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PSA Peugeot Citroen-Changan JV gets govt green light

There’s plenty of car money to be made in China, and everyone is either striking deals, building plants or increasing output. Now, French automaker PSA Peugeot Citroen revealed that it has attained Chinese government approval for a production joint venture with China Changan Automobile Group. The approval comes exactly a year after both parties signed the JV agreement.

Located in Shenzhen, the 50:50 JV will have initial annual production capacity of 200,000 vehicles and a similar amount of engines. Production is expected to start in the second half of 2012, comprising passenger cars and light commercial vehicles. Citroen’s DS line will be launched in China and a proprietary car brand is in the works. Initial investment in the JV will amount to 8.4 billion yuan, according to PSA.

This is actually PSA’s second production JV in China, after a similar setup with Dongfeng Motor Corp. That partnership sold 194,566 Citroens and Peugeots in the first six months of 2011, up 10.2% year-on-year. Buoyed by strong 408 sales, the Peugeot brand saw a 19% increase to 80,893 units, while Citroen sales jumped 6% to 113,673 units.

Closer to home, production of the Peugeot 408 (name not confirmed for our region yet) is scheduled to start by the end of 2011 at Naza’s Gurun plant.

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Changan opens R&D centre in the US for chassis work

With an intent to learn, Chongqing Changan Automobile, China’s third largest domestic automaker, has opened a technical centre in the US to conduct chassis research and development for its brands in China, according to a news report.

The US$30 mil R&D centre, located in Detroit, will start off with 30 employees, though this number is expected to rise to around 200 over the next five years. The company has two other centres, a design one in Turin as well as a technical facility to develop powertrains, located in the UK.

Changan will work with US-based parts suppliers to develop suspension components, brakes, chassis and power steerings, and said it was the first step for the company to fix the weak link in its technology, which is with the chassis. The company stated that the centre is not meant to help the brand enter the US market.

While Changan has a three-way joint venture with Ford and Mazda, as well as a partnership with PSA Peugeot Citroen, it is also spending heavily to upgrade its vehicle technology. Late last year, it said it would be pumping in more than US$600 mil to conduct R&D for its own brands, as well as develop small engines and expand its minivan production.

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PSA Citroen announces joint venture with Changan Automobiles

PSA Peugeot Citroen and Changan Automobiles have announced the finalization of a 50-50 JV in China, financed by an initial investment of 8.4 billion Yuan (RM4 billion).. First on their list is the introduction of the C3-based DS3 line up. The first vehicle is set to be launched in the second half of 2012.

The tie up will see the development of cars and light commercial vehicles with an initial annual production capacity of 200,000 vehicles and engines at Shenzhen. The new factory will be running two lines, which will include the renovation of an existing production line and the addition of a second line. There are also plans for a new R&D centre to be built.

Apart from this new joint venture, PSA has a partnership with Dongfeng Motor Group Co to build Peugeot cars such as Peugeot 408 (which is somewhat like a 308 Sedan) and also Citroen C5 sedans. It looks like the rest of the Citroen line-up will be taken care by the Changan JV.

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Changan to rebadge Ford Mondeo in China?

Chongqing Changan Automobile of China is in talks with Ford to produce a mid-sized car in China using Ford technology but wearing a Changan badge. Changan, one of the top state auto groups in China but lagging in its own brand models, is currently the assembler of Ford cars such as the Focus, Mondeo and Fiesta.

Ford CEO Alan Mulally recently met up with Changan Chairman Xu Liuping to discuss ways to bring their cooperation to the next level. The rebadging of a mid-sized sedan (mid-sized in China refers to the Camry/Accord class, so it could be the Mondeo) from Ford was one of the ideas that arose, to be built at Changan’s plant in Nanjing, according to sources close to the matter.

The reworked sedan will be sold at a lower price and equipment than its Ford equivalent to avoid competition. This deal will be mutually beneficial as Ford will receive a sizable chunk of proceeds. Currently, Changan has no presence in the said segment.

