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CBU-AutoEnews
 
Vol. 4, No. 41,
December 18, 2003
 
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(See attached list of analytical and research articles featured in our eight-page weekly newsletter)
 
NEWS OF THE WEEK
China produced 4 million and 3.9 million units of automobiles in the first 11 months of the year, up 35.04 and 31.25 percent, respectively, from the same period a year ago, according to the latest statistics released by China Association of Automotive Manufacturers (CAAM). Output and sales of cars (excluding sub-category cars) took up nearly half of the total, reaching 1.8 and 1.73 million units, respectively, up by 83.74 and 69.95 percent.
 
OEM NEWS
Tianjin-FAW-Toyota will begin production of the Corolla next March, along the same production lines as the Vios, according to a report in Beijing Evening News citing sources from Toyota China.

Shanghai-Volkswagen and SAIC-Volkswagen Automobile Sales Co., Ltd. may soon merge, according to a report in Jiefang Daily.

The Southeast (Fujian) Automotive Industry Corp. is on pace to realize sales volume of 85,000 units and sales revenue of ¥8.4 billion in 2003, up 80 and 84 percent respectively from those of last year, according to sources from the company.

The 20,000th vehicle made by FAW Harbin Light Vehicle Factory in 2003 rolled off the assembly line on December 8, according to a FAW news release.

 
PRICE REDUCTION NEWS
The Jiangling Landwind Automobile Co., Ltd. recently reduced prices of its full line of Landwind SUV by ¥8,600 to ¥14,200, in observance of the one-year anniversary of the model launch, according to a company announcement.

Zhengzhou Nissan Automobile Co., Ltd. recently sent a notice to its dealers, asking them to promise to consumers that the price of its Paladin SUV will not be reduced before March 31 of next year, according to a report in West Central China Daily.

Jinbei GM Automobile Co., Ltd. recently announced steep price reductions on various versions of its Blazer SUV, according to a report on chinacars.com. The price of the 2.4 and 3.0-liter versions now range from ¥189,800 to ¥259,800.

 
OEM NEWS
The Donfeng Automobile Co., Ltd., the public listed subsidiary under the Dongfeng Motor Corp., Dongfeng Motor Co., Ltd., Nissan Motor and the recently established Nissan Light Truck Co. Ltd., signed an agreement on November 25 in Xiangfan of Hubei Province to jointly develop new generations of light trucks for markets in and outside China, according to a report on qiche.com.cn.

The Shanghai Automotive Industry (Group) Corp. (SAIC) and Shanghai Lingang Economic Development (Group) Corp. signed a letter of intent on November 30 to strategically cooperate on a set up of a new production base for SAIC, according to a report in Shanghai Morning Post.

 
IMPORT & EXPORT
DaimlerChrysler has signed a letter of intent with the Chinese government to export 4,500 units of vehicles to China, according to a report in Beijing Evening News.

The Waigaoqiao Automobile Exchange Mart in Shanghai sold 11,330 units of imported automobiles worth ¥6.557 billion in the first eleven months of the year, including a record of 1,667 units valued at ¥880 million in November, according to statistics released by the mart.

 
NEWS IN BRIEF
The brand values of First Auto, Jiefang and Red Flag, the three core brands under the FAW Group, reached ¥26.763 billion, ¥10.762 billion and ¥5.248 billion, respectively, according to the results of the Most Valuable Brands in China in 2003 released by the Beijing Famous Brand Evaluation Co., Ltd.

Shanghai-Volkswagen's Polo garnered the top spot with a score of 78.2 in the 2003 China Car Consumer Satisfaction Index Survey, according to results recently released by China Association of Quality (CAQ). The average consumer satisfaction index was 71.4, up 0.3 point from the level of a year ago.

Total tire production in China this year is expected to reach more than 143 million pieces, up about 10 percent from the level last year, according to China Rubber Industry Association Tire Branch Association.

Approximately 230,000 households in Shanghai plan to buy new cars priced between ¥100,000 and ¥200,000 in the next three years, according to a recent survey conducted by the city's Municipal Economic Survey Team.

The State Development and Reform Commission (SDRC) on November 10 released a list of 90 domestic automakers that have acquired World Manufacturer Identifier (WMI) codes.

