and foreign demand recovered,
the top five companies realized
double-digit or better growth. Especially,
Grand River Group saw an increase of
34.7% to 1,825,694 units, firmly
maintaining the largest production scale.
In the meantime, Jialing Industrial and
Jincheng Group sustained drops of 3.7%
and 1.4% respectively.
In the first half of 2010, motorcycle
exports centered around the 150cc and
smaller segments, rising 57.1% to 4.42
million units. Amid drastic cooling of
2009’s overseas demand due to the
financial crisis, the Chinese government
raised export tariff refund rate from 9% to
14% in two stages in December 2008 and
January
2009
to
improve
cost
competitiveness in foreign markets. While
motorcycle export value increased 46%
from 1.33 billion USD to 1.95 billion
USD in the first six months of the year,
China: Motorcycle Volume/Value/Unit Price (YTD Jun. 2009/2010)
Export Volume (units)
Export Value (USD)
Export Unit Price (USD/unit)
HS Code
Item
87111000
ED㻡50cc
689,785
692,700
(0.4%)
323,482,993
302,948,141
(▼6.3%)
469
437
(▼6.7%)
87112010
50cc䋼ED㻡100cc
340,004
516,831
(52.0%)
118,086,711
167,220,598
(41.6%)
347
324
(▼6.8%)
87112020
100cc䋼ED㻡125cc
1,253,501
2,176,185
(73.6%)
595,047,134
929,557,217
(56.2%)
475
427
(▼10.0%)
87112030
125cc䋼ED㻡150cc
423,651
824,053
(94.5%)
216,588,517
395,824,815
(82.8%)
511
480
(▼6.0%)
87112040
150cc䋼ED㻡200cc
82,339
175,465
(113.1%)
54,474,406
119,266,479
(118.9%)
662
680
(2.7%)
87112050
200cc䋼ED㻡250cc
19,542
31,446
(60.9%)
18,517,982
27,463,349
(48.3%)
948
873
(▼7.8%)
87113010
250cc䋼ED㻡400cc
3,154
2,762
(▼12.4%)
4,900,787
3,281,940
(▼33.0%)
1,554
1,188
(▼23.5%)
87113020
400cc䋼ED㻡500cc
68
-
(-)
170,114
-
(-)
2,502
-
(-)
87114000
500cc䋼ED㻡800cc
582
175
(▼69.9%)
1,024,000
376,212
(▼63.3%)
1,759
2,150
(22.2%)
87115000
800cc䋼ED
37
18
(▼51.4%)
226,454
112,779
(▼50.2%)
6,120
6,266
(2.4%)
2,812,663
4,419,635
(57.1%)
1,332,519,098
1,946,051,530
(46.0%)
474
440
(▼7.1%)
YTD Jun. 2009
Total
YTD Jun. 2010
(Growth)
YTD Jun. 2009
YTD Jun. 2010
(Growth)
YTD Jun. 2009
ED: Engine displacement.
YTD Jun. 2010
(Growth)
Ranking
China: Production of Top 20 Motorcycle Makers by Engine Displacement (YTD Jun. 2009/2010)
1
Manufacturer
Grand River
Group
2 Loncin Group
3 Lifan Industry
4 Jianshe Industrial
5
Northern
Enterprises
6
Zongshen
Industrial
7
Northern Ek
Chor*
8 Qianjiang Group
9 Jialing Industrial
10
Guangzhou
Dayun
11
Guangzhou
Motors
12 Wuyang Honda*
13 Sundiro Honda
14
Zengcheng
Benma
15
Chongqing
Yinxiang
16 Qingqi Suzuki
17
Guangzhou
Haojin
18 Jincheng Group
19 Jinan Dalong
20 Jinan Qingqi
Period
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
YTD Jun. 2009
YTD Jun. 2010
Two Wheelers (units)
㻡50cc
㻡60cc
0
6,790
2,086
248
25,240
16,264
6,333
5,169
104,141
112,392
95,068
73,893
101,781
111,284
76,178
62,379
78,460
55,589
9,591
13,813
4,464
4,585
0
0
38,421
41,339
0
0
30,491
61,509
0
0
3,220
264
25,113
24,037
38,114
44,415
56,807
57,708
㻡70cc
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7,304
9,779
775
7,589
9
30
3,690
2,820
0
0
50
0
0
0
14,105
21,125
0
0
0
0
0
0
0
0
0
0
8,889
11,334
0
0
0
0
120
600
157
612
0
0
㻡80cc
0
0
14,537
0
1,400
216
11,504
23,816
0
0
0
970
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
68
0
0
0
0
2
0
0
Notes: *Affiliated group subsidiary. Data published as appear in original source.
㻡90cc
0
0
27,413
21,398
1,620
1,949
0
30
23,768
28,666
3,826
3,723
22,980
27,947
73
0
20,981
40,118
0
0
0
0
0
0
0
0
0
0
3,515
9,079
0
0
0
0
0
7
92
2
6,790
1,620
Three Wheelers (units)
㻡100cc
㻡110cc
㻡125
90,225
112,659
93,464
50,538
69,328
51,322
29,199
57,818
70,715
81,412
53,666
62,151
70,061
79,707
66,359
30,685
39,110
21,258
3,730
5,208
78,725
125,954
73,143
117,455
79,909
138,466
627
2,745
17,525
31,330
8,647
12,188
21,759
11,309
106,852
129,028
5,662
685
4,980
4,663
267,473 868,398
368,413 1,154,489
229,284 252,929
197,874 447,623
148,955 258,493
148,975 396,038
175,750 470,475
336,380 443,701
191,036 143,031
286,381 196,638
93,189 138,519
100,778 139,471
120,451 113,247
171,606 129,719
76,566 250,977
76,018 273,414
65,494 276,170
105,633 186,278
47,301 223,030
74,943 258,027
30,812 257,712
36,592 362,691
27,678 234,895
29,683 329,478
0 145,937
0 282,326
6,070
55,461
40,025 234,962
65,794
55,905
115,063
91,181
117,461 145,044
135,448 197,797
10,839 123,986
11,417 163,738
55,080
59,181
38,527
46,473
18,435
89,029
25,013 125,006
17,406
69,456
29,663
67,594
㻡150cc
129,389
183,343
94,569
121,598
196,938
234,969
7,042
4,903
32,500
49,355
68,305
86,342
31,619
48,145
112,222
172,152
65,291
94,627
61,072
107,866
4,920
14,770
5
6,118
4,020
12,272
60,887
135,520
31,652
61,235
7,674
10,870
53,222
76,947
15,415
14,503
13,873
32,933
11,323
16,461
㻡250cc
0
0
20,917
72,485
59,263
33,893
3,861
2,285
1,247
1,023
2,567
9,520
0
0
1,858
1,991
1,223
2,292
0
0
34
1
0
0
0
0
382
64
4,173
8,198
0
0
33
0
3,515
2,862
1,758
4,112
4,791
13,086
㻡750cc
0
0
852
95
0
321
128
344
0
0
0
0
0
0
0
0
49
53
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
510
0
0
0
㻡50cc
0
0
0
0
0
0
0
0
0
0
0
2,089
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,396
395
3,633
0
0
0
0
0
0
0
0
0
0
䋾50cc
0
0
18,806
10,822
0
0
2,989
2,789
120,641
109,386
242,883
235,875
81,898
81,230
0
0
66,082
77,210
0
107,513
0
0
0
0
0
0
0
1,598
614
0
0
0
0
0
5,551
4,200
13,662
11,180
4,292
䋾250cc
0
0
8,311
96
0
0
5,011
3,812
0
10,817
0
172
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,755
4,226
0
0
䋾750cc
Total
0 1,355,485
0 1,825,694
347
773,294
33
930,132
0
762,012
0
891,536
0
712,301
0
881,077
0
690,769
39
878,929
0
698,023
379
715,363
0
542,087
0
649,638
0
584,233
0
616,639
1,607
628,572
882
605,065
0
344,724
0
567,370
0
376,667
0
544,593
0
335,721
0
482,734
0
268,287
0
474,403
0
123,427
0
417,310
0
218,339
0
393,176
0
278,826
0
356,303
0
213,127
0
263,675
0
265,276
0
261,588
882
174,467
3,785
254,453
0
182,733
0
195,087
Response to State 3 Emission, Export Standards
Vehicle Makers
meet State 3 emission regulations in
September of the same year. In June 2010,
the China Association of Automobile
Manufacturers,
its
motorcycle
subcommittee and 128 motorcycle
manufacturers (account for 80% of the
industry’s production scale) signed the
China Motorcycle Industry Green
Environmental Protection Declaration,
emphasizing the production and sales of
State 3-compliant products and increased
investment in environmentally-friendly
technology.
export unit price fell 34 USD from 474
USD to 440 USD.
On July 1, 2010, China issued State 3,
the third stage of emission standards, on
motorcycles, prompting companies to
enhance the launch of regulationcompliant products. Wuyang Honda
launched five street-type motorcycles,
scooters and other models which meet
State 3 emission regulations in July 2009,
after which Qianjiang Group enhanced
production of seven motorcycle models,
such as QJ110-18 and QU150-18C, which
In the coming years, due to the rapid
recovery of exports, it is expected that the
production system of Chinese motorcycle
models which meet export requirements
will expand, however, fierce market
competition will trigger the adoption of
new technology which will bring about
higher
cost.
Consequently,
small
motorcycle makers are likely to face harsh
conditions. There is a growing possibility
that Chinese manufacturers will step up
strategic
adjustments,
such
as
consolidations and tie-ups. (Yongxing LI)
China: Motorcycle Production by Engine Displacement (2001-2009, YTD Jun. 2009/2010)
Three Wheelers
Two Wheelers
Segment
2001
2002
2003
2004
2005
2006
2007
2008
䇭䇭䇭䇭 ED㻡50cc
1,006,515
973,724
1,163,864
1,060,776
1,247,994
1,402,520
2,162,777
2,497,044
50cc䋼ED㻡60cc
19,026
15,490
1,692
3,283
558
954
3,067
2,149
60cc䋼ED㻡70cc
167,682
115,882
140,642
145,896
305,771
222,151
258,455
319,346
㩿㪬㫅㫀㫋㫊㪀
(YOY Growth) YTD Jun. 2009 YTD Jun. 2010 (YOY Growth)
2009
2,007,175
(▼19.6%)
1,063,368
1,008,211
0 (▼100.0%)
0
0
(-)
57,946
81,699
(41.0%)
122,881
(▼61.5%)
(▼5.2%)
70cc䋼ED㻡80cc
56,864
33,661
62,068
23,000
41,167
73,364
93,007
100,470
55,547
(▼44.7%)
28,341
31,872
(12.5%)
80cc䋼ED㻡90cc
405,155
344,180
381,320
273,370
280,020
326,557
378,463
423,337
211,629
(▼50.0%)
106,660
128,979
(20.9%)
90cc䋼ED㻡100cc
3,233,472
2,570,678
2,601,176
2,757,980
2,690,798
3,215,726
3,310,321
3,283,251
2,327,217
(▼29.1%)
1,117,129
1,296,074
(16.0%)
100cc䋼ED㻡110cc
840,004
972,374
1,284,738
1,758,259
2,178,834
2,842,245
3,703,971
4,150,251
4,184,470
(0.8%)
1,965,968
2,600,311
(32.3%)
110cc䋼ED㻡125cc
5,478,800
6,501,637
7,561,818
8,857,208
9,242,668 10,784,716 11,725,460 11,735,294 11,057,995
(▼5.8%)
5,104,686
6,436,349
(26.1%)
125cc䋼ED㻡150cc
536,583
852,794
877,364
1,039,471
1,040,347
1,834,236
2,348,949
3,065,350
3,275,296
(6.8%)
1,429,102
1,973,363
(38.1%)
150cc䋼ED㻡250cc
62,297
55,210
82,513
109,443
187,668
328,939
402,738
355,561
344,279
(▼3.2%)
151,452
231,832
(53.1%)
250cc䋼ED㻡750cc
3,756
6,926
1,020
108
532
3,318
10,209
9,867
6,066
(▼38.5%)
4,016
7,940
(97.7%)
750cc䋼ED
0
0
0
0
0
0
0
0
39
Total 11,810,154 12,442,556 14,158,215 16,028,794 17,216,357 21,034,726 24,397,417 25,941,920 23,592,594
(-)
27
0
(▼100.0%)
(▼9.1%)
11,028,695
13,796,630
(25.1%)
35,970
38,196
25,666
21,076
17,549
10,036
13,620
10,594
3,290
(▼68.9%)
3,370
2,518
(▼25.3%)
50cc䋼ED䋼250cc
446,037
483,037
495,301
574,082
495,105
861,314
1,163,599
1,469,408
1,756,288
(19.5%)
789,281
978,230
(23.9%)
䇭䇭䇭䇭ED=250cc
17,194
5,984
23,196
1,594
374
12,477
38,197
49,507
52,689
(6.4%)
23,026
62,885
(173.1%)
250cc䋼ED㻡750cc
7,193
11,115
15,818
18,666
17,301
15,502
12,693
25,820
20,419
(▼20.9%)
10,773
4,690
(▼56.5%)
0
0
0
0
0
0
0
3,817
2,396
(▼37.2%)
910
9,477
(941.4%)
506,394
538,332
559,981
615,418
530,329
899,329
1,228,109
1,559,146
1,835,082
(17.7%)
827,360
1,057,800
(27.9%)
12,316,548 12,980,888 14,718,196 16,644,212 17,746,686 21,934,055 25,625,526 27,501,066 25,427,676
(▼7.5%)
11,856,055
14,854,430
(25.3%)
ED㻡50cc
750cc䋼ED
Total
Total
China: Motorcycle Related Business Trends (Oct. 2009-Jul. 2010)
Manufacturer
Subject
Government support measures
Industry forecast
Wuyang
Honda
Details
䊶Jul. 2010: According to China’s Ministry of Commerce, the government disbursed 2.4 billion CNY in incentives for motorcycle
purchase in H1 2010, up 1.6 times compared to the same period of last year, supporting the purchase of 4.08 million motorcycles.
