Paul Tan's Automotive News » China

Proton and Hawtai expected to ink collaboration deal soon

Anthony Lim — Fri, 30 Dec 2011 02:18:00 +0000

Reports indicate that Proton and Chinese carmaker Hawtai Automobile are expected to sign an official collaboration agreement before Chinese New Year at the earliest.

According to an unnamed Hawtai executive, discussions have already reached a much deeper state, and the exec added that the two sides have also explored plans to establish a new team of around 30 people in Beijing, with Hawtai planning to send nine other employees to Malaysia.

In October, at the China-ASEAN Business and Investment Summit in Nanning, Guangxi, Proton and Hawtai agreed on a potential collaboration, aiming to establish a technology site – with each having a 50% ownership share – to research and develop new models and key auto parts.

Besides R&D, the venture is also to focus on engineering and technology support, quality assurance work, supplier management and other basic tasks. Additionally, work on developing new vehicles, including new energy cars, is part of the agenda.

The reports state that domestic production of the Exora MPV and the upcoming P3-21A sedan – to be assembled at Ordos City, Inner Mongolia – will be the first order of business. The two companies are currently exploring ideas on how to lower costs to export the vehicles – which comply with Euro 5 emission standards – to Europe and other markets abroad.

The cooperation between Proton and Hawtai is to be carried out according to a new business model that won’t be limited to just Malaysia and China, but will include different markets from across the globe, acording to Hou Haijing, acting vice president and director of Hawtai’s automobile division. The two companies will use a global platform to develop new vehicle technology, procure auto parts and finally expand into new foreign markets, he added.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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BYD-Daimler set to roll out electric concept at Beijing show

Danny Tan — Tue, 13 Dec 2011 06:33:17 +0000

Last year, Daimler and China’s BYD started a 50:50 research and technology joint venture called “Shenzhen BYD Daimler New Technology Co Ltd” (BDNT) that will develop an electric vehicle in and for China. BDNT is now ready with its first concept, which will be shown at next year’s Beijing show in April.

The Beijing show will see BDNT showcase its green vision, the new brand’s identity, including brand name, logo and positioning as well as the Concept Car’s exterior and interior design. The production fully electric vehicle is scheduled to be launched a year later in 2013.

In fact, work on the production model has started. The Shenzhen-based JV is said to be making good progress, and work on building the first prototypes has started with the target to have them running by spring next year. The JV will use BYD’s battery tech and e-drive systems plus Daimler’s know-how in EV architecture and safety. BDNT says that Daimler’s quality philosophy has been incorporated from a very early stage.

Production of the new generation of compact to mid-size electric vehicles will be done with Daimler’s quality management experts and will “to a large extent” follow Daimler’s standardised production system for passenger cars. Supplier sourcing for the new vehicle is nearly completed.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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FAW launches new brand called Oley in China

Anthony Lim — Tue, 29 Nov 2011 04:46:39 +0000

Chinese automaker FAW Group unveiled a new brand called Oley (or Oulang, in Chinese) last week at the Guangzhou auto show. The small car brand is hoping to attract young consumers with stylish and sporty offerings.

It’s set to launch its first model, a sedan, next March, at a price of around 80,000 to 100,000 yuan (RM39,865 to RM49,830). The car, which according to some reports is based on a Mk II VW Jetta and is powered by a 1.5 litre engine and a choice of five-speed manual or four-speed auto transmissions, will be built at the FAW Car Plant II in Changchun.

The brand takes its name from the Spanish word Olé, which the company says is well known to Chinese consumers from the World Cup, adding that it has named the new brand as such to express ‘passion, vitality, fashion, sports,’ and it has even got a brand slogan which goes “Let’s Oley!” Yes, well, Oley on then.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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China to introduce tighter rules for new automakers

Anthony Lim — Fri, 18 Nov 2011 07:53:32 +0000

China is set to introduce new standardised rules for companies applying to start a car-making business in the country, in what looks like a bid to limit new entrants as sales begin to slow in the world’s number one automotive market.

According to reports, the rules – which are aimed at advancing industry reorganisation – state that these companies must meet certain criteria, including scale of production and development capacity, though no specific figures were mentioned. The country’s Ministry of Industry and Information Technology said on a statement on its website that the rules will take effect from January 1.

There are already more than 100 automaking companies in China, but that hasn’t stopped new players from attempting to get into the game – companies such as Pang Da Automobile, an auto dealer group, for example, have tried to expand into car production.

The reports add that auto sales growth in China will probably slow to less than 5% in 2011 after surging 46% and 32% respectively in the last two years, since the government has phased out purchase incentives, according to the China Association of Automobile Manufacturers.

Nonetheless, the combined sales targets of China’s largest automakers may exceed total demand by as much as 32% by 2015, with companies continuing to add capacity by investing in new plants, according to Bloomberg-compiled data.

In related news, other reports say that China is expected to begin an incremental push toward stricter auto emissions standards starting from next year and is also set to adopt fuel efficiency guidelines on par with those in industrialised countries by as early as 2015.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Great Wall Motor forms JVs with Bosch and BorgWarner

Danny Tan — Tue, 15 Nov 2011 09:25:32 +0000

Great Wall Motor, the latest automotive brand from China to enter Malaysia, announced that it has formed joint ventures with America’s BorgWarner and Robert Bosch GmbH of Germany to engineer key components. Both companies already supply parts to GWM.

