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20090427-SUPP--0001-RG1-CCI-AN_-- 4/24/2009 10:51 AM Page 1

SUPPLEMENT T O APRIL 27, 2009

© 2009 Crain Communications. All rights reserved. autonews.com

SHENG LI/REUTERS 2009 Guide to ’s Auto Market

Global automakers’ joint ventures • Domestic Chinese automakers Vehicle production and sales data • Map of production facilities in China an-supplement.qxd 4/24/2009 10:48 AM Page 1

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ASSURANCE / TAX / ADVISORY 20090427-SUPP--0002-RG1-CCI-AN_-- 4/24/2009 10:53 AM Page 1

2 2009 GUIDE TO CHINA’S AUTO MARKET

As once-hot market cools off, Contents government wants fuel economy

hina’s economy is slowing down, and so is 4 the auto industry. To put growth on a more 2008 sales sustainable path, the Cgovernment is counting on policies to encourage small 6 and cut gasoline consumption. Last year China’s gross domestic Global product slowed to 6.8 percent automakers/ growth in the fourth quarter from joint ventures 10.6 percent in the first quarter. Meanwhile, sales of locally produced vehicles grew 6.9 percent in 2008 to 6.5 million 18 units, according to JATO Map of Dynamics. Sales of passenger vehicles surged more than 20 production percent in 2006 and 2007. facilities The government wants to encourage sales and cut the national THE F6DM IS ONE OF FIVE NEW BYD MODELS THIS YEAR — AND IT’S A HYBRID. THAT in China SHOULD INTEREST CHINA’S GOVERNMENT, WHICH WANTS TO CUT THE NATION’S FUEL BILL. fuel bill at the same time. China buys half its oil overseas. But until late last year, the government subsidized oil Group Corp. and Automotive CHINA’S 10 20 prices to keep them below Industry Corp., sold nearly 1 million China’s top-selling passenger international levels. That fueled cars under the , and Domestic vehicles in 2008 automakers exuberant sales of gasoline-guzzling Skoda last year. vehicles such as SUVs. But the Japanese are catching up. Model Sales But with the global economy in sold 543,106 locally produced 1. Wuling Light/ recession, crude oil prices tumbled. vehicles in China last year, up 19.3 That gave the government the percent over 2007. Meanwhile, Sunshine/City Breeze 545,239 opportunity to raise the fuel tax. On Jan. saw its sales in China of locally 2. Changan 1, the tax on a liter of gasoline rose to produced vehicles increase 11.3 Green 222,366 the equivalent of 15 cents from 3 cents. percent, and saw an increase 3. 203,734 At the same time, the government of 28.2 percent. abolished most annual fees charged U.S. automakers, suffering from a 4. Volkswagen 202,303 vehicle owners, such as the $210 shortage of new or redesigned models, 5. Excelle 175,470 annual fee for road maintenance. slipped last year. ’ 6. 170,304 To boost sales of fuel-efficient sales of locally produced vehicles vehicles, the government cut the dropped 8.1 percent, and Ford Motor 7. 165,270 purchase tax for vehicles with Co.’s sales of locally produced vehicles 8. 152,834 displacements of 1.6 liters or below. fell 10.4 percent in 2008. 9. 137,193 In the works are incentives to lacks a joint-venture stimulate used- sales and partner in China to assemble vehicles. 10. BYD F3 136,782 encourage inefficient state-owned It mainly imports slow-selling Source: JATO Dynamics Data in this publication were automakers to merge with healthy to a network of about 130 dealers. provided by JATO Dynamics Inc., North American ones. Meanwhile, the competitive Chinese brands still dominate the Operations, 2851 High landscape in China grow more market for inexpensive cars. Domestic Meadow Circle, Suite 220, Auburn Hills, MI 48326, USA. intense this year as Japanese brands are particularly strong in the www.jato.com/usa. automakers build momentum and economically underdeveloped inland Note: Sales data reflect domestic automakers crank up their of the country. vehicles produced in China own brands. But with international brands such as unless noted. With a market share of locally and making inroads Cover photo: Employees work produced vehicles of 15.1 percent, in China’s interior, the domestics on the production line at Volkswagen is still the clear leader. Its increasingly will be challenged to Brilliance Automotive’s factory in , joint ventures with China’s two largest defend the low end of the market. province last month. state-owned automakers, China FAW — Yang Jian

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • J.D. Power and Associates • Automotive Resources Asia an-supplement.qxd 4/23/2009 3:34 PM Page 1

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4 SALES

Volkswagen AG remained the top-selling automaker in China in 2008. Gaining fast are three top Japanese automakers: Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. These sales figures include only locally produced passenger vehicles — cars, SUVs and multipurpose vehicles. They do not include commercial vehicles and imported vehicles.

CHINA PASSENGER VEHICLE SALES 2008 2007 % chng. 2008 2007 % chng. Suwei 12,063 10,163 18.7 Besturn 47,750 23,279 105.1 BAW 12,063 10,163 18.7 C1 – 31,686 – 3 series 13,462 13,047 3.2 970 1,972 –50.8 5 series 21,702 19,202 13.0 Freewind 929 2,066 –55.0 BMW 35,164 32,249 9.0 N3 120,970 132,544 –8.7 1,346 – – Redflag 619 3,006 –79.4 Grace 12,079 11,900 1.5 Redflag Hq3 1,548 – – Grandeur 17,226 32,360 –46.8 Vela 4,670 14,073 –66.8 Splendor 73,086 82,311 –11.2 Vita 49,914 – – BRILLIANCE 103,737 126,571 –18.0 Vizi 1,084 1,977 –45.2 F0 23,677 – – FAW 228,454 210,603 8.5 F3 136,782 93,033 47.0 Palio – 9,605 – F3-R – 5,443 – Perla – 3,086 – F6 10,250 – – Siena – 2,834 – Flyer 173 1,650 –89.5 – 15,525 – BYD AUTO 170,882 100,126 70.7 Focus 112,552 124,991 –10.0 Benben/Benni 39,036 47,523 –17.9 Mondeo 39,622 44,375 –10.7 CM8 2,589 8,328 –68.9 S-Max 3,918 4,719 –17.0 Green Star 222,366 249,567 –10.9 Total Ford 156,092 174,085 –10.3 Joice 509 558 –8.8 S40 5,666 6,391 –11.3 Z-Shine 1,153 – – Total 5,666 6,391 –11.3 Total Chana 265,653 305,976 –13.2 FORD MOTOR CO. 161,758 180,476 –10.4 Jiangling Baowei 2,765 4,817 –42.6 MP-X 2,549 474 437.8 741 2,610 –71.6 View Surf 921 1,243 –25.9 Fenghua 3,265 882 270.2 FOTON 3,470 1,717 102.1 X6/X9 4,095 8,011 –48.9 6500 88 294 –70.1 Total 8,101 11,503 –29.6 FUQI 88 294 –70.1 CHANGAN GROUP 276,519 322,296 –14.2 Free Cruise 81,076 79,935 1.4 Kylin 826 – – Haoqing – 5,404 – Liebao 26,060 25,758 1.2 King Kong 62,916 45,438 38.5 CHANGFENG 26,886 25,758 4.4 Meirenbao 268 1,561 –82.8 Ideal 8,294 7,295 13.7 Panda 1,769 – – 8,294 7,295 13.7 Ulio 8,570 33,906 –74.7 A1 28,482 – – Vision 30,195 17,923 68.5 A3 6,965 – – Total 184,794 184,167 0.3 A5 59,582 67,385 –11.6 Haifeng 4,254 2,423 75.6 Cowin 52,027 96,014 –45.8 Hisoon 5,758 4,802 19.9 Eastar 6,127 16,515 –62.9 Marindo 26,345 29,440 –10.5 Eastar Cross 9,522 – – Total 36,357 36,665 –0.8 1,907 1,818 4.9 GEELY GROUP 221,151 220,832 0.1 QQ 133,386 139,991 –4.7 Excelle 175,470 195,731 –10.4 R2 7,940 582 1264.3 GL8 36,286 42,516 –14.7 Tiggo 50,155 50,102 0.1 LaCrosse 52,746 71,512 –26.2 V5 – 6,854 – Park Avenue 4,824 5,698 –15.3 356,093 379,261 –6.1 Regal 9,912 15,255 –35.0 300 1,429 7,743 –81.5 Royaum – 14 – Grand Voyager 2,187 1,216 79.9 Total Buick 279,238 330,726 –15.6 Sebring 6,808 – – SLS 2,633 4,384 –39.9 Total Chrysler 10,424 8,959 16.4 Total 2,633 4,384 –39.9 Caravan 776 – – Aveo 119,664 98,451 21.5 Total 776 – – Epica 43,173 41,718 3.5 Grand Cherokee – 318 – Sail 40 20,471 –99.8 Total – 318 – Spark 40,797 32,510 25.5 CHRYSLER 11,200 9,277 20.7 Total Chevrolet 203,674 193,150 5.4 Freeca 1,075 1,821 –41.0 GM 485,545 528,260 –8.1 Lioncel 10,097 4,433 127.8 Cowry 1,114 – – Veryca 677 1,475 –54.1 Florid 2,226 – – Total 11,849 7,729 53.3 Hover 56,669 57,752 –1.9 CMC SOUEAST 11,849 7,729 53.3 Pegasus – 88 – C class 7,321 – – Peri 7,478 – – E class 7,035 6,882 2.2 Safe 3,876 3,511 10.4 Total Mercedes-Benz 14,356 6,882 108.6 Sing 1,667 3,381 –50.7 DAIMLER 14,356 6,882 108.6 GREAT WALL 73,030 64,732 12.8 Future 20,010 18,397 8.8 Yunque – 8 – Joyear 44 281 –84.3 GUIHANG – 8 – Oting 1,875 2,721 –31.1 Family 85,427 113,667 –24.8 Yumsun 1,682 797 111.0 Haima3 7,330 9,243 –20.7 DONGFENG 23,611 22,196 6.4 Premacy 3,342 8,078 –58.6 RCR 107 – – HAIMA 96,099 130,988 –26.6 Total Lotus 107 – – EUROPESTAR 107 – – continued on Page 5

