China TV shows grisly deaths as driving lessons

Beijing January 19 (AFP)Pedestrians are flattened by trucks as they walk along China's highways, cyclists are flipped high in the air by speeding cars and sudden death haunts the anything-goes intersections in cities.

Global automakers may be salivating over massive car sales in the world's most populous nation, but hundreds of people die on China's roads each day -- and some of their deaths are shown in gruesome detail on television.

The carnage in Beijing alone is staggering, prompting a local television network to replay some of the most grisly accidents as a way to educate the thousands of new drivers that hit the capital's roads each day.

"Traffic Light" -- a joint production by Beijing Television and the capital's traffic police shown during the morning and evening rush hours, and again in the evenings -- is not for the faint of heart.

"Sometimes a very simple mistake can turn into heavy regret -- an error in judgement can become the end of a vibrant life," host Fan Hongjun says in one of the most graphic segments entitled"Accidents That Should Not Happen".

Following the host's introduction, a large truck is shown crushing a Beijing cyclist -- flattening the rider with its front tyre and crushing his head with its rear tyres.

In another clip, a pedestrian is run over by a tourist bus turning off Beijing's major thoroughfare, the Avenue of Heavenly Peace.

The horrific accidents are shown repeatedly -- and in slow motion -- as a Beijing traffic policeman explains the mistakes made and the rules violated. Other topics covered include bike safety and the dangers of drunk driving.

Routine scenes include firefighters dressed in bright orange jumpsuits using mechanical saws to cut through wreckage to extract badly mangled, often lifeless, bodies.

The programme provides stark evidence of how little awareness of the most basic traffic rules there is among drivers, pedestrians and cyclists.

According to police statistics, almost 70,000 people died in more than 265,000 road accidents in China in 2009 -- an average of around 190 fatalities a day.

That was down from nearly 99,000 fatalities stemming from 450,000 accidents in 2005, when Chinese police say the nation's road carnage peaked.

But a study published earlier this month by the World Health Organisation's monthly Bulletin challenged the police statistics, saying that road fatalities tabulated by health authorities were nearly double the police numbers.

The study also revealed that road fatalities based on death registrations from 2002 to 2007 have not declined in recent years as the police say, but instead have increased as China's auto market has boomed.

"These inconsistencies strongly suggest that the decreasing trend in road traffic mortality shown by police-reported data may not be genuine," according to the study, carried out by Chinese and US researchers.

The study suggested that police were hoping to portray an improvement in the situation after years of efforts to improve traffic safety and urged the government to resolve the discrepancies.

Auto sales in China totalled 18.06 million units in 2010, an industry group announced this month, up 32 percent from the previous year, when the nation took the title of the world's top auto market from the United States.

In Beijing, a record 800,000 new automobiles took to the streets last year -- an average of nearly 2,200 new cars a day, ballooning the capital's fleet to around 4.8 million vehicles.

Such numbers mean that a lot of new, inexperienced drivers are trying to learn to drive on roads that are becoming increasingly hazardous -- a situation that has capital residents up in arms.

"These drivers have no morals -- they do not have any traffic awareness," one web user identified as Ahfeng said in a post on a video-sharing website where many clips from the show are available.

But not everyone says drivers are to blame.

"Today's society is tragic... everyone thinks that no one will ever hit them, they think they are tougher than steel," said a user codenamed csj320.

"Whoever runs a red light should be killed, no matter if it's a car or a pedestrian," said another not-so-charitable resident identified as roninew.

Officials at BTV, the producers of"Traffic Light" and the Beijing traffic police all declined comment about the show when contacted by AFP.

Some excerpts from the show can be accessed on the Internet at the following address: http://v.youku.com/v_show/id_XMjEyODAyNDc2.html.

Source

Hefei promotes new energy vehicles to modernize the city

Shanghai January 20 (Gasgoo.com)The Hefei Municipal People's Congress designated that development of new energy automobiles as its number one recommendation, with the city's Standing Committee held responsible for implementation. During the Twelfth Five-Year Guideline (2011-2015), the Hefei government will support JAC Motors and Anhui Ankai Automobiles in completing its new energy vehicle production system, with the goal of reaching total capacity of 10,000 vehicles.

The Congress was explicitly clear in its proposal, stating that the city would do its utmost to support technical advancement of pure electric and plug-in hybrid electric vehicles, with the aim of attaining yearly capacity of 10,000 vehicles, including complete production of batteries, engines, controllers, air conditioning units, electric steering systems, electronic aids and other essential parts. At the same time, the city will help develop the business model for selling such vehicles by expanding automobile and battery leases. Hefei will first help produce 10,000 recharge units for the city's public usage, while the Finance Ministry will put more effort in providing subsidies for personal buyers.

The recommendation also focuses on the city's traffic demands by vigourously promoting eco-friend public transport. In the next five to ten years, Hefei hopes that its public transport system will primarily revolve around new-energy vehicles. To this end, the city plans to add 300 electric-powered buses and, by the end of 2012, install four new S6 electric vehicle service centers.

Source

Suzuki's Kizashi China sales take a dive

Shanghai January 20 (Gasgoo.com)Sales of Changan Suzuki's Kizashi mid-size plummeted to 15,000 vehicles, representing an astounding drop of up to 40,000 yuan ($6,085) per unit, reported Jinghua Times.

Dealers reported that they currently stock no more than ten units, with only a total of four designs available, priced from 189,800 yuan ($28,877) for the standard 2WD 2.4L version to 274,800 yuan ($41,809) for more expensive models. The price of the standard version can be further reduced to 149,800 yuan ($22,791) by participating in Suzuki's online discount program, valid until March 31. According to dealers, poor sales are what caused Suzuki to offer the program in the first place. They continued to say that despite the program, Kizashi sales have still not made a turn for the better.

