Mitsubishi Motors Corp. and trading house Mitsubishi Corp. said Monday they will set up a fifty-fifty joint venture in China to import and sell vehicles of the Japanese automaker.

Aiming to meet growing demand in China, the two companies said they plan to establish the new company, Mitsubishi Motor Sales (China) Co., in Shanghai in April 2009 with a capital of 3 billion yen, after obtaining approval from Chinese authorities.

In China, Mitsubishi Corp.’s local unit had been importing and selling Mitsubishi vehicles since 2005.

In line with shifting operations to the new company, the two companies said they will allocate more of their workforce to the joint venture to strengthen their marketing power and relationship with local dealers as well as improve after-sales services.

Mitsubishi Motors’ sales in China have been rapidly expanding in recent years, reflecting the nation’s fast-growing economy. In fiscal 2007, Mitsubishi Motors sold 11,537 vehicles in China, up 179 percent from a year earlier.

Although its sales have slowed somewhat this year, Mitsubishi Motors said the Chinese market for imported cars is expected to grow further.

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Toyota Motor Corp. said Monday it would invest 4 billion yuan ($586 million) to set up its seventh auto factory in China on the back of strong demand there.

Japan’s top automaker will build the new plant in Changchun, the capital of Jilin province in northeastern China, to produce 100,000 units of a popular Corolla model per year, it said in a statement.

“We will build the new plant due to expanding demand in China,” said Toyota spokesman Paul Nolasco. The new plant will be a 50-50 joint venture with Chinese partner FAW Group Corp. Toyota gave no further details including when the new factory would begin production.

Toyota’s sales in the U.S. have been sluggish, but the company is enjoying strong demand in China even as the country’s booming economy shows signs of slowing. Its sales there from January to September 2008 jumped 24 percent year-on-year to 429,000 units. Last year Toyota sold 499,000 vehicles in China.

China’s economic growth in the third quarter was its slowest in five years though remained robust at 9 percent.

Most of the vehicles made in China are sold domestically, and Toyota hopes to sell 700,000 vehicles in 2008 and aims to sell one million units by early in the next decade.

The Changchun factory combined with other expansion plans would boost Toyota’s annual production in China to over 1 million in the near future from its current 643,000 units per year, the company said. Top of page

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By Kelly From:Gasgoo.com

China’s State Information Center forecasts the country’s auto output and sales will grow by 10% this year despite auto market declines in other countries, said National Business Daily yesterday, citing sources.

Data collected by China Trading Center for Automobile Import (CTCAI) showed that American auto sales fell by 12.8% year on year from January to September, posting a consecutive drop since last year. The European market saw 8 major brands drop by 3.9% in the first eight months, much larger than last year’s 0.9% declines. It is a phenomenon if China’s auto market can maintain a growth rate by 10% this year amid a global auto market downturn.

Zhang Yi, a senior industry analyst, said, “Although the market growth has fell to 10% from 20% in the last two years, the auto market in China is still promising thanks to a large demand as the market just started its first step of a long journey.”

According to Luo Lei, vice secretary of China Automobile Dealers Association (CADA), the auto market in China will keep a stable growth next year. “Because of economic laws, the market is impossible to drop suddenly but likely to maintain a relatively stable growth,” he said.

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By Kelly From:Gasgoo.com

Dongfeng Honda officially confirmed that it will roll out a B-class car based on the Acura platform by the second half of 2009, Beijing Times said today, citing top executives of Dongfeng Honda Automobile.

In an interview with Beijing Times, Dongfeng Honda vice general manager Liu Hong told the reporter that the company has finally approved the new B-class car plan and also made clear the automaker’s 2009 sales target. The heavyweight B-class car has been included in the automaker’s new model plans for next year, with the new producing equipment in preparation, Liu said.

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By George Gao From:Gasgoo.com

he Mitsubishi Zinger SUV made by Chinese carmaker Southeast Motor rolled off line today, said xinhuanet.com today. The new “MICS-RV”-positioned model will go on sale in China soon this year with the selling price of about 100,000 yuan ($14,600).

The Mitsubishi Zinger, which is designed to meet the demands from Asian consumers, creates an “MICS” concept, and is positioned as “MICS-RV” — M standing for Multi-purpose, I for Interior roominess and riding comfort, C for Compact body size and S for Sophisticated styling, while R for Rough-road running capability and Value for the affordable price, said industry sources.

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Toyota Motor Corp.’s China car sales beat General Motors Corp.’s in the first nine months of the year, as the Japanese company threatens to end GM’s 77-year reign as the world’s largest automaker.

Toyota’s two Chinese ventures boosted nine-month sales 30 percent to 407,427 cars and sport-utility vehicles. GM’s car sales were little changed at 373,945, according to Bloomberg calculations based on data issued by the China Association of Automobile Manufacturers.

The Japanese automaker boosted sales of Corollas and other models at about triple the pace of the overall market after opening a new plant last year. Detroit-based GM is counting on overseas growth as the credit crunch has driven U.S. sales down 18 percent this year and the company’s shares to a 58-year low.

“China is very important to GM and losing share there makes life even more difficult,” said Ricon Xia, an analyst at Daiwa Associate Holdings Ltd. in Shanghai. “Japanese automakers know how to make cars for Chinese consumers and they have been expanding in China at a very steady pace.”