Perhaps Ford is looking enviously at its fellow Detroit carmaker GM, which has a super successful tie up with SAIC. A relative newcomer to China and quite a long way from challenging GM and Volkswagen in the world’s largest car market, Ford is hoping that its partnership with Changan will blossom. “The Changan deal may not add much value to Ford’s only brand in the short term, but it could be the first step toward a wider and deeper relationship like GM and SAIC,” said Huang Zherui, an analyst with global industry consultancy CSM Worldwide.

Changan is represented in Malaysia by the Berjaya Group. Two compact models – CV6 and CM8 – are sold here under the Chana Era badge.

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Chana Era CV6 launched in Malaysia based on the ChangAn BenBen

Chana Era CV6

This is the other car launched by Changan Berjaya Auto on Monday, the Chana Era CV6. It’s essentially the same 5-door hatchback we saw in Putrajaya in March 2008. It’s pretty much a Viva-type of vehicle and the thing is it actually is decent to look at. There aren’t any strange jarring design cues that spoil the design, it’s simple, unpretentious and perhaps boring but it’s not hideous, nor does it employ any odd patterns like the triangles all over the Naza Forza.

Chana Era CV6

For a sum of RM 36,862.00 for the Standard Solid version, you’ll get 5 seats, a 1,301cc engine producing 85 horsepower at 6,000rpm and 110Nm of torque between 3,500 to 4,500rpm, steel wheels, power steering with adjustable tilt, front power windows and a top speed of about 145km/h. For Metallic paint, you pay RM 37,368.00.

Chana Era CV6

Going for the Premium version will cost you RM 40,888 for solid paint and RM 41,394 for metallic paint, and you’ll get alloy wheels, power windows for all four doors, ABS brakes, a single CD player with radio and a driver’s airbag. So it’s got ABS and an airbag covered, that’s pretty much how far safety features can go at this segment. Apparently during the launch period, you can get the Premium version for the price of the Standard version as an introductory offer.

  Length Width Height Wheelbase
Chana Era CV6 3,525mm 1,650mm 1,550mm 2,365mm
Perodua Myvi 3,750mm 1,665mm 1,550mm 2,440mm
Perodua Viva 3,575mm 1,475mm 1,530mm 2,390mm
Naza Forza 3,633mm 1,563mm 1,533mm 2,355mm
Hyundai i10 3,565mm 1,595mm 1,540mm 2,380mm
Proton Savvy 3,710mm 1,643mm 1,480mm 2,395mm

The 1.3 litre engine is also a Suzuki-derived one, and probably a unit that’s a little more modern than the one in the van covered earlier, but it’s still pretty much a basic unit though it has a nice peak torque spread starting from 110Nm. From my observation of the units they had for display at the media preview, the build quality was even worse than the van. ChangAn even got basic things like the feedback an air conditioning knob gives when you turn it wrong. Go to a showroom and try it, it feels really weird, like you were forcibly twisting something through some thick oil, I would imagine this is what goes on inside a torque converter or something.

Chana Era CV6

The selection knob for fresh air or recirculation air for the air conditioning appeared to be positioned too close to the dash and was cutting in to the dash plastic itself. The dashboard plastic itself isn’t really too bad however parts where various pieces meet together were way too rough. Some metal mounts and etc were too exposed like the bolt and joint where the seat and backrest connect together, etc. It’s a pity as the exterior doesn’t look too bad.

Chana Era CV6

Despite the horrendous build quality, ChangAn knows people are also looking for mechanical quality and endurance, so they’ve recently organised this ChanaTrax event where a group of ChangAn vehicles including this CV6/BenBen drove from China to South Africa. That’s a total distance of 24,000 kms and there were some pretty high altitudes and rough terrain involved.

So I suppose it would be okay running around town here, it’s just that the only appealing thing going for this car at the moment seems to be its initial price tag.

