Advertisement

Long wheelbase Volkswagen Tiguan for Chinese market

June 18, 2010 at 12:29 pm By Jacob Alexander Filed Under Cars, China, International News, Volkswagen

To fulfill the Chinese market’s need for ample rear legroom, Volkswagen has released the Tiguan in a long wheel base (LWB) format. From the standard car’s 2,604 mm, the LWB variant’s wheelbase grows by 80 mm, bringing overall length to 4.54 metres, 113 mm longer than the standard Tiguan.

The LWB Tiguan features the new VW corporate front-end along with new headlights, bumpers and grille, as shown at the Guangzhou Motor Show late last year. The European facelifted Tiguan is expected to be showcased at the Geneva Motor Show next year, and could wear a different appearance from this Chinese version.

20 Comments      

Honda faces yet another strike at locks supplier

June 11, 2010 at 3:33 pm By Jacob Alexander Filed Under China, Honda, International News

Honda has been facing a host of strikes at different plants in China recently. The latest is at a lock supplier, located at Southern China’s Pearl River Delta. The workers plan to extend their strike to a third day.

Demands this time are for an increase in annual wages of nothing less than 15%, improved allowances, benefits, the right to organize independent labour unions and a promise from management that anyone joining the industrial action won’t be dismissed. The workers at the plant donned white overalls and pressed up against the factory fences shouting for their demands while being watched by police. “We’re definitely going to strike tomorrow, our wages are too low,” said one of the workers.

Honda Lock have confirmed that shipments to Japan were unaffected for at least a day or two as they have enough existing stock ready for shipment, but went on to add that the negotiations were on going and a prolonged dispute could disrupt the flow of supply to Honda’s car plants. “We’re still gathering information, and we don’t know when the negotiations will end,” Honda Lock’s Hirotoshi Sato said.

Previous strikes at an exhaust pipes maker in Foshan ended late last Wednesday, and as production returns to normal, shipments to Honda’s suspended factories would return to normal on Friday. This seems to be only a temporary agreement though, as key negotiations over pay are still underway it could still turn in either direction.

As we mentioned before, strikes and their accompanying settlements have sparked a whole new revolution in terms of factory workers pay. If automakers are worried about the fact that China’s labour costs might outweigh profitability, they needn’t fret.

One auto analyst from JPMorgan said that wage hikes would have little impact on Honda’s profits as labour cost accounted for just 5 to 6% of its total revenue, even in Japan! “So if we assume wages in China are between one-fifth and one-third those in Japan, the cost of factory floor workers in China comes to around 2% of sales. Assuming factory wages in China were raised a uniform 30%, we estimate the impact on the China operating margin would be (a decline of) just 0.6 percent,” according to report written by analyst Kohei Takahashi.

More company executives agree that higher pay is inevitable for an economy like China which is developing immensely. There have even been some comparisons made between China and Japan in terms of their development.

Source

31 Comments      


Volkswagen to open another plant in China, aims to double output to 3 million cars by 2013

June 10, 2010 at 1:17 pm By Jacob Alexander Filed Under China, International News, Volkswagen

Volkswagen will build a new factory in Foshan, China, which is in line with plans to double production in the world’s largest auto market to 3 million vehicles per year by 2013/2014, as announced by chairman Martin Winterkorn. Construction of the plant will begin at the end of this year on a 170 hectare plot of land.

When it’s ready to function in mid-2013, the facility will employ around 4,000 people to achieve an annual production capacity of 300,000 units. VW and its Chinese joint venture FAW-Volkswagen will pour in 520 million euros into this project.

Europe’s biggest automaker, together with local partners FAW-Volkswagen and Shanghai Volkswagen, have nine plants in China churning out 20 VW, Audi and Skoda models. VW is betting heavily on China, recently announcing that it will boost investment in China operations by 1.6 billion euros to 6 billion euros.

It has plans to launch seven new or locally produced models this year, to make a total of 20 new models by 2012. Wolfsburg also wants to produce electric cars there by 2014. In the first five months of the year, the Volkswagen Group has sold around 778,000 vehicles in China, a 48% increase over the same period last year.

VW will be smart to take note of recent developments in Foshan, where Honda’s exhaust supplier is facing a labour strike demanding for higher pay.

Source

35 Comments      

Changan to rebadge Ford Mondeo in China?

June 8, 2010 at 5:40 pm By Jacob Alexander Filed Under Cars, ChangAn, China, Ford, International News

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.

Source

5 Comments      

Buick Excelle GT revealed – it’s an Opel Astra sedan!