䊶Mar. 2010: According to the forecast of China Chamber of Commerce for Motorcycle, China’s motorcycle exports are expected to
maintain good performance, raising year-round volume by 20% year-on-year.
New product launches 䊶Jul. 2009: Launched five street-type motorcycles, scooters and other models which meet State 3 emission regulations.
Production
䊶Sep. 2009: Enhanced production of seven motorcycle models, such as QJ110-18 and QU150-18C, which meet State 3 emission
enhancement
regulations.
Production plan of pure 䊶Apr. 2010: Xie Yisen, secretary of the Yichun Municipal Committee of the Communist Party of China in Jiangxi Province, visited
electric motorcycles
Qianjiang Motor and exchanged views on lithium-ion battery-powered pure electric motorcycle project in Yichun City.
䊶H1 2010: Commenced small-scale production of hybrid motorcycles.
Zongshen
Production plan of
-Already began hybrid system development with Shanghai Ananda Drive Techniques Co., Ltd. Apparently, it is being developed based
Industrial
hybrid motorcycles
on two existing products.
䊶Mar. 2010: China South Industries Group Corporation’s Qingqi Industrial Park held its cornerstone laying ceremony at Jinan
High-tech Development Zone in Shandong Province. Largest motorcycle production base in north China, occupying approx.
733,000m².
Jinan
Construction of
-Plans to invest 768 million CNY in the first phase and reach annual production capacity of 800,000 motorcycles and 1 million
Qingqi
production plant
motorcycle engines by H1 2011.
-Plans to manufacture Qingqi, Suzuki and Peugeot-brand products, raise annual production capacity to 3 million units and achieve
annual production output of 20 billion CNY.
䊶Oct. 2009: Fujian Zhengxing Group, in cooperation with State-owned Assets Supervision and Administration Commission of
Zhenjiang Municipal Government, introduced a plant construction project to manufacture new hybrid motorcycles and wheels.
Zhengxing
Construction of
Located in the Jingkou Industrial Park on a site area of approx. 233,000m㫨, the project will be built in two phases.
Wheel
production plant
-Total investment: 1.18 billion CNY. Annual production capacity will reach 1 million new hybrid motorcycles and 2.5 million
wheels. Annual sales revenue and pretax profit are expected to reach 3 billion CNY and 100 million CNY respectively. 㩷
䊶Jul. 2010: According to Xiamen Customs, 57,764 motorcycles were exported through Xiamen in H1 2010, up 62.8% compared to
the same period of a year earlier. Export value reached 41.84 million USD (up 73.6%), greatly surpassing peak periods before the
2008 financial crisis.
-Exports through Xiamen mostly include medium and small motorcycles and some electric motorcycles. Average export unit price
Export Result
is 720 USD through Xiamen Customs, however, 400 USD through other Chinese customs stations. Average global retail price of
motorcycles is 600 USD.
-Taiwan㵭s Sanyang Industry Co., Ltd. operates a motorcycle production base in Xiamen, which is supplied by the local plants of
18 Taiwanese parts makers.㩷
Qianjiang
Group
Commercial Vehicle Transmissions: Booming Local KD
Sector
In China, the use of commercial
vehicle-type automatic transmissions (ATs)
and automated manual transmissions
(AMTs) is centered on urban fixed-route
buses and next-gen heavy-duty trucks. In
pursuit to explore the local market, global
suppliers, including Allison and ZF, have
stepped up local KD assembly of primarily
ATs and AMTs since 2000. In the
meantime, regarding technological avenues,
R&D of AMTs, which possibly offer 20%
better fuel consumption and 30% lower
manufacturing cost, was incorporated into
China’s 863 Program. With government
support, Chinese suppliers developed
AMTs based on existing manual
transmissions
(MTs).
As
practical
application and commercialization of
AMTs progress in 2010 and after, it is
expected that competition with foreign
companies will enter crucial stages.
Commercial vehicle-type ATs and AMTs
are primarily fitted into fixed-route buses,
while some are supplied to next-gen
heavy-duty trucks. Although there is no
official data available, annual demand is
estimated to be in the 10,000-unit range.
Fixed-route buses often start and stop
during operation and the driver must
frequently change gears as a result of
which demand for ATs and AMTs, which
have better handling quality, compared to
MTs, is rising. In contrast, long-distance
coaches and heavy-duty trucks often run on
highways and the driver does not have to
frequently change gears, therefore, these
products are overwhelmingly equipped
with MTs. However, in order to cope with
increasingly powerful engines, the
development of multi-speed transmissions
is underway.
Since Chinese suppliers were not up to
speed in technology development in the
past, AT and AMT supply for commercial
vehicles was dominated by Allison, ZF,
China: Commercial Vehicle AT and AMT Supply Relationship
Manufacturer
Product
Supplied
Vehicles
Buses
Allison
AT
Trucks
Eaton
AMT
Buses
Customer
Huanghai Auto
Jiangxi Bailujia
Higer Bus
Xiamen King Long
Yutong Bus
Jinghua Bus
Ankai Auto
Sunlong Bus
FAW Jiefang
Sinotruk
Shaanxi Heavy-duty
Hualing Heavy-duty
Shanghai Huizhong
Youngman Neoplan
Foton Motor
Xiamen King Long
Manufacturer
Product
AT
Supplied
Vehicles
Buses
Buses
ZF
AMT
Trucks
Cranes
Voith
AT
Buses
Customer
Manufacturer
Sunwin Bus
Xiamen King Long
Youngman Neoplan
Youngman Neoplan
Qijiang Gear Transmission
Higer Bus
Dongfeng Motor
C&C Truck
Zoomlion
Sanyi
XCMG
Beijing Gear Works
Youngman Neoplan
FAW Harbin Gear Box
Huanghai Auto
Xiamen King Long
Sinotruk
Yutong Bus
Shaanxi Fast Gear
Higer Bus
Shanxi Datong Gear
Zhongtong Bus
China North Vehicle
Hengtong Bus
Dongfeng Motor
Huanghai Auto
Jinghua Bus
Product
Supplied
Vehicles
AMT
Buses
AMT
Buses
Buses
Trucks
Trucks
Trucks
Trucks
Trucks
AMT
AMT
AMT
AMT
AMT
Customer
Beijing Bus
Sunwin Bus
Wuhan Yangzi
Hengtong Bus
Zhongtong Bus
GAC Bus
Higer Bus
JAC Coaches
Huanghai Auto
North Neoplan
FAW Bus
FAW Jiefang
Sinotruk
Shaanxi Heavy-duty
Dongfeng Motor
Chongqing Tiema
Note: Chinese companies focus on AMT development and many of them are still at
the in-vehicle testing phase. Only Qijiang Gear Works and Sinotruk conduct
commercial production.
Global Commercial Vehicle Transmission Manufacturers: AT and AMT Business and Operation Trends in China
䂯Allison
䊶Local assembly: Launched a specialized assembly center for transmission
products in Shanghai in May 2005. First such facility of Allison in the
Asia-Pacific region.
-Entered China in 1981.
-Provides AT products to the Chinese market. Expands sales to trucks and
buses.
䊶Supply record: Supplied approx. 30,000 ATs to the Chinese market until
2010. Of which, 13,000 units had been supplied to fixed-route buses in
Beijing until 2008.
䊶Product promotion
-Jan. 2010: Held special test-drive events in cooperation with FAW. FAW
equipped dump trucks, semi-tractors and airport fire trucks with
Allison-made ATs.
-May 2010: Held joint product presentation with Jiangxi Bailujia Business
Bus Co., Ltd. at Busworld Asia in Shanghai. Unveiled the T390 and T390R
ATs.
-Jul. 2010: Held test-drive event of fixed-route buses and tour coaches
equipped with Allison’s AT in cooperation with King Long United in
Qionghai, Hainan.
䂯ZF
䊶Local assembly: Manufactures ZF Ecomat ATs at its Suzhou plant for urban
fixed-route buses and ZF AS-Tronic and ZF AS Tronic lite AMTs at its
Hangzhou plant. Local assembly is based on KD kits.
䊶New joint venture talks: According to local media sources in Jun. 2010, ZF
has been holding talks with Qijiang Gear Transmission, a local commercial
vehicle transmission maker. It appears that the two companies plan to
establish a joint venture with annual production capacity of 300,000 units to
manufacture commercial vehicle transmissions. Production from ZF’s Suzhou
and Hangzhou plants would be transferred to the new facility.
-Apr. 2010: Held a test-drive event in Pinghu, Zhejiang in cooperation with
MAN, Dongfeng Motor, Youngman Neoplan, Higer Bus and XCMG. Large
buses, heavy-duty trucks, semi-tractors and cranes were equipped with ZF
AS Tronic AMT.
-Apr. 2010: Agreed with Dongfeng Motor and Shandong Yichang Logistics
in Shanghai regarding the supply of Tianlong heavy-duty trucks equipped
with ZF AS Tronic. Dongfeng Motor received an order for 500 Tianlong
heavy-duty trucks equipped with ZF AS Tronic from Shandong Yichang
Logistics. The vehicle’s fuel consumption rate is 1.99%-4.99% better
compared to regular models.
䂯Eaton
䊶Local assembly: In the commercial vehicle MT sector, Eaton Broke ties with
FAW Jiefang Automotive in Sep. 2007 and with Shaanxi Fast Gear in the
beginning of 2008, pursuing an independent local business operation.
-2007: Established a wholly-owned company in Wuxi, Jiangsu to
manufacture transmissions for medium and heavy-duty commercial
vehicles. Commenced production in Jan. 2008.
-Aug. 2010: Introduced an AT production line (9/10/13/18-speed) with annual
production capacity of 40,000 units at the Wuxi plant. Plans to manufacture
AMTs in the next 2-3 years (Announced by Eaton Vehicle Group (China)
president Wang Zhan in Jun. 2010).
-Launched hybrid system AMTs in China, supplying Youngman Neoplan,
Beiqi Foton, King Long United and Hengtong Bus.
-Apr. 2009: Exhibited the UltraShift PLUS commercial vehicle AMT at the
Shanghai motor show. In the same month, Huanghai Automobile displayed
the DD6128S01 fixed-route bus equipped with Eaton-made AMT at the
2009 Beijing Road Transport, Urban Fixed-route Bus and Parts Exhibition.
䂯Voith
䊶Local assembly: Established a wholly-owned subsidiary in Shanghai in 2001.
-Imported core parts assembly and testing equipment from home plant in
Germany to locally assemble DIWA 854.3 and DIWA 864.5 ATs for medium
and large fixed-route buses.
-Already supplied several thousand units to Huanghai Automobile, Xiamen
King Long, Yutong Bus, Higer Bus, Zhongtong Bus, Dongfeng Motor and
Jinghua Bus.
䊶New product launch䋺
-Apr. 2010: Launched the DIWA.864.5 AT for fixed-route buses in the
Chinese market.
Assy of Foreign AT, AMT; Chinese Focus on AMT Devt
Parts Industry㩷
Eaton and Voith, each operating local KD
assembly bases. Although Chinese demand
is low, therefore, assembly remains at a
small scale, foreign suppliers are building
supply ties with local bus makers.
In the meantime, although Chinese
suppliers advanced AMT development
from the mid-2000s under government
support, as of 2010 only China National
Heavy-duty Truck Group Co., Ltd.
(Sinotruk) and Qijiang Gear Transmission
Co., Ltd. reached commercial production
stage while others are still at the testing
stage. Qijiang Gear supplied AMTs for
electric fixed-route buses destined for the
Beijing Olympics, beginning small-scale
production ahead of others. The company
aims to sell 1,300 units in 2010. However,
it has been reported that talks have been
underway since June 2010 about the
purchase of Qijiang Gear by ZF. The deal
would possibly enable Qijiang Gear to
jointly operate its commercial vehicle
transmission business with ZF.
In the heavy-duty truck segment, China
FAW Group Corporation took initiative at
the end of 2008 and launched models
equipped with AMT. In response, Sinotruk,
Dongfeng Motor Corporation and Anhui
Hualing Automobile Co., Ltd. released
their own next-gen trucks one after another
fitted with AMT. Among them, Sinotruk
established
an
independent
AMT
development project and equipped its own
16-speed MT with WABCO’s transmission
control unit, successfully completing AMT
development and later setting up a
production system with annual production
capacity of 30,000 units.
In 2010 and after, as Chinese suppliers
make full-scale entry into the AMT sector,
competition with foreign rivals will heat
up. Upcoming challenges will be to set up
commercial production system and ensure
supply routes. (Junhong CHEN)
China: Development and Practical Application of Commercial Vehicle AMT by Chinese Manufacturers
Manufacturer
Subject
Shaanxi Fast Gear
Co., Ltd.
R&D
Shanxi Datong
Gear Group Co.,
Ltd.
R&D
R&D
Qijiang Gear
Transmission Co.,
Ltd.
Practical
application
R&D
Beijing Gear Works
Practical
application
R&D
FAW Harbin Gear
Box Works
Practical
application
China National
Heavy-duty Truck
Group Co., Ltd.