 
AFTERMARKET NEWS
The Banque PSA Finance (BPSAF), a subsidiary under France's PSA Peugeot Citro?n, received approval from China Banking Regulatory Commission (CBRC) on Nov 24 to open a representative office in Beijing, according to a report on sina.com.cn.

The Beijing Porsche Center, the first 3S Porsche dealership in China, opened for business in Beijing on December 9, according to a report on people.com.cn.

Honeywell of the US and Beijing NAS Automotive Technology Development Co., Ltd. jointly announced on December 10 that Honeywell's Consumer Automotive Product Division will setup franchise automotive care service shops in China via the NAS (North American Shine) brand.

 
UPCOMING EVENTS
March 25-27, 2004: China Automotive Sourcing Expo & Congress, Shanghai Exhibition Center
May 18-25, 2004: Beijing International Motor Show, Jingkai International Exhibition Center, Beijing
June 7-8, 2004: CBU's 9th International Conference/Presidents Forum, China World Hotel, Beijing
June 9-16, 2004: Auto China 2004. The 8th Beijing International Automobile Exhibition, Beijing International     Exhibition Center
 
NEW BOOKS/DOCUMENTS FROM CBU

China's Automobile Industry Annual Report and Long-Term Forecast 2003 (available now)
China's Automotive Policies, Laws and Regulations 2003 (available now)
Directory of Chinese Vehicle, Motorcycle, Component and Parts Manufacturers 2003
    (available now, with CD)
Methods of Administration on the Market Entry of Motorcycle Production (available now)
Methods of Administration over Automobile Financing Institutions, October 8, 2002 (available now)
Administrative Regulations on the Recall of Defective Automobiles (Draft), October 2002 (available now)
China's Automobile Industry Annual Report and Long-Term Forecast 2002 (available now)
Directory of Chinese Vehicle, Motorcycle, Component and Parts Manufacturers 2002 (available now, with CD)
Types of Motor Vehicles and Trailers -- Terms and Definitions (GB/T3730.1-2001) (available now)
Classification of Motor Vehicles and Trailers (GB/T5089-2001) (available now)
China's 10th Five-Year Plan for the Development of the Automotive Industry (available now)
China's 10th Five-Year Plan for Saving and Comprehensive Utilization of Resources (available now)
China's 10th Five-Year Plan for Saving and Substituting Fuel Oil (available now)
China's 10th Five-Year Plan for the Development of New and Renewable Energy Sources (available now)
China's Automobile Industry Annual Report 2001 (available now)
China's Automotive Policies, Laws and Regulations 2000 (available now)
Global Sourcing and China's Auto Industry, CBU 2001 international conference documents (available now)
China's Automobile Industry in the New Millennium, CBU 2002 Int'l conference documents (available now)
China's Post-WTO Automobile Sales, Distribution and the Aftermarket, CBU 2003 Int'l conference documents     (available now)

Visit http://www.cbuauto.com/newprod/newprod.htm

ANALYTICAL FEATURES IN CBU-Auto Vol. 4 (2003)

