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Geely begins Geely CK1 sales in Indonesia

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The Geely CK1, who used to sport a W203 Mercedes Benz C-Class front end but has been recently revised has just made it’s debut in Indonesia last week. It is sold by PT Gaya Motor, an associate of Information Gateway Corp Sdn Bhd owned by Tan Sri Cam Soh Thiam Hong.

The car, available in 1.3 liter and 1.5 liter form, will be assembled in Indonesia, and 2,000 units is expected to be sold over the next 12 months. PT Gaya Motor has an agreement with Geely Holding Group for the manufacturing, assembly and international marketing of Geely vehicles in Indonesia. PT Gaya Motor will initially assemble CKD packs of the car in Indonesia, but later will start using more local components as volume picks up.

Geely originally wanted to establish a manufacturing base in Malaysia with an investment of RM100 million together with it’s partner Information Gateway Corp Sdn Bhd, but decided to pull out and choose Indonesia instead because of the discouraging National Automotive Policy.

You can read more about the history of how the NAP chased away a potential investor in the related posts below:

Related Posts:
Geely moves assembly plant plans to Indonesia
IGC to start Geely assembly in October 2006
Geely investment plans on hold again
Geely Freedom Cruiser to be assembled in Malaysia

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Geely moves assembly plant plans to Indonesia

geelymerielogo.jpgAccording to a report by China Knowledge, Geely Automobile Holdings Ltd has scrapped it’s plans to set up an automotive assembly plant in Malaysia. Previously it applied to start assembling cars in the 1.3 liter and 1.5 liter range here in Malaysia together with it’s local partner Information Gateway Corp Sdn Bhd (IGC) at a plant in Kuantan. Assembly was expected to begin in October 2006 with the Geely CK sedan. Total investment was expected to be in the RM100 million range.

First they were faced with a 20:80 local distribution to export ratio, and recently the government decided to only approve assembly of cars with 1.6 liters of displacement and above. I suppose when you are faced with so much problems even before you put your money in, anyone would just walk away - Geely has decided to take it’s business elsewhere and has decided to set up an assembly plant in Indonesia instead.

As for Cam Soh’s Information Gateway Corp Sdn Bhd (IGC), they will begin importing Geely cars in from Indonesia for sale shortly. 1.6 liter models and above will be assembled locally in Oriental Assemblers Sdn Bhd’s plant in Johor Bahru by year-end.

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Chery QQ AMT; assembly by Proton next year?

chery_qqr_small.jpgAlado Bumi Sdn Bhd launched the new fully imported CBU Chery QQ AMT today, powered by an automated manual gearbox similiar to the unit in the Proton Savvy AMT.

The 52hp 75.5Nm 0.8 liter Chery QQ AMT is priced at RM42,888, while the 0.8 liter Chery QQ with a 5 speed manual transmission sells for RM39,888. Only 100 units of the Chery QQ manual remains, out of the 200 stock that was brought in.

In other Chery news, Chery expects to start local assembly of Chery cars in Malaysia in Proton’s plant by next year if talks go well. As for Cam Soh’s other company, IGC which intends to assemble Geely cars in Malaysia, the government has only given approval to assemble 1.6 liter Geely cars here, but not models lower than 1.6 liter. Are we looking at a non-tariff barrier working in action to protect Proton?

Click here for a price comparison of the Chery QQ with other models in it’s class.

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IGC to start Geely assembly in October 2006

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Information Gateway Corp Sdn Bhd (IGC) and Geely will start assembling Geely cars in a plant near Kuantan in October 2006, beginning with the Geely CK sedan. This will make Malaysia the first country outside China where Geely cars will be assembled. Malaysia will be used as a base for Geely to tap the regional market.

IGC will be handling assembly, marketing and distribution of the Geely cars. Geely does not have any stake in the set-up, and are only supplying technology know-how and key auto parts like the bodies, engines and gearboxes - basically a CKD pack.

The Geely CK is powered by a 94hp 1.5 liter Toyota engine. The chassis was developed by Geely engineers together with Daewoo. Geely recently began mass production of it’s own 1.8 liter aluminium block engine with continuously variable valve timing technology that produces 140 horsepower. 50,000 units a year will be built in Geely’s Ningbo plant in the Zhejiang Province. The engine will make it’s debut in the Geely FC-1 sedan. Developing own engines is important for Chinese manufacturers, as most of them use third party engines, usually old Toyota and Mitsubishi designs.