Source

GM creates a global chief technology officer

January 19 (USA Today)General Motors today named Vice Chairman Tom Stephens, now the global product development chief, to the newly created position of global chief technology officer.

GM said the move aims"to bring greater focus and urgency to developing leading edge technology for all General Motors vehicles." As CTO, Stephens also will oversee GM's research and development operation.

Chairman and CEO Dan Akerson, a former telecommunication chief has been pushing hard for GM to be a high-tech leader and said in a statement:"Tom will make sure that GM technology keeps up with our customers and keeps ahead of our competitors."

It was round three of major GM executive changes in 24 hours.

Stephens, an engineer, is a GM veteran who took over as product chief from Bob Lutz two years ago. He also has held top positions in powertrains and engine development.

"Today's cars and trucks are technology on wheels," Stephens said in a statement."I'm excited about working with the GM team in new ways and focusing my energy to keep us on the leading edge of automotive innovation."

The company said a new global product development chief"will be announced soon."

Source

Chrysler, EPA work on new hybrid technology

Ann Arbor, Michigan January 20 (The Wall Street Journal)Chrysler Group LLC and the U.S. Environmental Protection Agency said Wednesday they are working together to commercialize an unusual type of hybrid vehicle technology aimed at reducing fuel consumption.

Under the partnership, Chrysler will work to produce vehicles using a hydraulic hybrid system developed by the EPA. The system recovers energy as a vehicle brakes and uses the resulting hydraulic pressure to help power the vehicle.

That differs from today's hybrid cars, which combine batteries and electric motors with traditional gasoline engines to boost fuel economy.

The hydraulic technology is already used in some large delivery trucks and industrial applications, and has the potential to improve a vehicle's fuel economy by 30% to 35%, said EPA Administrator Lisa Jackson.

Chrysler aims to develop a test vehicle using the hydraulic hybrid system by November of this year and hopes to complete testing and evaluation by July 2012, said Chrysler Chief Executive Sergio Marchionne.

Source

Audi's Chinese 2010 sales set a new record

Gasgoo.com (Shanghai January 21) -As sales of luxury cars in China take huge strides forward, one of the country’s most esteemed luxury brands, Audi, has also reaped large rewards. In its official 2010 sales report released today, FAW-Volkswagen Audi reported that their domestic sales reached 225,588 vehicles, setting a new record for the company. Audi said that the rise in sales owed itself to the variety of its new models and an increase in its brand’s influence.

The impressive sales results, which represent an increase of 43.5% from the previous year, also mean that Audi has already met its 2015 goal of annual sales of 20,000 vehicles five years in advance.

Among the results, sales of imported vehicles more then doubled from 2009, reaching a total of approximately 30,000 vehicles. Meanwhile, domestically produced vehicle sales increased 37%. Sales of the A4L compact reached 55,686, tripling the series’ yearly sales volume. The Q5 crossover sold 32,466 units, far surpassing its competitors. The A6L also deserves special attention, with 111,128 units sold.

FAW-VW Audi also announced that it had many new surprises in store for Chinese consumers, including importing new models from its international catalogue.

Source

Moroccan minister boasts ties to woo increased Chinese investment

Global Arab Network (Beijing) -Morocco's Industry, Trade and New Technologies Minister Ahmed Reda Chami called on Chinese companies to invest in the car sector in Morocco.

Morocco is a plat-form of car production as it offers to investors great opportunities and access to local, African and European markets, Chami told MAP on the sidelines of the Chinese-Moroccan investment forum, held on 18-19 January.

He added that Morocco is a fast-growing market as auto sales reached 120,000 vehicles between 2005 and 2008, and are expected to increase to 240,000 vehicles by 2015.    

Morocco will turn into major North-African car producer in 2012 especially with the French auto-maker Renault’ plant in Tangier.

Morocco offers infrastructure and world-class services, a skillful workforce and competitive cost, support for training and attractive incentives in the Free Trade Zones, the Minister pointed out.

On the other hand, The Sino-Moroccan investment forum ended, on Wednesday in Beijing following two days of meetings between officials and business leaders from the two countries.

Speaking to MAP at the end of the forum, Trade and New Technologies Minister Ahmed Réda Chami said the event was an opportunity to highlight investment opportunities offered by Morocco.

The participants in the forum, held on January 18-19, shed light on the business climate in the Kingdom and stressed the Moroccan authorities' commitment to support Chinese investors.

The forum, held by the Moroccan Agency for Investment Development (AMDI), brought together officials of several enterprises, banks and public institutions from the two countries.

Source

Mitsubishi's global small car to debut in China next year

China Car Times -Mitsubishi have slipped into the position of being the Japanese Chrysler– producing great looking cars with average interiors that just don't sell like they used to, Mitsubishi are aiming to change their fortunes on the back of the Chinese market with the introduction of a widened car range and also a new joint venture with Guangzhou Auto.

Mitsubishi's current joint ventures are with SouEast motors that produces the latest generation of Lancer and also several older Mitsubishi models, the previous joint venture was with Changfeng Auto but this has also died since Guangzhou Auto took Changfeng over, the new JV is expected to be producing Mitsubishi's SUV line up within China and also the small vehicle range. SouEast Motors was designated as Mitsubishi's car producing partner, but this might change as Guangzhou Auto has considerably deeper pockets and also a wider influence in the Chinese auto market as a state owned manufacturer.