(Sinotruk)
China North
Vehicle Research
Institute
R&D
Practical
application
R&D
Details
㨯Over 40 technicians has participated in the company’s AMT development project and 22.3 million CNY have been invested in total.
Based on DC motor and air solenoid valve technology, the Fast Gear has developed an automatic gearshift system (AGS) and
electronically controlled air clutch. Built clutch test stand and integrated AMT performance test stand.
-Oct. 2006: In cooperation with Chongqing University, Jilin University and Shaanxi Heavy-duty Automobile, the company submitted
its plan called “AMT (2,000nm) for Heavy-duty Automobiles Project” to the 863 Program, acquiring 3 million CNY of development
grants. Commenced AMT development in Mar. 2007 and completed design of prototype within the year. Completed in-vehicle
testing of prototype in 2008 and moved on to product styling.
-Jan. 2010: Development result passed technological testing by government authorities. Apr. 2010: Unveiled a 12-speed AMT at the
Beijing motor show.
-Regarding development, five AMT prototypes were installed into F2000 and F3000 heavy-duty trucks of Shaanxi Heavy-duty
Automobile and underwent test runs of over 10,000km. Tests show that AMTs provide 6% better fuel consumption and 5% better
acceleration compared to MTs.㩷
㨯2004: Commenced an AMT development project in cooperation with Dongfeng Motor and Beijing Institute of Technology. Tsinghua
University joined the project in 2006 to advance the second phase of development. Submitted the project to the 863 Program.
-Equipped Dongfeng Motor’s EQ4195W-406 semi-tractor with Datong Gear’s 12-speed MT (DC12J150T) featuring electronic
control to advance AMT development. Nov. 2005: Completed road testing. Tests show that AMTs provide 5% better power output
compared to MTs.
-2008: Became wholly-owned subsidiary of Sinotruk. Recent progress of the AMT development project is unknown.㩷
㨯2004: Commenced an AMT development project in cooperation with Beijing Institute of Technology. Joint development of AMT for
fixed-route buses, using both partners research data.
㨯Jun. 2005: Began in-vehicle testing of two S6-90AMT prototype AMTs. Styling testing was completed in Jul. 2006.㩷
㨯2007: In-vehicle testing of S6-90AMT for Yutong Bus’ ZK6118HG large fixed-route bus.
㨯May 2008: Supplied the 3-speed S3-120AMT to Beijing Bus Works. In 2007, received order from Beijing Bus Works for 50 pure
electric bus AMTs on the occasion of the Beijing Olympics.
Retail price ranges between 30,000-40,000 CNY, less than half of imported ATs.
㨯2009: Supplied 120 AMTs to Sunwin Bus for fixed-route and event buses.
-Of which 60 are 3-speed AMTs for the 12m SWB6121 bus and 60 are 2-speed AMTs for 11m QJ1112 bus.
㨯As sole supplier of AMTs to Weichai’s hybrid engines, Qijiang Gear’s AMT-equipped Weichai hybrid systems are supplied to Wuhan
Yangzi, Hengtong Bus, GAC Bus, Higer Bus, JAC Coaches, and Huanghai Automobile. Aims for 1,300 units in AMT sales in 2010.㩷
㨯2004: Commenced an AMT development project in cooperation with Beijing Institute of Technology, using the institute’s design and
development achievements.
㨯2005: Completed AMT prototypes were installed into vehicles of North Neoplan and underwent test runs of 15,000km.
-Based on MT and dry clutch technology, the company added sensor and ECU technology to combine high efficiency and low cost of
MTs and automatic gearshift system (AGS) of ATs. Provides 3%-10% better fuel consumption than ATs. Meets requirements of
trucks, fixed-route buses, long-distance and tourist coaches.
㨯Mar. 2006: Commenced supply of AMTs to North Neoplan. The bus maker ordered 100 AMTs which will be installed into large
coaches for a tourist company.
㨯Aug. 2006: The Beijing Municipal Science & Technology Commission’s Olympic Electric Vehicle Great Project’s team ordered seven
AMTs for electric buses. Completed supply in Oct. 2006.
㨯Feb. 2008: Supplied 20 4A110 AMTs for electric buses for the Beijing Olympics.
-The 4A110 is jointly developed with Beijing Institute of Technology based on the 4S110 MT using the institute’s AMT technology.
Passed examination of the Beijing Municipal Science & Technology Commission.㩷
㨯2003: Commenced an AMT development project in cooperation with FAW Technical Center and Jilin University.
-As technical avenues, the company will adopt hydraulic control technology for buses, motor drive technology for passenger cars and
pneumatic control technology for trucks.
㨯2004-2005: Conducted AMT development for trucks.
-Procured AMT actuators from Guizhou Honglin Vehicle Electric Control Technology. AMTs provide 5% better fuel consumption
compared to MTs.
㨯Aug. 2005: In-vehicle testing for FAW Bus’ Urban MM fixed-route bus model.
㨯Dec. 2008: Supplied five AMTs to an owner of Jiefang J5P semi-tractors.
㨯Apr. 2010: Supplied AMTs to Jiefang J6 heavy-duty trucks exhibited at the Beijing motor show.㩷
㨯2005: Began planning of AMT development project. End of 2006: Set up project. Jul. 2007: Completed AMT prototype.
-Added WABCO’s TCU to self-developed 16-speed MT. Sinotruk’s technical center installed 50 AMT prototypes into heavy-duty
trucks which underwent test runs of 600,000km total. AMTs provide 5%-10% better fuel consumption compared to MTs.㩷
㨯Dec. 2008: Commenced commercial production of the Smartshift-AMT with annual production capacity of 30,000 units.
-AMTs are standard equipment for next-gen A7 heavy-duty trucks launched since 2009.㩷
㨯Jun. 2009: Heavy-duty truck AMT passed technical evaluation.
-Development took five years. AMT prototypes were installed into 6x6 heavy-duty trucks of Chongqing Tiema Heavy-duty Trucks
and underwent test runs of 6,201km.
AMT: Automated manual transmission. AT: Automatic transmission. MT: Manual transmission.
NORINCO:
Prod,
Development
of
Electronics;
Chinese Supplier
China
North
Industries
Group
Corporation (hereinafter referred to as
NORINCO) is one of the country’s
defense corporations directly subordinate
to the State Council, splitting from the
former
China
Ordnance
Industry
Corporation in 1999. According to
official announcements, consolidated
revenues in 2008 reached 145 billion
CNY. From the 1980s, the group forayed
into production for the civilian market,
focusing on the automotive industry for
which some 40 affiliates undertake
business including the manufacture of
heavy-duty trucks and mini commercial
vehicles, along with vehicle-related parts
such as engines, transmissions, braking
systems
and
body
parts.
Automotive-related revenues in 2008
topped 20.6 billion CNY, accounting for
14% of the entire group.
In July 2008, NORINCO invested 15
billion CNY to set up Xi’an NORINCO
Technology Industry Park in Shaanxi in
an aim to improve the group’s overall
advanced
technology
development
function, including fields such as
information technology, new materials
and
energy,
and
equipment
manufacturing. In terms of automotive
business,
subsidiary
research
organization Shaanxi Applied Physics
and Chemical Research Institute has been
utilized under plans to strengthen
development
and
production
of
rechargeable battery cells for use in
automobiles. Moreover, in June 2010,
subsidiary China North Industries
Electronic
Information
Technology
Group brought into operation a 5 billion
CNY industrial park constructed in
Nanjing,
Jiangsu
to
strengthen
development of electronic information
technology and production business.
Although few details have been released
with regard to products for civilian use, it
appears
automotive
electronic
components are to be introduced.
NORINCO: Business Developments of Affiliate Enterprises
Base
Outline
Details
䊶Jun. 2010: A 5 billion CNY industrial park constructed in Nanjing, Jiangsu came into operation. Slated to manufacture automotive
electronic components for civilian use.
䊶Jul. 2008: Reached agreement with local Xi’an government in Shanxi to build Xi’an NORINCO Technology Industry Park.
-Investment: 15 billion CNY. Site Area: 16.3km². Plan to become operational by 2013.
-Along with production business in areas such as IT, new materials and energy, chemicals, and equipment manufacturing, also
plans to introduce a development base and production lines for vehicles, auto parts and automotive rechargeable battery cells.
NORINCO
Industrial Parks
䋺Electrochemical Technology Center Project: 98 million CNY invested by Shaanxi Applied Physics and Chemical Research
Institute (SAPCRI) for construction. To expand into R&D for high-output lithium-ion batteries, fuel cell batteries, battery cell
management systems and battery function testing.
䋺Construction of a lithium-ion battery production line: Set up by SAPCRI through investment of 35 million CNY.
䋺CNGC Xi’an North Qinchuan Group to relocate to the park, with plans to set up one subsidiary manufacturing automotive parts,
and a joint venture company manufacturing aluminum wheels.
䊶May 2010: Shanghai Koito Automotive Lamp acquired 51% shareholding in former wholly-owned subsidiary Jilin Ruibao Auto
Lamp Co., Ltd. for 31.65 million CNY.
-Jilin Ruibao Auto Lamp, previously a state-owned enterprise, incorporated into the Jilin Dongguang Group in Jun. 2005, with
annual sales revenues rising from 66.42 million CNY in 2004 to over 100 million CNY in 2009.
Business Merger
-To manufacture lighting systems for mini vehicles, light and heavy commercial vehicles. APC to supply 200,000 vehicles. To
supply CBU makers such as FAW Xiali, FAW Jilin, FAW Jiefang and Hebei Zhongxing.
-From 2008, began a partnership with Shanghai Koito Automotive Lamp in the fields of technology development and opening
CNGC Jilin
new markets.
Dongguang Group
䊶Aug. 2009: The Jilin Dongguang Group’s automotive parts industrial park in Changchun, which began construction in May 2008,
Corporation
went into operation.
New Base
-Site Area: 145,000m². Plant set up for production of clutches, flywheels and automobile mirrors, etc.
-Construction began in Mar. 2006.
䊶Jul. 2009: Set up the Dongguan Automotive Parts Technology Center within the group’s automotive parts industrial park in
Technology
Changchun
Development
-Investment of 600,000 CNY. Has technology partnership with two national research institutes and five universities. Has kick
started five projects related to key automotive parts.
䊶Sep. 2009: To strengthen supply to Beijing Hyundai, set up a Beijing branch office through 100% own investment.
- Investment: 8 million CNY. Site Area: 10,000m².
䊶Dec. 2009: Set up Guangzhou Lingyun Xinrui Automotive Parts Co., Ltd. jointly with Guangzhou Xinrui Development
Investment.
-Capital: 8 million CNY.
-Shareholding: Lingyun Industrial 51%, Guangzhou Xinrui Development Investment 49%. Zengcheng New Town Industrial
Zone, Guangzhou.
-Unit set up to carry out product development for the independent brand passenger car project of GAIG. Plans to manufacture
New Base
automotive parts including slides and door B pillar covers.
Lingyun Industrial
䊶Jan. 2010: Set up a production base in Zengcheng, Guangzhou. New base plans to manufacture door frames, window slides and
Corporation
bumpers, etc. Aims for APC to supply 200,000 vehicles by the end of the year.
Limited
䊶Feb. 2010: Formed NORINCO Lingyun Suspension Systems Co., Ltd. in Beijing with NORINCO R&D etc.
-Capital: 30 million CNY.
-Shareholding: Lingyun Industrial 51%, NORINCO R&D 40%, Beijing Hengxingjiaye Investment Management 4.5%, others
4.5%.
-Business Areas: Development, manufacturing and sales of automotive parts such as suspension systems.
䊶Jun. 2009: Delphi Saginaw Lingyun Drive Shaft Co., Ltd., a joint venture set up with US company Delphi, supplied drive axles for
Shanghai VW’s Model Z project.
Orders
䊶Aug. 2009: Subsidiary company Shanghai Lingyun East Asian Auto Parts Co., Ltd. signed a development partnership agreement to
supply vacuum tubes and ventilation pipes for Fujian Daimler’s NCV3 project.
䊶Mar. 2010: Set up an airbag inflator and seat belt pretensioner manufacturing facility with US company TRW Automotive. Slated
CNGC Xi’an
to come on stream at the end of the year.
Dongfang Group
Joint Base
-Investment: 150 million CNY. Capital: 50 million CNY.
Co., Ltd.
-APC: Airbag inflators 1 million units. Projecting sales revenues of over 200 million CNY following start of operation.
CNGC Jianglu
䊶Jan. 2010: Completed setting up a 500,000-unit annual capacity passenger car CVT transmission production line in the Changsha
Electromechanical
Lugu Industrial Park.
Capacity
Science &
-End of 2006: Announced independent development of a CVT transmission.
Expansion
Technology Co.,
-2009: Supplied a total of 3,000 units to Lifan and Zhongtai.
Ltd.
-End of 2010: Plans to begin construction of a 150,000-units annual capacity production plant in the Hutan Jiuhun Industry Park.
APC: Annual Production Capacity.
(Compiled using PR materials of each company and various media sources)
Subsidiaries Introduce Equipment, Expand Sales Channels
Parts Industry
Among affiliated bases, since 2009,
publicly-listed subsidiaries CNGC Jilin
Dongguang Group Corporation and
Lingyun Industrial Corporation have been
active in stepping up automotive parts
business operations.
