BEIJING - Capital Steel Co, Ltd. (Capital Steel) will participate in the establishment of Beijing Automobile Co., Ltd. (BAC) by investing all the equity shares it holds in Beijing Automobile Investment (BAI) plus some fund. The estimated holding is 18.31 percent, the second biggest among all shareholders, according to an announcement released by the company on August 20. 

BEIJING - Hyundai's debut of its new Verna subcompact sedan in Beijing, priced at about $10,900, is strong indication that the South Korean automaker's vehicle sales in China will outstrip those at its home market this year.

First Auto Works (FAW) is developing world class foundry technology that could give its commercial vehicles a fuel economy advantage in the future.

On August 8, the Development Research Center of the State Council (DRC) and Chongqing government co-hosted a signing ceremony for local joint venture projects. ZF Friedrichshafen AG (ZF) and Qijiang Gear Transmission Co., Ltd. (Qijiang Gear), which had been under cooperation talks for over 15 years, signed a letter of intent during the event, to form a commercial vehicle transmission joint venture. Klaus Billetter, vice president of ZF Investment (China), and Xie Huajun, chairman of Chongqing Machinery & Electronics Holding Group, Qijiang Gear's mother company, presented the signing ceremony. The German and the Chinese are expected to ink the official joint venture contract by the end of the year.

TRAVERSE CITY, MI - China's surging auto market was the "elephant in the room" during the North American auto industry's annual management briefing seminars here the first week of August.

GUANGZHOU - On July 28, five provincial government departments of Guangdong, including the Environmental Protection Bureau, the Economic & Information Commission, Public Security Bureau, Administration of Quality and Technology Supervision, and Administration of Industry and Commerce, made a joint announcement that the Pearl-River Delta Area will officially implement State IV emission standards on all vehicles from September 1.

While small niche carmakers such as Subaru, Jaguar and Land Rover are busy planning for local production these days, existing joint ventures that assemble luxury brands such as Beijing-Benz and BMW-Brilliance are also mulling aggressive capacity expansions.

- by Wang Jitao In the Chinese auto industry's short history, overcapacity has been attacked as a problem perhaps more than any other issue. It has been routine for the auto community to join masses of commentators criticizing overcapacity. Suffice it to say, I was no exception, and I have always concluded my remarks with the same sentence: Let's wait and see; things will progress as I predicted.

- by Wang Qiufeng  On May 4, PSA signed a 50:50 JV agreement with Chang'an Automobile (Group) Corp. to produce light commercial vehicles and passenger cars.

The approval by the Anhui provincial authorities for the JAC-HKMC joint venture may be a signal that the famous "Yang Rong vs. the State" fiasco is coming to an end.

For the first time in the global automotive history, a young and small Chinese company succeeded in acquiring 100 percent ownership of a luxury marque 70 years older and with a larger annual sales volume.

China's state quality watchdog, the State Administration of Quality Supervision, Inspection and Quarantine (SAQSIQ), released a draft Provisions on the Administration of the Recall of Defective Automobile Products (Provisions) in early July for comments and suggestions.

If anybody said five or 10 years ago that Li Shufu, the outspoken owner of little known Geely, would become chairman of Volvo Car Corp., he must have been out of his mind.

- by Feng Jugao

Rough and bumpy road for low-speed vehicles

The low-speed vehicle (LSV) used to be called the farm vehicle.

BEIJING ¨C China?ˉs farm vehicle market continued its stable growth in the first half of this year. Production and sales reached 1,088,992 and 1,086,247 units respectively, an average of 8.1 percent increase compared to last year, according to the latest statistics from the Farm Vehicle Sub-Association of the China Agricultural Machinery Association.

Continued decline

China’s farm vehicle sector has experienced another year of continued decline. Output and sales were 1,899,834 and 1,895,116 units, respectively, in 2005, down 9.15 and 9.25 percent compared with those of 2004, according to the latest statistics from the Farm Vehicle Association. However, this rate fell back to single digits, compared with a more than 20 percent decline in 2004.

China’s farm vehicle manufacturers are moving into light and medium truck production, according to the latest statistics published by CBU. While most medium truck manufacturers have registered a decline in output in the first nine months of last year, one manufacturer, Wangpai Automobile, registered a 77.03 percent increase year on year in their medium truck output. Wangpai is one of the country’s leading farm truck manufacturers. Another farm truck maker, Yinhe Automobile, is now the seventh largest medium truck manufacturer in

On August 8, the Development Research Center of the State Council (DRC) and Chongqing government co-hosted a signing ceremony for local joint venture projects. ZF Friedrichshafen AG (ZF) and Qijiang Gear Transmission Co., Ltd. (Qijiang Gear), which had been under cooperation talks for over 15 years, signed a letter of intent during the event, to form a commercial vehicle transmission joint venture. Klaus Billetter, vice president of ZF Investment (China), and Xie Huajun, chairman of Chongqing Machinery & Electronics Holding Group, Qijiang Gear's mother company, presented the signing ceremony. The German and the Chinese are expected to ink the official joint venture contract by the end of the year.