The Mitsubishi Colt is expected to launch in 2011 via the SouEast JV and the new global small car will launch in 2012 and will sit under the Colt.

Source

Fired Renault executive blames tricks by a rival

Reuters (Paris) -A second of three executives fired on suspicion of industrial espionage at Renault plans to take legal action against the French carmaker for defamation, his lawyers said on Wednesday.

Michel Balthazard, former vice president of advanced engineering at Renault, has denied the charges against him and one of his lawyers promised earlier this week to take the matter to an labour tribunal.

In a statement, Balthazard's lawyers said they would"pursue all possible legal options to bring to justice the people and actions which have gravely damaged his (Balthazard's) honour in a context of excessive media coverage".

Xavier Thouvenin and Pierre-Olivier Sur are pursuing a two-pronged strategy to defend Balthazard, suing Renault, while attempting to reinstate him in the company by appealing to a labour tribunal at the same time.

On Tuesday, a colleague of Balthazard, Bertrand Rochette, said he planned to sue Renault for defamation.

French state prosecutors launched an inquiry into industrial espionage at the carmaker on Friday after Renault filed a legal complaint alleging information had been passed to a foreign power, without saying which one.

The carmaker suspended the employees the previous week on suspicion they had leaked information about its high-profile electric car technology.

Balthazard received his dismissal letter at the weekend, according to his lawyer, Xavier Thouvenin.

The letter accused Balthazard of passing on strategic information in exchange for bribes, an accusation Balthazard denies, Thouvenin said.

The third executive to be fired, Matthieu Tenenbaum, deputy head of Renault's electric vehicle programme, has also received his dismissal letter and is considering his next move, his lawyer said on Tuesday.

The French government has dubbed the espionage case"economic warfare", while Renault has said it was the victim of an"organised international network".

Source

Thailand GM's crown jewel in SE Asia

Bangkok Post -General Motors (GM) enjoyed encouraging automobile sales growth across Southeast Asia last year, with Thailand again proving its biggest regional market.

GM Thailand gained the biggest sales and market share among the regional big four.

About 30,000 GM vehicles were sold in Southeast Asia last year, up by 34% from 2009, with the flagship Chevrolet Captiva contributing 25% to the total.

Overall automobile sales in Asean last year reached 2.35 million units, with GM accounting for 1.3%.

Martin Apfel (see picture), president of Bangkok-based GM Southeast Asia, earlier said GM had planned to raise its regional market share to 10% by 2013 with the introduction of many new products.

"I am confident that we have the right foundation to drive the next stage of growth for GM's business across Southeast Asia and beyond - a great brand, products and people," said Mr Apfel, who is also president of GM Thailand and Chevrolet Sales (Thailand).

GM Thailand sold 20,026 vehicles last year, increasing by 32% year-on-year but lagging the 46% industry growth orate to just over 800,000 units.

Based on the figure, GM Thailand commands a 2.5% share in the Thai automotive market, its biggest in the regional market.

GM sales in Indonesia grew significantly by 65% over 2009 numbers, outpacing the industry's growth of 57% in the same period.

Automobile sales in Indonesia were 755,000 units, the region's second-largest market, and GM had a share of just 0.6%. In the Philippines, where the industry grew by 12% or 145,000 units in 2010, GM recorded a 56% growth rate over 2009, bringing its market share up to 1.4%.

Malaysia, the third largest automobile market in Southeast Asia, sold 580,000 units in total in 2010, with growth remaining unchanged from 2009. GM's share in this market was only 0.1%.

December was the strongest month for GM Thailand, with retail sales increasing by 34% over the same period in 2009. This coincided with the successful launch of the Chevrolet Cruze during the year-end Thailand International Motor Expo 2010.

"Our December sales were the strongest month since March 2006, and in just over one month since its launch, the Chevrolet Cruze registered total bookings of more than 1,000 units while the new Aveo CNG recorded more than 800 units," said Mr Apfel.

GM Thailand is confident it can achieve the sales target of 11,000 Cruze units by the end of 2011 thanks to strong interest in this model and an aggressive after-sales campaign called Chevy Promise.

The Cruze was the most popular Chevrolet model at the Motor Expo, with the 1.8-litre version receiving the highest number of bookings, followed by the Aveo CNG.

To further expand the brand footprint and accommodate after-sales initiatives, Chevrolet Sales is looking at adding 20 more dealer next year.

Source

Guangqi Toyota Camry SE version to hit the market this year

Gasgoo.com (Shanghai January 20) -Guangqi Toyota will begin Chinese production of the Toyota Camry SE this year, sources revealed today.

The sporty SE edition, currently sold overseas, has a significantly different exterior design from the regular Camry, with a full black mesh grille and 17 inch aluminum alloy wheels.

As far as the interior goes, the Camry SE comes in either charcoal black or grey palettes, with a three-spoke full leather steering wheel and blue tinted Optitron gauges.

Under the hood, the SE boasts a 179-hp Dual VVT-I equipped DOHC2.5L four-valve engine producing 171 ft.-lb. of torque. A 268-hp, 248 ft.-lb. DOHC3.5L engine is also available as an option. The SE chassis is also completely redone, with new springs, absorbers and bearings.

Source

LG Chem and Chang’an to set up joint venture

January 20 (Korea JoongAng Daily)Korea’s chemical and rechargeable battery maker LG Chem Ltd. has agreed to cooperate with China’s third-largest automaker, Chang’an Automobile Co., to develop lithium-ion batteries used in electric cars, a local report said yesterday.

