Automotive News - 2008 Guide to China's Auto Market - (Page 28)

28 DOMESTIC AUTOMAKERS Global JVs: Guangzhou Honda Automobile Co. – Guangzhou, Guangdong Province – Honda Accord, Fit, City, Odyssey (Page 13) Honda Automobile (China) Co. – Guangzhou, Guangdong Province – Honda Jazz (Page 13) Guangzhou Toyota Motor Co. – Guangzhou, Guangdong Province – Toyota Camry (Page 17) Guangzhou Automobile Industry Group Floor 19-23, Chengyue Mansion, No. 448 Middle of Dongfeng Road Guangzhou City, Guangdong Province 510030, P.R. China (86) 20-8315-0411, www.gaig.com.cn Top executive: Zhang Fangyou, president At the end of 2007, Guangzhou Automobile Industry Group finally announced plans to develop its own brand of passenger vehicles. The company is in an enviable position because it operates two highly profitable joint ventures, one with Toyota Motor Corp. and the other with Honda Motor Co. But it faced growing pressure from the Chinese government to develop its own brand. Guangzhou Auto is one of six large stateowned automakers in China, along with China FAW Group Corp., Shanghai Automotive Industry Corp., Dongfeng Motor Corp., Beijing Automotive Industry Holding Corp. and Chongqing Changan Automobile Co. But it is the only one without its own passenger vehicle brand. The company plans to spend $916 million by 2010 to launch its own brand. The first model, a mid-sized sedan, will be brought to market in late 2009 or early 2010. In November at the Guangzhou auto show, Guangzhou Auto unveiled three concept cars, a four-door car with coupe styling and two sedans with battery or hybrid power. The company says it eventually will build a full range of passenger vehicles. The company is building a car plant and an engine plant in Guangzhou with annual capacity of 100,000 units per year. Guangzhou Auto’s president, Zhang Fangyou, says the company has established a cost-competitive supply system with assistance from Toyota and Honda. The joint ventures with Honda and Toyota accounted for 8.9 percent of China’s 5.2 million passenger vehicles in 2007. Guangzhou Honda Automobile Co. sold 295,299 cars in China in 2007, up 13.5 percent from 2006. The company plans to sell 340,000 cars this year. The company now runs two plants in Guangzhou, with annual joint capacity of 360,000 units. Guangzhou Toyota Motor Co. sold 170,294 Camry sedans in 2007. The company launched the Camry in May 2006 and will start making a second model, the Yaris hatchback, in mid-2008. Guangzhou Toyota expects to sell 175,000 Camry units and 35,000 Yaris units in 2008. Guangzhou Toyota has a plant with annual capacity of 200,000 units and is building a second plant. The company plans to build a third model, the Highlander crossover, starting in April 2009. — Kevin Huang Shanghai Automotive Industry Corp. No. 390 Wukang Road, Xuhui District Shanghai 200031, P.R. China (86) 21-2401-1000, www.saicgroup.com Top executive: Hu Maoyuan, president Shanghai Automotive Industry Corp.’s joint ventures with General Motors and Volkswagen AG produce some of China’s best-selling cars. Now, subsidiary SAIC Motor wants its own piece of China’s rapidly growing auto market. Last year the company launched its own brand, Roewe, with the 750 car. The 750, which starts at $32,620, launched in March 2007 and sold a modest 16,549 units in 2007. The 750 competes in the midsized segment with 24 other cars. The car “makes a significant breakthrough in this market segment, which has been monopolized by overseas brands for a long time,” SAIC says. SAIC took another step to build its own brands in December when it acquired Nanjing Automotive Corp., which is launching the MG brand in China and Europe. Ownership: SAIC Group Public shares 83.83% 16.17% ROEWE 750 A slight complication is that the Roewe 750 and Nanjing Auto’s MG7 compete in the same segment. “The Roewe brand is most customized for Chinese customers, while MG will keep more of an original English taste,” says John Zeng, senior market analyst at Global Insight Inc. He says MG “will be more sporty and will focus more on the overseas market.” The partnership also gives SAIC Motor access to Nanjing Auto’s plant in Longbridge, England. Says Chen Hong, president of SAIC Motor: “The British business will become SAIC’s new platform for Europe.” Both SAIC Motor and Nanjing Auto will develop cars on SAIC’s W261 platform. SAIC will make the Roewe 550 on the platform, while Nanjing Auto will make the MG5. In 2007, SAIC and joint ventures sold more than 1.69 million vehicles, a 25.8 percent increase over 2006, SAIC says. SAIC’s joint venture with General Motors — Shanghai General Motors Corp. — sold just shy of half a million units. SAIC’s joint venture with Volkswagen — Shanghai Volkswagen Automotive Co. — sold 456,424 units, according to Automotive Resources Asia. — Namrita Chow SAIC Motor Manufacturing Co. Building 3, 615 Ningqiao Road, Jinqiao, Pu Dong District Shanghai 201206, P.R. China (86) 21-5899-9522, www.roewe.com.cn Top executive: Wang Xiaoqiu, general manager 2007 2006 Capacity Production Unit sales 50,000 17,346 16,549 – – – Ownership: SAIC Motor Corp. Shanghai Automotive Co. 60% 40% Global JVs: Shanghai GM Corp. – Shanghai – Buick LaCrosse, Regal, Park Avenue, Royaum, Excelle, Excelle HRV; Cadillac SLS (Page 12) Shanghai GM Dongyue Motors Co. – Yantai, Shandong Province – Chevrolet Sail, Sail SRV, Epica, Aveo, Lova (Page 12) SAIC-GM-Wuling Automobile Co. – Liuzhou, Guangxi Province – Chevrolet Spark (Page 12) Shanghai GM (Shenyang) Norsom Motors Co. – Shenyang, Liaoning Province – Buick GL8 (Page 12) Shanghai Volkswagen Automotive Co. – Shanghai – VW Polo, Passat, Touran, Santana, Santana 3000, Skoda Octavia (Page 18) Models produced: Roewe 750 2008 GUIDE TO CHINA’S AUTO MARKET Automotive News • J.D. Power and Associates • Automotive Resources Asia http://www.gaig.com.cn http://www.saicgroup.com http://www.roewe.com.cn

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