- by Pei Dajun In a marriage of convenience, partners can hardly achieve synergy if they do not work for a common goal.

PARIS - Leading suppliers of diesel technology in Europe expect Chinese demand for diesels to increase substantially during the next decade.

BEIJING - Co-hosted by the America's Center for Foreign Investment (ACFI) and Hybrid Kinetic Motors Corp. (HKMC), a media and investor briefing event was held on June 9 at the platinum 5-star Legendale Hotel in downtown Beijing.

According to the latest statistics from the customs, China's import of large-displacement automobiles, especially those powered by 4.0 liter and larger engines, declined dramatically in the past couple of months.

The feature story by Li Chao, noted automotive writer, is interesting reading in understanding the strategy of BYD Automobile.

When China hosted the 29th International Summer Olympics Games last month, Beijing tried its best in presenting to the world a friendly, clean, efficient and green metropolis to ensure a most successful event in the history of the Olympics.

Although total sales of automobiles in the first half of 2008 grew by 18.5 percent compared to the same period of last year, the growth rate was about 5 percentage points lower than last year.

First Auto Works (FAW) is developing world class foundry technology that could give its commercial vehicles a fuel economy advantage in the future.

CHANGSHA, Hunan - Changsha Huantong Automotive Co., Ltd. (Huantong Auto), a subsidiary of Shaanxi Automotive Group (Shaanxi Auto), recently announced its development target for the next five years. On August 6, Sheng Lixing, the company's president, revealed that Huangtong Auto has made plans to produce 50,000 trucks a year by 2015 with annual sales revenue at over ¥12 billion ($1.76 billion).

Shaanxi Fast Gear (Fast Gear), controlled by Weichai Power, has been a dominant leader in the domestic heavy-duty truck transmission market since the company introduced technologies from Eaton back in the 1980s. In recent years, the company has maintained a solid market share at over 80 percent in the heavy-duty truck transmission field. Domestic truck builders regarded Fast Gear transmissions as a standard component, not only because of its reliability and performance, but also due to the truckmakers' lack of transmission making technologies or capacity. However, several leading truck manufacturers have recently launched their in-house transmission projects, in order to achieve a high self-supply rate.

Heavy-duty trucks with 11-liter diesel engines (ranging from 10.5 to 12 liters are regarded as "golden displacement") have beckoned a significant rise on market demand since last October, according to a market insider. Previously, sales of those models were constrained by factors including vehicle price, transport distance in the domestic logistics market, transport volume and efficiency. However, the first half of 2010 has seen a rapid rise on sales of 11-liter trucks.

HANGHZOU, Zhejiang - Yulon Motor, Taiwan's largest automaker by revenue, said on August 2 it had received approval from the Chinese government to form a joint venture with Dongfeng Automobile Co., Ltd.

CHONGQING - ZF Friedrichshafen AG (ZF) signed a contract with Qijiang Gear Transmission Co., Ltd (Qijiang Gear) recently to build a commercial vehicle transmission plant in Chongqing, according to media reports.

Since revealing plans for local production in China, Subaru has been pursued by several Chinese automakers for JV opportunities, including JMC, FAW and BAIC.

GUANGZHOU - Accumulative sales of GAC-Honda Automobile Co., Ltd. totaled 181,546 units in the January-June period of 2010, up 11.

Caterpillar Inc. and Navistar International Corp.

- by Zhang Liyue    Hu Su, vice president of GAC-Toyota Motor Co., Ltd.

- by He Lun On June 9, FAW-Volkswagen's Guangzhou plant project was signed in Foshan.

BYD's March sales reached a historic high of 68,129 units, placing it behind Shanghai-Volkswagen and Shanghai-GM as China's No. 3 carmaker, according to sales data provided by the China's National Passenger Vehicle Association. Sales of BYD's three car models, namely the F3, F0 and G3, all exceeded 10,000 units in that month.

JIUQUAN, Gansu - Liu Jian, 45, general manager of Shanghai-Volkswagen Automobile Co., Ltd. (Shanghai-Volkswagen) and Zeng Jialin, PR director of Shanghai-Volkswagen, and two others were killed in a car accident in Jiuquan, Gansu Province on July 17, according to a statement by Shanghai-Volkswagen.

Beiqi-Foton (Foton) and Daimler AG (Daimler) are likely to get married during German Chancellor Angela Merkel's visit to Beijing from July 15 to 18, according to a report in 21st Century Business Herald citing 

DETROIT - General Motors Co. announced on February 24 that its sale of the Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. (Tengzhong) failed as the Chinese "was unable to complete the acquisition" before the agreed deadline. As a result, GM will begin the orderly wind-down of the Hummer operations.

A top government think tank has forecasted that China's economic growth will hit at least 10 percent in 2010, after the world's major developing country has regained momentum to the fast-track growth.

China eyes the No. 1 throne of new energy vehicle market volume by 2020 with plans to invest over ¥100 billion ($14.