GM sold 1.03 million vehicles in China last year, about 11 percent of its global total. The company is the biggest overseas automaker in the country in terms of overall sales, as it also makes vans. Total nine-month sales at its Chinese ventures rose 9.3 percent to 785,144, according to Bloomberg calculations.

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By George Gao From:Gasgoo.com

The Renault-Nissan alliance is pushing forward its giant project of electric vehicles and the Nissan electric car is expected to be launched in 2010. Nissan’s Chinese venture Dongfeng Nissan will also put its electric car on sale in China in 2012, said auto.163.com today.

Earlier this year Nissan’s joint venture with electronics maker NEC Corp announced the plan to invest 12 billion yen ($115 million) to start mass-producing lithium-ion batteries, a technology widely viewed as vital to electric, hybrid and fuel-cell vehicles. The push into advanced lithium-ion batteries comes as Japanese automakers invest in an array of new eco-friendly car technologies amid soaring prices at the pump.

Nissan has been slower than rivals Toyota Motor and Honda Motor to embrace petrol-electric hybrids, but it aims to become the industry leader in electric vehicles. “Nissan firmly believes that the ultimate solution for sustainable mobility lies in zero emission and the hybrid is only a transitional technology,” said an executive president of Nissan.

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By George Gao From:Gasgoo.com                          October 16, 2008

Shanghai, October 16 (Gasgoo.com) GM has announced that its all-new compact sedan Chevrolet Cruze that debuted at the 2008 Paris Motor Show will enter the China market for sale simultaneously with its European launch. Shanghai GM confirmed that Chevy Cruze will come to the Guangzhou auto show next month and go on sale in China as a locally made car early next year, said Chinese media today.

According to GM, the Chevy Cruze “was developed by a global design and engineering team and will be built in multiple locations around the world” and is underpinned by the GM Delta II platform. Cruze features a dramatic re-interpretation of the traditional sedan featuring Chevrolet’s new global design language that is becoming a signature on all new products carrying the gold bowtie.

The Chevrolet Cruze will have enhanced interior space and cargo capacity of five passengers. The Chevrolet Cruze comes with compact dimensions featuring bold styling cues, an arching roofline, sloping rear pillars that give it a lean profile and a neatly styled rear deck. The road test of Cruze was going smoothly in China while the sedan was shining at the Paris show.

In Europe, the Cruze will be fitted with 1.6-liter and 1.8-liter gasoline engines, and a 2.0-liter turbo-diesel engine. Transmission choices are a five-speed manual or six-speed automatic. The Cruze model to be made in China should be the 1.8-liter gasoline version, but the 1.6-liter edition is also possible, said Ding Lei, Shanghai GM President.

The Chevrolet Cruze, which is to rival the Ford Focus, will start to sell in Europe and China in March 2009, followed by other global markets. The arrival of the new compact vehicle spearheads a roll-out of new products for the Chevrolet brand, which is expected to grow in the Chinese and global A-Class segment.

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By George Gao  From:Gasgoo.com                                        October 16, 2008

Shanghai, October 16 (Gasgoo.com) A top executive of Dongfeng Honda said that the joint venture has raised its sales target for 2008 from 150,000 units to 160,000 units or more, based on the growing sales of its two models: the CR-V SUV and the Civic sedan, said xinhuanet.com today. The company has decided to develop a new hatchback model for its market growth.

Amid the downturn in the auto market and target-slashing by many carmakers in China, Dongfeng Honda is the first car company that has announced its plan to raise this year’s sales goal. The reason for this dramatically ambitious move lies in the good sales of its CR-V and Civic models. Since the Toyota Camry and Honda Accord were marked down by Guangzhou Toyota and Guangzhou Honda, the CR-V SUV has been the only model that has its priced raised in the market.

Dongfeng Honda has conducted its “hungry marketing” strategy, with its output and supply unable to meet the market demand. “The inventory of Dongfeng Honda is smaller than the sales,” said the company’s executive, adding that the company has plans to develop and make its own-brand hatchback to meet the growing demand and cut the costs.

Because of the high costs, the company has given up the idea of introducing a Honda Civic hatchback, and instead it will develop an own-brand hatchback model on the existing Civic sedan platform of the venture. Another motivation is that a self-developed hatchback, if lower-priced for the customers, will achieve better sales. The lower price is possible if the design and manufacturing costs are not high.

Currently, Dongfeng Honda only makes two models, which are far from enough to boost its sales and growth. Therefore, one of the company’s top priorities is to develop one more model at reasonable costs. The two side of the joint venture have initially agreed on a possible model, which is likely to carry a badge like the Guangzhou Honda’s Linian, or use the Dongfeng label.

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Honda Motor Co said its two joint ventures in China sold 46,697 cars in September, up 3.5 pct year-on-year.

In the first nine months of 2008, car sales at the two joint ventures rose 19.7 pct year-on-year to 356,258 units, it said in a statement.

Guangzhou Honda Automobile Co Ltd, a 50-50 joint venture with Guangzhou Automobile Group, sold 32,289 vehicles in September, flat from a year earlier, while sales at the other joint venture, Dongfeng Honda Automobile Co Ltd, rose 12.7 pct from a year earlier to 14,408 units.

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