The partnership with Bosch will develop engine management systems and brakes. In 2006, Bosch started supplying common rail fuel systems for diesel engines used in Great Wall’s Haval SUV and Wingle pickup, both of which are available in Malaysia.

The JV with BorgWarner is to design timing chains for transmissions and torque management systems. By the end of this year, Great Wall’s Haval H6 will be equipped with BorgWarner’s torque management system. BorgWarner has produced parts for Great Wall since 2005, supplying the privately owned carmaker with turbochargers and transfer cases.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Youngman SUV spied in China – based on the Lotus APX?

Anthony Lim — Wed, 09 Nov 2011 14:43:23 +0000

Over in China, a report says that a Proton SUV – supposedly based on the Lotus APX concept – will see the light of day in that market possibly sometime next year, through the Youngman brand. The APX made its debut in Geneva five years ago, but never went into production form.

The China Car Times – which has spyshots of the said vehicle – speculates that the Youngman SUV is not expected to sport a 3.0 litre V6 like that seen on the APX, but rather wear a more sensible four-pot 2.0 to 2.4 litre mill for economical reasons.

The report also says that the Chinese motoring press is predicting that the vehicle will enter the market anywhere between 90,000 RMB to 140,000 RMB when it arrives, and further speculates that the vehicle might possibly appear in concept form at the Guangzhou Auto Show in December, ahead of a Beijing Auto Show launch in April next year.

Earlier in the year, a Youngman Europestar SUV – being developed together with Lotus Engineering – was spied in China, though that one is said to be based on a GEN2 platform. Wonder exactly how different both are.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Saab sale to Pang Da and Youngman to be reworked, after GM makes objections over the deal

Anthony Lim — Tue, 08 Nov 2011 03:15:52 +0000

According to reports, the rescue deal for Saab made by Pang Da and Zhejiang Youngman will have to be redone after General Motors made objections. “We have to go back to the drawing board,” said Viktor Muller, chief executive of Swedish Automobile.

GM said yesterday it had decided to sever ties with Saab, revoking its commitment to supply it with vehicle components and the 9-4X model because of the risks posed by the pending sale of the brand to Chinese owners, the report states.

An official statement from GM put the message across very clearly. “Although General Motors is open to the continued supply of powertrains and other components to Saab under appropriate terms and conditions, GM will not agree to the continuation of the existing technology licenses or the continued supply of 9-4X vehicles to Saab following the proposed change in ownership as it would not be in the best interests of GM shareholders.”

Last week, GM had stated that it would be difficult to support a sale of Saab if the transaction hurt its existing tie-ups in China or its competitive position in other markets. The US automaker still has preference shares in Saab and is a major supplier of vehicle components, and so must approve the Pang Da and Youngman takeover. At this point, the fate of the Swedish automaker continues to hang in the balance.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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BYD begins selling its e6 EV to individuals in China

Anthony Lim — Fri, 28 Oct 2011 09:13:25 +0000

Chinese automaker BYD, which is looking to lead the market for alternative-energy vehicles in the country, has begun selling its e6 electric vehicle to individuals in China, according to reports.

The five-seater crossover, with a claimed operating range of 300 km, is powered by a 75 kW motor and BYD’s proprietary iron-phospate FE battery, which can be fully charged in 40 minutes through a 100 kW fast-charging cabinet and six hours via a standard 10 kW charging pole. The car has a sticker price of 369,800 Yuan (RM178,700).

Buyers in BYD’s hometown of Shenzhen will however qualify for as much as 120,000 Yuan in subsidies – in 2010, China introduced sales subsidies of up to 60,000 Yuan for each electric car purchased in Shenzhen and four other cities, and e6 buyers in Shenzhen will get an additional local subsidy worth 60,000 yuan. The city has also set up more than 60 EV charging stations.

The reports add that the Chinese government aims to have a million EVs and plug-ins on roads by 2015, according to the Ministry of Science and Technology. As of July this year, around 10,000 EVs and plug-ins were running in 25 trial cities, according to the Ministry of Industry and Information Technology.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Geely exports second batch of vehicles to Cuba

Anthony Lim — Fri, 28 Oct 2011 08:45:00 +0000

According to reports, Chinese automaker Zhejiang Geely has exported a second batch of Geely vehicles to Cuba, shipping 1,560 cars to the country last week. It’s the second time the automaker has done so, having exported 1,500 units in 2009, where they were used by government officials and the police, as well as equipping rental car fleets.

The shipment this time is made up of 1,310 Freedom Ship (or the Geely CK) sedans and 250 Emgrand mid-sized sedans, Geely said, and buyers for the cars include Cuba’s defense and tourism ministries, plus some other agencies.