June 8, 2010 at 3:13 pm By Danny Tan Filed Under Buick, Cars, China, International News


Click to enlarge

This sedan version of the latest Opel Astra has made its debut in China as the Buick Excelle GT, following the debut of the five-door hatchback Astra (Excelle XT) at the Guangzhou Motor Show late last year. Buick is a very strong brand in China, a marque that people aspire to own, which explains why GM is using it to market the Astra in China. Before this, the Buick Excelle name was given to the car we know as the Chevrolet Optra.

The Excelle sedan managed the transformation from hatchback to booted car quite well, and looks sleek enough to sit on the same table as bigger brother Buick Regal (Opel Insignia) without getting embarrassed. The front end gets a large waterfall grille with lots of chrome, which is a Buick trademark. The side profile of the car reminds me of a Nissan Sylphy, but with more sculpturing and angle for the glasshouse.

Of all the Euro C-segment hatchbacks, the Astra is the biggest of the lot; for the sedan, its wheelbase is lengthened by 70 mm to make 2,685 mm, which competes well with rivals like the Honda Civic and Nissan Sylphy at 2,700 mm.

Like in the the hatchback, the top line engine here is a turbocharged 1.6-litre four-cylinder with 181 bhp and 235 Nm of torque available from 1,980 rpm to 5,400 rpm. An overboost function raises max twist to 266 Nm for five seconds under full throttle. The milder option is a normally aspirated 1.8-litre with 138 bhp. A six-speed auto is standard. The 1.8L engine and six speeder should be the same combo used in the Chevrolet Cruze, which we hear will be launched in Malaysia this week. The Cruze also sits on the same modern Delta II platform of the Excelle/Astra.

Shanghai GM, which will start selling the Excelle GT on June 23, hasn’t released a full photo set, but a Chinese website managed to snap the car completely uncovered. Gallery is after the jump.
[Read more...]

8 Comments      

BYD set up European HQ in Germany, sales start next year

June 8, 2010 at 2:09 pm By Jacob Alexander Filed Under BYD, Cars, China, Hybrids and Alternative Fuel, International News

Chinese battery and automaker BYD will set up its European headquarters in Germany, saying that the decision now depends on “finding the right property and place” and will likely be made before the end of the year, according to Henry Li, GM of BYD’s export division.

Backed by billionaire investor Warren Buffett’s Berkshire Hathaway, the Shenzhen based company wants to be the first Chinese company to sell electric and hybrid cars in Western Europe, and is aiming for cities that subsidise eco cars. The push will start next year with models such as the E6 electric car, a Honda Odyssey sized five seater that uses two electric motors for a 330 km range before it needs to recharge.

Other cars in the pipeline include the F3DM plug-in hybrid sedan, which looks like a Corolla Altis from the front and a Honda City from the rear. BYD could eventually design and build cars in Europe, the company revealed.

Back home, BYD has a partnership with Daimler to produce electric vehicles. It has invested $88 million in the 50:50 partnership that will create a new brand of EVs for Chinese market, now the world’s largest.

19 Comments      

BMW to develop long wheelbase 3-Series for China?

June 4, 2010 at 2:49 pm By Paul Tan Filed Under BMW, Cars, China


Click for enlarged image

Word is that BMW and its Chinese partner Brilliance Auto are working on a long wheelbase version of the BMW 3-Series to take on the Audi A4L, which is as you pretty much guessed is a long wheelbase version of the A4. This would certainly help boost the 3-er’s sales in China.

The interior space of the current 3-er is already in a losing battle compared to the interior of a regular length Audi A4, what more a long wheelbase A4. The intention to build a longer 3-er was revealed in an interview by Auto Sohu with Brilliance Auto chairman Qi Yu Min.


Click for enlarged image

The Audi A4 was stretched 61mm in terms of wheelbase to 2,869mm, and overall length increased about the same length to 4,763mm. To match that, BMW’s E90 would have to be stretched a good 100mm from its current 2,761mm wheelbase, resulting in a 2,861mm wheelbase.

No worries about model overlapping as this is still far off from the wheelbase and overall length of the F10 5-Series, which has grown to humongous proportions and is even bigger in its recently unveiled long wheelbase Chinese market form The F10 is 2,968mm wheelbase and 4,899mm length in standard length and has a 3,108mm wheelbase and 5,039mm length when stretched.

The photos above are an artist’s impression of a long wheelbase version of the 3-Series digitally altered by Theophilus Chin. The extra length has gone into the B-pillars.