Citing an official at Chang’an Automobile, the Chinese-language newspaper West Chin City Daily said the agreement is still in the early stages, but the two sides are likely to set up a joint venture.

Nickel-hydrogen batteries are commonly used for electric vehicles in China, while lithium-ion batteries are known to have a better battery-energy utilization, extended life and stronger power.

Chang’an Automobile has so far launched in the country three models of hybrid-electric automobiles. Sales of these three models account for more than 50 percent of those of China’s energy-efficient automobiles.

China has been encouraging its automakers to jump into the burgeoning market of hybrid and electric cars so they can secure a foundation to compete with global automobile giants.

The Chinese Ministry of Industry and Information Technology said earlier that it will invest more than 100 billion yuan ($14.8 billion, 16.5 trillion won) to help nurture its fledgling environmentally friendly car industry over the next decade, starting this year.

Source

Chrysler CEO wants to"rethink"minivans

Windsor, Ontario January 18 (Reuters)Chrysler Group Chief Executive Sergio Marchionne vowed on Tuesday to keep the automaker on top of the minivan market in North America and said the company would develop a new type of minivan by 2014.

Chrysler, which popularized minivans in 1983 under former CEO Lee Iacocca, will"rethink" the minivan to make it more versatile, Marchionne said.

"We're not going to give one inch of territory in terms of our domination of (the minivan) segment," Marchionne told workers at the Windsor Assembly Plant, where the Dodge Grand Caravan and Chrysler Town& Country minivans are made.

A fresh architecture for a new generation of minivans will be introduced in 2013 or 2014, Marchionne said. Hybrid minivans are also planned for production at the Windsor plant.

It is possible that Chrysler could also make a full-size car -- known as an E-segment vehicle -- on the new platform. Marchionne said Chrysler could make Fiat models as well.

"We need to upgrade this and make it a much more versatile platform and one that will allow us to be able to make more than just minivans," Marchionne said.

Marchionne is betting that the automaker's slate of 16 new and refreshed vehicles will help revive Chrysler, which nearly collapsed in 2009 before a government-funded bankruptcy.

Marchionne thanked the U.S. and Canadian governments for the help and said Chrysler was still working with the Department of Energy for about $3 billion in loans to help refinance debt owed to those governments.

The Windsor plant has built minivans for 28 years. Marchionne said the Town& Country and the Grand Caravan"remain key parts" of the automaker's revival.

Last week, Marchionne told reporters at the Detroit auto show that Chrysler would likely remake one of its two minivans in favor of a smaller"people mover" by 2014.

Chrysler's chief designer Ralph Gilles said on Tuesday that the automaker would monitor minivan sales and performance in 2011 and then decide whether to keep one or both of its minivan models.

The new architecture underpinnings will be"completely different" from the current minivan platform, Gilles told reporters. He said the new platform was still in the"digital ether".

DOE LOANS

Auburn Hills, Michigan-based Chrysler is under management control by Marchionne's Fiat SpA (FIA.MI), which has a 25 percent stake in the automaker.

Chrysler plans to launch an initial public offering in the second half of 2011, but before an IPO, the automaker must refinance about $7.4 billion in government loans from the United States and Canada that bear a crushing interest rate.

The envisaged $3 billion in financing from the U.S. Department of Energy would come at favorable interest rates.

Marchionne said the loans were an important part of Chrysler's refinancing plans. The automaker is also talking to financial institutions to refinance the debt.

"Because of the long-term nature of the DOE funding -- it's a multi-year commitment and we need it to go forward," he told reporters.

In addition to making changes to its minivan lineup, Chrysler will revive the Jeep Wagoneer in 2013 and is developing a Wrangler-based utility vehicle with a pick-up bed that would sell outside North America.

Marchionne confirmed that Chrysler would build a hybrid version of the Chrysler 300 sedan for 2013.

The minivan share of the North American auto market has fallen in the past decade as consumers have favored SUVs and"crossover" vehicles.

The minivan segment of the U.S. auto market dropped to 460,154 sales last year, from 1.37 million in 2000, according to Autodata.

Scott Kunselman, head of Chrysler engineering, said a new"people mover" idea would attract consumers turned off by minivans because of their reputation as vehicles for"soccer moms".

Chrysler's Town& Country overtook the Honda Motor Co (7267.T) Odyssey in 2010 as the best-selling minivan in the U.S. market.

Together, the Town& Country and the Grand Caravan controlled 31.8 percent of the U.S. minivan market in 2010, compared with 15.9 percent for Honda's Odyssey.

Source

Chery remains best selling and top exporting own brand

Shanghai January 18 (Gasgoo.com)Chery Automobile Co., Ltd. announced its latest sales figures of 682,000 vehicles up to December 2010, becoming the largest selling own brand and placing sixth among the country's best sellers of passenger vehicles. This not only represents an increase of 36.3% from the previous year, but also marks the tenth year in which Chery has ranked as the top selling own brand. Additionally, the company’s export sales of nearly 100,000 vehicles allowed it to hold on to its position as top Chinese exporter of passenger vehicles for the eight consecutive year.

Among the company's individual vehicle sales, its Fulwin 2 led the mid-class market with accumulated sales of 73,244 units. The fully-redesigned Cowin series' November sales of 20,539 vehicles helped it reach a total sales volume of 90,000 vehicles. As for its other models, combined sales of the Tiggo NCV, Tiggo DR and redesigned Tiggo SUV showed an increase of 31.9% from the previous year. Overall, Chery had total domestic passenger vehicle sales of 459,000 units up to December of last year, a yearly increase of 15.8%

Aside from sales, Chery's other large achievement of 2010 was constructing and investing in Asia's largest automobile research center. Models equipped with GDI, CVT and other new technology are expected to hit the market this year. Chery passed J.D. Power Asia-Pacific Company’s Consumer Satisfaction Index (CSI) survey with a score of 815, creating a new record that not only surpassed other own brands, but several foreign joint ventures as well.