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • JATO Dynamics 20090427-SUPP--0005-RG1-CCI-AN_-- 4/24/2009 10:55 AM Page 1

SALES 5

CHINA PASSENGER VEHICLE SALES continued from Page 4 2008 2007 % chng. 2008 2007 % chng. Lobo 30,224 31,778 –4.9 206 14,593 28,558 –48.9 Saibao 6,475 5,748 12.6 207 1,406 – – Saima 6,812 – – 307 60,376 63,661 –5.2 Sigma – 7,273 – Total 76,375 92,219 –17.2 Zhongyi/Minyi 105,162 122,366 –14.1 PSA 178,308 207,255 –14.0 Total 148,673 167,165 –11.1 3 4,715 – – AIRCRAFT INDUSTRY 148,673 167,165 –11.1 7 4,357 3,131 39.2 Accord 170,304 118,024 44.3 TF 129 – – City 56,938 68,128 –16.4 Total MG 9,201 3,131 193.9 Civic 83,413 81,339 2.5 550 12,399 – – CR-V 80,622 45,707 76.4 750 13,608 16,549 –17.8 Fit 49,883 63,320 –21.2 Total 26,007 16,549 57.2 Odyssey 28,873 45,827 –37.0 SAIC 35,208 19,680 78.9 HONDA 470,033 422,345 11.3 Aurora 4,325 5,812 –25.6 Accent 24,628 26,665 –7.6 Challenger 556 1,055 –47.3 Elantra 203,734 120,333 69.3 Other – 241 – NF 7,205 13,882 –48.1 SHUGUANG AUTO 4,881 7,108 –31.3 Santa Fe 12,404 11,430 8.5 Alto 21,618 31,930 –32.3 Sonata 17,410 25,528 –31.8 Gazelle 47,291 39,337 20.2 Sonata NF 319 – – Liana 3,835 9,468 –59.5 Terracan 1,247 1,422 –12.3 North Star 50,895 43,151 17.9 Tucson 41,208 44,729 –7.9 Swift 16,328 15,584 4.8 Total Hyundai 308,155 243,989 26.3 SX4 38,886 21,379 81.9 Accent – 5,309 – SUZUKI 178,853 160,849 11.2 Carnival 1,155 2,416 –52.2 Terios – 14 – Cerato 74,352 62,786 18.4 Xenia 5,057 2,126 137.9 Optima 4,103 6,700 –38.8 Total 5,057 2,140 136.3 Rio 29,898 18,512 61.5 Camry 152,834 170,382 –10.3 Sportage 32,500 5,713 468.9 Corolla 165,270 129,859 27.3 Total 142,008 101,436 40.0 Corolla Ex 52,249 – – HYUNDAI GROUP 450,163 345,425 30.3 Crown 45,427 53,111 –14.5 Rodeo 671 1,257 –46.6 Land Cruiser 100 4,734 2,512 88.5 671 1,257 –46.6 Land Cruiser Prado 13,648 11,028 23.8 Binyue 8,291 460 1702.4 Prius 899 414 117.1 Refine 36,304 40,049 –9.4 Reiz 46,953 46,299 1.4 Rein 10,250 7,605 34.8 Vios 36,865 39,395 –6.4 Tongyue 3,392 – – Yaris 19,170 – – JAC 58,237 48,114 21.0 Total Toyota 538,049 453,000 18.8 Alto 13,099 5,443 140.7 TOYOTA 543,106 455,140 19.3 Spirit – 1 – A4 19,731 19,562 0.9 JIANGNAN 13,099 5,444 140.6 A6 81,051 72,635 11.6 Lifan 520 31,701 30,099 5.3 Total ,782 92,197 9.3 Lifan 620 1,411 – – Fabia 841 – – LIFAN AUTO 33,112 30,099 10.0 Octavia 59,499 30,902 92.5 13,692 1,528 796.1 Total Skoda 60,340 30,902 95.3 29,225 35,844 –18.5 Bora 59,211 58,613 1.0 69,794 53,994 29.3 112,711 91,366 23.4 Caddy 43 3,076 –98.6 Galant 4,234 9,792 –56.8 GOL – 8 – Lancer 15,479 24,665 –37.2 Golf 3,577 4,768 –25.0 Outlander – 4,741 – Jetta 202,303 182,886 10.6 Space Wagon 1,209 2,277 –46.9 Lavida 44,392 – – Zinger 248 – – Magotan 52,505 27,244 92.7 MITSUBISHI 21,170 41,475 –49.0 Passat 100,902 120,462 –16.2 Soyat – 371 – Polo 74,490 90,367 –17.6 AUTO – 371 – Sagitar 75,456 74,345 1.5 Motivity 27,147 14,472 87.6 Santana 107,028 106,086 0.9 NEW DADI AUTO 27,147 14,472 87.6 Santana 3000 – 97,048 – Bluebird – 13 – Santana Vista 90,400 – – Geniss 3,797 10,737 –64.6 Touran 12,007 10,586 13.4 Livina 69,992 41,341 69.3 Total Volkswagen 822,314 775,489 6.0 Paladin 11,166 9,605 16.3 983,436 898,588 9.4 Qashqai 23,105 – – Light/Sunshine/City Breeze 545,239 464,118 17.5 Sunny – 1,529 – WULING 545,239 464,118 17.5 Sylphy 53,224 57,182 –6.9 Cruise 158 1,806 –91.3 Teana 58,372 37,803 54.4 Landmark 5,968 5,165 15.5 Tiida 137,193 123,310 11.3 Total ZXauto 6,126 6,971 –12.1 X-Trail 4,166 – – ZHONGXING MOTOR 6,126 6,971 –12.1 NISSAN 361,015 281,520 28.2 TOTAL 6,491,544 6,072,000 6.9 C2 7,786 17,417 –55.3 C-Quatre 8,053 – – C-Triomphe 14,201 31,314 –54.6 Source: JATO Dynamics Elysee 55,205 31,449 75.5 Fukang 13,323 28,004 –52.4 Xsara Picasso 3,365 6,852 –50.9 Total Citroen 101,933 115,036 –11.4

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • JATO Dynamics 20090427-SUPP--0006-RG1-CCI-AN_-- 4/24/2009 10:56 AM Page 1

6 GLOBAL AUTOMAKERS/JOINT VENTURES

BMW AG Representative Office JV: BMW Brilliance Automotive Ltd. 28/F, Tower B, Gateway Plaza No. 14, Shanzuizi Road, Dadong District, Shenyang City Chaoyang District, Beijing 100027, P.R. China Liaoning Province 110044, P.R. China (86) 10-8455-8000, www..com.cn (86) 24-8455-6000, www.bmw-brilliance.cn Top executive: Alfred Rupp, president Top executive: Christoph Stark, president & CEO

China was a significant growth market for started at about $117,000. BMW AG last year, but BMW still trails To attract young customers in luxury leader Audi. China, in June 2008 BMW Including imports, sales of BMW and started importing the 1-series in China rose 28 percent in 2008 from the small car. Mercedes-Benz previous year to 65,822 units. During the followed the same strategy and same period, BMW and Mini global sales imported the B-class small decreased 4.3 percent. multipurpose vehicle. To maintain momentum in China, BMW Last year, BMW bought parts says it will offer its EfficientDynamics family in China worth $643 million, up of fuel-saving technologies, such as brake from $526 million in 2007. regeneration and engine stop-start systems. Suppliers to the automaker rose “New models with more from 100 in 2007 to 150 last year. EfficientDynamics technology and features BMW had 120 dealerships in will contribute positively to our sales in China at the end of 2008. China,” says Christoph Stark, president of Annual production capacity at BMW 5 SERIES BMW Group Region China. the automaker’s Shenyang plant Until now, these technologies have been Rival Mercedes-Benz still trails in third increased to 41,000 units in 2008. BMW is in missing in the 5- and 3-series cars place in the luxury race, but sales of its talks with Brilliance China Automotive assembled at BMW’s in China, locally produced models more than doubled Holdings to build a second plant for the BMW Brilliance Automotive Ltd. last year to 14,356 from 2007. Total sales of joint venture. BMW again lagged far behind China’s Mercedes in China were 38,700 in 2008. The venture sold 35,164 units in 2008, up luxury market leader Audi, which sold In January, BMW launched the imported, 9.0 percent from 2007. The venture with 100,782 locally made units in 2008, up 9.3 fifth-generation 7 series in China with a Brilliance accounted for about half of percent from 2007. Sales of the locally made starting price of about $194,000. BMW BMW’s sales in China. Audi A6L totaled 81,051 units. dropped an entry-level 7-series version that — Lan Lan

2008 2007 Models produced: BMW 3 series, 5 series Ownership: Sales, locally produced BMW AG 50% passenger vehicles 35,164 32,249 Brilliance China Automotive Holdings 50%

Daimler Northeast Asia Ltd. JV: -DaimlerChrysler Daimler Tower, 8 Wangjing Street, Automotive Co. No. 8 Boxing Road, Beijing Economic-Tech Area Chaoyang District, Beijing 100102, P.R. China Beijing 100176, P.R.China (86) 10-8417-8888, www.daimler.com.cn (86) 10-6782-4888, www.bbdc.com.cn Top executive: Ulrich Walker, DCNEA chairman & CEO Top executive: Guenter Butschek, president & CEO