Leading commercial vehicle builders such as Shaanxi Heavy-Duty, Sinotruk and Jianghuai Automobile have recently expressed confusion over the exact date on which State IV emission standards for commercial vehicles will go into effect. When interviewed, an employee from the quality control department of Hualing Auto noted that the automaker has no idea but to guess when State III vehicles would be prohibited from the market in China.

BEIJING - The Beijing Minicipal Government recently issued the electric vehicle charging station standards to provide technical guidelines for the four charging stations that would be later built in Beijing's Hangtianqiao, Majialou, Xiaoying and Sihui, according media reports.

On May 31, the Guangdong Environmental Protection Bureau announced the implementation of State IV emission standards in the Pearl River Delta (PRD) area, beginning June 1. The implementation, effective both for passenger and commercial vehicles, requires all new vehicles sold within the region to comply with State IV emission standards (equivalent to Euro IV standards) or face ineligibility for a license plate. The implementation of the new standards will not affect existing vehicle owners; only vehicles purchased on or after June 1 are subject to the heightened standards. The Bureau is consulting with industry experts and researchers to ensure a smooth transition to the new standards.

- by Zhao Yi and Zheng Shuang   Zongshen Industrial Group (Zongshen) based in Chongqing, southwest China, is one of the biggest motorcycle makers in China. Zongshen has recently partnered with PEM Power Systems Inc. of Canada and Piaggio of Italy to produce respectively pure electric motorcycles and hybrid motorcycles.

CHONGQING - China South Industry Group Corp. (CSIG) is planning to merge its three motorcycle companies, China Jialing Group (Jialing), Jianshe Motorcycle Co., Ltd. (Jianshe) and Qingqi Motorcycle Co., Ltd. (Qingqi), into a new mega motorcycle group in Chongqing, according to a recently report in 

"Two automakers, which have had different histories and traveled along different paths, have had great synergy. This is the result of a cultural union," says Kimiyasu Nakamura, president of Dongfeng Motor Co., Ltd. (DFL), on the six years of joint venturing between Nissan Motor Co. and Dongfeng Motor Corp. (Dongfeng).

- by Guo Bo

Zuo Yan'an joined the Jianghuai Automobile Works as a technician 30 years ago. It has since morphed into Jianghuai Automobile Co. or JAC, and Zuo at 60 has been company chairman for the past two decades.

- by Wen Jing

In the government's Automotive Industry Readjustment and Revitalization Plan, Chang'an Automobile Group Corp. is for the first time rated as one of the four top-tier automakers in the country. But Xu Liuping, its chairman, is sober-minded enough to say that this is "just the beginning of a new long march."

French automaker Renault, Japan's Nissan Motor and Renault Samsung Motors (RSM) plan on acquiring the ailing South Korean Ssangyong Motor, AFP reported on June 7, citing a spokeswoman for the French auto group.

MOBILE, Alabama - Hybrid Kinetic Group Ltd.

MICHIGAN, U.S. - "Technology is critical to surviving and growing in the fluid systems industry and suppliers need to have focus, insight and creativity to meet increasing customer demands," said Bill Kozyra, chairman, CEO and president of TI Automotive, at the recent ITB Automotive Fuel Systems Conference held in early March in Michigan.

DETROIT - Chrysler Group CEO Sergio Marchionne is restructuring its Fiat partner to strengthen the positions of both in the North American and China markets.

According to China Association of Automobile Manufacturers (CAAM), China produced and sold 2,243,500 and 2,295,300 units of commercial vehicles in the first half of 2010, up 42 and 41 percent respectively from the same period of 2009. Sales increased 59 percent in the first quarter, and rose 37 percent in the second quarter.

The suppliers getting most of the attention in discussions about new energy cars are those making the batteries, electric motors and control systems, but traditional suppliers are investing in research that will be necessary.

The aftermarket in China is fragmented and small, but it is growing. Delphi estimates that there are 600,000 warehouses and distributors in China, and there are hundreds of models of cars on the road.

"This is the most complex time in the history of the world automobile industry that requires more important than ever strategic analysis of market dynamics and government action." - Michael Hanley, Global Auto Industry Leader, Ernst &

BEIJING -- China sold 1.2155 million vehicles in August, up 55.72 percent year-on-year and 15.09 over July, according to the latest data released by the China Automotive Technology & Research Center (CATARC) on September 1.

China's sales revenue of automotive parts and components including both OE and aftermarket in the first five months reached ¥639.12 billion ($93.99 billion), a 60.37 percent surge year-on-year, according to the latest statistics released by China Association of Automobile Manufacturers (CAAM).

BEIJING - China's auto export volume rose 75 percent in the first seven months of 2010 to almost 290,000 units, as domestic sales surpassed the 10 million mark, according to data released by China Association of Automobile Manufacturers (CAAM) on Monday.

BEIJING--The inventory cycle for passenger vehicle segment increased from 57 days to 60 days in July, said Zhao Hang, director of China Automoble Technolgy and Research Center at its mothly statistic release.