Source

Chinese cars exports among the lowest in the world

January 17 (China Car Times) China maybe produced 18.27 million cars in 2009, but only 2.98% of that made it to foreign ownership according to statistics released by China Association of Automobile Manufacturers (CAAM).

China exported 544,900 units in 2010, a number that is disappointingly low when compared to other great automotive nations such as Japan, Germany and South Korea, and is also considerably lower than other developing auto markets such as India and Brazil.

The export volume of Germany in 2010 was 4.24 million units, and the export ratio was 76.29 percent. Japan exported 4.37 million vehicles from January to November last year. South Korea's export volume last year was of 2.77 million units. During 2010 Germany exported 4.24 million vehicles (76.29% of total production), Japan exported 4.37 million vehicles between January and November whilst Korea exported 2.77 million units in 2010.

Indian export volume has been sturdy even during the financial crisis. In the 2009-2010 fiscal year (between April 2009 and March 2010), the country had exported 1.8 million vehicles, growing at 17.90 percent year-on-year. The nation's officials predicted that the export volume in the fiscal year of 2010-2011 will rise 10 to 15 percent. The export ratio of India has surged on to 12.84 percent in the 2009-2010 fiscal year from the 6.63 percent in the 2003-2004 fiscal year. Even India managed to surf the financial hurdles of 2009 and early 2010, from April 2009 to March 2010 India cleared 1.8 million vehicles from its shores, gaining 17.90% in year on year growth, although it should be pointed out that SIAM (Society of Indian Automobile Manufacturers) are (in)famous for their notoriously fuzzy car statistics that sometimes include motorbikes and three-wheeled trikes into total car sales.

Chinese exports in 2010 included 282,900 passenger cars whilst 261,900 commercial vehicles were also included. However China’s passenger vehicle exports only came to $1.66 billion USD whilst commercial vehicles accounted for $4.75 billion USD due to the average price of exported passenger vehicles sitting at $6,535USD, considerably lower than the $17,800 average for commercial vehicles.

Chinese car manufacturers have had serious problems with exporting their brands to overseas markets before, low up take in Europe can be blamed on ADAC crash tests which made Chinese cars a byword for poor quality and shoddy workmanship, however in the Middle East and Africa Chinese cars have been mostly welcomed in their first steps into the continents, only to have that favorable market entry quickly sour when dealers and importers were unable to follow up with parts and a decent level of service. 2011 is being ear marked as the 'year of the Chinese car' as with every other year, but due to the amount of over capacity in the Chinese market and the cancellation of favorable low tax rates for sub 1.6L cars Chinese manufacturers might just start looking at overseas markets now that the Chinese golden goose is starting to slow down its egg laying.

Source

Gasoline price rises give automakers whiplash

Detroit January 15 (Reuters) - With U.S. gasoline prices poised to revisit the $4-plus per gallon peak hit in 2008 just before the recession, sales of new smaller cars introduced since then would seem assured.

But as analysts and executives said at the Detroit auto show this week, the only sure thing is that today's forecasts are wrong -- it is anyone's guess by how much.

The wild fluctuations in the price of gasoline and of the materials that make up the thousands of car components such as steel, aluminum, copper and platinum can wipe out years of design and manufacturing planning within days.

In the summer of 2008, demand for small cars such as theToyota Corolla,Honda CivicandFord Focusfar outstripped the immediate inventory as gasoline prices shot higher.

However, a quick pullback in gas prices as the deepest economic downturn since the 1930s took hold left newly built small cars to languish on dealer lots.

"We do believe at Ford that the price of gasoline is going to march upward over time,"Ford Motor Co.Executive Chairman Bill Ford said on the sidelines of the Detroit auto show."And we've built our whole entire strategy around that."

The rise in gasoline prices has been slower thus far than in 2008 -- when it jumped 32 percent from January to $4.11 per gallon in July, then fell back to $1.65 by year end.

The average price of U.S. gasoline is more than 25 percent below where it was then. Still, executives say they are already seeing a switch to smaller vehicles.

"We're seeing consumers quickly shift back to a higher mix of fuel-efficient cars and now trucks are actually starting to slow down," said Bob Carter, U.S. market brand chief for Toyota Motor Co."Sixty days ago, we found the opposite happening."

Some in the industry predict a booming market for smaller vehicles, while others point out that the surge during the last gas price spike evaporated as soon as prices started to slide.

Others still warn that the higher cost of key commodities, primarily rare earths and metals, will be passed on to consumers at a time when the industry is just starting to work its way back from the slump that forcedGeneral Motors Co.and Chrysler into government-led bankruptcy in 2009.

"The costs will be higher," said Matthias Mueller, CEO of German luxury automaker Porsche."But at the end of the day, all of our competitors face the same problem as us."

Summer of discontent

If anything could sum up the challenges of selling smaller cars in the U.S. market, it would be the gas spike of 2008. Many Americans abandoned a long-standing love affair with gas-guzzling SUVs and trucks to buy cars as oil made its historic run to $145 per barrel. It is around $92 a barrel now.

Now there are signs that consumers are downsizing again with gasoline at a national average of $3.09 as of Jan. 11, according to the U.S. Energy Information Agency.

"We are starting to see some segment shifts," said Jim Farley, global head of marketing and sales at Ford.