Geely, which owns Swedish automaker Volvo, also began exports to other markets this year – it started exporting to Australia earlier in the year, and last month began selling cars in Saudi Arabia.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Bufori debuts in China – first showroom to be in Shanghai

Anthony Lim — Thu, 27 Oct 2011 14:50:28 +0000

Bufori Motor Car has launched the brand in China at the Top Marques Shanghai luxury show, where Bufori MD Gerry Khouri and Chinese superstar Liu Xiaoqing jointly unveiled a La Joya in front of the media and VIPs.

The company also announced the appointment of Bufori China as the exclusive distributor of the marque’s vehicles in the country. The company, which was formed in June this year, is a partnership with Jiaochen Group, which operates numerous automotive dealerships in the Ningbo region.

The first batch of three Buforis – two La Joyas and a MkII – were air-freighted to Shanghai in co-operation with MASkargo two weeks ago, and will be exhibited at the brand’s flagship showroom in Xintiandi, a prestigious district in the centre of pulsating Shanghai, when that opens in December.

Bufori China plans to set up additional dealerships in Beijing, Chengdu and Shenzhen by 2012, and the brand – which expects China to become its biggest market very soon – will also showcase its handmade luxury vehicles at the Beijing International Motor Show in April next year.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Saab ends investment deal with Youngman, Pang Da

Anthony Lim — Tue, 25 Oct 2011 04:49:55 +0000

Swedish Automobile, the company which owns troubled automaker Saab, has said it has ended a 245 million euro investment deal with Chinese companies Zhejiang Youngman Lotus Automobile and Pang Da Automobile, following their offer to buy Saab instead of committing to the original deal to invest in its parent company. according to reports.

Youngman and Pang Da had in July signed a non-binding MoU to take a combined 53.9% stake in Swedish Automobile, but now say circumstances have changed, and they want to purchase shares in Saab.

Swedish Automobile’s CEO Victor Muller said last week that the offer was unacceptable, stating that it would trigger every conceivable change of control clause and that would possibly mean the end of Saab, the reports added. He did not disclose the value of the offer.

The termination of the agreements came after Pang Da and Youngman failed to confirm their commitment to the equity investments and to a second deal over bridge funding, though Swedish Automobile added that discussions between the parties were still ongoing.

Swedish Automobile had at the end of September agreed to sell its Spyker Cars operation to American private equity firm North Street Capital, for US$44 million. North Street’s managing partner Alex Mascioli said last Friday that North Street had the capacity to take over Saab should it wish to do, adding that the brand was an undervalued asset that would survive. “I’m willing to do what I can with my resources for Saab,” he was quoted as saying.

By the looks of it, SA’s future remains well in the air at the moment. The company has been struggling for months in its bid to pay suppliers and employees and resume production at Trollhattan.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Chery hits export targets early, Brazil is biggest market

Danny Tan — Tue, 18 Oct 2011 05:15:11 +0000

Other than Proton, who else uses ‘FL’ to mark a facelift? This is the Chery Tiggo FL!

There are so many car brands in China that only a visit to a Chinese motor show will open one’s eyes. But apart from a handful, most of these brands are unknown outside the country, or province. One of the better known ones is Chery, which is also China’s largest passenger vehicle exporter.

Chery seems to have the vision its peers don’t. The Anhui based state owned company exported 122,441 vehicles in the first nine months of 2011, up 80% year-on-year. This surge of exports has allowed the company to achieve its original 2011 target of 122,000 units three months ahead of schedule. For the whole year, Chery expects to ship 180,000 vehicles overseas.

Who’s buying their cars? Exports to emerging markets have been especially strong. Fellow BRIC country Brazil is Chery’s largest export market, followed by Russia and Ukraine. Chery plans to export to Europe after 2015.

They won’t go it alone. According to a German report from last month, Chery Quantum Auto, a 1.5 billion euro joint venture between Chery and Israel Corp, will build three compact models to be sold in China and exported to Europe, reaching the continent next year. The cars, developed by Magna Steyr, will be built at a new factory near Shanghai with an initial capacity of 150,000 units per year, rising eventually to 500k units.

The cars, designed to meet Western standards and expected to cost around RM46,700 to RM63,500, will be sold under a new brand called Qoros. Read our post on that here.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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China NCAP to be upgraded, 64 km/h front impact speed

Danny Tan — Wed, 12 Oct 2011 02:28:32 +0000

The China New Car Assessment Program (C-NCAP) will be made more stringent, according to a report by Asia Pulse website. The new standards for C-NCAP, which awards new vehicles one to five stars, will take effect on July 2012.

The new standards by China’s Automotive Technology and Research Center are offset frontal crash tests at speeds of 64 km/h (40 mph), an upgrade from the current 56 km/h (35 mph). By the way, 40 mph is the same frontal impact speed used by Euro NCAP, so the didn’t make their own rules. The center is also adding an optional test for whiplash.

This is a good move on the part of the Chinese authorities, more so when only half a dozen of homegrown products have scored five stars under the current standards. The new standards will be like throwing them into the deep end of the pool, an effective way to teach and learn. Models developed by international automakers generally have less trouble scoring full stars.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Chery and Magna Steyr join forces to penetrate Europe

Danny Tan — Tue, 27 Sep 2011 03:16:13 +0000

If you can’t do it on your own, why not get some help? Chinese carmaker Chery is planning to enter Europe with the help of Magna Steyr, which is based in Austria and builds cars such as the MINI Countryman, Peugeot RCZ and Aston Martin Rapide. They were also contract manufacturers for the first gen BMW X3 and the folding roof of the Mercedes SLK.