Of which, Jilin Dongguan has expanded
its business domain into components such
as clutches, braking and lighting systems,
and mirrors. In August 2009, following the
opening of Jilin Dongguan Group’s newly
constructed automotive parts industrial
park in Changchun, Dongguan Automotive
Parts Technology Center was set up within
the park through additional investment of 6
billion CNY in aims by the group to
improve its R&D function. Furthermore, in
May 2010, 51% of shares in the previously
100%-owned subsidiary Jilin Ruibao Auto
Lamp were sold to Shanghai Koito
Automotive Lamp. The change to joint
business is likely to see the unit’s sales
channels expand from primarily the FAW
Group, to other automakers in the
Shanghai vicinity.
Meanwhile, Lingyun Industrial has been
expanding business activities focusing on
vehicle body parts such as window frames,
bumpers, pressed parts, interior parts and
plastic components. In September 2009, a
branch was set up in Beijing to boost
supply to Beijing Hyundai, while the
following
December
brought
establishment of Guangzhou Lingyun
Xinrui Automotive Parts Co., Ltd. jointly
with Guangzhou Xinrui Development
Investment to carry out product
development for the independent brand
passenger car project at GAIG’s local
base. Moreover, to increase supply to
CBU makers in China’s southern region,
its production base for body parts,
including door frames, window slides
and
bumpers,
was
expanded.
Additionally, in 2009, new orders were
received from Shanghai VW and Fujian
Daimler to supply parts for respective
new car projects. (Huifang ZHANG)
Brake Systems
Area
NORINCO: Outline of Affiliate Bases
Establishment
Location
Capital
(Total Assets)
CNGC Jilin
Dongguang Group
Corporation
1956
Changchun,
Jilin
80.21 million CNY
Changchun Yidong
Clutch Co., Ltd.
1992
Changchun,
Jilin
Dongguang
Group 37%,
䍃Customers: FAW Group, CHANA, Beiqi
141.51 million CNY FAW Group Clutches (2 million sets) FOTON, BYD, Lifan, etc.
24%,
䍃2009 sales revenues over 400 million CNY.
others 39%
CNGC Hebei
Taihang, Machinery
Industries Co., Ltd.
1968
Shijiazhuang,
Hebei
83.44 million CNY
NORINCO
62.75%
Non-asbestos brake pads
䍃Became limited liability company in 2002.
etc.
Qiqihar Heavy CNC
Equipment Co., Ltd.
1904
Qiqihar,
Heilongjiang
80.49 million CNY
NORINCO
100%
Mini vehicle brakes
1955
Chongqing
320 million CNY NORINCO
(120 million CNY) 82.21%
Clutches, air suspension, 䍃Employees: Over 4,000.
etc.
䍃Site Area: 1.21 million m².
2003
(Reorganized)
Datong, Shanxi
210 million CNY NORINCO
(1.3 million CNY) 100%
150 and GF series diesel
engines, 492QS type
䍃Employees: Over 3,000.
gasoline engine
Base
Body Parts
Transmissions
Engines
Chongqing Tiema
Industrial Group
Co., Ltd.
CNGC Shanxi
Diesel Engine
Industries
Corporation Ltd.
Shareholding
NORINCO
100%
Manufactured Products
(Annual Production Capacity)
䍃Production bases in Changchun, Jilin (City)
and Penglai.
䍃Employees: 5,650.
Clutches, braking
systems, lighting
systems, mirrors, etc.
䍃Incorporated into NORINCO in 1946.
Diesel engines:
TCD2015V06,
HC4132UPS, BFM1015,
etc.
HH368Q, HH462Q,
Shanxi Chenggong
1989
Changzhi,
NORINCO
500,000CNY
HH465Q, HH465Q-2E
Huaihai Engine
(2000 Reorganized)
Shanxi
100%
Co.,Ltd.
(150,000 units)
Light trucks (LY5T245E
NORINCO etc.), mini commercial
vehicles (5T09H,
Lianyungang North
75.48%,
Lianyungang,
Transmission Co.,
Jul. 2000
156.07 million CNY AVIC No.1 5T08H, 462Q, etc.), cars
Jiangsu
Ltd.
23.2%, others (4T08, QR512, 368Q,
5T15A, etc.)
1.32%
(150,000 units)
Henan Jianghe
Pingdingshan,
NORINCO SC7080, MSA-5G
1968
110 million CNY
Machinery Factory
Henan
100%
(60,000 units)
Xin’an Vehicle
NORINCO 5S-111G, ZF-20
1986
Chongqing
N.A.
Manufacturing
100%
(4,000 units)
Factory
Press dies, bumpers,
Lingyun Industrial
Zhuozhou,
NORINCO
1995
170 million CNY
window frames, plastic
Corporation Limited
Hebei
31.3%
parts, interior parts, etc.
Hebei Huabei Diesel
Engine Co., Ltd.
Inner Mongolia First
Machinery Group
Corporation
Shanxi Limin
Industry Co., Ltd.
CNGC Henan North
Xingguang
Machinery &
Electric Co., Ltd.
CNGC Xi’an
Dongfang Group
Co., Ltd.
1970
Shijiazhuang,
Hebei
(480 million CNY)
NORINCO
100%
→74.35%
(2007)
1954
Baotou, Inner
Mongolia
(16.57 billion CNY)
NORINCO
74.35%
1956
Taigu, Shanxi
65.47 million CNY
NORINCO
100%
1969
Zhengzhou,
Henan
(450 million CNY)
NORINCO
56.65%
1953
Xi’an, Shanxi
(2.39 billion CNY)
NORINCO
100%
Reference
䍃Site Area: 170,000m².
䍃Aims for sales revenues in 2010 of 1.28
billion CNY.
䍃Site Area: 83,000m².
䍃Customers: Chery, Chongqing Yu’an
Huaihai Engine, Chongqing Zongshen,
SAIC GM Wuling, light trucks for
Dongfeng Motor
䍃Customers: CHANA.
䍃Site Area: 2.9 million m².
N.A.
䍃2009 consolidated revenues of 2.5 billion
CNY.
䍃Site Area:20.21 million m².
Cast parts, welded parts, 䍃Employees: Over 26,560.
䍃Revenues from main business in 2009 of
pressed parts
13.9 billion CNY.
䍃Customers: BYD, Chery, Chang’an Suzuki,
Silencers (200,000 units)
etc.
䍃Employees: Over 2,300.
䍃Has two R&D bases in Henan.
Door locks
䍃Aims for sales revenues in 2010 of 1 billion
(5 million sets)
CNY.
䍃Customers: Inner Mongolia Special
Door hinges etc.
Vehicle, Shaanxi Automobile
Manufacturing, etc.
(Compiled using PR materials of each company and various media sources)
Magna:
Positions
EV
Business
on
New
Growth
Foreign Supplier
Magna International Inc. (hereinafter
referred to as Magna), which boasted the
third largest sales revenue in the world as
parts supplier in 2009, positions China
along with India as its strategic markets in
Asia, strengthening investment in the two
countries. Thanks to government support
from 2010, China’s new-energy vehicle
industry is forecast to expand in the
future, as a result of which Magna is
starting HEV and EV operation in the
country, advancing a new growth
strategy.
Magna first entered China in 1996 to
establish a joint venture company to
manufacture seat frames in Shanghai. The
company began full-scale exploration of
the Chinese market in 2004 with the
establishment
of
its
Shanghai
headquarters. In the past, Magna adjusted
operation expansion to the pace of
China’s vehicle market. The company
increased the number of production and
R&D bases to 17 and supplies not only
foreign automakers, but also – it is said
nearly
all
–
Chinese
vehicle
manufacturers such as FAW, SAIC,
GAIG, BAIC, Chery and Jianghuai. From
2010, Magna plans to build two new
plants to manufacture oil tanks and
chassis. In the beginning of 2010, apart
from FAW, Magna secured an
engineering contract from a Chinese
Magna: Operation Plans and Trends in China
˘Operation Plans and Challenges˚
㨯2010: Aims to expand sales channels in China, India and Japan and
increase sales ratio to Asian automakers from 4% in 2003 and 6% in 2007
to 10%-15%.
㨯Although China’s share accounted for 1%-2% of Magna’s total sales
revenue in 2008, aims to raise it to 15% in 2010. In the long term, aims to
have sales revenue ratio of its three major markets (North America,
Europe and Asia) on the same level.
㨯Intends to double China’s sales revenue by 2013.
㨯Production related investments in Asia primarily focus on China and
India. In five years starting from 2008, Magna plans to enhance capacity
investment to a greater level than in the past.
㨯Challenges in China are securement of raw materials and equipment as
well as development of human resources (Announced by Magna
International Asia president James J. Tobin in Jun. 2008). In addition,
reduction of logistical cost is also an issue.
˘Product and Technology Strategy˚
㨯Although Magna has not made full-scale launch of products in three
(exterior, roof and hybrid & electric vehicles/systems) out of its 11 area of
expertise (see other eight on next page), the company is considering
introducing all of its product systems in China in the long term.
㨯Decides on product localization depending on local trends.
㨯Considering localizing R&D of advanced technologies in China.
㨯Plans to improve chassis systems, lightweighting technology and vehicle
body safety as well as focus on launching new technologies and products
in the areas of lithium-ion battery and new-energy technologies.
˘Capacity Expansion˚
㨯May 2010: Announced to build two new plants in north China to
manufacture oil tanks and chassis. Cosma will establish a production plant
north of Beijing to manufacture metal bodies and chassis. Steyr plans to
commence operation of an oil tank plant in Dec. 2011.
˘Procurement Capacity Expansion˚
㨯Increased parts procurement in China from 262 million USD in 2006 to
407 million USD in 2008. Plans to boost local parts purchase to 1 billion
USD by 2012 (Announced by Magna China purchasing director Du Min
in Oct. 2009).
㨯Magna procures batteries primarily from China for its plants around the
world.
Magna Steyr: Operation Trends in China
˘Development Tie-ups with Local Automakers˚
㨯 Began development of a new Hongqi model with FAW in 2006.
Announced joint development of Hongqi’s upper grade model in Aug.
2008. Apparently, they developed a new model based on an existing
model of FAW Car and later this new model became the development
base of a new platform.
㨯Concluded strategic cooperation agreements with Dongfeng Peugeot
Citroën, FAW-VW, Shanghai VW and others.
㨯 Responsible for parts quality control of newly launched products
launched by Dongfeng Peugeot Citroën.
㨯Feb. 2010: According to media sources, Magna concluded an agreement
with Guangzhou Automobile to provide comprehensive engineering
service for the automaker’s new CUV project which is scheduled to start
in 2012.
-Beg. of 2010: Magna was approached by a Chinese automaker
regarding engineering, however, the company’s name was not revealed.
˘Construction of New Plants˚
㨯Apr. 2010: According to media sources, Magna plans to commence
production of composite oil tanks.
-The customer is a German automaker (name not revealed) which also
procures oil tanks from Magna in Germany.
˘Consignment Production of Vehicles˚
㨯Jun. 2009: Magna revealed that the company is advancing cooperation
regarding consignment production of Chinese vehicles in Mexico in
cooperation with a Chinese automaker (name not revealed).
-As of Aug. 2008: No word on progress.
-Mar. 2008: Announced its plan to build three new assembly plants in
Mexico by the end of 2010.
Magna: Operation Trends in China’s Electric Vehicle Sector
Beg. of 2010: Magna Asia-Pacific vice president Frank O’Brien announced that the company plans to commence HEV and EV operation in China.
Promoted by the Chinese government, China’s new-energy vehicle industry is forecast to expand in the future. Magna aims to provide products and services
which meet characteristic Chinese market demand.
˘Structural Enhancement˚
㨯Jan. 2010: Established a cross-organization called E-Car Systems. Aims
to strengthen HEV and EV operation by using Magna’s global R&D
resources. Plan to release the Ford Focus equipped with electric drive
part which was developed by Magna in the US in 2011.
㨯Jun. 2010: According to Magna China vice president Sun Xingyuan,
Magna is in talks with CAAM and CATARC about EV technology
standards. The company wants to directly participate in the formulation
of technical standards.
㨯May 2010: According to media sources, Magna plans to establish an EV
R&D base in China.
˘Announcement of EV Concept˚
㨯 Apr. 2010: Magna Steyr announced the Asia premiere of its
self-developed EV concept called Mila at the Beijing motor show.
-Mila is the abbreviation of Magna Innovation Lightweight Auto.
-The 5-door 4m long concept vehicle has a wheelbase of 2.5m and
maximum output of 67hp. Powered by lithium-ion battery which takes
2.5 hours to fully recharge. Travels 150km on one charge.
-The new platform is optimized for alternative drive technology, be it
electric power or natural gas, fuel cells or hybrid drive. It is designed to
be commercialized in the short term.
Mila EV concept
-Feb. 2009: World premiere at
the Geneva motor show.
-Mini’s
Beachcomber
gasoline-powered concept,
jointly developed by Magna
Steyr and Mini, was also
exhibited at the Beijing
motor show.
Strategy from 2010; Eyeing Establishment of R&D Center
Parts Industry㩷
automaker (apparently GAIC).
Although Magna operates 11 product
systems at its home-country base, the
company is present with only eight in
China (seating, vision, powertrain,
interior, closure, body & chassis,
complete
vehicle
engineering
&
assembly, and electronic), however, it
intends to introduce the rest of the three
(exterior, roof, and hybrid & electric
vehicles/systems) as well.
Among them, the company aims to
position HEV and EV operation as its
new growth strategy in China in the next
five years.