Customers expressed outrage when the price hit $3.80 in 2008, but with gasoline prices rising more slowly this time, the"tipping point is likely to be higher," Farley said.

Mike Jackson, CEO ofAutoNation Inc., the nation's biggest dealership chain, said he believes that point is significantly higher, probably in the $4.50 to $5 range.

"Every time you have one of these spikes, it moves upward the freak-out number," Jackson said."The freak-out number in the summer of '08 was $3.50 to $4."

Toyota's Carter said gas prices could hit $3.50 this year, but reach $4 in some markets with higher taxes like California. The average California price this week was $3.33 per gallon.

Some automakers are banking on a bright future for small cars. Fiat North American brand chief Laura Soave expects the U.S. small car market to more than double in size by 2014.

But what happens if gasoline prices fall again?

Bill Ford maintains that the company his great-grandfather founded has hit on the right solution by launching a global compact platform to underpin vehicles that are fully electric, hybrids or equipped with fuel-efficient gasoline engines.

"If demand is less than we expect, we can just ramp up production for some of the more conventional engines," he said.

The prices for metals and rare earths have also been on the rise, posing another conundrum for the industry: what proportion of those costs can automakers pass on to customers?

"I think everyone in the industry is in a very competitive position so is it purely a pass through?" GM North America President Mark Reuss said."I don't think so."

But whether or not automakers can pass on those costs, some executives say it is inevitable consumers will pay more for new vehicles. Automakers are looking at using more magnesium and aluminum which are lighter than steel but far more expensive to reduce vehicle weight and improve fuel economy.

"More and more consumers are warming up to the idea of the case that the vehicle might cost a little bit more," said Fred Diaz, head of Chrysler's Ram truck brand."But in the long-run, they're going to make out ahead because of the fuel efficiency aspect of it."

Source

Ford salaried workers to get bonuses, not raises

Detroit January 13 (AP) Ford Motor Co. will give bonuses but not pay raises to its U.S. and Canadian white-collar workers as the company tries to keep its costs down to stay competitive with other global automakers.

Spokeswoman Marcey Evans said Ford surveyed 21 peer companies, including General Motors and Chrysler, and determined that its salaries are competitive.

She also said Ford needs to keep costs down to be price-competitive with other global automakers.

Many companies in the auto industry are mindful of financial troubles from 2009 and are reluctant to give annual pay raises that can increase structural costs and push up the price of cars and trucks in a highly competitive market. One-time bonuses compensate employees for work but don't add to the annual costs.

Workers were told about the decision on Thursday. Ford has about 20,000 U.S. salaried workers. The size of their bonuses is based on performance of the individual worker and their department. Evans said the amounts won't be determined until after Ford releases fourth-quarter earnings.

The company's 41,000 U.S. blue-collar workers will get profit-sharing checks. All the checks will go out in March.

"Keeping an eye on competitiveness is really a driving factor in the business decisions Ford is making," Evans said.

General Motors CEO Dan Akerson said earlier this week that GM would not give white-collar raises but could give bonuses tied to company performance. GM, he said, used to give annual raises all the time.

"Three percent times five years in a row is 15 percent added to your cost structure," he told the Automotive News World Congress."All of the sudden you're starting to really narrow the possibilities and flexibility of any reaction to a downturn. It's very difficult to overcome," he said.

Ford, Evans said, gave out merit pay raises to white-collar workers last year.

Managers in other Ford locations across the globe also will get bonuses, but those are set by individual country, Evans said.

Ford is having a great year, gaining U.S. market share and winning awards for the quality of its vehicles. Through the first three quarters of the year, the company made $6.4 billion, and it expects to post a fourth-quarter profit.

Source

Dongfeng plans to focus on new energy vehicles

Shanghai January 14 (Gasgoo.com) Dongfeng Motor Corporation officially announced their plans yesterday to invest in new energy cars in the next three to four years.

In preparation for the Twelfth Five-Year period (2011-2015), Dongfeng is setting out a three-pronged strategy. First, the company's business scale will be based on two million units, emphasizing guaranteeing effective and quality sales, with the goal of achieving industry-leading profits. Secondly, the company aims to rapidly develop new energy and energy efficient vehicles by investing 3 billion yuan ($454m) into research and development. Its new energy models, including both hybrid electric and pure electric designs, are estimated to be revealed within the next two years. Finally, Dongfeng plans to increase investment in the creation and development of own brands and talent searching, with the goal of further innovating domestic production of passenger and commercial vehicles.

According to figures released by the company, Dongfeng's total production last year was 2.66 million vehicles (an increase of 39.98% from 2009), with 2.61 million sold (up 37.8% from 2009). The company was able to meet its sales goal in late November and by October had already surpassed its 2009 sales.

Meanwhile, investment firm Morgan Stanley increased Dongfeng Motor's target price from HK$12.50 ($1.608) to HK$13.50 ($1.736) and its estimated annual profit for years 2010, 2011 and 2012 to 10.9 billion yuan ($1.65m), 9.9 billion yuan ($1.5m) and 10.7 billion yuan ($1.62m) respectively.

Source

Philippine auto industry expands by 27.2% in 2010

The Philippines' local auto industry grew double digits in 2010, the highest in 14 years, officials said Saturday.

Chambers of Automotive Manufacturers of the Philippines, Inc. ( CAMPI) President Elizabeth Lee said that car sales last year expanded by 27.2 percent to 168,490 units, surpassing the industry' s highest ever sales benchmark of 162,000 units in 1996.