According to FT Deutschland, Chery Quantum Auto, a 1.5 billion euro joint venture between Chery and Israel Corp will build three compact models to be sold in China and exported to Europe, reaching the continent next year. The cars, developed by Magna Steyr, will be built at a new factory in Changshu (near Shanghai) with an initial capacity of 150,000 units per year, rising eventually to 500,000 units.

Instead of using Chery’s badge, the cars will be sold under a new brand called Qoros. The cars are designed to meet Western standards and are expected to cost around RM46.700 to RM63,500, the report adds.

On its website, Tel Aviv listed Israel Corp says Chery Quantum was created to manufacture and market a new brand of premium Western-standard vehicles. “The vehicles will meet high safety and environmental standards by combining Chery’s manufacturing capabilities with Western design, engineering and safety standards.”

The JV is also looking at alternative powertrains. Israel Corp, the country’s biggest industrial conglomerate, already owns a 30% stake in Better Place, an electric mobility firm that specialises in battery exchange centres.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Chinese brand Hawtai to partner Proton after Saab failure?

Danny Tan — Wed, 17 Aug 2011 04:08:14 +0000

When Youngman recently bought a stake in troubled Swedish brand Saab, we raised the question on the former’s relationship with Proton. Youngman has been Proton’s partner for quite some time now – Proton provides models for Youngman to rebadge as ‘Lotus’ in China – but does it need the Malaysian anymore, now that it has Saab?

Chinese carmakers are all looking to expand, and acquiring foreign brands is a short cut of sorts to absorb better design, quality and QC. Before the Youngman-Saab deal, another Chinese carmaker was in the picture. Beijing based Hawtai threw in US$172 million for a 29.9% stake in Saab back in May, only for the deal to fall through as they did not obtain all the necessary consents.

This swingers club story has now been updated with reports from China saying that Hawtai will work with Proton, which is no longer the apple of Youngman’s eyes, remember?

According to “inside sources” the two companies (Hawtai and Proton) may be pairing up to take on the Indonesian market and have had “multiple high level meetings” at Hawtai’s HQ in downtown Beijing. While no one knows what’s going on in the boardroom, Hawtai bosses did let slip in a media interview last month that they were in contact with an overseas company regarding a possible joint venture.

Logo of China’s Hawtai Motor, not to be confused with the Malaysian biscuit maker

“In one respect, Proton has to improve its development in the Chinese market, and Hawtai are planning to enter the Indonesian market to expand overseas sales,” China Car Times quoted a source as saying.

There’s bound to be more flirting and proposals to come, and we’ll keep track of the goss (damn, I feel like Perez Hilton now!). Anyway, we dropped by Hawtai’s stand at Guangzhou 2010, click here to see what they had on display. To see, the fruits of Proton’s union with Youngman, click here.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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BYD sales decline by 20%, sales boss resigns as a result

Danny Tan — Tue, 09 Aug 2011 02:19:20 +0000

Not every sales stories from China is a rosy one. Private Chinese automaker BYD, which is partly owned by Warren Buffett’s Berkshire Hathaway, is seeing sales slump. After it almost doubled in 2009, BYD sales rose by just 17% in 2010, way behind the 32% industry average. For the first half of 2011, sales have dropped 20% year-on-year to 242,419 units, according to JD Power.

In the midst of this, sales Vice President Xia Zhibing has resigned. Xia’s departure is officially listed as for “personal reasons” in the company statement, but industry observers and analysts believe the real cause behind his resignation is the company’s sharp sales decline this year. Xia, 37, has been the sales chief since 2005.

Analysts point out that the government’s scrapping of tax incentives for small cars has resulted in a drop in demand for models from mass-market brands this year. However, BYD sales are falling faster than the industry at large. Also blamed is BYD’s aggressive dealership network expansion over the past two years. It backfired in 2010 when more than 20% of its dealerships closed, according to local media.

Or could it be BYD’s model lineup itself? The company has plenty of models that are “inspired” by other marques – Estima, Honda City, Merc SL, Megane CC, Altis, Optra 5, you name it. Could it be that the average Chinese is no longer digging “imitation” products when it comes to cars?

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Jianghuai Automobile to build assembly plant in Brazil

Anthony Lim — Fri, 05 Aug 2011 04:36:05 +0000

Some news about Anhui Jianghuai Automobile Co, or JAC. The Chinese automaker is looking at expanding its presence in Brazil by building a production plant there, reports say. The Hefei-based company, which made more than 450,000 cars domestically and was placed eight last year in terms of output for Chinese auto manufacturers, is already present in Brazil.

It began sales in the country in March this year, and by June had sold more than 20,000 units of its J5 sedan in Brazil. The J6 MPV is due to be introduced into the Brazilain market this month. The new plant is slated to begin production in 2014 and will have an annual production capacity of 100,000 vehicles.