While being a parts supplier, Magna
announced the Asia premiere of its
self-developed EV at the Beijing motor
show. Meanwhile, Magna is in talks with
CAAM and CATARC about EV
technology standards. The company
wants to directly participate in the
formulation
of
China’s
technical
standards. Additionally, although Magna
operates EV R&D bases in Europe and
the US, it has surfaced that the company
plans to establish a third EV R&D base in
China, according to media reports
released in May 2010. However, although
it appears that Magna is in contact with
Chinese automakers regarding EVs, it had
not found a specific business partner as of
August 2010.㩷㩷㩷㩷㩷㩷 (Kiyoko YAMAMOTO)
Magna: Outline of Vehicle Parts Production and Development Bases (As of Aug. 2010)
Product System
Facility
Location
Established
Ownership
Principal Products
Shanghai Intier Jiaoyun
Automotive Parts Co., Ltd.
Shanghai
Feb. 1996
Magna
Seat frames
60%
Magna Automotive Parts
(Suzhou) Co., Ltd.
Fuzhou Intier DAS
Automotive Seating Co., Ltd.
Suzhou,
Jiangsu
Fuzhou,
Fujian
Jan. 2006
WOS
Seat mechanical
elements
Jun. 2006
WOS
Seat systems
Guangdong Donnelly
Zhenhua Automotive Systems
Co., Ltd.
Shunde,
Guangdong
Oct. 1996
WOS
Door mirrors, side
mirrors, door handles
Magna Donnelly (Shanghai)
Automotive Systems Co., Ltd.
Shanghai
Sep. 1999
WOS
Rear mirrors
Shanghai
N.A.
WOS
Rear mirror electronic
parts
Suzhou,
Jiangsu
Jan. 1998
Magna Powertrain
(Changzhou) Co., Ltd.
Changzhou,
Jiangsu
2004
InterLink Automotive Parts
(Suzhou) Co., Ltd.
Changshu Intier Automotive
Interior Systems Co., Ltd.
Suzhou,
Jiangsu
Changshu,
Jiangsu
Changchun Intier Automotive
Interior Systems Co., Ltd.
Changchun,
Jilin
2006
Kunshan Intier Automotive
Systems Co., Ltd.
Magna Technology & Tooling
Systems (Tianjin) Co., Ltd.
Kunshan,
Jiangsu
Dec. 2003
Tianjin
2005
Cosma Automotive Systems
(Shanghai) Co., Ltd.
Shanghai
Sep. 2005
WOS
Vehicle body/chassis
parts, assemblies
Magna Steyr China - Wuhan
Branch
Wuhan, Hubei
Jul. 2007
WOS
Engineering services
Changchun,
Jilin
Oct. 2008
WOS
Engineering services
WOS
Chassis control
modules etc.
Seating Systems
Vision Systems
Powertrain
Systems
Interior Systems
Closure Systems
Body & Chassis
Systems
Magna Donnelly (Shanghai)
Automobile Technology Co.,
Ltd.
Litens Automobile Parts
(Suzhou) Co., Ltd.
Dec. 2004
Aug. 2005
Magna㩷
Engine belts, pulleys
70%
AT oil pumps, vacuum
WOS pumps, flywheels,
balance shafts
Sun visors and other
WOS
interior parts
Magna Instrument panels and
60% other interior parts
Instrument panels, door
Magna
panels and other interior
60%
parts
Door locks, door
WOS
modules
Tools, vehicle body
WOS
parts
Complete Vehicle
Engineering &
Assembly
Magna Steyr China Changchun Branch
Electronic
Systems
Magna Suxing Electronics
(Zhangjiagang) Co., Ltd.
Zhangjiagang, Purchased in
Jiangsu
Feb. 2008
Notes
䍃Customers: Shanghai VW, Shanghai GM,
Dongfeng, Chery, Geely, Jeep (US)
䊶Magna’s first production plant in China.
䍃Originally the company was set up as a
50/50 JV with a local partner, but apparently
Magna’s stake was 60% as of May 2010.
䍃Originally both companies were set up as
50/50 JVs with Korea’s DAS, but apparently
Magna’s
stake was 100% in both
companies as of May 2010.
䍃 Customers: FAW-VW, Guangqi Honda,
GAC Toyota, FAW Toyota, Dongfeng
Honda
䍃Originally the company was set up as a JV
with a local partner, but Magna purchased
its partner’s stake for 50 million CNY in
2003.
䍃Customers: Shanghai VW, FAW, FAW-VW,
Dongfeng Peugeot Citroën, Shanghai GM,
Chang’an Ford Mazda, Brilliance
䍃Controls 70% of China’s rear mirror market.
䍃Customers: Shanghai VW, Ford (Australia),
FAW, Dongfeng, Nanjing MG, South East
(Fujian), Jiangling, Shanghai GM
䍃Customers: FAW-VW, Shanghai VW
䍃Customers: Shanghai GM, Shanghai VW,
Chang’an Ford Mazda, SAIC
䍃R&D capability.
䍃Customers: For export only (Ford, Chrysler,
GM, BMW, Mercedes-Benz)
䍃Customers: Shanghai GM, FAW-VW, Chery
䍃Customer: FAW-VW
䍃Customers: Primarily for export
䍃 Customers: Automakers in Tianjin and
Beijing
䍃Customers: Shanghai GM, Chang’an Ford
Mazda, overseas
䍃Transferred to new plant in Oct. 2008.
䍃R&D capability.
䍃 Important customer is Dongfeng Peugeot
Citroën (DPCA). Responsible for quality
control of parts for new products launched
by DPCA. Provided engineering for Peugeot
307 etc.
䍃Provided engineering for complete vehicles
of FAW, including interior/exterior design,
vehicle body design, chassis assembly
alignment, electric/ electronic/network/other
systems.
䍃Customers: Shanghai VW, FAW, FAW-VW,
Beiqi Foton, Chery, Geely
䍃Predecessor: Suxing Electronics
䍃 Magna’s first electronic parts production
plant in China.
Takata: Steps Up Investment as Economy Recovers;
Foreign Supplier
Takata
Corporation
(hereinafter
referred to as Takata) is a leading
Japanese parts supplier, developing,
manufacturing and selling automotive
safety-related components such as its
core products of seatbelts and airbags,
along with steering wheels, inflators,
trims and child seats. For its one and
only business segment of automotive
safety components, the company has
been expanding global business centered
in the Americas, Europe and Asia, with
production bases focusing on responding
to the likes of Honda, Toyota, Ford and
Daimler.㩷 As of August 2010, Takata has
five bases in China (including a branch
in Tianjin), from which is carries out
manufacturing and sales of seatbelts,
airbags, steering wheels and inflators.
Takata set up its first production base in
China, Takata (Shanghai) Safety Systems
Co., Ltd., in May 2002 from where it
began manufacturing and sales of
seatbelts, airbags and steering wheels.
With investment of 57.5 million USD, a
second local base, Takata (Shanghai)
Automotive Component Co., Ltd., was
established
in
September
2003,
expanding the company’s scale of
production in Shanghai. Subsequently, in
December 2005, Takata (Changxing)
Safety Systems Co., Ltd. was set up in
Zhejiang, becoming Asia’s first inflator
production base, while in May 2008,
Takata
Automotive
Electronics
(Shanghai) Co., Ltd. was set up in
Pudong’s
New
Open
Economic
Development
Zone,
commencing
manufacturing of electronic components,
and thus expanding its local product lineup.
Following the global meltdown from the
Lehman Shock in late 2008, business
performance took a hit, such as subsidiary
Takata (Shanghai) Safety Systems Co.,
Ltd’s operating rate falling to 60% in the
first quarter of 2009. Nonetheless, with
vehicle sales in China posting a rapid
recovery thanks to market stimuli to spur
demand, Takata has been accelerating the
set up or expansion of local base facilities
upon entering 2010.
In January 2010, Takata signed on to
setting up a Tianjin branch of Takata
(Shanghai) Automotive Component Co.,
Takata: Business Developments in China
<Outline of China Business>
䊶Local Bases: As of Aug. 2010, Takata holds five bases in China
(including the Tianjin branch), from which is carries out manufacturing
and sales of seatbelts, airbags, steering wheels and inflators.
䊶Business Status: Has maintained solid performance in emerging markets
such as China and India, yet lackluster in Europe, the US and Japan with
slow to recover economic climates. Also, globally, the company has a
high dependence on particular customers. Honda, Toyota, Ford and
Daimler made up 52.5% of consolidated revenues for Takata in H1 of
FY2009, 48.9% in H2.
<China Business Developments>
䊶May 2002: Takata (Shanghai) Safety Systems Co., Ltd. was set up in
Pudong, Shanghai, commencing manufacturing and sales of seatbelts,
airbags and steering wheels.
䊶Sep. 2003: Takata (Shanghai) Automotive Component Co., Ltd. was set
up through investment of 57.5 million USD in the Pudong Industrial
Park, Shanghai, commencing manufacturing of seatbelts, airbags and
steering wheels.
-Aug. 2004: Completed 1st phase plant construction.
䊶Dec. 2005: Takata (Changxing) Safety Systems Co., Ltd. was set up in
Changxing, Zhejiang as Asia’s first inflator production base.
-Aug. 2006: Held a cornerstone laying ceremony in Zhenhoushan,
Hongxingqiao, Changxing.
-News in Nov. 2008 that after completion of the plant the following
May, to start pilot production of one inflator production line. With full
operation, plans to manufacture 1.8 million inflators annually.
䊶May 2008: Takata Automotive Electronics (Shanghai) Co., Ltd. was set
up in Pudong’s New Open Economic Development Zone, commencing
manufacturing of electronic components.
-The base is 100% owned by Takata, operating as a directly controlled
production and development unit for Takata’s North American branch.
䊶Jun. 2008: Takata announced at a supplier conference for Geely’s Englon
Dihua, that utilizing its existing technology and development capacity, it
is to supply select parts for the TX4.
䊶News in Sep. 2009 that due to the collapse of Lehman Brothers, Takata
(Shanghai) Safety Systems Co., Ltd’s H1 operating rate was only 60%.
Nonetheless, a sharp pickup in manufacturing and sales from H2 saw the
rate recover above 80%.
䊶Jan. 2010: Takata (Shanghai) Automotive Component Co., Ltd. CEO
Takao Yasuhara announced at the Geely 2010 supplier conference that
as one of the Chinese automaker’s 30 preferential suppliers, the company
plans to configure its strategy corresponding to Geely’s expansion.
䊶Jan. 2010: Signed a contract to set up a Tianjin branch of Takata
(Shanghai) Automotive Component Co., Ltd. within the Tianjin Xiqing
Economic Development Zone through investment of 25 million USD
(approx. 136 million CNY).
-Takata to foster the branch as its parts manufacturing base for China’s
north, with plans to supply automakers including Beijing Benz, Beijing
Hyundai, Tianjin FAW Toyota and Shanghai GM Norsom.
-The company’s plan looks to complete construction by Dec. 2010,
begin mass production from Jan. 2011, with full operation from the
following Apr. Within five years, expecting annual revenues of 1.5
million CNY. Also, within two years, plans to set up a standalone unit
in Pudong, Tianjin, capitalized with at least 10 million USD and
investment of over 20 million USD.
-News in Mar. 2010 that the Tianjin branch repaid 32 million JPY of the
total investment of 1.05 billion JPY.
-May 2010: Held a cornerstone laying ceremony in Xiqing Economic
Development Area.
䊶News in Jul. 2010 that a team from Takata (Shanghai) Automotive
Component Co., Ltd. represented by CEO Takao Yasuhara inspected the
Jiangxi Nanchang Xiaolan Economic Development Zone. Looking to set
up a 33,300m² base through investment of 70 million CNY, with plans to
undertake manufacturing and sales of seatbelts, airbags and steering
wheels.
<Company History>
䊶 1933: Takezo Takada founds Takata Company in Hikone, Shiga
Prefecture, commencing textile manufacturing.
䊶1952: After a visit to the US, returned to set forth on own research on
using parachute technology to manufacture seat belts.
䊶1956: Incorporated as Takata Corporation.
䊶 1960: Launched the first seatbelts in Japan, with the start to
manufacturing and sales.
䊶1983: Trade name changed to Takata Corporation.
䊶1987: Began mass production of driver-side airbag modules.
䊶2002: Set up Takata (Shanghai) Safety Systems Co., Ltd.
䊶2003: Set up Takata (Shanghai) Automotive Component Co., Ltd.
䊶2005: Developed the world’s first dual airbag, commencing installation
in mass produced cars.
Set up Takata (Changxing) Safety Systems Co., Ltd. as a base for
manufacturing inflators.
䊶2006: Listed in the First Section of the Tokyo Stock Exchange.
<Management Team>
Global Executive Team
Current Position
Name
Start of Term
Chairman and
CEO
Juichiro
Takada
Shigehisa
President and CEO
Takada
Business Operations Kosugi
ED
Noriyuki
Corporate Bus. Devt. Kimio
ED
Kobori
Customer Relations Yasuhiko
ED
Ueno
Technical Devt.
Tetsuya
ED
Maekawa
Previous Position
Jun. 2007
President and CEO
Jun. 2007
CEO and ED
Jun. 2009
Technical Devt. ED
Jun. 2009
Jun. 2009
Jun. 2009
Corp. Management EO/IR
Div. Chief
Head of Customer
Relations Planning Div.
