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Fiat in technology talks with Guangzhou Auto
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- Italian automaker Fiat is in talks with Guangzhou Automobile Industry Group Co. about possible technological exchanges. A deal would make Guangzhou Auto the third Chinese partner for Fiat Auto S.p.A., following tie-ups with Chery Automobile Co. and Zotye Holding Group. Paolo Arpellino, Fiat's chief of China operations, confirmed the talks with Guangzhou Auto in a statement sent last week to Automotive News China. --Published:2008/9/3
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No Ford hybrids in sight for China
Steven Ribet
autonews@crain.com

SHANGHAI -- In the race to bring alternative energy vehicles to China, one foreign automaker has singled itself out - as a clear laggard. Ford Motor China has yet to announce any initiative to mass market hybrid vehicles, clean diesels or electric cars. But that might not be a bad thing. Experts agree that as long as government policy remains indifferent to alternative drivetrains, Ford's policy of sticking to upgrades of the conventional gasoline engine may make the most sense. --Published:2008/9/3
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Sunroofs gaining popularity in image-conscious China
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- A car with a sunroof is cool. And a car with a panoramic roof is even cooler. So no surprise then, that both are gaining traction in image-conscious China. Demand for sunroofs is growing 5 percent faster than the average demand for passenger cars in China, says Frank Pierce, vice president of light vehicle systems at ArvinMeritor (China) Holding Ltd. Driving the trend is China's taste for car options that broadcast conspicuous consumption. The increased sensation of light and space is also a big hit - so demand for panoramic sunroofs is also expected to start taking off. --Published:2008/9/3
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U.S. plans fizzle for most Chinese vehicles
Charles Child
cchild@crain.com

DETROIT -- Plans by Chinese automakers to enter the United States have largely fizzled. Chery Automobile Co., through a deal to assemble cars for Chrysler LLC, stands a chance of entering the United States by 2011. And Brilliance Jinbei Automotive Co., a small Chinese automaker, says it plans to sell cars in the United States in 2009. But other Chinese import plans are in disarray. Enthusiasm for Chinese vehicles was created mainly by hype from American promoters and wishful thinking from small Chinese auto-makers that were unaware of the difficulties of selling cars in the United States. --Published:2008/9/3
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Hybrid LaCrosse off to brisk start in China, but hybrids face headwinds
Steven Ribet
autonews@crain.com

SHANGHAI -- The Toyota Prius may be the world's best-selling hybrid car. But in China at least, the newly launched Buick LaCrosse hybrid [pictured] is giving its Japanese rival a run for its money. The hybrid version of Buick's popular mid-sized sedan went on sale July 24 and quickly racked up sales of 250 units in its first month. That compares with only 414 Priuses sold in China during all of 2007 and 398 for the first seven months of 2008. But General Motors concedes it isn't making a profit on its first hybrid in China and that a lot more needs to happen before hybrids go mainstream in the Middle Kingdom. --Published:2008/9/3
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Polytec buys Peguform, gains access to China
Bettina Mayer
Automotive News Europe

MUNICH -- Austrian door panel and headliner maker Polytec announced Friday it plans to buy German rival Peguform from U.S. private equity fund Cerberus Capital Management. The value of the deal was not revealed. Cerberus, which took over Peguform in 2005, also has majority control of Chrysler. --Published:2008/9/3
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Honda hybrid plan bets big on small cars
Hans Greimel
Automotive News

TOKYO -- Don't expect large hybrid vehicles from Honda Motor Co. anytime soon. The company plans to put hybrid systems into compacts and subcompacts because that's where the green technology achieves its greatest efficiencies, said Masaaki Kato, president of Honda R&D Co., the automaker's product development arm. The strategy differs from that of Honda's rivals, which largely have been installing hybrid drivetrains in luxury sedans and SUVs. --Published:2008/9/3
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Beijing Hyundai redesigns the Elantra and Sonata
Lan Lan
lanlan@autonewschina.com

BEIJING -- Beijing Hyundai Motor Co. plans to boost sales of the Elantra compact sedan and Sonata sedan by launching face-lifted versions in the second half of 2009. The redesign of the two models is being undertaken by Beijing Hyundai's new research and development center in Beijing. The center started operation in May. It is now redesigning the grilles, engine hoods, bumpers and dashboards of the two models to give them fresh styling, especially in the front and rear, says Yuan Wenxue [pictured], vice president of Beijing Hyundai and director of the company's r&d center. --Published:2008/9/3
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Beijing Automotive Industry Holding Corp. to build central China plant
Kevin Huang
kevinhuang@autonewschina.com