JAC isn’t the only Chinese automaker with grand plans for Brazil – Chery has begun work on its own assembly plant there, and earlier this year, Chonqing Lifan Industry Group stated plans to build a JV assembly plant with Brazilian auto dealer EFFA Motors, the reports add.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Fiat CEO Marchionne warns against underestimating China

Danny Tan — Fri, 05 Aug 2011 02:52:16 +0000

In many automotive circles, whether at the mamak or in boardrooms, China is still the butt of jokes. However, underestimating Chinese carmakers may not be that wise, if one remembers that Japanese and Korean cars were once in the same position. Fiat and Chrysler CEO Sergio Marchionne is warning against that.

“If anyone deludes themselves that they can ignore China, they will pay a huge price. China’s auto industry has grown tremendously, and they have some of the most updated current technology. They should not be underestimated. We cannot afford to be unprepared for the ascent of China, reassuring ourselves of our invincibility,” Marchionne told an auto industry seminar in Michigan.

“The excuse that we did not understand or that we underestimated the scale will serve no purpose. Rather we need to continue to work to make our industrial base more competitive, because the day of reckoning is inevitably coming.”

The Italian pointed out that at present, Chinese carmakers produce almost entirely for domestic consumption, but “even assuming China were to export only 10% of what it produces, the risk we face in our home markets is enormous.”

He has reason to worry. Fiat is fighting for market leadership in fast growing Brazil, the world’s fourth largest car market and a target for the Chinese. Chery has started construction of its first factory outside of Sao Paulo and expects to churn out 50,000 vehicles a year there by end 2013. Meanwhile, Jianghuai Automobile (JAC Motors) is to invest between $600 and $900-million for its maiden Brazilian assembly plant that will start operating in 2014.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Great Wall Motor lining up Shanghai IPO to raise funds

Danny Tan — Tue, 02 Aug 2011 06:03:56 +0000

Great Wall Motor Co, China’s biggest maker of pick-up trucks, is lining up an initial offering in Shanghai to fund its product development plans. The SSE offering seeks to sell as much as 10% of the company, which unlike many Chinese automakers, is privately owned.

Based in Baoding in China’s Hebei province, the Hong Kong-listed company plans to issue as many as 304 million shares, according to a prospectus posted on the China Securities Regulatory Commission’s website. This is actually GWM’s second try, after regulators rejected its request for a Shanghai listing in 2008, with no reason given. The commission will review the new application tomorrow (Aug 3).

Great Wall, the latest entrant into the Malaysian market with the Haval SUV and Wingle pick-up truck, recently formed partnerships with big companies to up the level of tech in its products. The parties include Autoliv Inc, Valeo S.A and Shanghai Brose Automotive Components Co.

Last year, Great Wall sold a total of 390,000 units, registering a year-on-year increase of 70%. Of this total, 150,000 units were the Haval, while the Wingle contributed 100k to the cause. The group also saw a turnover of 29 billion yuan, or USD 4.5 billion, in 2010.

Click here to read our launch post of the Great Wall Haval and Wingle.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Great Wall Motor comes to Malaysia – Haval diesel SUV at RM120k, Wingle pick-up truck starts from RM59,888!

Danny Tan — Sat, 30 Jul 2011 08:34:47 +0000

UPDATE: Mega hi-res gallery added after the jump

There’s a new auto brand in town, and it’s the Great Wall from China. Brought in by franchise holder Green Oranges Sdn Bhd, the brand, which is privately owned and named after China’s famous world wonder, will be introduced to Malaysians via two models – the Haval H5 SUV and the Wingle pick-up truck.

The two are the brand’s most traveled models, and are sold in Europe and Australia, among other markets. What this means is that they would have passed the higher safety and emissions standards that these markets require.

Let’s start with the Haval H5. It’s a five-seater mid sized SUV that’s much larger than the other Chinese SUV in our market, the Chery Tiggo. With a length of 4,649 mm and wheelbase of 2,700 mm, the Haval is 84 mm longer than a Honda CR-V, and almost all that length advantage (80 mm) is in the wheelbase.

And at 1,735 mm, the Haval also stands taller than the current crop of SUVs except for the similarly boxy Nissan X-Trail.

But we reckon that the Haval’s main selling point isn’t size, but its diesel engine, as the only other SUVs offering oil burners are the Hyundai Santa Fe and Chevy Captiva, both priced much higher.

This 2.0 TCI engine is a modern common rail unit (CRDI system by Bosch) with Variable Geometry Turbo (VGT, by Borg Warner), and it produces 148 hp and 310 Nm of torque from 1,800 to 2,800 rpm. Mated to a 5-speed automatic with Shiftronic, fuel consumption is rated at 6.8L per 100 km.

The Haval is a part time 4WD machine, and changing modes from 2WD (rear driven) to AWD can be done on the fly at speeds of up to 70 km/h. The standard kit list includes dual airbags, ABS, EBD, Traction Control, leather seats (with electric adjustment for driver), reverse camera, cruise control, auto air con and a full colour touch screen factory head unit with DVD/USB/Bluetooth compatibility.

One unique feature not found elsewhere is a tyre pressure monitoring system (TPMS) that’s displayed at the rear view mirror.