Mercedes-Benz still trails Audi and BMW were 38,700 vehicles, an increase of 44 version of the E-class it for luxury leadership, but Daimler AG’s percent from 2007, the company said. unveiled in January at the auto luxury finally gained traction last year Taking advantage of its broad product line, show, say supplier sources. Stretched when it started assembling the Mercedes C- Mercedes is entering niche market versions of the Audi A6 and BMW 5 series class car in China. segments in China and is catering to local already are selling well to China’s chauffeur- Sales of Mercedes’ locally produced models tastes. driven customers. more than doubled in 2008 compared with In January, the company started test Mercedes has about 120 dealers in China 2007, to 14,356 units. The newly added C marketing B-class cars with a 2.0-liter and will add about 20 in 2009, says Daimler. class contributed more than half of the sales. engine. The starting price is $33,330, lower The automaker also is preparing to Meanwhile, China has become the than some analysts expected. increase its commercial-vehicle business in second-largest market for the Mercedes S- Targeting young Chinese buyers, Mercedes China. In January, Daimler signed a joint class sedan, after the . Sales of plans to import the ForTwo and GLK venture to make commercial vehicles and the imported S class increased in China to SUV in 2009. with Chinese truckmaker Beiqi 13,860 units, up 31 percent from 2007. In 2010, Mercedes plans to start making at Co. Total sales of Mercedes in China in 2008 its Beijing-based joint venture a long- — Lan Lan

2008 2007 Models produced: Mercedes-Benz C class, E class Ownership: Sales, locally produced Beijing Holding Co. 50% passenger vehicles 14,356 6,882 DaimlerChrysler AG (DCAG) 39% Northeast Asia Ltd. 11%

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • JATO Dynamics an-supplement.qxd 4/23/2009 10:24 AM Page 1

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8 GLOBAL AUTOMAKERS/JOINT VENTURES

Chrysler Asia Operations 11-12F, West Tower, Dawning Center, 500 HongBaoShi Road Shanghai 201103, P.R. China (86) 21-6192-7899, www.chrysler.com.cn Top executive: John Kett, COO

Chrysler LLC is hanging on — barely — in China. The struggling automaker maintains a small network of dealers to which it supplies imported vehicles, mainly Jeeps. But Chrysler lacks a joint venture partner in China to assemble vehicles. And in December 2008, Phil Murtaugh, Chrysler’s top executive in China, resigned. Chrysler has licensed two companies to produce its vehicles in China. But in January, their production slowed to a trickle. Output of Chrysler vehicles at Beijing Benz-DaimlerChrysler Automotive Co. was zero in January. Chrysler has a contract to supply kits for a pair of sedans, the 300C and Sebring, to Beijing Benz. The other contract manufacturer is Soueast () Motor Co. in — which makes two , the Chrysler Grand CHRYSLER GRAND VOYAGER Voyager and . Production of Chrysler vehicles there in January totaled a mere 17 units. a small car for export to America. distribution channels. But Chrysler In December, Chrysler’s deal to produce Last July, Chrysler signed a memorandum spokeswoman Daphne Zheng says the cars with Chery Automobile Co. collapsed. of understanding with Great Wall Motor Co. agreement is on hold. The two companies had planned to develop to share technology, components and — Steven Ribet

2008 2007 Models produced: Chrysler 300C, Grand Voyager, Ownership: Sales, locally produced Sebring; Dodge Caravan Chrysler LLC 100% passenger vehicles 11,200 9,277

Fiat (China) Business Co. 20/F New World Tower, 300 Central Huaihai Road Shanghai 200021, P.R. China (86) 21-3310-9900, www.fiatgroup.com Top executive: Franco Amadei, chairman

In 2007, Fiat Auto S.p.A. sold 15,525 sales of 50,000 units in 2010. domestically made Fiat cars in China. In Sources say Fiat plans to restart local 2008, Fiat sold zero. production in 2011 with a domestic With the breakdown of Fiat’s joint venture automaker. Industry sources speculate that with Group Corp. in a car will be built under a technical December 2007, local production of Fiat cooperation agreement with cars stopped. Automobile Industry Corp. Under a Fiat tried to build momentum in August previous agreement, Fiat sold Guangzhou 2008 by bringing in three imported models, Auto the Alfa 166 platform, which it is using the Bravo, Linea and Grande Punto. But the to develop vehicles for its own brand. cars were expensive; the Bravo Sport topped Fiat declined to comment. Guangzhou out at $32,045. In contrast, their locally Auto also declined to comment. FIAT BRAVO made counterparts, the Palio Weekend, Meanwhile, Chery Automobile Co. has an Siena and Perla, all sold for under $14,630. agreement to produce 100,000 engines So it is not surprising that the number of with pricey products. annually for Fiat to use in China and Fiat dealers in China has dwindled to 30, Fiat needs a joint venture partner to begin elsewhere. from more than 70 in 2005, as they struggle local production. The automaker wants — Namrita Chow

2008 2007 Models produced: Ownership: Sales, locally produced No models produced in China Fiat no longer has any JV’s in China. passenger vehicles – 15,525

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • JATO Dynamics 20090427-SUPP--0009-RG1-CCI-AN_-- 4/24/2009 10:58 AM Page 1

GLOBAL AUTOMAKERS/JOINT VENTURES 9

Ford Motor China Ltd. 33F, Shanghai Information Tower, 211 Century Ave. Sales, locally produced District, Shanghai 200120, P.R. China passenger vehicles (86) 21-2891-6688, www.ford.com.cn 2008 2007 Top executive: Robert Graziano, president & CEO 161,758 180,476 2009 Guide to China’s Auto Market Staff Editors: Charles Child, Mary Raetz Correspondents: Namrita Chow, Kevin Huang, Lan Lan, Alysha Webb, Yang Jian, Steven Ribet Layout: Bob Allen Production: Terry Driscoll, Larry Williams Keith E. Crain Publisher and Editor-in-Chief Peter Brown Associate Publisher and Editorial Director David Sedgwick Editor, Automotive News

Editorial staff Charles Child E-mail: [email protected] Phone: (313) 446-0365 Fax: (313) 446-0383

FORD FIESTA Rick Greer Director of Sales and Marketing [email protected] After losing market share in China percent in 2008 to 161,758 units, . Phone: (313) 446-6050 last year, Ford Motor Co. is according to JATO Dynamics. Besides the Fiesta, Ford’s other counting on the new Fiesta small Another challenge is to work out product launches since the autonews.com John FItzgerald car to rebuild momentum. a new relationship with Mazda beginning of last year have been a Director of Business Planning Production of the model began in Motor Corp. in China. refreshed Transit , a refreshed and Online Commerce January at the Nanjing plant of the In November, Ford lost control of version of its Focus compact and a [email protected] Mazda joint venture. Mazda when it reduced its stake in new five- S-Max multipurpose Phone: (313) 446-1679 Early success in suggests the Japanese company. The two vehicle. SUBSCRIPTIONS the Fiesta’s strong design could sell automakers share three production At the Beijing auto show in 2008, [email protected] well in China. platforms in China. Through a joint Ford displayed models with Phone: (888) 446-1422 But Ford has some work to do to venture, advanced gasoline powertrains, (U.S. & Canada) (313) 446-1662 convince shoppers that the new Automobile Co., they also share featuring double-clutch gearboxes, (all other locations) Fiesta is different from the original factories in Nanjing and Chongqing. direct injection and small U.S.: 1 year, $159; 2 years, $279 sold in China. In 2003 Ford launched Selling Volvo, which Ford is turbocharged engines. Ford has said Canada: $239 (U.S.) the Fiesta nameplate in China with a considering, also could be a it intends to introduce this Other countries: $395 dated model from India. headache. The luxury brand’s S40 technology, called EcoBoost, to Single-copy sales: $5 per issue plus shipping Total sales of China-made cars of sedan now is produced at the China but has not given a date. the Ford and Volvo brands fell 10.4 Changan Ford Mazda plant in — Steven Ribet CRAIN COMMUNICATIONS INC. JV: Corp. Models produced: , New Ownership: Keith E. Crain Rance Crain No. 509 Ying Bin Road, City Generation Transit; JMC Baodian, Jiangling Holding Co. 41% Chairman President Province 330001, P.R. China Baowei, Qingka Ford Motor Co. 30% M.K. Crain M.P. Crain (86) 791-5266-000, www.jmc.com.cn Other 29% Treasurer Secretary Top executive: York Chen, president Robert C. Adams Group Vice President/ Technology, , Circulation JV: Changan Ford Mazda Automobile Co. Models produced: Ford Fiesta, Ownership: WIlliam A. Morrow No. 1 Changfu West Road, Yuan Yang Town Focus, Mondeo, S-Max; Mazda2, Ford Motor Co. 50% Executive Vice New Northern Zone, Chongqing 401122, P.R. China Mazda3; , S80L Changan Automotive Co. 35% President, Operations (86) 23-6745-8888, www.ford.com.cn Mazda Motor Co. 15% G.D. Crain Jr. Top executive: Jeffrey Shen, president Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) 2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • JATO Dynamics 20090427-SUPP--0010-RG1-CCI-AN_-- 4/24/2009 10:59 AM Page 1

10 GLOBAL AUTOMAKERS/JOINT VENTURES

General Motors China Investment Co. Jingmao Tower 10/F, No. 88 Shiji Road, Pudong District

Shanghai 200121, P.R. China 2008 2007 (86) 21-2898-7000, www.gmchina.com Sales, locally produced Top executive: Kevin Wale, president & managing director passenger vehicles 485,545 528,260

