Archive for China

Before this, there were rumours about Proton’s collaboration with Chery Automobiles Co Ltd and Jinhua Youngman Automobile Group Co Ltd, both Chinese automotive companies. Today, we find out that Proton is actually collaborating with both companies as strategic partners.

Proton signed a pact yesterday with Chery and it’s Malaysian distributor Alado Corp Sdn Bhd to do a feasibility study that will last until 28th August 2006 on the assembly and distribution of Chery vehicles here, as well as the assembly and distribution of Proton vehicles in China.

Proton’s collaboration with Jinhua Youngman is of a different type. Jinhua wants to sell CKD vehicles in China. Associated Press reports that this partnership is actually between Jinhua Youngman and Proton’s child company Lotus Engineering, and will involve jointly designing, developing selling completely knocked down (CKD) vehicles in China. This feasibility study will last 120 days starting yesterday.

Proton targets 100,000 cars for the export market by 2008. Partnerships with Chinese and Indian companies will allow it access to more markets and hopefully help it achieve it’s 100,000 cars target.

Related Posts:
Proton and Chery discussing two-way partnership
Proton to announce tie-up with Chinese firm this week
Proton and Chery partnership
Proton and Jinhua Youngman Automobile in partnership

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Chrysler is looking into using Chery Automobile to assemble a small car for the international non-US market. The car will be sold under the Dodge or Chrysler brand. This could allow Chrysler and Dodge to enter third-world markets like South East Asia, which are not big fans of Chrysler’s big cars with huge fuel-guzzling engines.

Daimler Chrysler already has an existing partnership with a Chinese company, Beijing Automotive Industry Corp. The joint venture assembles SUVs for Daimler Chrysler and recently the Mercedes Benz E-Class. But the JV company lacks experience and skills to manufacture small cars, which Chery has.

Chrysler could be seeking to produce the Dodge Hornet concept, a small B-segment vehicle smaller than Dodge’s smallest car, the Dodge Neon. The Dodge Hornet Concept was shown at the Geneva Motor Show in March 2006.

Dongfeng Peugeot Citroen Automobile Company Ltd, a joint venture company between French company PSA Peugeot Citroen and Chinese automobile company Dongfeng Motor Group is recalling nearly 20,000 cars due to a faulty alternator.

An alternator converts alternating current into direct current to supply power to car components. The models affected are the Elysee and Fukang vehicles made between 1 December 2005 and 9 March 2006. The faulty alternator will be replaced for free.

There has been 11 recalls this year in China, showing that Chinese car manufacturers take their vehicles seriously and are responsible with after-sales support. But of course, this has been encouraged by the Chinese governmetn in the form of the State General Administration of Quality Supervision, Inspection and Quarantine which enforces auto recall regulations put in place back in October 2004.

This is the Zhonghua Junjie, China Brilliance Auto’s 2nd passenger car. The name Junjie means Triumphant Horse, or Winning Gold. The sporty mid-sized sedan was designed by the Italian design firm Pininfarina. It is built on a shortened version of it’s big brother Zhonghua Grandeur’s platform.

Click here to read the rest of Brilliance Zhonghua Junjie

Geely 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.

If 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

More developments on Malaysia-China automotive industry relations. Previously there were rumours on Proton’s involvement with Jinhua Youngman and Chery. Jinhua Youngman was believed to have entered a deal with Proton to assemble Proton CKD kits in China and rebadge them as Jinhua cars.

Now there is news on talks between Proton and Chery Automotive Co Ltd for a two-way partnership which would allow Proton cars to be assembled for the growing Chinese market, as well as providing Chery a base for automotive assembly here in Malaysia. While Proton and Chery officials did not comment much on talks, word is that talks have advanced to a relatively advanced stage although no final agreement has been reached yet.

The outcome of this would likely be Proton CKD kits assembled at Chery facilities for the Chinese market, and Chery CKD kits assembled at Proton’s facilities for the Malaysian market. But I wonder what of the NAP ruling regarding selling assembling capacity to 3rd party manufacturers.

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

Proton is expected to announce a non-exclusive alliance with a Chinese firm this week. At one point, Proton’s board had thought about an exclusive partnership with one firm, but Datuk Azlan Hashim told reports that Proton’s board had re-thought the situation and consluded it was better to have several strategic partners in multiple areas like products, components, market access and other activities. Are we looking at a “don’t put all your eggs in one basket” philosophy being put into effect here? The partnership is expected to be finalised in April.

Previously there were rumours on tie-ups between Proton and Chery, as well as Proton and Jinhua Young Man related to car assembly in China. There were not much follow-up on the Chery rumour, however StarBiz reports today that Proton would be selling CKD kits of cars like the Proton GEN-2 to Jinhua QingNian. I think it’s safe to assume Jinhua QingNian is Jinhua Young Man as they are both from ZheJiang.

It is hoped that this partnership will boost Proton’s economies of scale. Jinhua QingNian currently builds luxury coaches and trucks, and hopes to enter the passanger car market with Proton’s CKD kits. The cars will be marketed under Jinhua’s own brand and logo in China. If all goes well and the CKD kits have good sales in the China market, it will definitely improve Proton’s profitability as economies of scale improves and cost per part goes down. Good move, Proton.

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Zhejiang 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

Visionary Vehicles has brought in Chery’s first sedan for the US market - the Chery A520. The Chery A520 is part of the Chery A5 series, with the number 20 indicating a 2.0 liter engine. It is said that it’s based on an extended Volkswagen Golf Mk3 platform, something like an older Seat Toledo.

Click here to read the rest of Chery A520