The other model is the Wingle double cab pick-up truck. This is the latest version of the Wingle, and it features a smart looking VW style nose in place of the cartoonish face that some might remember testing on our roads some time back.

Its Isuzu roots are obvious from the dash, but the Wingle has steering audio controls and adjustable height headlamps, among other standard kit. Dual airbags, ABS and EBD are also in the list, as are leather seats.

The Wingle is powered by a 2.5-litre commonrail diesel engine with 107 hp and 300 Nm of torque, the latter produced from 1,800 to 2,400 rpm. The Mitsubishi derived turbo unit isn’t the VGT type, but the standard type. No auto option for the Wingle; the engine is exclusively paired to a five-speed manual ‘box. You can however, choose from 4X2 or 4X4 variants. Shift on the fly is available on the latter.

Both Great Wall models will be locally assembled at Green Oranges’ own plant in Gurun, Kedah, but the few early units are brought in from China, which is a common arrangement. Green Oranges CEO Mohd Azli SM Nasimuddin said that CKD production will start in mid August, and assured that parts will not be a problem – the company already has RM2 million worth of parts kept in Segambut, and all 12 dealerships nationwide are 3S centres.

If all goes well, Malaysia will be the right-hand drive production hub for these two Great Wall models. Green Oranges is already stepping into the Cambodian market as we type, and today signed an MoU to collaborate with a Cambodian GLC.

The Haval SUV is priced at RM120,000 OTR while the Wingle is priced at RM59,888 for the 4X2 and RM69,888 for the 4X4. The SUV comes with 5 years warranty (or 150k km), 5 years free maintenance and 5 years auto assist, while the Wingle comes with a 3-year warranty.

If you want to check the cars out in the metal, head on to the new wing of Sunway Pyramid, where Green Oranges have set up an outdoor display area.

Huge hi-res gallery and exclusive driving impressions are after the jump!

Brief driving impressions

We had a chance to test drive the Great Wall models two weeks ago. The route was from Taman Tun Dr Ismail (TTDI) to the Shah Alam Stadium.

I started with the Haval SUV from TTDI to Shah Alam via NKVE and came away with some brief impressions, although a proper verdict would require a longer drive. Due to the lack of time, I didn’t sample the Wingle.

Stepping into the Haval, I was pleasantly surprised with the number of features available, as well as the decent looks of elements such as the instrument panel and the touch screen colour LCD head unit.

The user interface for the HU was quite slick looking and easy to use, and is far from the worst we’ve encountered. It doesn’t look that cheap either.

The inclusion of kit such as cruise control (with buttons on steering), electric adjustable seats (driver’s side) and leather seats are plus points, too. Admittedly, my expectations weren’t very high since the Haval is a China designed and made product (the units we tested were CBU), but first impressions were positive.

As for materials and fit/finish, the Haval is not at the level of say, a Honda CR-V, although the general integrity of the cabin is good. The plastics are of the hard variety, which is expected for a budget SUV, but the tactile response from some parts could be better.

An example of this is the cubby in front of the gear lever that shuts with a slam. The centre console box also felt slightly flimsy in operation. Fit is generally fine – one area where the gaps were big was the dash top centre, but bear in mind that we were actively looking out for it.

In general, touch and feel quality in the cabin is decent. I also did not notice any ergonomic or visibility issues.

On the move, the Haval drives competently for a 4X4, although one shouldn’t expect a modern crossover driving experience ala CR-V or Tucson. It feels more like a traditional off roader with high ratio steering (very light) and brakes that require some effort from your foot (the latter is a positive for me, although a touch more boost would be good).

The diesel engine feels contemporary, although the initial turbo lag is rather apparent. Get past that and engine pulls cleanly and the torque comes in handy. There isn’t much to report on the gearbox, which is a good thing.

At highway speeds, I noticed that the Haval’s noise insulation is quite good and tyre noise was quite minimal. By then, the engine would have also settled to a hum, and the suspension isn’t overly soft, so long distance cruising could be a strength.

Great Wall Haval H5 SUV

Great Wall Wingle

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Geely to build its own assembly plant in Indonesia

Anthony Lim — Mon, 25 Jul 2011 03:00:12 +0000

Geely Automobile is definitely looking at making some serious inroads in Indonesia. The company has been selling its cars in the country since April 2010, and through its local subsidiary Geely Mobil Indonesia now has 18 dealerships across the country, with two new ones to come about this year.

Now, reports say that it is planning to build its own assembly plant there, which will be located in Cikarang, Bekasi in West Java. Land clearing for the site is being carried out now, and when completed – at a cost of between US$30 million to US$50 million – the plant will start assembling Geely products in 2015.

Currently, the company sells the Panda hatchback as well as the MK sedan and MK2 hatchback in Indonesia, the latter two being assembled locally at an Astra International plant in North Jakarta. It showcased its latest product for the market, the Panda LC Cross, at the IIMS in Jakarta last week. Looking to be very depanda-ble as a player in Indonesia, the brand is.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Geely Panda puts its paw on the Indonesian market

Paul Tan — Sat, 23 Jul 2011 05:48:40 +0000

Of the many cars that Chinese car manufacturer Geely put on display at the 2011 Indonesian International Motor Show, this one caught our eye – the Geely Panda.