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Chana Era CM8: Malaysia’s cheapest MPV

Chana Era CM8

2009 is the year of the MPV. The big two are the Proton MPV and the Perodua MPV that’s set to launch at different times this year, but before any of them manage to get in the showrooms comes the cheapest MPV in the market, the Chana Era CM8.

Now let’s backtrack a little – those of you who have been following this blog for a few years now may remember this vehicle being spotted a few years ago, in June 2007 to be exact. The CM8 was spotted in Subang Jaya with trade plates. Even before that in end-2005, we heard news of a company signing an agreement with the CM8′s maker ChangAn Auto to assemble the CM8 locally in Malaysia. It turns out that company was a unit of the Berjaya Group, Changan Berjaya Auto Sdn Bhd.

Chana Era CM8

The result of all that discussion and planning since 2005 are two cars, and here we take a look at one of them – the Chana Era CM8, assembled locally in Oriental Assemblers in Johor. Chana Era is the brand that Changan Berjaya is using to market the ChangAn products here in Malaysia. The car is said to have over 40% local content. Take one look at you’ll realise this is probably something based on a Suzuki as it looks like the Suzuki ER-V, plus Suzuki is one of ChangAn’s partners in China.

Chana Era CM8

Something similiar in size and shape to this vehicle was introduced in Malaysia sometime ago. I’m sure some of you remember the Suzuki APV, which retailed for over RM70k. It didn’t do very well, probably because of its van-like looks. But the 3.8 meter long Chana Era CM8 has one advantage under its sleeves – it’s insanely low price tag of RM38,888 OTR with insurance for the cheapest model. This goes up to just under RM45k for the most expensive models.

Chana Era CM8 Standard Solid RM 38,888.00
Chana Era CM8 Standard Metallic RM 39,368.00
Chana Era CM8 Premium Solid RM 43,888.00
Chana Era CM8 Premium Metallic RM 44,368.00

The Chana Era CM8 is built on a monocoque chassis which is superior in terms of ride comfort and handling compared to the body-on-frame that other cheap MPVs use. It’s essentially a van, with a van-like engine position. It has sliding doors on both sides of the vehicle for access to the rear. The 2nd and 3rd row have their own air cond blower located at the ceiling. The key differences between the Standard and Premium models are ABS brakes, a stereo radio with a single CD player, speakers, an electric power steering and 14 inch alloy wheels which are all features only available on the Premium version. Power windows are only available on the front two doors for both models.

Chana Era CM8

Both variants are powered by a Suzuki-derived 1,310cc inline-4 16 valve aluminium alloy engine producing 80 horsepower at 6,000rpm and 102Nm of torque between 4,500 to 5,000rpm. This is mated to a 5-speed manual, with no automatic version in sight even in the near future. Top speed is 135km/h. Brakes are discs for the front and drums at the rear. Tyre size is 175/65R14 for both the Premium’s alloys and the Standard’s steel wheels. It measures 3,856mm long, 1,568mm wide and 1,898mm tall with a wheelbase of 2,430mm.

Chana Era CM8

At first impressions the interior plastic quality and the touch and feel of the CM8 is quite rough, especially where different plastic bits meet together. Mechanically it remains to be seen but as it is a basic 16 valve inline-4 without any funky features like variable valve timing it should be easy to maintain. If you want to compare to another China-sourced car, the Naza Forza (Naza Sutera) definitely has better interior quality.

It’s quite obvious the proposition that the CM8 is offering to you is cheap to buy. There are many people who do not place importance on interior quality and just want something that works and isn’t expensive. This is the car for them. It remains to be seen whether it is cheap to maintain and cheap to run. I will try to get a test drive session and report to you how it drives as well as the fuel consumption I can get.

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Ford in talks with SAIC and Changan to sell Volvo?

Ford is looking to dump its premium brand Volvo, known for its safety, and is currently said to be in talks with two Chinese car manufacturers – Shanghai Automotive Industry Corporation (SAIC) and ChangAn Automobile Group.