GUANGZHOU -- Beijing Automotive Industry Holding Corp. has started building a new plant in Zhuzhou of Hunan province. The plant will produce Beijing Auto's own brand passenger vehicles from 2010. Planned capacity is 200,000 units per year. Products include light trucks, pickups, light buses, SUVs and vans and even sedans. --Published:2008/9/3
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Comment
Chinese automakers lure more senior managers from global players
Yang Jian
yangjian@autonewschina.com

SHANGHAI -- It's no secret domestic Chinese automakers compete fiercely to lure buyers away from their international rivals. But increasingly, domestic automakers are vying to attract their executives and engineers too. Wooing senior managers away from well-established brands gives local companies technological, administrative and strategic planning know-how that is sorely needed in China. Especially if domestic automakers want to grow fast and stay competitive. Pictured: Yang Jian is the managing editor of Automotive News China. --Published:2008/9/3
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COMMENT
Are Fiat's troubles a peek at the future?
Yang Jian
yangjian@autonewschina.com

For the most part, China's auto industry is developing nicely with many partnerships between domestic and foreign automakers. But there are exceptions. Take Fiat Auto S.p.A. It still lacks a meaningful partner in China. And as the domestics become stronger and more confident, Fiat's struggles might be a peek at the future. Many partnerships, such as that between Daimler and Chrysler, have floundered elsewhere. So they could certainly fail in China too. Pictured: Yang Jian is the managing editor of Automotive News China. --Published:2008/8/27
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Q&A
Yuchai develops 1.4-liter diesel engine for taxi markets

YULIN -- Guangxi Yuchai Machinery Co. has been developing diesel engines used in passenger vehicles for years. Jiang Shihong [pictured], general manager of Yuchai's passenger vehicle business division, talked to Kevin Huang last week in Yuchai's headquarters in Yulin, Guangxi province. --Published:2008/8/27
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Cadillac will offer 4-cylinder sedan in '10
Rick Kranz
Automotive News

PEBBLE BEACH, Calif. -- Cadillac will introduce a small sedan with a four-cylinder engine in the United States -- a prospect unthinkable just 12 months ago. The rear-drive sedan will debut in late 2010 as a 2011 model. Cadillac executives are arguing over whether to offer a V-6 option. "There is a big debate as to whether it is four only. I think that is a bridge too far," said Cadillac General Manager Jim Taylor [pictured] at a press event here. --Published:2008/8/27
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Infiniti's stylish stretch
Rick Kranz
Automotive News

PEBBLE BEACH, Calif. -- To create the 2009 Infiniti G37 hard-top convertible, it all came down to proportions. By adding a little here and there, designer Shiro Nakamura says, his team was able to camouflage the tall trunk required to store the convertible's bulky top. The car, based on the G37 coupe [pictured], will be unveiled at the Los Angeles auto show in November. It goes on sale in the first quarter of 2009. Nakamura, global design director for Nissan Motor Co., put a high priority on "maintaining the good proportions of this car." --Published:2008/8/27
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Peugeot will unveil hybrid in Paris
Tom Armitage
Automotive News Europe

Peugeot will unveil a gasoline-electric hybrid concept car [pictured] at the Paris auto show in October. The four-door, four-seater will showcase the French automaker's ideas for fuel-efficient vehicles. Peugeot said the concept brings together stylistic, engineering and technological ideas in a single vehicle. --Published:2008/8/27
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Nissan creates large staff of quality inspectors
Hans Greimel
Automotive News