"It's about time the industry surpassed that benchmark. 2010 was an auspicious year for the auto industry, showing strong growth backed by major accomplishments that will help the industry as a whole move forward," she said.

Overall December sales grew by 1.7 percent where the industry sold 13,749 units.

Lee expressed optimism for this year's local auto industry, citing the favorable overall economic environment with sustained business and consumer confidence, gross domestic product growth, stable foreign exchange rate, positive forecast for overseas Filipino workers' remittances, manageable inflation rate forecast, continued healthy financing environment, as well as new model introductions by auto players.

CAMPI's initial growth forecast for 2011 sales is about 4-5 percent as the industry expects sales this year to more or less follow the regular seasonality typical of auto sales.

The sales forecast will be adjusted accordingly on a per quarter basis, she said.

Source

France's Renault reports record sales in 2010

Renault, France's second biggest carmaker, announced Monday high sales of its brands last year thanks to resilient demands mainly in booming Asian markets.

In a statement released on its website, the French carmaker saw its sales grow by 14 percent last year compared with 2009 performance after providing world markets with 2.6 million vehicles.

"We are delighted with the new sales record set by the group in 2010, breaking our standing record from 2005. We are making progress in all regions and pursuing our international offensive. All the group's brands are contributing to this momentum," said Jerome Stoll, the company's executive vice president for sales and marketing.

Demand of emerging markets rose by 26 percent, where the French firm sold 983,000 units, prompting a 19.4 percent growth in those countries, according to Renault.

In Europe, Renault increased its sales to boost its share market by 1.1 percentage points. European countries absorbed 1.642 million cars, up 7.4 percent from 2009.

The country's leading carmaker expects to maintain growth this year, betting on more than 4 percent growth in the global market.

"With the global market in 2011 expected to grow by more than 4 percent over 2010, the group will pursue its growth on buoyant markets outside Europe," Stoll said.

"In 2011 we will be pursuing two main thrusts: to step up our international expansion through all the brands and to launch our range of electric vehicles in the second half of the year," he added.

Renault's net income stood at 823 million euros ($1.06 billion) for the first six months of 2010 after falling by 2.7 billion euros ($3.49 billion) over the same period in 2009 due to a recession which clouded the automobile sector.

Source

Dongfeng Citroen to launch 7 models in China before 2015

Shanghai January 10 (Gasgoo.com) French automaker Citroen's Chinese joint venture with Dongfeng Motor Corp. has achieved its full-year sales target for 2010 thanks to demand for the Citroen C5 Saloon, and plans to launch seven new models in China in the next five years, the Beijing News reports, citing the company's General Manager Wei Wenqing.

Dongfeng Citroen, part of Dongfeng Peugeot Citroen Automobile Company Ltd. (DPCA), expected to sell 200,000 vehicles last year, and was pleased to have received orders for more than 220,000 vehicles last December. That is 37.5% higher than last November and 60% than last October, and even doubled the 2008 figure, Wei said.

In the first eleven months of 2010, Dongfeng Citroen saw its vehicle sales grow 42.4% from a year earlier, in excess of the industry average of 32%, he said, adding the company's optimization of product line-up has contributed to the good performance.

Asked if the company has any plans to launch new models in the future, Wei said Dongfeng Citroen will focus on strengthening its core technology in the long run, and will put seven models on the domestic market before 2015.
 

Source

FAW Group fixes 2011 procurement budget

China FAW Group Corporation fixed its 2011 procurement budget at 270 million yuan, reports yicai.com, citing a group release.

The group plans to sell 2.76 million vehicles in 2011 and generate sales income of 400 billion yuan.

According to the release, the group had signed purchase agreements with 26 major suppliers, including Baoshan Iron and Steel (600019) and Jilin Provincial Coal Industry Group.

Shares of FAW Car (000800) dropped 0.66 percent to close at 16.61 yuan today.
 

Source

Daimler, Volkswagen to sign deals with Chinese partners today

Automakers Daimler AG (DAI.XE) and Volkswagen AG (VOW.XE) will sign deals with Chinese partners on the sidelines of a meeting between German Vice-Chancellor and Foreign Minister Guido Westerwelle and Chinese Vice Premier Li Keqiang on Friday, the German foreign office said Thursday.

The main focus of the meeting between Li Keqiang and Westerwelle in Berlin is to further develop economic and political ties between the countries and to discuss the continuation of reform policies in China, the foreign office said on its website.

In addition to Volkswagen and Daimler, shipping firm Bernhard Schulte GmbH& Co. KG and Oerlikon Neumag Textile GmbH& Co. KG will sign contracts with Chinese partners.

A Daimler spokesman told Dow Jones Newswires the company would sign its import plans with China; this formalizes the car import plans for the current year, he said.

A Volkswagen spokesman confirmed that contracts will be signed, but declined to comment on details.
 

Source

Great Wall Motor sales soar 77% in 2010

Shanghai January 6 (Gasgoo.com) Great Wall Motor, the largest SUV maker in China,  experienced sales growth of 77 percent in 2010 to 397,000 vehicles, far beyond the industry average, Information Times reported Thursday.

The Chinese automaker exported 55,000 vehicles last year, generating more than 3 billion yuan ($453 million) in sales. Export volume and sales amount both rose sixfold in the year, the Times said.

Great Wall will continue to strengthen research and development, and expects to double its vehicle production and sales again this year, following the launch of over ten new models.

The Hong Kong-listed company aims to sell 1.8 million vehicles per year by 2015, and meanwhile take the lead in five respects: domestic pickup sales, domestic SUV sales, domestic A-class sedan sales, global economic SUV sales, and global economic pickup sales.
 