General Motors struggled last year to fend America won’t disrupt off surging Japanese automakers in China. investments in China. In 2008, Toyota usurped it as the In province, second-biggest seller of passenger vehicles. construction continues on If current trends continue, Honda soon a $234 million proving should relegate GM to fourth place. ground, where work According to JATO Dynamics, sales of GM started in 2007. brands in China dropped 8.1 percent In March 2008, SAIC- compared with 2007, to 485,545 units. GM-Wuling opened a To regain momentum, GM needs to revive factory in with Buick. As recently as 2005, the premium capacity to make 300,000 brand commanded 7.5 percent of total car small commercial vehicles sales in China. But last year, Buick’s share was annually. In , down to 4.3 percent, with an aging product production began at a portfolio falling victim to swifter model cycles plant for small engines, from the Japanese. In 2008, sales of China- belonging to the same made fell 15.6 percent to 279,238. . Like the The Regal sedan, which Buick launched in Qingdao project, the plant will have an December 2008, was the first fully annual capacity of 300,000 units. redesigned version of the model sold in In March, SAIC-GM-Wuling planned to China since 1999. Five more new or open another factory for small engines in redesigned Buicks are due over the next Qingdao, with an annual capacity of three years. 350,000 engines. GM also wants to grow in China’s inland Last September, ground was broken in cities, where demand is building for small, Shanghai on a site that will house GM’s inexpensive vehicles. Chevrolet’s first headquarters for the Asia-Pacific region and compact sedan in China, the Cruze, is a technology development center. expected to perform well when launched in In December, a second plant opened at April. Four new or redesigned Chevrolet Shanghai GM (Shenyang) Norsom Motors models will follow in the next three years. longer needed by Buick. Affiliate SAIC-GM- Co., a joint venture in Liaoning province. The GM also plans a new economy brand to Wuling Automobile Co. will assemble the new factory initially will produce the Cruze. supply the market emerging in China’s vehicle. The plant lifted the joint venture’s annual developing interior region. The first model GM China President Kevin Wale insists capacity by 150,000 to 200,000 vehicles. will debut in 2011, built on a platform no that the automaker’s troubles in North — Steven Ribet

JV: Shanghai General Motors Corp. JV: Shanghai GM Dongyue Motors Co. No. 1500 Shenjiang Road, Jin Qiao, Pudong District No. 118 Changjiang Road, Development Zone, City Shanghai 201206, P.R.China Province 264006, P.R. China (86) 21-2890-2890, www.shanghaigm.com (86) 535-6966-666, www.chevrolet.com.cn Top executive: Ding Lei, president Top executive: Wang Yongqing, president

Models produced: Ownership: Models produced: Ownership: , Excelle HRV, LaCrosse, SAIC Motor Corp. 50% , Cruze, Epica, Lova Shanghai General Motors 50% Park Avenue, Regal; Cadillac SLS General Motors 50% Shanghai Automotive Co. 25% General Motors China 25%

JV: Shanghai GM (Shenyang) Norsom Motors Co. JV: SAIC-GM-Wuling Automobile Co. No. 15 North of Daying Road, Dadong District, Shenyang City No. 18 Hexi Road, Liuzhou City Liaoning Province 110044, P.R. China Province 545007, P.R. China (86) 24-8834-5678, www.buick.com.cn (86) 772-3750-258, www.sgmw.com.cn Top executive: Hou Haijing, president Top executive: Shen Yang, president

Models produced: Buick GL8 Ownership: Models produced: Ownership: Shanghai General Motors 50% ; Wuling Hongtu, Shanghai Automotive Co. 50% Shanghai Automotive Co. 25% Rongguang, Single & Double pickup, General Motors China 34% General Motors China 25% Sunshine, Xingwang Wuling Automotive 16%

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GLOBAL AUTOMAKERS/JOINT VENTURES 11

Honda Motor China Investment Co. Suite 301, Beijing Fortune Building, No. 5 N. Dongsanhuan Road

Chaoyang District, Beijing 100004, P.R. China 2008 2007 (86) 10-6590-9011, www.honda.com.cn Sales, locally produced Top executive: Atsuyoshi Hyogo, president passenger vehicles 470,033 422,345

Honda Motor Co. is looking at another challenging year in 2009 as competition grows for its best-sellers, the Honda CR-V SUV and Accord sedan. In 2008, sales of Honda brand cars made in China rose 11.3 percent to 470,033 units, but that was well below the 30.5 percent increase in 2007. The company did not announce a sales target for 2009. But in late 2008, Honda China’s president, Atsuyoshi Hyogo, said he hoped Honda sales would match the 5 percent growth that he expects for the overall market this year. Honda’s two China joint ventures have different expectations for 2009. Automobile Co. has an aggressive plan. It wants to sell 180,000 units in 2009, up about 10 percent. The joint venture also plans to expand its capacity this year, from 160,000 to 240,000. Dongfeng Honda, which makes the CR-V HONDA CR-V and Civic sedan, grew nicely in 2008. It sold 164,035 vehicles, up 29.1 percent. The hot- selling CR-V was mainly responsible. Its Linian. It is scheduled to hit sales reached 80,622, up 76.4 percent. the market in 2010 and likely The CR-V sells well partly because it lacks a will be built on the platform serious competitor, says John Zeng, a market of the old sedan. analyst at the Shanghai office of Global Honda also will continue Insight. This year, Zeng says, Toyota will start exporting to Europe the Jazz making a similar SUV, the RAV-4, in China. small from its By contrast, growth was slower at Honda’s Guangzhou export plant. The other China-based joint venture, Guangzhou company exported about Co. The company did not 450,000 units last year and announce a target for this year. wants to export a similar Guangzhou Honda sold 305,998 cars in volume this year. China last year, up 3.6 percent but below its Honda unveiled a new HONDA ACCORD target of 340,000. The Accord accounted for version of the TSX at about half of Guangzhou Honda’s sales. Like the Shanghai auto show in the CR-V, the Accord will face tougher recently cut retail prices. late April. The company sold 2,898 in competition this year. Key vehicles, such as Meanwhile, Guangzhou Honda is 2008, about double 2007’s total. the and Volkswagen Magotan, preparing the first model of its own brand, — Kevin Huang

JV: Honda Automobile (China) Co. JV: Dongfeng Honda Automobile () Co. No. 363 Kai Chuang Ave., East Section, Guangzhou Economic & No. 283 Checheng Dongdao, Economic & Technical Development Zone Technological District, Guangzhou City, Province 510760, P.R. China Wuhan City, Province 430056, P.R. China (86) 20-3228-8000 (86) 27-8428-6000, www.dhac.com.cn Top executive: Masaya Nagai, president Top executive: Mitsuru Ozaki, president Models produced: Ownership: Models produced: , CR-V Ownership: (for export) Honda Motor Co. 55% Dongfeng Motor Corp. 50% Guangzhou Automobile Honda Motor Co. 40% Industry Group Co. 25% Honda Motor Investment Co. 10% Honda Motor Investment Co. 10% Co. 10%

JV: Guangzhou Honda Automobile Co. Models produced: Honda Accord, Fit, Ownership: No. 1 Guangben Road, Huangpu District, Guangzhou City New City, Odyssey Guangzhou Automobile Industry Guangdong Province 510700, P.R. China Group Co. 50% (86) 20-8227-7789, www.guangzhouhonda.com.cn Honda Motor Co. 40% Top executive: Okawara Eiji, president Honda Motor Investment Co. 10%

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12 GLOBAL AUTOMAKERS/JOINT VENTURES

Hyundai Motor Group (China) Ltd. Room 25, Hyundai Motor Tower, No. 38 Xiaoyun Road,

Chaoyang District, Beijing 100027, P.R. China 2008 2007 (86) 10-8453-9666, www.hmgc.com.cn Sales, locally produced Top executive: Tan Tao Hung, president passenger vehicles 450,163 345,425

Hyundai Motor Group (China) Ltd. made a strong comeback in 2008. But it relied on one model, the Elantra car, for most of its sales. Elantra sales last year totaled 203,734 units, accounting for 66.1 percent of Hyundai-brand sales in China. The automaker launched the redesigned Elantra in April 2008 and kept selling the previous- generation Elantra. Elantra sales remained strong in 2009, partly because the government halved the sales tax to 5 percent on cars with engines of 1.6 liters or less. Last year, sales of domestically made Hyundais rose 26.3 percent in China. This year, Hyundai’s challenge will be to find other growth models as new vehicles, particularly from domestic brands, crowd China’s vehicle segments. In November, Motor Co., the company’s largest joint venture in China, launched a face-lifted mid-sized HYUNDAI ELANTRA sedan based on Hyundai’s seventh- generation Sonata and renamed it the Lingxiang. Lingxiang sales have been modest. In Automobile Co., sold 142,008 January, Lingxiang sales totaled 1,468. units in 2008 — up 40.0 percent, Hyundai kept the old-generation Sonata in according to the company. its China lineup and it sold 788 units in The Kia brand is positioned January. carefully in China to avoid Hyundai will continue to emphasize small direct competition with leading cars in China. This year, the automaker international brands. In 2008, plans to launch the i30 small car from sales of the Cerato Hyundai’s Korea lineup in China. In 2010, rose 18.4 percent to 74,352, and the company plans to launch an entry-level the Rio small car jumped 61.5 car designed for China to compete with percent to 29,898. Kia’s small cars from domestic automakers. Sportage SUV leaped from To cut costs, Hyundai is allowing more 5,713 in 2007 to 32,500 units in Chinese suppliers to compete with Korean 2008. suppliers, say supplier sources. Parts from Kia hopes to boost sales 30 the automaker’s Korean suppliers tend to revised Elantra goes on sale this year, and percent, to 185,000 units, in 2009. Kia will more expensive. the revised Sonata will go on sale in 2010. roll out two models, code-named TDc and Hyundai’s r&d center, which opened in Beijing Hyundai, the joint venture, AMc, in China in 2009. The TDc is a May 2008, is working on face-lifted versions doubled its capacity to 600,000 units in 2008 compact car based on Kia’s Forte, and the of the Elantra and Sonata. Both models will by opening a second plant. AMc is a compact SUV. be less expensive than the current ones. The Meanwhile, the group’s other joint venture, — Lan Lan

JV: Beijing Hyundai Motor Co. JV: Dongfeng Yueda Kia Automobile Co. No. 18 Shuntong Road, Linhe Industry Development Area, No. 18 Kaifang Road, Yancheng City, Province 224002, P.R. China Beijing 101300, P.R. China (86) 515-8833-3808, www.dyk.com.cn (86) 10-8949-0062, www.beijing-hyundai.com.cn Top executive: Chong-Ok Park, CEO Top executive: Jae-Man Noh, president Models produced: , Cerato, Ownership: Models produced: , Ownership: Cerato H/B, DYK Sportage, Optima, Rio Kia Motors 50% Elantra, Elantra HDC, Sonata, Hyundai Motor Co. 50% Dongfeng Motor Industry Sonata Lingxiang, Tucson Beijing Automotive Investment Co. 25% Industry Holding Corp. 50% Jiangsu Yueda Co. 25%