TOKYO -- Nissan is boosting the number of quality control inspectors and engineers more than twentyfold to 5,300. The goal is to halve the number of quality complaints on new cars by 2012. The company's Infiniti luxury brand ranked slightly above average in the 2008 Vehicle Dependability Study released this month by J.D. Power and Associates. But the Nissan brand came in below average and far behind rivals Toyota and Honda. --Published:2008/8/27
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Aluminum gains as fuel prices rise
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- Automakers and engine makers are using more aluminum to save weight and fuel. For example, Anhui Jianghuai Automobile Co., known as JAC, this month switched from iron to aluminum engine blocks on the Bing Yue car. In June, China reduced fuel subsidies, raising gasoline prices 17 percent. Many observers expect more price increases. Pictured: Tobias Song is the head of sales at Georg Fischer Automotive (Suzhou) Co. --Published:2008/8/27
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PSA to produce 3 more cars in China
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- PSA Peugeot Citroen Automobile Co. will attack market leader Volkswagen AG by producing in China three mid-sized cars, the Peugeot 407 and 408 and the Citroen C5, supplier sources say. PSA now only markets in China one domestically made mid-sized car, the C-Triomphe. The 407 and C5 are imported to China. Producing in China typically lowers production costs and avoids import taxes. --Published:2008/8/27
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Brilliance will unveil 4 cars in Paris
Lan Lan and Douglas A. Bolduc
lanlan@autonewschina.com

BEIJING -- Shenyang Brilliance Jinbei Automotive Co. will show four cars at the Paris auto show in October. The Chinese automaker will display its lower mid-sized BS4 and upper mid-sized BS6 sedans, the BC3 coupe and the BS2 small hatchback, also known as the BS4 FRV. All four cars are already sold in China. The BS4 [pictured] will go on sale in Germany after the Paris show and in other European markets later, a spokesman for Brilliance importer HSO Motors Europe said. --Published:2008/8/27
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Yuchai to start producing 2.0-liter diesel engine with Geely
Kevin Huang
Kevin.huang@autonewschina.com

YULIN -- Guangxi Yuchai Machinery Co. will start producing a 2.0-liter diesel engine in mid-2010 in its joint ventures with Zhejiang Geely Holding Group and Zhejiang Yinlun Machinery Co. The engine will be mounted on at least seven new Geely models, which are intended for export, says Jiang Shihong, general manager of Yuchai's passenger vehicle business division. --Published:2008/8/27
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Chrysler names Denso its first 'Supplier of Choice'
David Barkholz
Automotive News

TRAVERSE CITY, Mich. -- Chrysler LLC has named Japanese supplier Denso Corp. its first "Supplier of Choice." Denso will automatically win future Chrysler business and won't have to compete to keep current orders. Chrysler ultimately will name not more than 10 companies to that select club, Chrysler purchasing chief John Campi [pictured] said at the Management Briefing Seminars here last week. He announced the Denso agreement on the sidelines of the event. --Published:2008/8/20
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Honda will launch Prius fighter in April
David Barkholz
Automotive News

TRAVERSE CITY, Mich. -- Honda Motor Co. will launch a five-door, hybrid-only car in April in North America to fight the hot-selling Toyota Prius. The five-passenger hatchback will be priced below the Prius, Dick Colliver, executive vice president of American Honda Motor Co., said here at the Management Briefing Seminars last week. --Published:2008/8/20
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Focus: Ford aims for successful global car
James B. Treece
Automotive News

TRAVERSE CITY, Mich. -- The next-generation Ford Focus small car will prove that Ford Motor Co. has finally figured out how to do a global car. The North American and European versions of the Focus will share 90 percent of their parts, up from approximately 20 percent for the current editions, Mark Fields [pictured], Ford's president of The Americas, said last week. --Published:2008/8/20
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Brilliance seeks to enter U.S. market
Lan Lan
lanlan@autonewschina.com

BEIJING -- Shenyang Brilliance Jinbei Automotive Co. will for the first time display its cars at the Detroit auto show in January 2009 in a bid to gain access to the U.S. market. The company will show four models, the BS6 mid-sized sedan, the BS4 compact car [pictured], the BC3 coupe sports car and the FRV hatchback at the event, says a Brilliance spokeswoman. --Published:2008/8/20
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China passing Germany as VW's top market
Jason Stein
Automotive News Europe

BEIJING -- The Volkswagen group expects to sell more cars in China than Germany this year, making China the automaker's largest market. Despite slowing growth in June, VW group -- which includes VW brand, Skoda, Audi and four other brands -- is on pace to sell more than 1.05 million units in China in 2008, slightly more than the number it will sell in Germany. "The 1 million figure is still on," said Jörg Mull, executive vice president of the finance department for Volkswagen Group China. --Published:2008/8/20
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Chery to produce hybrid this year
Steven Ribet
autonews@crain.com