Source

Toyota's China car sales up 20% in 2010

Shanghai January 5 (Gasgoo.com) Toyota Motor Corp. sold 846,000 vehicles in China in 2010, up 19.4% from a year earlier, gasgoo.com reported, citing Beijing-based Toyota spokesman Hitoshi Yokoyama.

The figures are in excess of the Japanese automaker's annual sales target of 800,000 units.

Toyota aims to sell 900,000 vehicles in China in 2011, with a lower-than-2010 growth rate, Hitoshi Yokoyama said, adding that China's automotive market will slow down too this year.

In December alone, the automaker saw its vehicle sales jump 33.8 percent on an annual basis to 120,000 units in China.

The Chinese automotive market expects to grow approximately 30 percent this year, while Toyota may experience a sales growth lower than the industry average.
 

Source

Huge drop in Beijing car sales starts taking shape

After Beijing authorities introduced a bunch of new rules to curtail the number of cars sold in the Chinese capital, dealerships are nothing more than empty halls, with new car buyers staying away from has become a repulsive market for passenger cars. Beijing intended to reduce congestion across the city and try to fight pollution, allowing only a maximum of 240,000 vehicles to be registered in 2011.

This can only be good news for tree-huggers but, on the other hand, the auto industry sees new car sales going down and it's nobody there to rescue them. Not even the incentives or the tax breaks aimed at certain types of vehicles addressed to the Chinese market...

"We definitely won't make money this year," Li Hao, a Chery sales manager told AFP in an interview when talking about the way carmakers expect the auto industry to perform this year."Our income and sales will definitely drop and I'm worried about my own income and job. Every car salesperson is thinking about this problem," he said, while revealing that the showroom he works in had not sold a car since December 24.

But Beijing's municipal government wants to compress sales by up to 70 percent, ignoring complaints coming from automakers shouting that the auto sector in the region will be ruined this year.

“Definitely this will impact our sales in Beijing next year, But it's hard to say what percentage will be affected specifically. In fact, what worries me more is that other cities will follow Beijing's lead to issue such regulations, and that will have a bigger impact,” said Chery spokesman Jin Yibo in late December, after Beijing approved the new set of regulations.

Source

Beijing residents rush to register cars to meet quota system

Residents in Beijing, the city ranked as having the world’s worst traffic, rushed to apply for new vehicle licenses under a quota system started Jan. 1 as China’s government seeks to ease the congestion.

A total of 53,549 applications were made on the first day of the year, more than double the number of license plates to be available each month, the Beijing News reported yesterday.

The government said on Dec. 23 it would set a monthly quota of 20,000 new vehicle licenses in the Chinese capital.

China surpassed the U.S. last year to become the world’s biggest car market as tax cuts and government subsidies aimed at spurring auto sales fueled a surge in traffic. Beijing tied with Mexico as having the world’s worst traffic, according to a survey by International Business Machines Corp. last year.

The Beijing Municipal Commission of Transport opened a website to accept online applications from people wishing to buy a car. Those without Internet connections can register on sites starting tomorrow.

Non-transferrable license plates will be issued through a lottery system that runs on the 26th day of every month after government officials review applications on 25th, according to the measures.

An unprecedented 30,000 new vehicles were registered in Beijing in the week of Dec. 13, boosting the number of autos on the city’s roads to a record 4.76 million, as car buyers rushed to complete purchases before government incentives expired at the end of the month.

Vehicles that aren’t registered in Beijing are now required to apply for a permit before entering the capital, according to the government.

Worst Commute

Motorists ranked the Chinese capital as having the most“onerous” commute in the world, when factors such as traffic predictability, gasoline prices and emotional stress were included, according to the IBM poll, which surveyed 8,192 drivers in 20 cities worldwide.

Beijing tied with Moscow as the city with the most road trips canceled because of anticipated traffic jams. To alleviate congestion, the government already bars cars from roads on specific days each week depending on the last digit of the license plate.

Shanghai, China’s wealthiest city, has since 1986 controlled the number of vehicles on its roads by restricting the number of new car licenses. An ownership permit cost an average 45,291 yuan ($6,800) in November, according to government data.

Source

Maction wins GPS software order from BYD

Taibei-Maction Technologies Inc. (PAPAGO brand), the largest GPS map developer in Greater China and Southeast Asia, recently claimed to have won orders from the Chinese automaker BYD Co., Ltd.

Maction already supplies navigation software to South East (Fujian) Motor Co., Ltd. (SEM) in China, an auto-production joint venture between Fujian Motor Industrial Group (FJMG) of China and China Motor Corp. (CMC) of Taiwan (of Yulon Group). With the new order from BYD, some institutional investors estimated that Maction will ship up to 210,000 sets of navigation software in 2011.

Industry insiders said that Maction has been aggressively exploring the huge navigation software market in China, and the Taiwanese company is expected to receive more orders in the future.

In Taiwan, some Nissan models locally assembled by the Yulon Group also adopt navigation software supplied by Maction. Industry sources said such cooperation tie might help Maction to supply products to LUXGENs, Yulon's own-brand cars that will be mass-produced in China by Dongfeng Yulon Motor Co., Ltd. in the second or third quarter of 2011.

A senior executive at the leading navigation-device maker Garmin pointed out that about 7% out of some 15 million new cars sold in China in 2010 are equipped with GPS, meaning there is very big growth potential for automotive navigation products.

In addition to map software products, Maction has also launched own-brand portable navigation device (PND) products. In Asia, Maction has directly or indirectly supplied software products to car makers such as Volkswagen, Audi, Volvo etc.

Source