14 Comments      

Chevrolet adds hatchback body to Chevrolet Sail range

June 4, 2010 at 2:00 pm By Paul Tan Filed Under Cars, Chevrolet, China, International News

Chevrolet Sail Hatchback

Chevrolet has unveiled the hatchback version of the new Chevrolet Sail that it unveiled in sedan form in China back in December last year.

It’s a model that’s smaller than the Aveo – this segment is referred to as a “B car” in China but in Malaysia it’s more of like an A+ segment car like the Saga, in fact the Saga and the Sail Sedan share the same 2,465mm wheelbase.

Engine options for the hatchback are the same as the sedan, which is either a 87 bhp/115 Nm 1.2-litre or a 103 bhp/131 Nm 1.4-litre engine, with the latter getting a variable geometry intake manifold system. The engines are mated to either a 5-speed manual or a 5-speed electronically controlled automated manual jointly developed, by Magneti Marelli and GM Shanghai, similar to system such as Alfa Romeo’s Selespeed and the Proton Savvy’s AMT. On the inside, the rear bench can be folded flat or individually in a 40-60 split.

The car is developed by GM’s Pan Asia Technical Automotive Center Co in Shanghai and is intended for sale in the Chinese market only for now, although GM has in the past said that the car has export potential. Look after the jump for more shots of the new Sail Hatchback, or check out the Sail sedan.
[Read more...]

9 Comments      

Chery Alado exports Eastar MPV to Thailand and Indonesia

June 3, 2010 at 1:12 pm By Danny Tan Filed Under Cars, Chery, China, Local News

Chery Alado Automobile Sdn Bhd will start exporting the locally assembled Chery Eastar 2.0L MPV to Thailand and Indonesia, starting with 50 units to each country. By the end of 2010, Chery expects this figure to touch 500 units. Next export targets are Singapore and Brunei in 2011. The Eastar is put together at Oriental Assemblers in Johor alongside the Tiggo SUV.

The Eastar 2.0L made its debut here last month. Its 2.0-litre ACTECO engine was jointly developed by Chery and AVL of Austria, producing 134 bhp and 180 Nm. Paired to a four-speed automatic, this twin-cam unit will retire the dated 2.4-litre Mitsubishi 4G64 engine, which was an Eastar selling point that Chery Alado harped on previously. In Malaysia, the 2.0L ACTECO engine alone gets a 5-year or 200,000 km warranty (the rest of the car gets a 3-year/100,000 km warranty). It’s priced at RM79,998.

Chery has done quite well in Malaysia lately, spurred by the well received Eastar. Last year, Chery sold more than 1,800 vehicles, a 170% increase over 2008 figures. This year, they are targetting sales of over 5,000 units. The company plans to introduce three new models this year, including a compact car, to achieve that target. Looking at Chery’s range, this could possibly include the more modern looking A1 and A3 or the oddball QQ6.

53 Comments      

China introduce subsidy for green cars in five major cities

June 2, 2010 at 2:02 pm By Jacob Alexander Filed Under China, Hybrids and Alternative Fuel, International News

The Chinese government is set to introduce a pilot program in which the purchase of electric and hybrid cars will be subsidised. This is in line with China’s plans to cut emissions in what is now the world’s largest car market.

Applicable in Shanghai, Shenzhen, Hangzhou, Hefei and Changchun, plug-in hybrid cars are entitled to a subsidy of 50,000 yuan, which is about $7,320. Maximum subsidy for a full electric car will be 60,000 yuan ($8,787) according to China’s Ministry of Finance.

Instead of handing out cash to consumers, the money goes to carmakers, who would then lower the prices of eco models accordingly. Besides that, China will introduce nationwide subsidies of 3,000 yuan for cars with 1.6-litre engines or smaller that consume 20% less fuel than current standards.

It wasn’t mentioned what the “current standards” are, but this proactive measure to cut emissions and lower fuel consumption is a nudge to carmakers to produce cleaner vehicles. And they’re responding. SAIC plans to roll out its first hybrid car this year, while car and battery maker BYD started retail sales of its plug-in hybrid F3DM in March.

What about charging infrastructure? The Government will allocate unspecified funding for the construction of charging stations and battery recovery networks in the pilot cities.

Last year, China’s tax incentives for small cars and subsidies for vehicle buyers in rural areas helped domestic vehicle sales surge 46% to 13.6 million units, even as sales in other parts of the world slumped. The impact of this green car subsidy will not have the same short term effect, but it’s a good move nonetheless.

Emissions has of course become a serious problem in major Chinese cities and they’ve had to implement certain policies such as an odd-even based alternate day car ban based on a car’s numberplate during the recent Olympic games in order to cut down on the smog.

16 Comments