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14 GLOBAL AUTOMAKERS/JOINT VENTURES

Mitsubishi Motors Corp. Nexus Center Room 710, No. 19A East, 3rd Ring Road North

Chaoyang District, Beijing 100020, P.R. China 2008 2007 (86) 10-6561-3030, www.mitsubishi-motors.com.cn Sales, locally produced Top executive: Jun Hiraoka, chief representative passenger vehicles 21,170 41,475

China remains a trouble spot for redesigned Lancer sporty sedan, which year to 63,270 vehicles. But Mitsubishi is . Sales have slid for two already has debuted in other major markets. making more components in China for local years, dropping 15.3 percent to 82,826 The Lancer is Mitsubishi’s best-selling car manufacturers and export. Mitsubishi will vehicles in 2008. The company hasn’t in China, but the current generation is start making automatic transmissions and revealed a forecast for this year but has getting long in the tooth. small-displacement engines there this year. targeted sales of 77,000 in 2010. Sales dropped 37.2 percent to 15,479 Looking to its retail network, in April Part of Mitsubishi’s restructuring plan is to vehicles last year. The new version will be Mitsubishi plans to start a new sales strengthen the local sales network and bring manufactured locally by Mitsubishi’s joint company, Mitsubishi Motors Sales (China) in new models. Business is likely to get a venture partner, Soueast (Fujian) Motor Co. Co. boost in 2009 from the introduction of the Domestic production fell 20.8 percent last — Hans Greimel

JV: Co. JV: Soueast (Fujian) Motor Co. 18/F Hualing Building, 111# Second Section, Furong Mid Road Dongnan Industrial Area, Fuzhou City City, Hunan Province 410011, P.R. China Fujian Province 350119, P.R. China (86) 731-2881-800, www.cfmotors.com (86) 591-2276-6566, www.soueast-motor.com Top executive: Li Jianxin, president Top executive: Jian Qinglong, general manager Models produced: Ownership: Models produced: Delica, Freeca, Liebao, Liebao Feiteng Changfeng Group 50% Galant, Lancer, Landio, Lioncel, Ownership: Others 34% New Space Wagon, Veryca Mitsubishi Motors Corp. 25% Mitsubishi Motors Corp. 16% Fujian Motor Industry Group 50% China Motor Corp. 25%

Nissan (China) Investment Co. 13/F, South Tower of Beijing Kerry Centre, No. 1 Guang Hua Road Chaoyang District, Beijing 100020, P.R. China 2008 2007 Sales, locally produced (86) 10-8529-8181, www.nissan.com.cn passenger vehicles 361,015 281,520 Top executive: Kayashima Yukihisa, CEO

Nissan Motor Co. expects sales growth in company’s best-selling passenger vehicle in China to slow to 5 percent this year, to China. Tiida sales rose 11.3 percent last year 570,000 vehicles. That’s down from a 19 to 137,193. About 66 percent of Nissan’s sales percent surge in 2008. Nissan’s projection are cars with engines under 1.6 liters. keeps it in line with analysts’ forecasts that Dragging down volume was the Geniss China will expand by only around 5 percent , whose sales tumbled 64.6 percent as the global financial crisis hits the economy. to 3,797 units, making it Nissan’s worst seller. Nissan was the No. 6 global brand in China On the retail side, sales growth is seen last year. But it is playing catch-up in the moving inland from coastal cities. Nissan aims world’s second-biggest auto market, behind to boost its dealer count to 380 in 2009 and Japanese competitors Toyota and Honda. 420 in 2010 from 342 at the end of last year. NISSAN TIIDA One hurdle will be a lack of new models. Nissan is building a plant in Zhenghou, in Nissan got a boost last year from the four Heian province, set to open in 2010. The new vehicles. But the only launch planned in smaller than 1.6 liters, says Kimiyasu company also wants more local sourcing of 2009 is the RX50 . Nakamura, head of Dongfeng Motor Co., drivetrains. On the other hand, Nissan likely will feel a Nissan’s local venture with China’s Dongfeng Last year, Nissan unveiled the target of tailwind from China’s planned reduction in Group. That should benefit Nissan’s small- selling 1 million vehicles in China by 2012. taxes on gasoline and vehicles with engines car lineup — including the Tiida, the — Hans Greimel

JV: Nissan Automobile Co. JV: Dongfeng Motor Co./ No. 1405, East Hanghai Road, Zhengzhou Economic & Technical Zone Passenger Vehicle Co. Zhengzhou City, Henan Province 450016, P.R. China No. 8 Fengshen Road, Huadu, Guangzhou, (86) 371-6603-3666, www.zznissan.com.cn Guangdong Province 510800, P.R. China Top executive: Guo Zhenfu, general manager (86) 20-8687-0670, www.dongfeng-nissan.com Top executive: Mamoru Yoshida, general manager Models produced: Nissan MPV, Ownership: NT400 Cabstar, Paladin, Pickup, Rich, Dongfeng Motor Group Co. 51% Models produced: Ownership: SUV Dongfeng Motor Co. 29% Sylphy, Geniss, Livina, Qashqai, Teana, Nissan (China) Investment Co. 50% Nissan Motor Co. 20% Tiida, X-Trail Dongfeng Motor Group Co. 50%

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GLOBAL AUTOMAKERS/JOINT VENTURES 15

PSA Peugeot Citroen Group Beijing Office,19B unit, HanWei Plaza, No. 7 Guanghua Road

Chaoyang District, Beijing 100020, P.R. China 2008 2007 (86) 10-5927-5700, www.psa.net.cn Sales, locally produced Top executive: Claude Vajsman, CEO of PSA Peugeot-Citroen passenger vehicles 178,308 207,255

PSA/Peugeot-Citroen SA is counting on a than in 2007. The others were General new platform and two mid-sized sedans to Motors, Ford Motor Co. and Mitsubishi revive sales in China. Motors Corp. On the new platform, PSA will start Dongfeng Peugeot Citroen sold 178,308 of producing the Citroen C5 mid-sized sedan locally produced vehicles in 2008, down 14.0 in the second half of this year. The company percent from 2007. also will produce the sedan, The market’s slowdown hurt PSA. But suppliers say, but the timetable is some PSA models, such as the Xsara unavailable. Picasso, are considered too avant-garde for The cars will be built at a new plant for the tastes of most Chinese consumers. Dongfeng Peugeot Citroen Automobile Co., PSA has not brought its newest models PSA’s joint venture with Dongfeng Motor and technologies to China, says John Zeng, Corp. an analyst with Global Insight in Shanghai. CITROEN C-QUATRE The two new mid-sized cars are important Moreover, he says, some PSA cars sold in because Dongfeng Peugeot Citroen China, such as the Citroen C2 and Peugeot produces mainly small cars such as the 14,201 units, down 54.6 percent from 2007. 207, compete with each other. Citroen C2 and and compacts With the new plant, PSA’s annual capacity In June 2007, PSA agreed with Hafei Motor such as the Elysee sedan and C-Quatre. in China will grow to 450,000 units. The Co., a minor Chinese automaker, to form a Currently, PSA’s only mid-sized car is the existing plant can produce 300,000 a year. joint venture to produce small vehicles. But C-Triomphe sedan, launched in 2006. But PSA was one of four global automakers little progress has been made on the project. sales of the vehicle were poor in 2008: whose sales in China were lower last year — Kevin Huang

JV: Dongfeng Peugeot Citroen Automobile Co. Models produced: Ownership: No. 165 Shenlong Ave. Citroen C2, C-Elysee, C-Quatre, PSA Peugeot Citroen 50% Wuhan Economic-Technological Development Zone C-Triomphe, Picasso, New Xsara; Dongfeng Motor Industry Wuhan City, Hubei Province 430056, P.R. China , 207, 307 Investment Co. 50% (86) 27-8429-9882, www.dpca.com.cn Top executive: Liu Weidong, general manager

Suzuki Motor (China) Investment Co. Room 2102, Beijing Fortune Building, No. 5 Dongsanhuan Bei Lu

Chaoyang District, Beijing 100004, P.R. China 2008 2007 (86) 10-6590-8040, www.suzuki-china.com Sales, locally produced Top executive: Toshiaki Hashimoto, president passenger vehicles 178,853 160,849

Suzuki Motor Corp. has been working to hatchback versions sold 38,886 units last improve its brand image in China. With an year, up 81.9 percent. 11.2 percent boost in sales to 178,853 last year Suzuki needs to start local production of compared with 2007, it is making progress. its small SUVs, says Zeng, because last year The automaker pulled the aging Alto small the government cut the sales tax on car from the market in October, eliminating vehicles with engines under1.6 liters. a large chunk of Suzuki sales volume. In Suzuki could build sales in China’s rural 2007, the Alto accounted for 19.9 percent of interior, whose customers need versatile, Suzuki’s sales in China. inexpensive vehicles that can carry goods The introduction of a redesigned Alto at and people. year end will bring back some volume, says But brand image needs further John Zeng, an analyst at Global Insight in improvement. Zeng says Suzuki still is Shanghai. considered a mediocre brand in China. SUZUKI SX4 The SX4 provided good news. Sedan and — Namrita Chow