SHANGHAI -- Chery Automobile Co. plans to start producing a hybrid model in October. The hybrid, a version of its A5 sedan [pictured], is aimed at budget-minded customers who want to save fuel but aren't willing to pay a high price for the car. One analyst said inexpensive hybrids have good prospects in China and other developing markets. The A5 was developed with Ricardo plc, an engineering company based in Cambridge, United Kingdom. The car is a so-called mild hybrid that uses an electric motor to provide extra torque to the wheels. --Published:2008/8/20
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COMMENT
Weak board punishes tire maker
Yang Jian
yangjian@autonewschina.com

China's auto sector has achieved stunning growth in the past decade. And domestic Chinese auto companies have played an essential role in making it happen. But the domestics are still perceived as weak in two key areas, technology and marketing. I would add another shortcoming to the list: corporate governance. The mess at Double Coin Holdings Co., a Shanghai-based tire maker, illustrates my point. On August 6, the Shanghai-listed public company said its president, Fan Xian, was being investigated for "seriously breaching certain disciplines." This means it is a serious corruption case and the person involved will be subject to severe punishment.  Pictured: Yang Jian is the managing editor of Automotive News China. --Published:2008/8/20
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Nissan to export passenger vehicles from China
Kevin Huang
kevinhuang@autonewschina.com

GUANGZHOU -- Nissan Motor Co. will soon start exporting passenger vehicles from China to overseas markets. The shipment, to be made to Egypt, will include Livina minivans and Bluebird Sylphy [pictured] sedans. "The plan is going well and the first batch of cars will be exported later this month or next month," says an executive from Dongfeng Nissan Passenger Vehicle Company. --Published:2008/8/20
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Ford adds 7 companies to preferred supplier list
Amy Wilson and April Wortham
Automotive News

TRAVERSE CITY, Mich. -- Ford Motor Co. has added seven companies to its list of preferred suppliers. They are the first additions to Ford's Aligned Business Framework program in nearly a year. Ford purchasing chief Tony Brown announced the new ABF suppliers last week at the Management Briefing Seminars here. --Published:2008/8/20
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Tax hike won't change market
Steven Ribet
autonews@crain.com

SHANGHAI -- A tax hike intended to discourage Chinese from buying big cars will have a minimal effect on the market, say analysts and automakers. Last week, the Ministry of Finance said the consumption taxes on cars with large engines would increase significantly. The tax is levied when dealers purchase cars from factories. --Published:2008/8/20
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Is the Chevrolet Corvette coming to China?
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- China's love for fast cars may have General Motors planning to bring the high-performance Chevrolet Corvette [pictured] to this country. In July, a black Corvette was spotted outside the government's automotive quality and inspection department, which licenses cars for sale. Still, a GM spokesperson in China says there are no immediate plans to bring the sports car to China, before adding: "Never say never." --Published:2008/8/13
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Auto companies in Beijing cut production to make way for Olympics
Lan Lan
lanlan@autonewschina.com

BEIJING --  Beijing-based automakers and suppliers reduced or suspended production due to restrictions imposed ahead of the Olympics to improve local air quality. Automakers and suppliers normally use heavy trucks to transport components and vehicles. But the vast majority of the heavy trucks have been barred from driving in Beijing during the Olympics to avoid aggravating the city's already serious air pollution. --Published:2008/8/13
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GM to assemble new Chevrolet car in China
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- The Chevrolet Cruze, a new car, will be assembled in China in late 2009 or early 2010, say industry sources. The car will be manufactured here starting from knockdown kits, says John Zeng, senior market analyst at Global Insight. --Published:2008/8/13
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TRW supplies safety parts to Roewe 550
Steven Ribet
autonews@crain.com

SHANGHAI -- TRW Automotive Holdings Corp. is supplying seatbelts, airbags and other occupant safety systems for SAIC Motor's Roewe 550 sedan. Most of the products that the Detroit-based company is supplying to SAIC are built in China. The seatbelt system, for example, is being built by a joint venture of SAIC and TRW. --Published:2008/8/13
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VW gives the Golf fresh look, new technology
Wim Oude Weernink
Automotive News Europe

Volkswagen has given its next Golf [pictured] a fresh design, new technology and a competitive price in a bid to maintain the car's position as Europe's top-selling lower-medium model. The sixth-generation Golf will be unveiled at the Paris auto show in October and will go on sale in Europe shortly after. VW last week released details of the new-generation car. --Published:2008/8/13
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PPG opens coating plant to supply Chery
Yang Jian
yangjian@autonewschina.com