Quality Assurance Grp
Evaluation Div. Chief
China Region Executive Team
Takata (Changxing) Safety Systems CEO
Takata (Shanghai) Automotive Component CEO
ED: Executive Director. EO: Executive Officer
Hirohiko Katsumata
Takao Yasuhara
New Local Plants, R&D Trends Attract Attention
Parts Industry
Ltd. Investing 25 million USD
(approximately 136 million CNY) to set up
in the Tianjin Xiqing Economic
Development Zone, the unit is to be
fostered as the largest parts production
base in China’s north, with plans to supply
to the likes of Beijing Benz, Beijing
Hyundai, Tianjin FAW Toyota and
Shanghai GM Norsom. Looking to begin
low volume output in January 2011, the
unit is to go into full operation from the
following April, with plans to reach sales
revenues of 1.5 billion CNY within the
first five years. Moreover, in or after 2012,
Takata is also looking to make the branch
an independent unit with capital of over 10
million USD and investment of more than
20 million USD.
In July 2010, news that Takata
(Shanghai) Automotive Component Co.,
Ltd. plans to set up a new 70 million
CNY, 33,300m² base within the Jiangxi
Nanchang
Xiaolan
Economic
Development Zone was reported, from
where it looks to carry out manufacturing
and sales of seatbelts, airbags and steering
wheels.
Meanwhile, to shed its dependency on
specific customers such as Honda and
Toyota, Takata has been aggressively
strengthening supply targeting local
Chinese automakers. Since starting to
supply the Geely TX4 in 2008, in January
2010, the company announced that as one
of Geely’s preferential suppliers, it aims
to align its business strategy to reflect the
automaker’s product strategy.
According to news reports in March
2010, the significant rise in vehicle sales,
particularly in China and India, has seen
the ratio of revenues from the Asia region
to consolidated group revenues climb from
6% in the fiscal year ended March 2006 to
16% in the fiscal year ended March 2010.
As a result, it is likely that in the coming
years, Takata will step up capital spending
and the launch of new products into China
which boasts the world’s largest scale of
manufacturing and sales.
On the other hand, to fend off strong
competition in the increasingly fierce
Chinese market, Takata will need to instill
local R&D function in efforts to look at
reducing costs.
(Yongxing LI)
Takata: Outline of China Business Units and Automotive-Related Products㩷
Tianjin
●Takata (Shanghai) Automotive Component Co., Ltd. Tianjin Branch
Shareholding: Takata 100% Establishment: May 2010 (cornerstone laying)
Location: Xiqing, Tianjin
Main Business: Manufacturing of seatbelts, airbags and steering wheels.
Customers: Beijing Benz, Beijing Hyundai, Tianjin FAW Toyota, Shanghai GM Norsom.
Ref: Investment of 25 million USD. Site area of 32,464m². To be completed in Dec. 2010,
beginning low-volume production from Jan. 2011. Slated for full operation in Apr. 2011.
●Takata (Shanghai) Safety Systems Co., Ltd.
Establishment: May 2002㩷 Location: Pudong, Shanghai
Customers: Local automakers such as Guangqi Honda, Dongfeng, Zhengzhou Nissan,
Changfeng; also exports to Germany etc.
Main business: Manufacturing and sales of seatbelts, airbags and steering wheels.
●Takata (Shanghai) Automotive Component Co., Ltd.
Shareholding: Takata 100%㩷 Establishment: Sep. 2003
Location: Pudong, Shanghai
Main business: Manufacturing of seatbelts, airbags and other products. Also purchasing
and sales of materials for seatbelts, airbags and other products.
Customers: Local automakers such as Guangqi Honda, FAW, Dongfeng, Zhengzhou
Nissan, Sichuan FAW Toyota, Changfeng, Geely.
Ref: Capitalized at 22 million USD (approx. 165 million CNY). Site area of 75,708m².
Employees: 3,799. 1st phase plant site of approx. 23,000m².
●Takata Automotive Electronics (Shanghai) Co., Ltd.
Shareholding: Takata 100% Establishment: May 2008
Location: Pudong, Shanghai Main Business: Manufacturing of electronic components.
Customers: FAW Car, SAIC, Geely, etc.
●Takata (Changxing) Safety Systems Co., Ltd.
Shareholding: Takata 100% Establishment: Dec. 2005
Location: Changxing, Zhejiang Capital: 5.45 million USD
Main Business: Airbag inflator production
Ref: Investment of 13.62 million USD. Site area of 100,000m². Employees: 78 (as of Nov.
2008)
●Takata (Shanghai) Automotive Component Co., Ltd. Nanchang Base (under planning).
Shareholding: Takata 100% Location: Jiangxi Nanchang Xiaolan Economic Development
Zone.
Main Business: Manufacturing and sales of seatbelts, airbags and steering wheels.
Ref: Investment of 70 million CNY. Site area of 33,300m².
䃂
㩷㩷䃂㩷
Shanghai
䃂䃂㩷
㩷㩷䃂㩷
Changxing
㩷㩷䃂㩷
Nanchang
Seatbelts
Airbags
Steering Wheels
5-point Full-harness Seat Belt
Interior Parts
Recycling/Rebuilding: Aim for 95% Recycle Rate
Policy
The scale of vehicle recycling and
rebuilding business in China saw
production revenues in 2008, according
to the China Automobile Market
Yearbook, reach some 900 million CNY.
With capacity in 2009 expanded to
rebuild 230,000 units of automotive parts
such
as
engines,
transmissions,
generators and steering systems, along
with forecasts for greater numbers of
disposed vehicles in and after 2009 on
the back of replacement incentives,
production revenues in 2010 are
projected to reach 3.3 billion CNY.
Compared to new products, since those
rebuilt have economies of scale because
their cost, energy and raw materials
component can be reduced by 50%, 60%
and 70% respectively, the Chinese
government announced “Policy on
Technology Used for Automobile
Products Recycling” in 2006, in an effort
to raise recycling rate and rebuilding rate
to 95% and 85% respectively in three
phases until 2017.
The
“Opinions
on
Promoting
Development
of
Remanufacturing
Industry” delivered in May 2010 by
eleven government agencies, looks to
expand the original five assembly
categories applicable (March 2008
announcement) of engines, transmissions,
generators, starters and steering, to also
include link shafts, oil and water pumps,
with promotion of rebuilding of
construction
equipment,
process
machinery and large tires. Moreover, as of
July 2010, it has been reported that the
government is currently formulating the
“Remanufacturing Industry Development
Plan,” aiming for development of the
rebuild industry during the 12th five-year
China: Overview, Basic Principles and Targets of the Vehicle Recycling/Rebuild Market
<Overview>
䊶 Production revenues from vehicle recycling/rebuilding in China as of 2008
amounted to 900 million CNY, with forecast for 3.3 billion CNY in 2010. By 2017,
projecting increased demand under the government’s aim for a recycling rate of
95%.
䊶As of year end 2009: China’s capacity to rebuild vehicle engines, transmissions,
generators and steering, etc. was 230,000 units.
<Basic Principles>
Mar. 2008: The National Development and Reform Commission announced to
observe the following five basic principles for businesses which rebuild disposed
vehicles.
࡮Rebuilding companies are not allowed to procure five component types (“five
assemblies”), namely engines, transmissions, generators, starters, and steering
systems directly from companies which recycle (dismantle) disposed vehicles to
manufacture products. As for other parts, production is regulated by “Regulation
on Administration of Disposed Automobile Recycling.”
࡮As a general rule, rebuilt products must meet the shortest warranty period of
corresponding type of products.
࡮Rebuilding companies without permission are not allowed to renew or manufacture
other companies’ products.
࡮Rebuilt products must be distributed through the automaker’s after-sales service
system and are allowed to be sold directly through the company’s retail market.
࡮Rebuilding companies must acquire the right to use the remanufactured product’s
original trademark from the original automaker.
࡮2006: Announced the “Policy on Technology Used for Automobile Products
Recycling” which includes targets rates for vehicle recycling and rebuilding.
Outline/Eligibility
Registration
2008
2009
2010
2012
2011
2017
Registration after inspection of domestic-made and imported vehicles’ recycling rate.
Use of heavy metals prohibited
Use of lead, mercury, cadmium, chrome, etc. prohibited.
M1/N1 category
Recylce Rate: 80%, Rebuild Rate:75%
M2/M3/N2/N3 category
Recylce Rate: 85%䇮Rebuild Rate:80%
Stage 1
Stage 2 All models
Recylce Rate: 90%, Rebuild Rate: 80%
Recylce Rate: 95%,
Rebuild Rate: 85%
Stage 3 All models
Note: M1 type vehicle: Passenger transport vehicle with less than nine seats (incl. driver). M2:
GVW< 5t, passenger transport vehicle with nine or more seats (incl. driver). M3: 5t㻡GVW,
passenger transport vehicle with nine or more seats (incl. driver). N1: GVW<3.5t, cargo
transport vehicle. N2: 3.5t㻡GVW<12t, cargo transport vehicle. N3: 12t㻡GVW, cargo
transport vehicle.
China: Vehicle Recycling/Rebuild Related Regulations (2000-Jul. 2010)
Regulation
Notice on Minor Adjustments of Automobile
Disposal Standards
Regulation on Administration of Disposed
Automobile Recycling
Provisional Regulation on the Administration
of Subsidy Support System at Time of Old
Automobile Disposal or Replacement
Policy on Technology Used for Automobile
Products Recycling
Rules on Environmentally-Friendly
Technologies for Disposed Automobile
Dismantling
Law on the Administration of Testing
Remanufactured Automobile Parts
Law on Promoting the PR of China’s
Recycling Economy
Technical Specifications for End-of-Life
Vehicles Recycling and Dismantling
Enterprise
New Notice on the Renewal of Disposed
Automobile Recycling Certification
Remanufactured Automotive Parts Labeling
Promulgating Agency
State Economic and Trade Commission (SETC), State
Planning Commission, Ministry of Public Security, State
Environmental Protection Administration (SEPA)
Promulgation Date
Date in Effect
SETC Order (2000) No.1202
Dec. 18, 2000
Dec. 18, 2000
State Council
State Council Decree No. 307
Jun, 16. 2001
Jun, 16. 2001
Ministry of Finance (MOF), SETC
MOF (2002) No. 742
Dec. 20, 2002
Dec. 20, 2002
National Development and Reform Commission
(NDRC), Ministry of Science and Technology, SEPA
NDRC, MOST and SEPA
Announcement (2006) No. 9
Feb. 6, 2006
Feb. 6, 2006
SEPA
HJT/348-2007
Apr. 9, 2007
Apr. 9, 2007
NDRC
NDRC (2008) No. 523
Standing Committee of the 11th National People’ s
Congress
Gen. Admin. of Quality Supervision, Inspection and
Quarantine, Standardization Administration
Regulation Code
GB 22128--2008
Mar. 2, 2008
Mar. 2, 2008
Aug. 29, 2008
Jan. 1, 2009
Jan. 1, 2009
Jan. 1, 2009
Ministry of Commerce (MOFCOM)
MOFCOM (2009) No. 78
Jul. 17, 2009
Aug. 10, 2009
NDRC, State Administration for Industry and Commerce
NDRC (2010) No. 294
Dec. 25, 2010
Dec. 25, 2010
㩷
China: Amendment Developments of Vehicle Recycling/Rebuild Related Regulations (As of Jul. 2010)
䍃Feb. 25, 2010: Implemented labeling of remanufactured
automotive parts. In the initial stage, to be adopted by
14 automotive parts remanufacturing inspection
enterprises registered in Mar. 2008, following which to
be adopted industry-wide.
䍃May 13, 2010: Eleven government agencies announced
the “Opinions on Promoting Development of
Remanufacturing Industry,” under aims to establish the
remanufacturing as a core industry for the future.
-Looks to expand the original five assembly categories applicable (in Mar. 2008
announcement) of engines, transmissions, generators, starters and steering, to also
include link shafts, oil and water pumps, with promotion of rebuilding of
construction equipment, process machinery and large tires.
䍃News in Jun. 2010 that MOFCOM submitted a proposal to the State Council to
introduce regulations on disposal, collection and dismantling of vehicle generators,
starters and steering. Forecast to be brought into effect by the end of 2010.
䍃Jul. 19, 2010: State Council Legal Affairs Office announced the “By-law for
Administration of Disposed Automobile Recycling (call for submissions).”
Compared to the existing “Regulation on Administration of Disposed Automobile
Recycling,” (1) lifts the capital restriction for an enterprise entering the industry
from 500,000 CNY to 2 million CNY, and (2) changes the sector status of the those
doing business in any of the five assembly categories from steel industry to rebuild
business.
䊶 News in Jul. 2010 that the government is currently formulating the
“Remanufacturing Industry Development Plan,” aiming for development of the
rebuild industry during the 12th Five-year period, with plans to establish core tasks
and safeguards.
by 2017; Amendment of Laws Attract Attention
Industry/Policy/Market
engines in 2009, boosting sales revenues
to 30.97 million CNY. In 2010, the
company looks to rebuild 5,000 units,
expanding to 10,000 units in 2011.
Nevertheless, China’s vehicle recycling
and rebuilding industry is still in its
infancy, with under-developed related
technology, while dependence on foreign
corporations for the majority of surface
treatment to restore core components is
highlighted. Furthermore, with many
vehicles returning to the road after being
rebuilt illegally by those without
remanufacturing accreditation, concern
period, with plans to establish core tasks
and safeguards.
In March 2008, after two to three years
of trials and drawing up regulations and
administrative systems for vehicle
rebuilding, the first 14 to be designated
as certified ‘remanufacturing’ bases were
officially announced for the first time. Of
which, Jinan Fuqiang Power Co., Ltd.
recycled 4,650 tons of scrapped steel,
450 tons of aluminum and 150 tons of
iron, and plans to rebuild 20,000 engines
in 2010. Weichai Power (Weifang)
Reproduction Co., Ltd. rebuilt 1,679
remains of the effects such vehicles will
have on the environment and safety.