JV: Jiangxi Changhe Suzuki Automobile Co. JV: Chongqing Automobile Co. No. 1 East Road, Jindezhen City, Jiangxi Province 333002, P.R. China Yudong Town, Banan District, Chongqing 401321, P.R. China (86) 798-8462-611, www.changhe-suzuki.com (86) 23-6628-8623, www.changansuzuki.com Top executive: Tong Zheng Rong, president Top executive: Tadashi Kondo, vice chairman & president Models produced: Liana, Landy, Ownership: Models produced: , Gazelle, Ownership: North Star (+) Changhe Group 51% Swift 1.3, Swift 1.5, SX4 Co. 51% Suzuki Motor Corp. 25% Suzuki Motor Corp. 25% Suzuki Motor China Sojitz Corp. 14% Investment Co. 21% Suzuki Motor (China) Okaya 3% Investment Co. 10%

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16 GLOBAL AUTOMAKERS/JOINT VENTURES

Toyota Motor China Investment Co. Room 3806-11, Jin Guang Center, Hujialou,

Chaoyang District, Beijing 100020, P.R. China 2008 2007 (86) 10-6597-8728, www.toyota.com.cn Sales, locally produced Top executive: Masahiro Kato, general manager passenger vehicles 543,106 455,140

Toyota Motor Corp. leapfrogged General In mid-2008, Guangzhou Toyota launched Motors in 2008 as China’s No. 2 automaker, the Yaris small car. But sales totaled a behind Volkswagen AG. This year, expect disappointing 19,170 during the year. Toyota to keep growing, but at a lower rate. Guangzhou Toyota will launch one new Sales of its top two sellers, the Camry and model this year: the Highlander SUV. Corolla, started slipping in November 2008. Despite slower growth in China, Toyota is Including imports, Toyota posted a 17 expanding the production capacity of its percent sales gain, to about 585,000 units, in joint ventures. China in 2008, according to Toyota Motor In north China, Toyota is building a new China Investment Co. plant with FAW in , with a Toyota’s growth in China last year was planned capacity of 100,000 units per year. fueled by the Corolla sedan. The company The company is also expanding capacity to launched a face-lifted version of the Corolla 150,000 units from 100,000 at a joint venture in China in 2007 and continued selling the plant with FAW that makes the Crown and previous generation. Combined sales of the Reiz sedans. new and old Corolla totaled 217,519 units company for Toyota products built with In south China, Toyota’s joint venture with last year, up 67.5 percent. China FAW Group Corp. in China, plans to Guangzhou Automobile Industry Group is Despite the impressive growth, Toyota is sell 380,000 vehicles this year, up 8 percent. building a second plant with an initial not immune to the global auto downturn. The company’s sales grew 25 percent in 2008. annual capacity of 120,000 units. Production The company has not announced sales Meanwhile, the joint venture Guangzhou is scheduled to start in mid-2009. When the targets for 2009, but both of its joint Toyota Motor Co. plans to sell only 150,000 three projects are finished, Toyota’s capacity ventures have modest expectations. Camrys this year. The company sold 170,382 in China will be 910,000 units in 2010. FAW Toyota Motor Sales Co., the marketing Camrys in 2007 and 152,834 in 2008. — Kevin Huang

JV: FAW Toyota Motor Co. — Plant 1 JV: FAW Toyota Motor Co. — Plant 1 No. 2, Liuli Road, Yang Liu Qing, , Tianjin 300380, P.R. China No. 9 Tiaodenghe South Road, Chenghua District, City, (86) 22-2794-4050, www.tftm.com.cn Sichuan Province 610051, P.R. China Top executive: Hayato Sibakawa, general manager (86) 28-8471-7126, www.sftm.com.cn Models produced: Ownership: Top executive: Hoshino Haruaki, general manager Toyota Corolla EX, Vios Toyota Motor Corp. 40% Models produced: Ownership: FAW Xiali Automobile Co. 30% , Prado FAW Group 50% First Auto Works 20% Toyota Motor Corp. 45% Toyota Motor Investment Co. 10% Toyota Tsusho Corp. 5%

Tianjin FAW Toyota Motor Co. — Plant 2 Changchun Fengyue Company of SFTM No. 81 9th Ave., Tianjin Tai Da Economic-Technological Development Area No. 5 Dongfeng St., Changchun City, Province 130011, P.R. China Tianjin 300457, P.R. China (86) 431-8578-6808, www.sftm.com.cn (86) 22-6623-0666, www.tftm.com.cn Top executive: Hoshino Haruaki, general manager Top executive: Hayato Sibakawa, general manager Models produced: Ownership: Models produced: Ownership: , Prius FAW Group 50% , Reiz Toyota Motor Corp. 40% Toyota Motor Corp. 45% FAW Xiali Automobile Co. 30% Toyota Tsusho Corp. 5% First Auto Works 20% Toyota Motor Investment Co. 10%

Tianjin FAW Toyota Motor Co. — Plant 3 JV: Guangqi Toyota Motor Co. No. 81 9th Ave., Tianjin Tai Da Economic-Technological Development Area No. 8 Huangge Duan Huangge Zhen, Shi Nan Road Tianjin 300457, P.R. China Nansha Economic Development District, Guangzhou City (86) 22-6623-0666, www.tftm.com.cn Guangdong Province 511400, P.R. China Top executive: Hayato Sibakawa, general manager (86) 20-3939-8888, www.guangzhoutoyota.com.cn Models produced: Ownership: Top executive: Kuzuhara Toru, general manager Toyota Corolla Toyota Motor Corp. 40% Models produced: Ownership: FAW Xiali Automobile Co. 30% Toyota Camry, Yaris Guangzhou Automobile First Auto Works 20% Industry Group Co. 50% Toyota Motor Investment Co. 10% Toyota Motor Corp. 31% Toyota Motor Investment Co. 19%

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GLOBAL AUTOMAKERS/JOINT VENTURES 17

Volkswagen (China) Investment Co. Building 2, No. 3A, Xi Liu Jie, Sanlitun Road,

Chaoyang District, Beijing 100027, P.R. China 2008 2007 (86) 10-6531-3131, www.volkswagen.com.cn Sales, locally produced Top executive: Winfried Vahland, president & CEO passenger vehicles 983,436 898,588

In 2008, Volkswagen AG became the first automaker to sell more than 1 million light vehicles in a year in China. Sales, including imports, totaled 1,024,008 units, up 12.5 percent from 2007, VW said. Sales of China-made vehicles were up 9.4 percent to 983,436, according to JATO Dynamics. China should replace Germany as VW’s largest market this year — although Winfried Vahland, Volkswagen China Group’s CEO, plays down this achievement. Audi is a particularly strong performer for VW. The brand now accounts for 64 percent of the luxury market in China. VW China Group’s investment now is funded entirely by its own profits, says Vahland. He says he will stick to a plan to plow 2.4 billion euros ($3.27 billion) back into the business from 2008 through 2010. Vahland says the money will be used to develop new products and technologies rather than building additional capacity. Last year VW launched its first two sedans AUDI A4L developed for China, the and Lavida. Two other new products were the Audi A4L and Skoda Fabia. After being has come a long way with local sourcing introduced in China in 2007, the Skoda since its first China-made vehicle rolled off brand will launch a third model this year, the line 25 years ago. Then, only the horns, the Superb. tires and radios could be provided by Other new products will include the Audi Chinese factories. Q5, the sixth-generation VW Golf and then But more than 95 percent of parts used to five to seven new or redesigned China-made make the new Lavida and Bora now are models this year or next, says Vahland. sourced locally. For VW China as a whole, VW used to be the strongest advocate for the figure is more than 90 percent. the mass use of clean diesel in China. Since In April last year, VW moved some the Chinese government went cold on the production of its 28-year-old Santana model technology last year, VW China’s favored from Shanghai and up the Yangtze to green solution has been advanced gasoline Nanjing. The aim was to supply cheap cars powertrains. These combine dual-clutch to inland provinces, where incomes are gearboxes, direct injection and small lower but the market is growing faster. turbocharged engines. Chinese motorists to want these fancy But amid the current downturn, in January Vahland says 80 percent of VW’s future technologies,” says Duan Chengwu, an VW said it was suspending plans to add products will offer the new powertrains as analyst at industry consultants Global Insight. capacity to a small plant farther up the river an option. But given the lower price of Last year VW completed a program to in Chengdu. Since 2007, this plant has been gasoline, demand is not likely to be large. integrate purchasing for its two China making another old model, the Jetta. “Current incentives are not big enough for manufacturing joint ventures. The company — Steven Ribet

JV: FAW-Volkswagen Automotive Co. JV: Shanghai Volkswagen Automotive Co. Dongfeng Street, Changchun, Jilin Province 130011, P.R. China No. 63, Luo Pu Road, An Ting, , Shanghai 201805, P.R. China (86) 431-8599-0888, www.faw-volkswagen.com (86) 21-5956-1888, www.csvw.com Top executive: An Tiecheng, president Top executive: Liu Jian, Managing director Models produced: Audi A4L, A6L; Ownership: Models produced: VW Lavida, Lingyu, Ownership: VW Bora classic, New Bora, Golf, China FAW Group Corp. 60% Passat, Touran, Polo, Cross Polo, Shanghai Automotive Industry Corp. 50% Magotan, Jetta, Sagitar Volkswagen AG 20% Santana, Santana Vista; Skoda Fabia, Volkswagen AG 40% Volkswagen Investment Co. 10% Octavia Volkswagen Investment Co. 10% Audi AG 10%

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • JATO Dynamics 20090427-SUPP--0018-RG1-CCI-AN_-- 4/24/2009 11:05 AM Page 1