The SAIC rumour came about last week, reported by publications which were quoting unnamed sources. According to reports, Ford is hoping the Volvo sale can fetch £4 billion, which is less than the £4.4 billion sum it paid for Volvo in 1999. SAIC could do perform some front wheel drive platform sharing magic between MG and Ford.

Ford refused to comment on the talks when contacted by members of the media. “We will not comment on speculation or rumors, nor will we comment on regular business discussions that we have with our partners,” Ford said in a statement. Changan is Ford’s partner in China, and makes some Fords and Mazdas in China under one of its subsidiaries. It also assembles the Volvo S40 in China.

Another Chinese automaker Dongfeng Motor Group is also mildly interested in acquiring any assets the Detroit Three may dump for cheap. You may have noticed Dongfeng trucks in Malaysia. But Dongfeng is only monitoring the situation at best, and it’s too early to say if it would buy any assets.

Related Posts:
Volvo trucks doesn’t want Volvo cars if Ford sells

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ChangAn CV6 Ben Ben spotted in Putrajaya!

A silver ChangAn CV6 Ben Ben has been sighted at the JPJ Putrajaya building last week, most likely brought in by Changan Berjaya Auto Sdn Bhd. This would be the second ChangAn model spotted in Malaysia so far. The first was the Changan CM8 MPV, spotted with light disguise around the Klang Valley sometime last year.

The CV6 Ben Ben is a 5-door hatchback that seats 5. It also looks like it has some decent crash test safety, according to these photos. ChangAn has even displayed a sporty version with a bodykit in the past. It is powered by a 1.3 litre engine, but I have no horsepower and torque information at the moment. It is priced at under 50,000 RMB in China, which converts to about RM22,200.

If you remember, ChangAn was also the first Chinese company to develop its own hybrid car using a 1.5 litre gasoline engine combined with an electric motor. It also recently announced China’s first independently-developed hydrogen engine.

UPDATE: Looks like the ChangAn CV6 Ben Ben’s crash test results don’t look so good, click here. Thanks to reader Niceguy for the pointer in the comments.

Changan Berjaya Auto Sdn Bhd’s website says it plans to launch its first model before the end of 2007, so I guess there has been some delay. It has two models on display on its web page, the CM8 and the CV6 Ben Ben.

For more pictures of the silver CV6 Ben Ben, read the post after the jump.
[Read more...]

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Chang’An Jiexun HVE: China’s first hybrid

ChangAn Jiexun

After 6 years of development, the Chang’An Jiexun HVE hybrid vehicle has rolled off the production lines – China’s first locally developed hybrid vehicle. It’s your run of the mill hybrid – a 1.5 litre gasoline engine combined with an electric motor. Chang’An says this will improve fuel efficiency by 20%.

Not sure how well this will do – Toyota only sold 2,000 Prius hybrid vehicles in China last year, but Chang’An promises the Jiexun HVE will be cheaper than foreign hybrids in the Chinese market. Chang’An also recently announced Chinas first independently-developed hydrogen engine earlier this year.

Could this Chang’An Jiexun HVE possibly come to Malaysia? We’ve had sightings of a tall MPV on road tests in Malaysia, not sure what happened to that one, but the model has been identified as the Chang’An CM8.

Related Posts:
Chang’An unveils China’s first independently developed hydrogen engine
Chang’An CM8 spotted in Malaysia!
Chang’An CM8 to be assembled in Malaysia

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China’s first independently-developed hydrogen engine by ChangAn

Of the many Chinese car manufacturers, some of the Malaysian public would have been introduced to the ChangAn brand already because of the ChangAn MPV that has been spotted going around the Klang Valley on road tests.

Anyhow, ChangAn’s R&D has been advancing and their labs have managed to churn out something much more advanced than the ChangAn CM8 – China’s first independently-developed hydrogen engine!

ChangAn began to research this hydrogen engine back in 2005, and a prototype has been produced after 2 years.

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