In July 2010, the State Council
announced the “By-law for Administration
of Disposed Automobile Recycling (call
for submissions).” On top of the
introduction of the “Remanufactured
Vehicle Labeling” regulation in February
2010, rules governing the disposal,
recycling and dismantling of vehicle-use
generators, starters and steering are set to
become law during the 2010, and
expected to come into effect by the end of
the year
(Yixian WANG)
China: Vehicle Ownership and Disposal (2000-2008)㩷
Area
Type
2000
Truck
Car/Bus
Vehicle
Others
Ownership
Total
(YOY Growth)
Truck
Car/Bus
Vehicle
Others
Disposal
Total
(YOY Growth)
New Vehicle Sales
(YOY Growth)
2001
6,975,882
8,537,333
575,886
16,089,101
(10.7%)
N.A.
N.A.
N.A.
N.A.
(-)
2,086,343
(13.9%)
2002
7,409,781
9,939,595
671,032
18,020,408
(12.0%)
N.A.
N.A.
N.A.
N.A.
(-)
2,376,884
(13.9%)
2003
8,122,171
12,023,679
385,827
20,531,677
(13.9%)
207,420
195,524
11,599
414,543
(-)
3,271,488
(37.6%)
2004
8,535,066
14,788,082
506,106
23,829,254
(16.1%)
344,453
586,816
25,528
956,797
(130.8%)
4,390,748
(34.2%)
8,930,048
17,359,055
648,034
26,937,137
(13.0%)
325,243
203,830
12,466
541,539
(▼43.4%)
5,071,648
(15.5%)
(Unit: Vehicles)
2005
2006
9,555,468
21,324,553
716,608
31,596,629
(17.3%)
263,659
287,529
10,837
562,025
(3.8%)
5,766,679
(13.7%)
9,862,992
26,195,686
914,853
36,973,531
(17.0%)
147,646
224,561
8,353
380,560
(▼32.3%)
7,215,525
(25.1%)
2007
10,540,556
31,959,943
1,083,051
43,583,550
(17.9%)
127,011
215,093
8,453
350,557
(▼7.9%)
8,791,523
(21.8%)
2008
11,260,656
38,389,220
1,346,218
50,996,094
(17.0%)
126,960
212,544
20,313
359,817
(2.6%)
9,380,502
(6.7%)
(Compiled using the China Automobile Market Yearbook)
China: End-of-Life Vehicle Rebuild Companies (As of Jul. 2010)㩷
Automaker
People’s Liberation
Army Plant No. 6456
Est. (Operation)
Products
APC (units)
Provider
1979
Engine assemblies
N.A.
N.A.
1995
Engines
10,000 (2007),
50,000 (2010)
Sinotruk
1996
Transmissions
N.A.
Dongfeng
Yueda-Kia
Transmissions
N.A.
N.A.
2002
Generators,
starters
N.A.
N.A.
Dongfeng Cummins
Engine Co., Ltd.
2004*
Engines
3,000
(max. 10,000)
N.A.
Guangxi Yuchai
Machinery Co., Ltd.
May 2006
Engines
Engines 10,000,
Parts 15,000
Guangqi
Yuchai
Shanghai Dazhong
Valve Co., Ltd.
Feb. 2007
Engines
N.A.
Shanghai
VW
Weichai Power
(Weifang)
Reproduction Co., Ltd.
Apr. 2008
(Jan. 2009)
Engines
N.A.
Weichai
Power
Wuhan Dongfeng
Hongtai Holding
Group Co., Ltd.
Reproduction
subsidiary
Aug. 2008
Engines,
transmissions,
generators,
starters, steering
systems
N.A.
Dongfen
Motor
Shaanxi Fast Auto
Drive Group Company
Mar. 2008*
Transmissions
16,000
N.A.
Dongfeng Motor
Oct. 2008*
Automotive parts
Dongfeng Nissan
May 2010*
Transmissions (AT,
MT, CVT) etc.
Jinan Fuqiang Power
Co., Ltd.
Guangzhou Huadu
Quanqiu Auto
Transmission Co., Ltd.
Zhejiang Wanliyang
Transmission Co., Ltd.
Boke (Changshu)
Electrical Co., Ltd.
Jul. 1996
Supply for
Dongfeng
100,000 vehicles
Motor
N.A.
Dongfeng
Nissan
Developments
䊶Adopts a plasma coating system for rebuild technology.
䊶In operation as of Oct. 2009.
䊶2005: Invested 100 million CNY to set up a new rebuild plant. Building site area of
73,000m².
䊶Sales in 2005 of 2,863 units; 2006 of 3,867 units; 2007 H1 of 3,743 units.
䊶2009: Recycled 4,650 ton, 450 ton and 150 ton respectively of disposed steel, aluminum
and iron.
䊶2010: Plans to rebuild 20,000 engines.
䊶2004: Reached a partnership agreement with major Japanese AT company JATCO.
䊶2008: Gained rebuild approval for CVTs from JATCO, ATs from Beijing Hyundai and
FAW Mazda.
䊶Sep. 2008: Transmission rebuild project gained approval from the National Development
and Reform Commission.
䊶Formerly Shenzhen Huayuan Automotive Electric Rebuild Factory which was set up in
1988.
䊶2004: Entered the engine parts rebuild business.
-Rebuild plant on a 3,800m² site, with max. annual production level of 10,000 units.
䊶Feb. 2009: Partnership agreement signed between Dongfeng Cummins and Cummins US.
Engine rebuild technology introduced from Cummins US.
䊶May 2006: Started a rebuild project by setting up a third engine factory.
-Building site area of 9,000m², with total investment of 50 million CNY.
䊶 Jan. 2009: Secured 10 million CNY in subsidies for the project from the central
government.
䊶Rebuilt engines annual target: 2009-2011 30,00 units, 2012-2015 50,000 units.
䊶Site area of 17,820m², with building area of 8,350m². Gained rebuild license from
Shanghai VW, rebuilding engines of Shanghai VW brand models.
䊶1998: Invested 15 million CNY to begin operation of an engine rebuild project.
-Rebuilds JV, AFE and AJR series engines fitted in the Santana range.
䊶May 2007: Launched rebuilt engines into the market.
䊶Engine rebuild technology introduced from US company SRC.
䊶Plans to rebuild 5,000 engines in 2010 and 10,000 units in 2011.
-In 2009, rebuilt 1,679 engines, with revenues of 30.97 million CNY. As of Mar. 2010,
rebuilt 2,896 engines.
-Rebuilding of disposed engines 25% the cost of new engines, with sales to users at
70-75% of new engine prices.
䊶Aug. 2008: The group set up a remanufacturing subsidiary within the Wuhan Economic
and Technological Development Zone in Hubei.
-Utilizes materials uses in disposed models of the Dongfeng Peugeot Citroën Fukang
(Citroën ZX). Rebuilt products are not fitted into new product, rather sold as parts at
garages and 4S shops, marked as ‘rebuilt.’
䊶Mar. 2008-Mar. 2010: Invested 100 million CNY, with plans to begin operation of a new
rebuild plant in 2010.
-Following operation start, looks to achieve annual transmission rebuild capacity of
16,000 units.
䊶Oct. 2008: Plan by Dongfeng Motor to set up a vehicle remanufacturing base over three
years, through investment of 200 million USD. Site area of approximately 200,000m², with
aim to recycle 50,000 vehicles and 100,000 ton of scrapped material annually, and rebuild
automotive parts to supply 100,000 vehicles.
䊶May 2010: Began rebuilt parts business, with parts sold at garages and 4S shops, marked
as ‘rebuilt.’
Note: Star (*) indicates start of rebuild project. Providers refer to automakers which have offered the rights to rebuild vehicles. APC: Annual Production Capacity.
(Compiled using company PR materials and various media)
Presence in Syria: Chinese Expand Operation; Chery,
Market
While Chinese automakers face an
uphill battle in developed markets due to
poor collision safety and emission
standards, they are increasing their
presence in countries with lenient technical
standards, one of which is Syria.
Since 2005, Chinese automakers have
been increasing their presence in Syria. As
of 2010, 17 Chinese brands were on the
market. At the 10th Syrian International
Motor Show, held in July 2010, about half
of all displayed models were Chinese
made.
Although Law 3040 was implemented as
the country’s safety standard for vehicles, it
is only recommended by the government
and has no legal binding force. Therefore,
Chinese automakers may launch vehicles in
the Syrian market without modifying them
to local requirements. According to China’s
General Administration of Customs, annual
vehicle exports to Syria exceeded 50,000
units in 2006 and 2007, however, exports
dropped to 32,268 units in 2008 and to
25,333 units in 2009, partially as a result of
the financial crisis in 2008. Exports returned
to a growth path in 2010, seeing a rise of
27.5% compared to the same period of 2009
to 15,432 units. However, according to local
interviews conducted by FOURIN, some of
the Chinese vehicles exported to Syria are
resold in neighboring countries, therefore,
it is difficult to grasp actual scale of the
country’s vehicle market.
In Syria, low income households
(monthly income of 400 USD or less)
make up 30% of the population, therefore,
many families do not own a vehicle.
However, since it is customary in Syria to
go on excursions on weekends, all
households are aiming to own a vehicle. In
addition, since import duty and registration
tax on vehicles is approximately 120% of
the vehicle’s actual price, demand for
cheap Chinese brands is on the rise.
Syria: Outline of Vehicle Market
▼Market scale and characteristics
㨯It is estimated that 80,000-100,000 new vehicles sold annually in the
Syrian market. However, many vehicle dealers import vehicles to sell
them abroad – mainly in Iraq and Jordan – therefore, it is impossible to
grasp the actual size of Syria’s domestic demand for new vehicles.
-Market share: Hyundai-Kia 55%, European and US automakers
28%-30%, rest are Japanese and Chinese automakers.
-Syria’s vehicle parc, including motorcycles, was 1,754,340 units in
2009. Of which, approx. 40% were concentrated in the capital
Damascus. In addition, private vehicle parc, including motorcycles,
was 515,045 units.
-The largest demand is in the medium sedan segment. Moreover, since
there are many children per household, large seating-capacity full-size
vans are also popular. Apart from medium income earners, SUVs are
also popular among higher income groups. There is little demand for
hatchbacks.
㨯 Since until 2005, the only domestic bank in Syria had been the
state-owned Syria Commercial Bank and since the country lacked loan
and bank transfer system, consumers purchased automobiles for cash.
-Private banks were allowed to enter the Syrian financial market in 2005
as a result of which private banks from various countries of the Middle
East set up operation in the country and began loan services. It is said
that the ratio of customers who purchase vehicles by using loans is
over 70%.
▼Vehicle purchase tax
㨯As of 2010: Import duty and registration tax on vehicles is approx. 120%
of the vehicle’s actual price. However, it had been over 200%-300%
until 2000.
▼Chinese automakers enter Syria
㨯Chinese automakers have been increasing their presence in Syria since
2005. Although Law 3040 was implemented as the country’s safety
standard for vehicles, it is only recommended by the government and has
no legal binding force. Therefore, Chinese automakers may launch
vehicles in the Syrian market without modifying them to local
requirements.
㨯Among medium and higher income earners (monthly income of 700
USD and higher, approx. 70% of the population) there is little trust in
quality and safety of Chinese automobiles. However, for social groups
which do not own vehicle the emphasis is on purchasing a vehicle. Since
they have little interest in vehicle safety and environmental friendliness,
demand for Chinese vehicles is on the rise.
㨯Local production plans by Chinese automakers are underway in 2010.
(Compiled using data from Syria’s Ministry of Transportation and FOURIN research)
Syria: CKD Assembly Expansion of Chinese Brands by Syrian Automakers
Syrian Automaker
Syria-Iran
Automotive
Manufacturing Co.
(SIAMCO)
Models
Annual Production Capacity
Under negotiation:
䊶Lifan 620 (sedan),
䊶Lifan 520 (sedan),
䊶Lifan 320 (hatchback)
100,000 units
(3,000→4,000 units)
Awad & Bitmouni 䊶Jinbei 1026 (pickup),
Co. (A&B)
䊶Jinbei 6480 (SUV)
2,500 units
Kilani Trading Co.
Brilliance Auto’s SUV
model and two other
vehicles (model and
brand unknown)
1,400 units
Hmisho Co.
BYD F3,
Chery Tiggo
Unknown
Khallouf Co.
䊶Junda pickups and
medium-duty trucks
160 units
Maluk Co.
Geely cars
Undecided
Operation Trends
䊶Summer 2010: Assembly of three Lifan models is under negotiation. Final agreement is expected
to be reached in fall 2010.
-Ownership: Iran’s Khodro 40%, Syrian government 35%, import trader Al Sultan Group 25%.
-Plant location: Adra Free Zone (suburb of Damascus 18km from the city).
-Annual assembly capacity: 100,000 units.
-Products: Has assembled the Khodro Samante under the Siamco Sham badge since 2007. Aims
to assemble 3,000 Lifan models in the initial phase, increasing its scale to 4,000 units in the
future. All models are intended for the Syrian market.
䊶Apr. 2010: Started pilot production of the Jinbei 1026 and 6480. Operation is scheduled to begin
at the end of the year.
-Ownership: Awad Co. 70%, Bitmouni Co. 30%.
-Plant location: Adra Free Zone (suburb of Damascus 18km from the city).
-Investment: Approx. 2.5 million USD in assembly.