18 PRODUCTION FACILITIES IN CHINA

13

Jilin 21 MONGOLIA 22 AN 3

Inner Mongolia Liaoning 8

5 1 Xinjiang 17 2 Beijing 12 19 Tianjin 5 15 14 12 Ningxia 8 CHINA Shandong Qinghai Jiangsu 9 15 13 Anhui Henan 7 21 Xizang 7 6 23 Shanghai Hubei 16 10 3 11 20 2 17 Sichuan 19Chongqing 10 18 20 18 14 Guizhou Hunan 4 Fujian Jiangxi 26 16 1 11 25 6 9 24 Taiwan Guangxi Guangdong Hong Kong LAOS 4 Global automakers/Joint ventures Domestic automakers 1 - BMW Brilliance Automotive Ltd. 14 - Hunan Changfeng Motor Co. 1 - Co. 12 - Great Wall Motor Co. Shenyang, Liaoning Province Changsha, Hunan Province Liuzhou, Guangxi Province Baoding, Hebei Province 2 - Beijing Benz-DaimlerChrysler 15 - Zhengzhou Nissan Automobile Co. 2 - Dongfeng Automobile Co. 13 - Hafei Motor Co. Automotive Co. Zhengzhou, Henan Province Xiangfan, Hubei Province Harbin, Heilongjiang Province Beijing 16 - Dongfeng Peugeot Citroen Automobile Co. 3 - FAW Car Co. 14 - Hebei Zhongxing Automobile Co. 3 - Changan Ford Mazda Automobile Co. Wuhan, Hubei Province Chongqing 17 - Chongqing Changan Suzuki Changchun, Jilin Province Baoding, Hebei Province 4 - Jiangling Motors Corp. Automobile Co. 4 - FAW Co. 15 - Rongcheng Huatai Automobile Co. Nanchang, Jiangxi Province Chongqing , Hainan Province Rongcheng, Shandong Province 5 - Shanghai GM (Shenyang) 18 - Jiangxi Changhe Suzuki Automobile Co. 5 - Tianjin FAW Xiali Automobile Co. 16 - Jiangxi Jiangling Holding Co. Norsom Motors Co. , Jiangxi Province Tianjin Nanchang, Jiangxi Province Shenyang, Liaoning Province 19 - Tianjin FAW Toyota Motor Co. 6 - Chery Automobile Co. 17 - Beijing Automobile Works Co. 6 - SAIC-GM-Wuling Automobile Co. Tianjin , Anhui Province Beijing Liuzhou, Guangxi Province 20 - Sichuan FAW Toyota Motor Co. 7 - Anhui Jianghuai Automobile Co. 18 - Chongqing Changan Automobile Co. 7 - Shanghai General Motors Corp. Chengdu, Sichuan Province Shanghai 21 - Sichuan FAW Toyota Motor Co. , Anhui Province Chongqing 8 - Shanghai GM Dongyue Motors Co. Changchun, Jilin Province 8 - Shenyang Brilliance 19 - Chongqing Lifan Automobile Co. Yantai, Shandong Province 22 - FAW-Volkswagen Automotive Co. Automotive Co. Chongqing 9 - Guangzhou Honda Automobile Co. Changchun, Jilin Province Shenyang, Liaoning Province 20 - Hunan Jiang Nan Automobile Co. Guangzhou, Guangdong Province 23 - Shanghai Volkswagen Automotive Co. 9 - BYD Auto Co. Xiangtan, Hunan Province 10 - Dongfeng Honda Automobile Shanghai Xian, Shaanxi Province 21 - SAIC Motor Co. (Wuhan) Co. 24 - Dongfeng Nissan Passenger Vehicle Co. 10 - Jiangxi Changhe Automobile Co. Shanghai Wuhan, Hubei Province Guangzhou, Guangdong Province Jingdezhen, Jiangxi Province 11 - Honda Automobile (China) Co. 25 - Guangzhou Toyota Motor Co. Guangzhou, Guangdong Province Guangzhou, Guangdong Province 11 - Zhejiang Geely Automobile Group 12 - Beijing Hyundai Motor Co. 26 - Soueast (Fujian) Motor Co. , Zhejiang Province Beijing Fuzhou, Fujian Province 13 - Dongfeng Yueda Kia Automobile Co. Yancheng, Jiangsu Province

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • JATO DYNAMICS AN-Supplement.qxd 4/8/2009 4:04 PM Page 1

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20 DOMESTIC AUTOMAKERS To take back market share, more models on way China’s domestic automakers, losing automakers, Beijing Automotive Industry market share to international competition, Holding Corp. and Dongfeng Motor Co., will fight back with more models in 2009. plan to launch their own brands for The top 25 domestic automakers sold passenger vehicles. about 2.5 million locally produced China’s auto industry is highly fragmented, passenger vehicles in 2008, up 3.5 percent with many small automakers struggling to from a year earlier. But the entire market of stay alive. Many are subsidized by provincial locally produced passenger vehicles rose 6.9 governments eager for the prestige, jobs and percent, according to JATO Dynamics. tax revenue that automakers provide. The domestics were hurt by slumping About two-thirds of the top 25 domestic exports to other emerging markets and by automakers are state-owned. The central weak brand images in China. Many Chinese government wants to encourage state- WULING’S SMALL VAN IS A TOP SELLER IN CHINA. consumers prefer the prestige and higher owned automakers to consolidate. But the quality of overseas brands. consolidation will take time because In 2009, many domestics are fighting back government has enacted tax policies to provincial governments control most of the with new and redesigned models. And at encourage cars with small engines. state-owned auto companies. least two major state-owned automakers will The government also plans to offer Earlier this year, the central government start making sedans of their own brands. incentives for farmers to buy small vans and started a pilot program to offer generous Chery Automobile Co. plans to launch 15 pickups. Chery and Haima Automobile Co. incentives to taxi and other fleet operators new and redesigned cars in 2009. BYD Auto are gearing up to build those vehicles. to buy alternative-energy cars: a fixed Co. and Great Wall Motor Co. say they will Among the domestics, the Wuling brand amount of $8,770 for an and up launch several new models this year. has become a clear leader in the rural to $7,310 for a hybrid. Their efforts to reclaim market share have market. Its top-selling small van is useful for Various domestics, such as BYD and won the support of the Chinese people and cargo. General Motors owns 34 Chery, are scrambling to develop hybrids government. percent of SAIC-GM-Wuling Automobile and electric vehicles. The performance of Domestic automakers mainly build small, Co., which produces the Wulings. those cars has not been widely tested. inexpensive vehicles. Since late 2008, the This year, two major state-owned — Yang Jian

Beijing Automotive Industry Holding Corp. Global JVs No. 25, Dong San Huan South Road, Chaoyang District Beijing Benz-DaimlerChrysler Automotive Co. – Beijing – Mercedes-Benz Beijing 100021, P.R. China C class, E class (Page 6) (86) 10-6769-9888 Beijing Hyundai Motor Co. – Beijing – Hyundai Accent, Elantra, Elantra HDC, Sonata, Sonata Lingxiang, Tucson (Page 12) Top executive: Xu Heyi, chairman

When Xu Heyi was named chairman of Southeast and Changfeng are under Beijing Automotive Industry Holding Corp. increasing pressure as competition grows, in late 2006, the former Beijing government and China’s central government is official vowed to rebuild the state-owned encouraging state-owned automakers to company. buy competitors. So look for BAIC to make Xu wants BAIC to join other state-owned some acquisitions in 2009. automakers, such as Shanghai Automotive Meanwhile, BAIC in 2008 hired Wang Industry Corp. and China FAW Group Corp., Dazong, a U.S.-trained engineer and former in the top tier of China’s auto industry. But SAIC technology chief, to develop its brand. 2½ years after his appointment, he is only The company has been talking about partway through his effort. developing a sedan using a Mercedes-Benz Xu is strengthening BAIC’s ability to supply four-cylinder gasoline engine, but the plan is FOTON MIDI high-quality parts. He formed 12 joint incomplete. BAIC also is working with ventures with global suppliers such as Tsinghua University in Beijing to build Delphi Corp. and Corp. BAIC also operates independently and last year hybrid vehicles, which use a gasoline engine has 11 wholly owned parts suppliers. launched its first passenger vehicle, the and one or more electric motors to power Nevertheless, BAIC’s two joint-venture gasoline-powered Midi minivan. Foton the wheels. automakers, Beijing Hyundai Motor Co. and plans to build an electric car based on the Xu wants BAIC to unveil at least one car Beijing Benz-DaimlerChrysler Automotive same platform. under its own brand each year starting in Co., still rely heavily on imported parts. To grow, BAIC has long wanted to acquire 2010. But it is unclear whether BAIC, with BAIC has a 38 percent stake in Beiqi Foton smaller domestic automakers, including deep roots as a state-owned company, can Motor Co., China’s largest commercial- Southeast Motor Corp. and Changfeng move as quickly as Xu hopes. vehicle maker. But Beiqi Foton largely Motor Co. — Yang Jian

Beijing Automobile Works Co. 2008 2007 Models produced: No. 51, Fangjiacun, Guangqu East Road, Chaoyang District Sales, locally produced Jeep, Luba, Qishi Beijing 100022, P.R. China passenger vehicles 12,063 10,163 (86) 10-8774-3332, www..com.cn Ownership: Top executive: Yao Changsheng, president Bejing Automotive Industry Corp. 100%

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DOMESTIC AUTOMAKERS 21

BYD Auto Co. 2008 2007 Models produced: No. 2 Yadi Road, Xinxing Industry Garden Sales, locally produced F3, F3R, F6, F8, F0, F3DM Hybrid High-Tech Industrial Development Zone passenger vehicles 170,882 100,126 Xian City, Shaanxi Province 710119, P.R. China Ownership: (86) 29-8888-9999, www.bydauto.com.cn BYD Co. 99% Top executive: , president Shaanxi Investment Group 1%