The entire car is Panda-themed, for example the black rings around the Panda’s “eyes”, the cartoon Panda on the floor mats, and even the tail lamps are designed to look like a Panda’s paw print.

Being an A-segment car it’s not very big inside but one thing we noticed is that it did not have the strong and suspiciously dangerous-smelling scent of cheap plastic that we’ve come to encounter with some Chinese cars in the past.

Geely also claims the Panda is the first car to achieve a 5 star crash safety rating in China’s independent C-NCAP collision testing.

The cutesy circular theme continues on the inside. The glove box looks quite unique as it is not your typical glovebox but is instead accessed by a sliding cover like you’ll usually find on center consoles in the middle of the front seats.

Power comes from a 1.3 litre inline-4 which makes 85 horsepower and 110Nm of torque. It’s priced at about 95 million Indonesian rupiah, which translates to about RM33,000.

Look after the jump for more pix and a video of the Panda.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Saab and Youngman to form joint venture to develop three new models: the 9-1, 9-6 and 9-7

Anthony Lim — Wed, 20 Jul 2011 06:35:58 +0000

Saab, through its owner Swedish Automobile, has signed an agreement with Zhejiang Youngman to form a joint venture in Sweden to develop three Saab models. The company issued a statement which said that the 50:50 JV, called the New Product Joint Venture, will be responsible for coming out with three vehicles, these being the 9-1, 9-6 and 9-7.

Saab will be responsible for controlling and managing the design, the development and testing of the new vehicles, utilising its existing capabilities and know-how from Trollhättan, with Youngman pitching in with financial support.

The 9-1 is likely to be based on the 9-X BioHybrid, while the 9-6 will see the resurrection of a SUV project from six years ago that never saw the light – a Subaru B9-based prototype was built, and has now sits on display at the Saab Museum.

The venture is aiming to build the prestige of the Saab brand to an even larger group of customers in China and the US with the 9-6 and 9-7, while the entry level 9-1 is being targeted as a global offering. The agreement between Swedish Automobile and Youngman has yet to be approved by regulators in Sweden and China, reports say.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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PSA Peugeot Citroen-Changan JV gets govt green light

Danny Tan — Wed, 20 Jul 2011 02:59:54 +0000

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.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Fiat 500 “First Edition” arrives in China – only 100 units

Anthony Lim — Mon, 18 Jul 2011 01:30:29 +0000

Click to enlarge

Ahead of the Fiat 500′s official debut in China in September, the Italian automaker has previewed a “First Edition” version, which is a limited run of 100 units made exclusively for the Chinese market. The car is embellished by creative graphics penned by five young Chinese designers from Shanghai.

Click to enlarge

Based on the 500 Lounge, the Mexican-made “First Edition” has a special three-coat pearlescent white body colour, red leather interior and wears a special badge on the door pillar. It’s powered by a 1.4 litre MultiAir unit offering 101 hp at 6,500 rpm and 133 Nm of torque at 4,000 rpm, mated to a six-speed auto transmission.

Click to enlarge

It special livery has been exclusively created for Chinese customers, and consists of five high-impact designs from Yan Wei, Leilei, Mee Wong, Nod Young and Benny Luk adorning the sides of the car, and these are supposed to symbolise the bonds between Italy and China. Getting one requires an element of luck though – apparently, how it works is that any Chinese customer who places an order for a Fiat 500 from now until September 15 will take part in a final draw entitling them to replace the car they ordered with a “First Edition” version.

Click to enlarge

Fiat has big plans for the 500 in the country – it plans to have an assortment of versions and specials as it goes along, including the 500byGucci, which arrives next year. On more standard ground, the Mexican-made 500 marketed in China will have a range that includes three trim levels (Pop, Sport and Lounge), 12 body colours (metallic, non-metallic and three-coat pearlescent), nine colour-material combinations for upholstery and two interior environments (black or ivory). Only one engine choice – the 1.4 MultiAir – is available.

Click to enlarge

Separately, the company is set to launch the first example of its collaboration with local partner GAC, a new saloon made entirely in China at its plant in Changsha, at the end of next year.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Saab-Youngman JV to build three new models in Sweden

Danny Tan — Fri, 08 Jul 2011 03:01:23 +0000

Swedish automaker Saab, part owned by Spyker, part owned by the Chinese, has signed an agreement with Zhejiang Youngman Passenger Car Group Co to form a joint venture in Sweden. This 50-50 JV will develop three “completely new” vehicles, namely the Saab 9-1, 9-6 and 9-7, according to Swedish Automobile, formerly known as Spyker Cars NV.

The arrangement will see Saab design, develop and test the new models while Youngman provides financial support. However, the agreement between both parties has yet to get the all important approval by regulators in Sweden and China.

Besides that, Swedish Automobile also said that the Memorandum of Understanding (MoU) signed last month with Youngman and Chinese auto distributor Pang Da Automobile is now a formal and legally binding agreement. Under the deal, Pang Da and Youngman will jointly invest 245 million euros in Swedish Automobile. The trio will set up joint ventures to manufacture and distribute Saabs in China.