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Geely Beauty Leopard to make European debut

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Geely will be introducing it’s Geely BL sports car into the European market soon, with a targetted launch date set sometime in 2008. It will be banking on low cost as one of the attraction points - anyone looking for a cheap sporty ride to buy the car but does not mind the fact that it only comes with either a 1.3 liter or a 1.5 liter engine. Transmission options are a 5-speed manual and a slushbox likely to be a 4-speed with overdrive. The car has discs at the front and drums at the rear, and the 1.3 and 1.5 liter 16-valve engines make 84 horsepower and 92 horsepower respectively, both at 6,000rpm. Torque output is 110Nm at 5,200rpm for the 1.3 and 128Nm at a lower 3,400rpm for the 1.5 liter. These engines push a 980kg car. Mostly all show and no go, but it doesn’t look terribly underpowered. Notice the classic Chinese design element - tiny wheels which barely fill up the wheel arches.

Geely has caused some amusement with it’s Geely Merie, a sedan that mimics the Mercedes Benz C-class. They are China’s largest privately-owned car manufacturer. The Geely Beauty Leopard (yes, that’s what BL means) sells for as low as US$7,500 (RM27,600) in China. The car will probably be rechristened for the European market as a car called something that sounds that silly probably will be a sales turnoff. This car falls into the tiny spoarts car segment, and I’m reminded of the old school Mazda Eunos and Toyota Sera. No confirmed prices yet, but we’ll know sometime closer to 2008.

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Geely investment plans on hold again

small_geely.jpgGeely Automobile Holdings Ltd is once again rethinking it’s RM100 million investment plans in Malaysia. It was not very happy with the new National Automotive Policy which stated that any new foreign car manufacturers who want to enter the Malaysian market would have to export 80% of it’s production here in Malaysia. It used to be 30:70.

It was also not very happy with the government ruling that no new manufacturing licenses will be granted until overcapacity problems are addressed. I’ll leave you to think of your own definition of what overcapacity. And there’s always that case-by-case basis clause. :)

small_geely_2.jpgIf Geely does not invest in an assembly plant, Geely’s local partner IGC Corp will still continue assembling the right-hand drive Geely cars at Oriental Assembly in Johor.

If I was Cam Soh, I would be pretty frustrated by now. First his Chery A160 vehicles encounter AP problems, now there’s a problem with his venture into assembling Geely vehicles.

It makes me wonder, does the government really intend to develop Malaysia into a regional automotive hub is it just hot air when the policies it formulates do not look very encouraging. But then again, the ‘case by case’ clause is a very good wildcard.

Related:
Geely CK1 Freedom Cruiser
Geely Freedom Cruiser assembled in Malaysia

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Geely CK1 Freedom Cruiser

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Zhejiang Geely Automotive Company will go ahead with the assembly of it’s Geely CK1, or Geely Freedom Cruiser here in Malaysia. It will be assembled by Information Gateway Corporation Sdn Bhd. Production is expected to be 10,000 units a year by August 2007, with 20% of that amount destined for the local market and the rest for export. That would mean 2,000 Chinese cars a year on our roads. Have any of you seen a Chinese car on the road yet? I’ve only seen the Chery A160 at an exhibition in Mid Valley. Can’t see them anywhere. However Datuk Cam Soh says 100 out of 262 CBU Chery A160 models have been sold.

Click here to read the rest of Geely CK1 Freedom Cruiser

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Geely Freedom Cruiser assembled in Malaysia

geelymerielogo.jpgZhejiang Geely Automotive Company is China’s biggest privately-owned automaker and specialises in making budget cars for first-time buyers like it’s 1.3 liter Geely Merrie which looks like a mutated Mercedes Benz and the 1.6 liter Geely Freedom Cruiser. Other models produced by Geely includes funky names like Uliou, Maple, Urban Nanny and Beauty Leopard.

Most of Geely’s models are based on a 1987 Daihatsu Charade. Their engineers truly know how to milk the most out of a platform, with small cars, medium sized cars and even vans (Urban Nanny) being based on the 1987 Daihatsu Charade platform. For those who do not remember platform model years, the 1987 model is the G100.

Geely will be the first automaker from China to assemble cars outside of China at it’s plant here in Kuantan. The Geely plant in Kuantan is owned by Information Gateway Corporation Sdn Bhd. The plans had been delayed so far because of the NAP, and pending approval from our government. The government has given the go ahead, so production is expected to start soon.

Geely will be assembling the Geely Freedom Cruiser here in Malaysia in 1.3 and 1.6 engine options. Geely may make 2 other larger models in the 1.8 liter engine range later. The Freedom Cruiser is said to be based on a Daewoo design, with engines design licensed from Toyota.

These cars are meant for the export market, with almost all of them destined to be shipped out around the region. The target sales for the Malaysian market is so low that it’s almost negligible.

Geely rove Malaysia rong time!

Source: Wikipedia Geely 7151CK Freedom Cruiser, Shanghai Daily

Related: IGC to start Geely assembly in October 2006

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