Annual Roundup: 2002 - The Beginning of a New Chapter in China's Automobile Industry (I), No. 1
Beijing-Hyundai Automobile: Challenges of A Latecomer, No. 2
Annual Roundup: China's Automobile Market in 2002 -- Sector and Statistics Analysis (II), No. 3
Mazda and FAW Sedan: Cooperation for Quick Profit, -- News Analysis, No. 4
Excessive Profit and Distorted Price Structure Detrimental to the Long-Term Growth of China's Auto Industry -- Zhang     Guobao, Deputy Director, State Development Planning Commission, No. 4
China's Trade Disputes in 2003 May Focus on Automobiles -- Lu Fuyuan, Vice Minister, Ministry of Foreign Trade and     Economic Cooperation, No. 4
Annual Roundup: China's Automobile Market in 2002 -- Sector and Statistics Analysis (III), No. 5
The Automobile Industry Should Contribute to China's Employment -- Ou Xinqin, Deputy Director, State Economic and     Trade Commission, No. 5
Made in China and Sold to the World -- Chen Qingtai, Deputy Director, State Council Development and Research Center,     No. 5
Annual Roundup: China's Automobile Market in 2002 - Sector and Statistics Analysis (IV), No. 6
Interview with Miao Wei, Director of China Association of Automotive Manufacturers, No. 6
Annual Roundup: China's Automobile Market in 2002 - Sector and Statistics Analysis (V), No. 7
China's Automotive Import & Export Market in 2002 and 2003, No. 8
New Flexible Insurance Rates Promise Better Service to Consumers, No. 9
Executive Views (I): What Contributed to the "Gushing" Growth of China's Automobile Market in 2002? No. 10
Executive Views (II): Will China's Automobile Market Maintain Last Year's Explosive Growth in 2003? No. 11
Executive Views (II): How Long Will China Be Able to Maintain the Current High Profit Returns? No. 11
Executive Views (III): Will the Elimination of Import Quota Create an Impact on Domestic Makes? No. 12
Executive Views (III): What Will Local Private Capital Bring to China's Auto Industry? No. 12
Executive Views (IV): Will China Become a "Global Automobile Factory? No. 13
Executive Views (IV): A New Round of Automotive Investment in China: Good or Bad? No. 13
Executive Views (IV): "Building a Well-Off Society" - Challenges & Opportunities for the Auto Sector,No. 13
Executive Views (V): How Will China Realize the Capability of Independent Product Development? No. 14
Executive Views (V): The Rapid Growth of an Automobile Market vs. Urban Development, No. 14
China's Passenger Vehicle Market in the First Quarter of 2003, No. 15
China's Automobile Market in the First Quarter of 2003, No. 16
China's Automotive Parts Supply in the OE and the Aftermarket, No. 17
Disorderly Lubricant Market in Need of Overhaul, No. 17
Automobile Assembly: A Lucrative Business in China, No. 18
Interview with Mei Wei Cheng, Ford China Chairman & CEO, No. 19
The Untimely Birth of the Fiesta and the Unclear Position of Ford in China, No. 19
Interview with Ron Tyack, President of Chang'san-Ford Automobile Co., Ltd., No. 19
China National Heavy Truck and Volvo Truck: Marriage AfterNine Years of Courtship, No. 20
China Farm Vehicle Market in 2002 and 2003, No. 21
China Motorcycle Market in 2002 and 2003, No. 22
Pay Attention to the Rural Market in Drafting the Auto Industry Policy, No. 22
Zhongda to Build China's Largest Luxury Coach Production Base, No. 23
Toyota in Talks with Guangzhou for Possible Joint Venture, No. 23
Jilin Tongtian to Launch the Glow Minicar, No. 23
Qirui, SAIC-Qirui, Qirui? Chery vs. Chevy? No. 24
Volkswagen to Expand Capacity to 1.36 Million by 2007, No. 24
Automotive Stocks, the Biggest Winner in the First Half of 2003, No. 24
Adding One Million Units in a Single Year? No. 25
Should China Develop Private Automobiles? (Part I), No. 26
Should China Develop Private Automobiles? (Part II), No. 27
Interview with Chen Hong, President, Shanghai-GM, No. 28
Face to Face with J. M. Noh, President, Beijing-Hyundai, No. 29
Will DaimlerChrysler Catch Up in China? No. 29
Face to Face with Zuo Yan'an, Chairman & President, Jianghuai Automobile Group, No. 31
China's Big MPV and Its Expanding Market Share, No. 32
Regulations on Automobile Financing Corporations Released, No. 33
China Banking Regulatory Commission Press Release, No. 33
Ford to Invest $1.5 Billion in China, No. 34
Face to Face with Jinya Chen, No. 34
Delphi CEO on China, No. 34
Face to Face with Bernd Leissner, No. 35
Face to Face with Chung Dal OK, No. 36
Face to Face with Thierry Morin, CEO, Valeo Group
,No. 37
Auto Output to Reach 4.25 Million, No. 37
Face to Face with Yin Jiaxu, No. 38
Face to Face with Cai Dong, President, China National Heavy-Duty Truck Group Corp. No. 40
China's Fuel Market: Current Status and Future Trend, No. 41

 

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