As we know, Youngman’s current range in China includes rebadged Protons branded as “Lotus”. Now that they have Saab, will they still need the partnership with Proton?

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Lotus Cars enters China – Lotus China Symphony appointed as official distributor

Anthony Lim — Tue, 21 Jun 2011 02:27:49 +0000

Lotus Cars has begun its move into the Chinese market – the company has appointed Lotus China Symphony as the official Lotus Cars distributor for the country.

Beijing-based Lotus China Symphony – or known as Lotus China, if you will – will carry the full range of Lotus models for the Chinese market, these being the Evora, the Elise and the Exige. It has put in an initial order for 100 cars, with the Evora accounting for the majority of these first customer cars, with the remainder being Elise and Exige units.

Lotus China will open its first dealership in the capital in October, followed by dealerships in Shanghai, Chongqing and Guangzhou later in the year. Eight further dealerships are planned for 2012, and plans are underway to prepare for the arrival of the new Lotus models, starting with the Esprit in 2013.

The Lotus badge for cars sold in China includes the addition “NYO” lettering – pronounced like the word “new” – to symbolise the importance of the British company’s official entry into China.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Saab’s adventure continues – Youngman joins the party

Anthony Lim — Tue, 14 Jun 2011 11:28:30 +0000

The tempestuous affair that is Saab continues, with another Chinese suitor entering the picture to now make it a three-way deal. The Swedish automaker, owned by Spyker Cars, had been given a shot in the arm in May by Chinese car distributor Pang Da Automobile Trade, which pumped in money to restore Saab’s production and was looking to take a 24% equity stake in the latter.

Now, enter Zhejiang Youngman Lotus Automobile, better known as Youngman, which will form the third element in a joint venture deal. Spyker Cars said yesterday it had signed a non-binding memorandum of understanding for Youngman to take a 29.9% stake and Pang Da to take a 24% share in Saab, for a combined 2.3 billion yuan (US$355 million).

Under the agreement, Youngman will buy an equity stake in Saab for 1.3 billion yuan (US$200 million) and will take a 45% stake in the manufacturing JV, with Saab holding 45% and Pang Da the remaining 10%, according to reports. Youngman will hold a 33% stake in the distribution part of the JV, with Pang Da holding 34% and Saab 33%.

Meanwhile, Pang Da will be forking out 1.0 billion yuan (US$155 million) for its 24% equity stake in Spyker, up from the 605 million yuan (US$93.5 million) it was expected to deploy for its equity investment initially announced on May 16.

As has been the case, this deal hinges on approval from governmental agencies and third parties, involving both Chinese and Swedish governments as well as the European Investment Bank and Saab shareholder General Motors, the reports add. After all that has been happening in recent times, what with the likes of the scuppered Hawtai deal, all at Saab must be crossing their fingers that this one finally comes through.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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Fiat to build its dual clutch transmission in China

Anthony Lim — Tue, 14 Jun 2011 04:54:28 +0000

Fiat will produce its dual clutch transmission in China for its Chinese market vehicles, according to reports – the transmission will be used in vehicles built by Fiat’s 50-50 joint venture with Guangzhou Automobile Industry Group.

The DCT box will be made by Hangzhou Haveco Automotive Transmission, a three-way JV equally owned by Fiat, Guangzhou Auto and state-owned Hangzhou Advance Gearbox Group. Production of the transmission is slated to begin in 2013, HAG said in a statement. Plans are in place for an investment of 2.3 billion yuan (US$355 million) for the production of the new transmission, and in the long term, the JV will be increasing its annual transmission output to 500,000 units, HAG added.

Fiat and Guangzhou Auto’s new assembly plant, which is under construction, is set to begin operations towards the end of the year, with an initial annual capacity of 140,000 cars and 220,000 engines.

The JV’s first product is set to be the Fiat C-medium, with the likes of the second-generation Dodge Caliber – which will make its debut next year – entering the Chinese market badged as a Fiat. The current Caliber wears a CVT, but there are plans to also offer a nine-speed auto transmission for the new model by 2013, though whether this is globally or region-specific remains to be seen.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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BAIC interested in acquiring Opel in Europe?

Anthony Lim — Tue, 14 Jun 2011 04:15:55 +0000

Beijing Automotive Industry Holding is certainly ramping things up – the company, which has joint ventures with Hyundai and Mercedes-Benz to build cars for the Chinese market, is set to launch its own brand later this year when it completes development of a mid-sized sedan based on the previous Saab 9-5. It also plans to launch its first electric vehicle, a compact sedan, in September.

Now, it’s looking at expanding into foreign shores, specifically Europe. The Chinese automaker has apparently intimated to General Motors that it has an interest in acquiring the latter’s Opel division in Europe, as initially reported by German newspaper Die Welt.

Beijing Automotive’s president Wang Dazong, who spent two decades working at GM as an engineer, has stated that the company aims to expand outside its domestic home market, but the reports add that no formal offer to buy Opel has been made, and GM – which has a JV in China with SAIC Motor – hasn’t offered any comment on the matter.

This story originally appeared on Paul Tan's Automotive News on Sun, 12 Feb 12 07:43:34 +0000.

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