WUHU -- PPG Industries opened a new automotive coatings plant last week in Wuhu city of eastern China's Anhui province to supply Chery Automobile Co. The 40,000-square meter plant will have an initial capacity of 6,000 tons a year. The capacity will be expanded to 30,000 tons over the next five years, says Raj Lall [pictured], PPG's operations director in Asia. --Published:2008/8/13
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Daimler to build second commercial vehicle joint venture in China
Lan Lan
lanlan@autonewschina.com

BEIJING -- Daimler AG signed a letter of intent on August 7 with Beiqi Foton Motor Co. to set up its second commercial vehicle joint venture in China. The new 50-50 joint venture will produce low-end medium- and heavy-duty trucks under Foton's Auman brand. It will also make heavy-duty engines with Mercedes-Benz technology. --Published:2008/8/13
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Volkswagen considers a coupe and roadster tandem -- again
Greg Kable
Automotive News Europe

Volkswagen has resurrected plans for an affordable, mid-engine coupe and roadster tandem as part of an image-building campaign aimed at highlighting the company's design and engineering prowess.  VW chairman Martin Winterkorn is planning to unveil a concept version of the lightweight two-seater at the Los Angeles show in November. If public opinion is positive, the new car could be in showrooms by 2011. It's been styled under Walter de' Silva and borrows from VW's vast parts bin to keep development costs low. --Published:2008/8/13
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COMMENT
More roads in provinces fuel auto boom
Yang Jian
yangjian@autonewschina.com

SHANGHAI -- Thanks to huge investments in roads and other infrastructure, inland China provinces such as Anhui are becoming easily accessible from the outside. This will give the local auto industry a big boost. Better infrastructure will enable Chery to ship more cars to the rest of China and support the fast growth of the auto parts industry in Wuhu. Better roads will also boost demand outside the coast. Pictured: Yang Jian is the managing editor of Automotive News China. --Published:2008/8/13
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Zhengzhou Nissan to add new vans
Kevin Huang
kevinhuang@autonewschina.com

GUANGZHOU -- Zhengzhou Nissan Automobile Co. plans to start making two new light vans in 2009: a Dongfeng-badged van in the first half and a Nissan-badged van in the second half, sources from the company say. Zhengzhou Nissan is Nissan Motor Co.'s joint venture with Dongfeng Motor Corp. and a small local automaker in Zhengzhou, Henan province. Pictured: Nissan NV 200 concept. --Published:2008/8/13
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Chamco COO heads to ZX Auto, eyes sales in 40 countries
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- The chief operating officer at would-be importer Chamco Auto has left to join ZX Auto and is aiming to expand sales into 40 countries. Thomas Del Franco joined ZX Auto in July 2008 as general manager of global sales at its subsidiary ZX International and is based in Baoding, Hebei province. --Published:2008/8/6
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Chery enters Turkey and Argentina
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- Chery Automobile Co. has begun selling passenger cars in Turkey and Argentina as part of a push to boost exports by 50 percent this year. Chery is aiming to export 180,000 vehicles this year, up from 119,800 in 2007, Chery spokesman Wang Chao says. Chery began sales in Turkey on June 27 and in Argentina July 1. --Published:2008/8/6
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Jinzhou Jinheng wins order with FAW-VW, buys Liaoning Hechang
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- Jinzhou Jinheng Automotive Safety System Co. sees sales climbing 25 percent this year, thanks partly to the acquisition of a domestic airbag maker and a new order from FAW-Volkswagen Automotive Co. "This year we expect sales of 700 million yuan ($102.45 million)," says Golden Sun [pictured], general manager of Jinzhou Jinheng's international business department. --Published:2008/8/6
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ZF buys electronics supplier Cherry
Craig Trudell
Automotive News Europe

ZF Friedrichshafen has acquired Cherry, an electronics supplier. ZF said Cherry, which had $400 million (2.74 billion yuan) in sales in 2007, will operate as an independent business unit, ZF Electronics. Cherry, of Pleasant Prairie, Wisconsin, about 50 miles south of Milwaukee, has 3,100 employees and plants in Germany, the Czech Republic, Mexico, Hong Kong, China and India. --Published:2008/8/6
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MG TF production restarts in the UK
Richard Truett
Automotive News Europe