-Products: Aims to assemble 2,500 units in the initial phase, increasing its scale to 5,000 units in
the mid-term. Plans to launch the Jinbei 1026 and 6480 under the A&B Ebla and A&B Palmyra
respectively. Also plans CKD assembly of sedans (model and brand unknown).
䊶Plans to assemble three Brilliance Auto models (one SUV and two other products whose model
and brand unknown) starting from 2011. Details of the plan are expected to be finalized by the end
of 2010.
-Plant location: Suburb of Damascus
-Investment: 450 million SYP by Kilani Trading. Parts and production knowhow are provided by
the Chinese partner, while plant equipment is financed by Kilani Trading.
-Aims to assemble 600 to 800 units in the phase, increasing its scale to 1,400 units in the
mid-term.
䊶Jun. 2010: Commenced assembly of the Byd F3 and Chery Tiggo at its plant in Homs City, Hims
Governorate.
䊶Jun. 2008: Commenced assembly of the Junda 4200 and 4300 medium-duty trucks and Junda
1500, 2700 and double cabin pickup trucks, a total of five models.
-2009 result: 100 medium-duty trucks and 60 pickup trucks.
䊶Although Geely has come up with a plan regarding local assembly, Maluk rejected the idea as of
Jul. 2010 due to unstable condition of the Syrian market. Considering local assembly within the
next 2-3 years. However, it intends not only supply the local market, but also the entire Middle
East.
(Compiled using data from FOURIN’s local interviews)
Lifan, Others Launch Local Assembly Projects in 2010
Industry/Policy/Market㩷
In order to attract new customers dealers
who handle Chinese brands are improving
their sales service. Lifan has extended
warranties from 2 years/50,000km to 3
years/60,000km to be on par with Kia
Motors which controls the largest share of
the Syrian market. Geely has established an
online repair parts order system, linking up
with local dealers.
In contrast, Jianghuai’s repair parts
supply is time consuming and the company
lacks a local after-sales service system,
indicating that there are huge differences in
local dealer support systems among Chinese
automakers.
Even so, according to FOURIN’s local
interviews, dealers are forecasting that
Chinese brands will expand their presence.
Chinese automakers are boosting their
product line and optional equipment, while
several manufacturers, such as Lifan and
Geely, are planning to launch local
assembly projects in 2010 or after.
In June 2010, Hmisho Company
commenced local assembly of the BYD F3
and Chery Tiggo models. In 2011 and after,
KD assembly of the Lifan, Jinbei and
Junda models are planned in cooperation
with local partners.
Although Syria’s population is 22.2
million persons (2009 data from CIA World
Factbook), annual income per capita is only
4,600 USD, unlikely to become the growth
engine of the vehicle market. In addition, the
country is under US economic embargo as a
result of which foreign investment remains
small compared to other nations in the
Middle East. Moreover, Syria has tense
relations with its neighbor Israel. For now,
Geely’s local sales dealer, Great Wall Motor
and others have postponed local assembly.
However, it is highly possible that Syria will
become a major export destination or
vehicle assembly base for Chinese
automakers in the future. (Eriko KAGIYAMA)
Syria: Trends of Import Sales Agents that Handle Chinese Brands
Import Sales Agent
Brands
2009 Sales Results
Sales Trends
䊶H1 2010: Brilliance and Soueast brands sold 1,265 units. Full-year sales are forecast to reach 2,200 units.
䊶2010: Launched a new FAW brand passenger car. Aims to sell 1,800 units annually.
䊶Explores demand of the model among middle income earners as sedan and among low income earners as first
cars. Seventy five percent of clients use car loans (half use 2-year loan and other half use 3-4-year loan),
Kilani Trading
Brilliance,
Brilliance and Soueast:
while the rest pay in cash.
Co.
Soueast, FAW 1,963 units
䊶Brilliance Auto emphasizes safety by equipping products with EBC, ABS and two airbags. Vehicles also
meet Euro 3 emission standards.
䊶Chinese automakers do not provide technical support.
䊶2011-2012: Annual sales are expected to reach 5,000-6,000 units.
䊶Geely brand vehicles are sold with a 3 years/100,000km quality warranty, emphasizing its longer warranty
period compared to Kia Motors’ 60,000km. However, warranty only covers engine and gearbox.
䊶Implemented trade-in of used Geely models. Maluk buys used Geely models from clients and sells them new
Geely models for a price different from the regular retail value.
䊶EBD, ABS and two airbags are standard equipment in all brands to emphasize safety.
Geely, SMA,
䊶Plans to launch six models from Geely, including the Emgrand.
Maluk Co.
Approx. 4,000 units
Zotye, CHANA
䊶Quick order of repair parts from Geely through online transaction.
䊶Although sales grew in the beginning when Geely entered the Syrian market in 2005, apparently sales have
been falling in recent years due to degradation of dealer service and growing non-payment of loans by
customers.
䊶CHANA launched mini trucks and minibuses in 2005. Released three new passenger cars models in 2010.
Aims to sell 1,500 units annually.
䊶Raised the variety of options in order to boost sales to 3,000 units in the medium and long term.
䊶Lifan entered the Syrian market in 2006. Sold 500 units in 2009 and 146 units in H1 2010.
-Extended quality guarantee from 2 years/50,000km to 3 years/60,000km to be on par with Kia Motors.
-Considering launching two new models, an SUV and a C segment car.
Lifan: Approx. 500 units,
䊶When some repair parts for JAC models cannot be ordered from China, the dealer takes parts from new
Al Sultan Group Lifan, JAC
JAC: Approx. 1,300 units
products to perform emergency repairs.
䊶Although there is high demand for AT-equipped vehicles among customers living in Damascus and its
suburbs, since there is only one model sold with optional AT, it is apparently becoming a bottleneck for sales
expansion.
䊶Jul. 2010: Launched Haval SUV and Volex hatchback models, expanding its product line to eight models.
Shammout Co.
Great Wall
Approx. 3,000 units
The two new models are offered with 3 years/60,000km quality warranty.
䊶Launched Dongfeng’s Sokon mini truck in 2007 and Shanghai Maple’s SMA medium sedan in 2008. The
Hamama Trading
Sokon and SMA brands sold 400 units and 80 units respectively in 2009.
SMA, Sokon
480 units
For Car Co.
䊶Sales target for 2010 is 600 Sokon trucks and 80 SMA cars.
䊶There is high demand for the Sokon brand among farmers and construction companies.
䊶Beg. of 2010: Launched Wuling mini trucks and minivans.
-Sold 700 vehicles in H1 2010. Aims to sell as many as 1,200 units in 2011.
-Models are offered with 1 year/10,000km quality warranty. Equipped with Mitsubishi-made 1.1L gasoline
engines and GM-made 1.3L gasoline engines.
Foton, Wuling,
Fatal Motors Co.
-Although the Foton brand is highly popular in Syria, Wuling’s retail price is set lower compared to Foton.
Zhongtong
For example, products are priced 70,000 SYP lower in the mini truck segment.
-There is high demand among middle income earners with many children. Distribution of clients: residents
of Damascus city 50%, residents of Damascus suburbs 30%, farmers 20%.
䊶Entered the Syrian market in the beginning of 2010 and sold 20 units in H1 2010.
N.A.
Golden Dragon
䊶Primarily expects demand for city buses. Sales target for Syria in 2011 is 600 units.
(Compiled using data from FOURIN’s local interviews)
China: Vehicle Export to Syria by Type (2005-2009, YTD Jun. 2009/2010)
Vehicle Type
2005
Passenger car
Truck
Bus
Off-road vehicle
Special purpose
vehicle
Total
2006
2007
2008
2009
(YOY Growth)
YTD Jun. 2009
YTD Jun. 2010
(Unit: vehicles)
(YOY Growth)
7,893
22,359
632
53
7,904
41,922
1,482
343
8,146
42,112
2,205
364
8,793
19,586
3,121
525
6,073
16,435
2,716
94
(▼30.9%)
(▼16.1%)
(▼13.0%)
(▼82.1%)
3,228
7,378
1,457
34
3,594
9,810
1,663
292
(11.3%)
(33.0%)
(14.1%)
(8.6 times)
3
14
132
243
15
(▼93.8%)
4
73
(18.3 times)
30,940
51,665
52,959
32,268
25,333
(▼21.5%)
12,101
15,432
(27.5%)
FOURIN: Classification Standard of Passenger Cars in China
Segment
Full Name
Abbr.
Length
Engine
Displacement
(Mainstream
Engine Size)
Less than 1.0L but
no more than 1.3L
(1.0L)
1.3L-1.6L
(1.3/1.4L)
Body Style
Characteristics
·Back-to-back entries by
automakers.
Mini car
A
3.3m-3.6m
Small car
B
3.7m-4.0m
Lower medium car
C
4.1m-4.3m
Less than 1.5m
in height
Upper medium car
D
4.5m-4.8m
Near executive car
E1
4.5m-4.8m
1.8L-2.8L
(2.0L)
2.0L-3.0L
Executive car
E2
4.8m-4.9m
2.2L-4.0L
4 door sedan, 5 door SW, coupe
Luxury car
F
Over 5.0m
3.0L-6.0L
4 door sedan, coupe
Sports car
Sports
All sizes
All sizes
Roadster, coupe, cabriolet
B-MPV
Approx. 4.0m
1.3-1.8L
5 door SW (Utility vehicle)
4.3m-4.4m
1.6m in height
4.6m-4.9m
All sizes
1.6-2.2L
(1.6/2.0L)
2.0-3.0L
2.0-4.0L
B platform-based
MPV
C platform-based
MPV
MPV
SUV
C-MPV
MPV
SUV
1.4L-2.2L
(1.6/2.0L)
3 door/5 door HB
5 door HB (3 door, sedan, coupe)
3 door/5 door (coupe, 4 door sedan,
cabriolet)
4 door sedan, 5 door SW
4 door sedan, 5 door SW, coupe
5 door SW
One-box van
2WD, 4WD
·Becoming dominated by large
vehicles.
·Volume automakers also tend
toward larger size and more
accessories.
·Corporate demand is relatively
high.
·Premium German brands BMW,
Mercedes-Benz, and Audi fall
under this category.
·Vehicles retailed for 600,000 CNY
or more.
·Sports cars with exclusive
platform.
·The B segment is taken as base,
some models tend to be longer,
higher, and equipped with a
somewhat larger engine.
·The C segment is taken as base
with five to seven seats.
㩷
㩷
Note: Although China Association of Automobile Manufacturers classifies passenger cars into basic passenger car, MPV, SUV, and cross-passenger
car categories, due to the difficulty of comparing competition among models, FOURIN has created an independent classification standard using the
classification standard of European countries as reference.
Length and engine displacement categories take into consideration rivalry.
Regarding length, the A, B, and C segments are based on each model’s hatchback variant’s length while the D, E1, and E2 segments are based on
each model’s sedan variant’s length. Regarding engine displacement, in case a model is equipped with a wide range of engine sizes, the mainstream
engine size is used as reference.
HB: hatchback. SW: station wagon. Regarding cabriolets, although cabriolets, convertibles, etc. are varying in names depending on automaker,
FOURIN refers to all of them as cabriolets.
Additional information on FOURIN’s new classification standard was published in the March 2009 issue.
Correction
Errors are outlined below with the relevant correction. FOURIN sincerely apologizes for any misunderstanding or inconvenience.
No. 20 August 2010, page 30, upper table titled as “Crude Steel Production by the World’s Top 10 Steelmakers (2008 vs. 2009)”
Mistake: Volumes are given in “tons,” however, should read “10,000 tons”
Correction: For easier understanding volumes are converted to “million tons.”
Year
2008
Rank
1
2
3
4
5
6
7
8
9
10
Steelmaker
Base Country
Arcelor Mittal
Luxembourg
Nippon Steel
Japan
Baosteel Group
China
Posco
Korea
JFE Steel
Japan
Hebei Iron and Steel Group China
Wuhan Iron & Steel Group China
Tata Steel
India
Jiangsu Shagang Group
China
United States Steel
US
Total Top 10 Companies
Total Global Production
Intensity of Top 10 Companies
Volume (million tons)
103.30
36.88
35.44
34.70
33.80
33.28
27.73
24.39
23.30
23.22
376.04
1,326.50
28.3%
Year
2009
Rank
1
2
3
4
5
6
7
8
9
10
Steelmaker
Base Country
Arcelor Mittal
Luxembourg
Hebei Iron and Steel Group
China
Baosteel Group
China
Posco
Korea
Wuhan Iron & Steel Group
China
Anshan Iron and Steel Group China
Jiangsu Shagang Group
China
Nippon Steel
Japan
JFE Steel
Japan
Tata Steel
India
Total Top 10 Companies
Total Global Production
Intensity of Top 10 Companies
Volume (million tons)
73.20
40.20
38.90
31.10
30.30
29.30
26.40
24.30
23.50
21.90
339.10
1,219.70
27.8%
No. 20 August 2010, page 30, lower table titled as “Top 10 Country Ranking of Global Crude Steel Production (2004-2009)”
Mistake: Unit of measure is not indicated which is “million tons.”
No. 20, August 2010, page 40, graph
Mistake: Companies with sales revenues between 9 billion and 5 billion CNY are labeled as “Over 20 billion CNY (four
companies).”
Correction: The correct label is “5 billion-10 billion CNY (nine companies).”
No. 20, August 2010, page 40, graph
Mistake: Companies with sales revenues between 4 billion and 1 billion CNY are labeled as “Over 20 billion CNY (four
companies).”
Correction: The correct label is “Less than 5 billion CNY (30 companies).”

a sample of this report

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