Automotive News - 2008 Guide to China's Auto Market - (Page 26)

26 DOMESTIC AUTOMAKERS 2007 2006 Zhejiang Geely Automobile Group No. 1760 Jiangling Road, Binjiang District, Hangzhou City Zhejiang Province 310051, P.R. China (86) 571-8776-6666, www.geely.com Top executive: Li Shufu, chairman Zhejiang Geely Automobile Group wants to jump-start growth in 2008. Geely sales grew by a mere 7.0 percent in 2007, well below the 35.1 percent increase in 2006 for China’s auto industry. In 2007, Geely launched six redesigned vehicles. Geely plans four new launches in 2008: the China Dragon sporty car, King Kong hatchback, LC-1 economy hatchback and TX4 taxi. In the next five years, Geely says it has plans for 15 new models, including a hybrid. The automaker’s plans are so ambitious that some analysts doubt it can pull them off. “It will be very difficult for them to launch all these planned models, as there is still limited brand reception for Geely in the domestic market,” says John Zeng, senior market analyst for Asian automotive research at Global Insight Inc. “It will take a long time for Geely to build a decent image.” Nevertheless, Zhejiang Geely Automobile Group says it plans to sell 230,000 vehicles in 2008, up 25.9 percent from 2007. Geely sold Shanghai Maple Automobile Co. Fengling Industrial Zone, Jinshan District, Shanghai City, P.R. China (86) 21-5136-9990, www.c-sma.com Top executive: Jinliang Liu, general manager Capacity 300,000 300,000 Production 195,336 180,214 Unit sales 184,176 176,320 Models produced: Haoqing, Merrie, King Kong, Vision, Freedom Ship Ownership: Li Shufu 72.7% Others 27.3% GEELY KING KONG 184,176 cars in China and exported 29,063 cars in 2007. Another 35,337 cars were made by subsidiary brand Maple. To realize its growth plans, Geely must increase production capacity. Four new plants are expected to start production by year end. The plants will push Geely’s annual capacity to 500,000 units, up from the current 350,000. The new plants in Xiangtan, Jinan, Lanzhou and Cixi are outside Geely’s home 2007 2006 in Zhejiang province. Last year Geely opened contract manufacturing bases in Indonesia, Russia and Ukraine. This year, Geely says it will build a plant in Mexico. The expected annual total capacity of the Mexico plant is 300,000 units. “The plant will serve all of North, South and Central America,” says Li Shufu, Geely chairman and founder. In 2006 Geely said it wanted to enter North America in 2008. But the company has since revised its strategy. “Entering a market depends on preparation,” Li says. In 2007 Geely bought a 23 percent stake in Great Britain taxi maker Manganese Bronze Holdings LLC. Geely also formed a joint venture with Manganese Bronze to produce the London Taxi in China. The TX4 model will begin production this year with 1,000 vehicles expected in its first year. Shanghai London Taxi International Co.’s production is based at Shanghai Maple Automobile Co.’s operations in Jinshan District, Shanghai. — Namrita Chow Models produced: Haiyu, Haixun, Haishang, Haifeng, Haiyue Ownership: Zhejiang Geely Automobile Holdings Group Zhejiang Huapu Investment Co. Models produced: Hover, Safe, Sing Capacity Production Unit sales 50,000 31,997 35,337 50,000 29,866 28,803 90% 10% Ownership: Baoding Woerte Baoding Municipal Government H Shares Other Great Wall Motor Co. No. 2266 South of Chaoyang Road, Baoding City Hebei Province 071000, P.R. China (86) 321-2197-855, www.gwm.com.cn Top executive: Wang Fengying, president In 2008, the challenge facing SUV maker Great Wall Motor Co. is to gain ground in cars. Great Wall received government approval to manufacture cars in late 2007. It launched its first small car, the Gwperi, in February. With a starting retail price of about $6,200, the Gwperi will compete against the Chery QQ and Changan Benben. In addition, Great Wall has developed other new cars, including the Florid, Coolbear and i7. In 2007, Great Wall’s domestic sales rose 61.6 percent to 64,732 units and exports totaled 51,394 units. The domestic growth came mainly from the Hover, the top-selling SUV in China with sales of 57,752. Close behind was the Chery Tiggo with sales of 50,102. Great Wall has ambitious plans for 2007 2006 Capacity 170,000 170,000 Production 67,186 39,566 Unit sales 64,732 40,062 35% 24% 38% 3% GREAT WALL GWPERI GREAT WALL HOVER overseas. The Baoding automaker has exported to more than 120 countries. Great Wall plans to launch all of its vehicles in Europe in the second half of 2008, Chairman Wei Jianjun said late last year. Great Wall started selling the Hover in Italy and Romania. — Lan Lan 2008 GUIDE TO CHINA’S AUTO MARKET Automotive News • J.D. Power and Associates • Automotive Resources Asia http://www.geely.com http://www.c-sma.com http://www.gwm.com.cn

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