MG sports cars are again rolling off the production line in Great Britain. The latest MG TF [pictured] roadster looks much the same as it did three years ago when MG Rover went bankrupt, but things have changed dramatically since then. Now the TF's body and powertrain are made in China and shipped to MG's Longbridge plant in central England for paint and final assembly. --Published:2008/8/6
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Ford Ka to debut in Paris, on sale in December
Wim Oude Weernink
Automotive News Europe

The successor to the Ford Ka minicar [pictured] will make its public debut at the 2008 Paris auto show in October and will go on sale in European markets in early December. The first generation Ka has been a sales success for Ford of Europe. More than 1.4 million units were sold in the 12 years since its launch. The new Ka mirrors Ford's kinetic design philosophy and shares its platform with Fiat's small cars, the Panda and the Fiat 500. --Published:2008/8/6
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ArcelorMittal to build automotive steel joint venture in Hunan
Lan Lan
lanlan@autonewschina.com

BEIJING -- The world's largest steel maker, ArcelorMittal, will establish a joint venture in central China's Hunan province to produce flat carbon steel for automotive use. According to information released by AcelorMittal and its Chinese partner with Hunan Valin Group Co., a stated-owned steel maker, the joint venture will be built in Loudi City of Hunan province. --Published:2008/8/6
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Toyota to make new Crown in China next year
Kevin Huang
kevinhuang@autonewschina.com

GUANGZHOU -- Toyota Motor Corp. will start producing the 13th-generation luxury sedan Crown in China in the first half of 2009, and the new model could be a stretched-wheelbase version designed for the China market, says a senior sales executive with FAW Toyota Motor Sales Co. Tianjin FAW Toyota will also make the sports version Crown after the production of the new Royal Saloon [pictured] starts. The company is also considering producing the hybrid version at a later stage. --Published:2008/8/6
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COMMENT
Automakers need to prepare for decelerating market demand
Yang Jian
yangjian@autonewschina.com

SHANGHAI -- Auto sales in China are already decelerating on the back of creeping economic woes. But more importantly, the government is chipping in two initiatives that will take even more steam out of the market. One will discourage big car sales; the other will likely spur higher fuel prices. To be sure, it is unrealistic to expect China's auto market, already the world's second largest, to perpetually maintain its breakneck pace of expansion. But for automakers used to a market racing ahead at 20 percent a year, it will be tough to adapt to a new reality of single digit growth. Pictured: Yang Jian is the managing editor of Automotive News China. --Published:2008/8/6
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Delphi to make hybrid products in China
Lan Lan
Lanlan@autonewschina.com

BEIJING -- Delphi Corp. will start producing hybrid and electric vehicle parts and systems in China in late 2009. Delphi will initially make products used in micro and medium hybrids for customers in China in its electronics manufacturing facility in the east China city of Suzhou, says John Absmeier [pictured], manager of Delphi's Asia Pacific Power Electronics and Hybrid Electric Vehicles. --Published:2008/8/6
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Jatco to make continuously variable transmissions in Guangzhou
Kevin Huang
kevinhuang@autonewschina.com

GUANGZHOU -- Japanese transmission manufacturer Jatco Ltd.'s Guangzhou plant will start trial production of continuously variable transmissions (CVTs) in August. Mass production is expected to begin later this year. The plant will produce CVTs fitted to cars with 2.0-liter engines intially. It will supply CVTs to Dongfeng Nissan in the beginning, but may also supply China-based joint ventures of other global automakers in the future. --Published:2008/7/30
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Changan expands passenger vehicle capacity
Kevin Huang
kevinhuang@autonewschina.com

GUANGZHOU -- Chongqing Changan Automobile Co. is expanding its annual production capacity of passenger vehicles from 120,000 units currently to more than 200,000 units before the end of this year. New capacity at the Yubei plant is for new models of the automaker's own brand, rather than for existing products. Changan will start mass producing a new compact sedan, code-named V101 [pictured], later this year. --Published:2008/7/30
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Audi looks to win sales from volume brands with new SUV
James Franey
Automotive News Europe

VALENCIA, SPAIN -- Audi hopes its new Q5 SUV [pictured] will help win new customers to the brand from volume manufacturers. The German automaker expects to win sales at the expense of volume brand models such as Toyota's RAV4, Michael Renz, Audi head of central marketing, told Automotive News Europe at a press event here. "Obviously we are still targeting the premium SUVs like the BMW X3 or the Mercedes-Benz GLK, but we expect to draw some customers from the volume segment as well," Renz said. --Published:2008/7/30
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Hyundai quadruples engine production capacity in Shandong
Lan Lan
lanlan@autonewschina.com

BEIJING -- Hyundai Motor Co.'s engine joint venture in eastern China's Shandong province opened a second plant in early July, quadrupling the venture's production capacity to 400,000 engines. The new plant will start making 1.4- and 1.6-liter Gamma series engines in 2009, says Sang-Dae Han [pictured], president of Wia Engine Shangdong Co. The engines will be exported to Hyundai's operations in Russia, India and Turkey. They will also be supplied to Dongfeng Yueda Kia Automobile Co. in eastern China's Jiangsu province, says Han. --Published:2008/7/30
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Chinese automakers can learn from Hyundai
Yang Jian
yangjian@autonewschina.com

Domestic Chinese automakers are facing a pressing issue: With little branding power, how can they compete with well-known overseas automakers? A good start would be to look at what Hyundai Motor Co. has been doing in China lately. Hyundai kept prices on the Elantra low. And it boosted after-sale service at dealerships. After losing significant market share last year, Hyundai staged a massive comeback this year. Pictured: Yang Jian is the managing editor of Automotive News China. --Published:2008/7/30
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Chinese court rejects Fiat's copycat claim against Great Wall
Lan Lan
lanlan@autonewschina.com

BEIJING -- A Chinese court in Hebei province dismissed Fiat's claim that the GWperi built by the Great Wall Motor Co. has infringed its patent, Great Wall said in a statement issued on July 26. The Shijiazhuang Intermediate People's Court in Hebei says the exterior design of the GWperi can be easily differentiated from that of the Panda. The two models have obvious distinctions in their front and rear parts, says the court. The Chinese court ruling came shortly after an Italian court accepted Fiat's claim against Great Wall. Pictured: The GWperi[left]; The Panda [right] --Published:2008/7/30
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GM Europe redefines future Saab models
Wim Oude Weernink
Automotive News Europe

LONDON -- General Motors Europe wants future Saab models to be more compact than originally planned. Unlike earlier plans to use GM's global upper-medium Ypsilon-2 architecture for the next generation of the Saab 9-3, GM Europe decided last March to use the more compact lower-medium Delta architecture for the next version of the medium premium car. "We don't want Saabs to grow in size but rather keep them more compact," Carl-Peter Forster, president of GM Europe and chairman of Saab Automobiles, told Automotive News Europe during the London auto show. --Published:2008/7/30
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Chinese safety maker wins FAW contract
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- Nine safety system makers including Autoliv, TRW and Mobis competed for a new order with FAW Group. However, the winner was a significantly smaller Chinese safety maker: East Joy Long Motor Airbag Co. Rising material costs are opening doors to smaller players. Pictured: Bobby Li, vice president of purchasing and sales at East Joy Long. --Published:2008/7/30
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Kia Soul hatchback coming April 2009
Gary Anglebrandt
Automotive News

SEOUL -- The Kia Soul [pictured], a five-door hatchback, will reach Chinese showrooms in April 2009, Kia Motors Corp. says. The Soul will be available with 1.6- or 2.0-liter gasoline engines. The Soul will be manufactured in Korea. The company says it is a new addition to its lineup, not a replacement vehicle. --Published:2008/7/30
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Bosch adds parts, capacity in China
Namrita Chow
namritachow@autonewschina.com

SHANGHAI -- German parts supplier Robert Bosch AG is adding new products and  boosting production capacity in China. "In China we will invest 850 million euros (9.19 billion yuan) from 2008 to 2010," says Peter Pang, president of Bosch (China) Investment Co., in a company statement. --Published:2008/7/30
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All Mercedes cars to be turbocharged by 2010
James Franey
Automotive News

DUSSELDORF, Germany -- Mercedes-Benz will introduce turbocharged engines across its entire lineup in the next 2 years. "All our vehicles will have turbocharged engines in series production by the end of 2010 at the latest," Thomas Weber [pictured], Daimler board member responsible for research and development, told Automotive News Europe at a press event here. Forthcoming legislation in Europe and the U.S. is forcing automakers to reduce auto emissions. --Published:2008/7/23
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