BYD Auto Co.’s ambitious growth plans were endorsed last year by , America’s richest investor. A Buffett company invested $230 million in BYD so the company could develop hybrid and electric vehicles and batteries. Buffett’s investment — and parent BYD Co.’s expertise in lithium ion batteries — have transformed BYD into a player to closely in China’s auto industry. BYD Auto, in the south China city of , is a relative newcomer in that industry. BYD Co., founded by entrepreneur Wang Chuanfu, is a top global supplier of lithium ion batteries for cell phones. BYD Auto started producing cars in 2005 and has posted solid sales since — 170,882 in 2008, up 70.7 percent from 2007. John Zeng, an analyst at Global Insight in Shanghai, says BYD has a good feel for the BYD E6 auto tastes of Chinese consumers. The company sold four gasoline cars in 2008. BYD plans to launch five models in 2009 price of the gasoline-version F3. — the F6DM plug-in hybrid; the E6, a BYD wants to start selling vehicles in the seven-seat electric van; and three gasoline- United States and Europe in 2011. But as of powered vehicles: the F8 , M6 van late 2008, it was still working on a detailed and F5 mid-sized sedan. plan. The company plans to sell 400,000 The company says it plans to sell mainly vehicles this year, with about 10 percent for electrics and hybrids in the United States export. BYD exported about 20,000 vehicles and Europe. BYD F8 ROADSTER in 2008, mainly to Russia and the Middle BYD plans to target corporate and East. institutional buyers, such as taxi companies In December 2008, the company launched the F3DM plug-in hybrid. But the hybrid is and courier services. sales of its first alternative-energy vehicle, priced at $21,932, nearly three times the — Kevin Huang

Chery Automobile Co. 2008 2007 Models produced: No. 8 Changchun Road, Economic-Technological Development Area Sales, locally produced A1, A3, A5, Easter, Easter Cross, Karry, Wuhu City, Anhui Province 241009, P.R. China passenger vehicles 356,093 379,261 New Qiyun, QQ3, QQ6, Tiggo 3 (86) 553-5923-805, www.chery.cn Ownership: Top executive: Yin Tongyao, president & general manager Chery Automobile Co. 100%

For Chery Automobile Co., 2008 was a the luxury cars will go on sale. Chery still tough year. dreams of entering and Sales in China dropped 6.1 percent Europe. But for now it is concentrating on compared with 2007, to 356,093 units. the and . Chery’s best-selling model remains the Chery says it exported 135,000 cars in inexpensive QQ. And a joint venture to 2008, 10 percent more than in 2007. assemble cars with Chrysler LLC collapsed. Chery has plants in , Russia, , This year Chery plans a comeback, with the , , and . automaker saying it is releasing 16 new or Chery cars were exported to 60 countries in redesigned models under four new brands. 2008, the company says. Moreover, the Chinese government cut in Chery is also developing hybrid vehicles. half, to 5 percent, the sales tax on cars with In January it launched a BSG mild hybrid CHERY QQ engines of 1.6 liters or smaller. That will help version of the A5 small car. Chery also plans the QQ and other inexpensive Chery models. to fit its A3 small car with a -driven Chery now sells 11 cars in China, ranging Quantum LLC, an arm of an Israeli company starter generator, which turns a car into a from the QQ and other compact cars to the called Israel Corp. The joint venture, of which mild hybrid by providing assistance to the Tiggo SUV. The company also is trying to Chery owns 55 percent, is expected to begin gasoline engine. build a luxury brand in a joint venture with with four luxury models. It has not said when — Namrita Chow

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22 DOMESTIC AUTOMAKERS

China FAW Group Corp. No. 2259 Dongfeng St., Changchun Jilin Province 130011, P.R. China 2008 2007 (86) 431-8765-5827, www.faw.com.cn Sales, locally produced Top executive: , chairman passenger vehicles 228,454 210,603

China FAW Group Corp., which is losing ground to other large state-owned automakers, will try to build momentum with new models for its own brands in 2009. Subsidiary FAW Car Co., in the northern Chinese city of Changchun, plans to launch the , a sedan similar in size to the . The model will share a 1.6- liter engine with the VW Sagitar, FAW says. Sales of the Besturn B70 sedan about doubled last year to 47,750. The car is based on the platform of the previous-generation Mazda6. FAW Car’s luxury brand, Red Flag, sold only 2,167 units in 2008. Late in the year, FAW lowered the price of the Red Flag car — to little effect because of the brand’s outdated image and technology. FAW Car has an annual production capacity of 120,000 for three models: the Besturn B70, Mazda6 sedan and Red Flag HQ3 sedan. FAW makes the Mazda6 under a licensing agreement with that automaker. FAW Car plans to add annual capacity of 200,000 to its plants in 2010. The new FAW BESTERN B70 capacity will be used mainly to make the B50 and a new smaller car. Meanwhile, subsidiary Tianjin FAW Xiali Global JVs top vehicle maker to Shanghai Automotive Automobile Co., in the northern port city of Tianjin FAW Toyota Motor Co. – Tianjin – Industry Corp. It soon may give up second Tianjin, will start selling the TFC-M1 and Corolla, Corolla EX, Crown, Reiz (Page 16) place to Dongfeng Motor Corp. TFC- small cars in 2009. They will Sichuan FAW Toyota Motor Co. – Chengdu, Sichuan FAW and its joint venture partners sold replace the Xiali N3 and Weizhi. Province; Changchun, Jilin Province – Toyota Coaster 1.53 million vehicles in 2008, up 2.6 percent Sales of the Xiali N3 dropped 8.7 percent Land Cruiser, Prado, Prius (Page 16) from 2007, while SAIC sold 1.72 million and to 120,970 last year as domestic automakers FAW-Volkswagen Automotive Co. – Changchun, Jilin Dongfeng sold 1.32 million. Both SAIC and added more entry-level competitors. Province – Audi A4L, A6L; VW Bora Classic, Golf, Jetta, Dongfeng enjoyed double-digit growth, In Mexico last year, FAW Group sold more Magotan, New Bora, Sagitar, (Page 17) according to the Chinese Association of than 5,000 Xiali and Vita small cars at 18 Automobile Manufacturers. dealerships established by the Salinas working on an electric version of its Veta One bright spot for FAW is Tianjin FAW Group, a Mexican conglomerate with small car. Toyota Motor Co. Its sales rose 29.1 percent interests in financial services, FAW Group is China’s second-largest to 346,764 units in 2008, according to JATO communications and retailing. automaker, counting sales of its own Dynamics. The joint venture sells the Toyota Meanwhile, responding to calls from the brands, joint ventures and commercial Vios, Corolla, Crown and Reiz sedans. Chinese government for alternate-energy vehicles. FAW is widely regarded as a large, FAW and General Motors are in discussions vehicles, FAW Group’s r&d center is slow-moving, state-owned company that is to create a light commercial-vehicle joint developing a hybrid with a 1.3-liter engine falling behind more market-oriented rivals. venture in China, the two sides say. based on the Besturn B70. The center is also Two years ago, FAW lost its lead as China’s — Lan Lan

Domestic JV: FAW Car Co. Models produced: Besturn, Besturn Ownership: No. 4888 Weishan Road, High Technology B50, Besturn B70, Mazda6, Red Flag China FAW Group Corp. 53% Development Zone, Changchun City, Jilin Public shares 47% Province 130012, P.R. China (86) 431-8578-1576, www.fawcar.com.cn Top executive: Zhang Pijie, general manager

Domestic JV: Tianjin FAW Xiali Models produced: Vizi, Vela, Weizhi, Ownership: Automobile Co. Xiali N3 China FAW Group Corp. 48% Lilou Nan, Zhong Bei Xie Xiang, Xiqing District Tianjin Automotive Tianjin Province 300380, P.R. China Industry Corp. 32% (86) 22-8791-5000, www.tjfaw.com.cn Public shares 20% Top executive: Wang Gang, general manager

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DOMESTIC AUTOMAKERS 23

Chongqing Changan Automobile Co. 2008 2007 Ownership: No. 260 Jian Xin East Road, Jiang Bei District Sales, locally produced China South Industrial Automobile Co. 54% passenger vehicles 276,519 322,296 Chongqing 400023, P.R. China Public shares 46% (86) 23-6759-0114, www.changan.com.cn Models produced: Benben/Benni, Top executive: , president CM8, Joice, V101, Yuexiang, Z-Shine

Chongqing Changan Automobile Co. is adding a line of family cars to its successful small-van portfolio. So far, though, its car sales have been disappointing. Changan launched a subcompact sedan, the V101, in March, and a hatchback version of its Z-Shine mid-sized sedan is due later this year. The company’s first model was the Benben small hatchback, which went on sale in late 2006. Since then it has added the Joice seven-seat van, a hybrid Joice and the Z-Shine(CV8). Sales of Changan’s four passenger vehicles in China were 40,698 units last year, down by 15.4 percent from 2007, says JATO Dynamics. The Benben’s sales were 39,036 units last year. Sales of the other models have been poor. The company sold only 509 units of the Joice last year, while sales of the Z-Shine were 1,153 in 2008. FROM TOP: CHANGAN Meanwhile, the company says its sales of V101, JOICE AND vans, including commercial models, grew by Z-SHINE. 2 percent in 2008, to 362,000 units. A major challenge for Changan is to make its brand stand for more than just vans. Zhu Huarong, Changan’s engineering chief, says the company is developing more than 30 new or redesigned models on several platforms. Zhu says most of the models are sedans and several are crossovers, with engines from 1.8 to 2.4 liters. Most of these new cars will be launched before 2012, he says. Changan also has two foreign joint ventures in Chongqing and one domestic joint venture in Nanchang city, Jiangxi province. The joint venture with Ford and Mazda — Changan Ford Mazda Automobile Co. — suffered lower sales last year. The company sold 204,675 vehicles in 2008, down 6.0 percent from 2007. But its joint venture with Suzuki — Changan Suzuki Automobile Co. — recorded a 14.7 percent increase last year to 124,123 units. Sales of Jiangxi Jiangling Holding Co., Changan’s domestic joint venture with Jiangling Motors Co., also dropped last year. It sold 8,101 vehicles in 2008, down by about 29.6 percent from 2007. — Kevin Huang

Domestic JV: Jiangxi Jiangling Holding Co. Models produced: Fenghua, Ownership: No. 99 Liantan Town, North Denghu Road, Nanchang City Fashion, Landwind, X6, X9 Chongqing Changan Jiangxi Province 330200, P.R. China Automobile Co. 50% (86) 791-5216-666, www.landwind.com Jiangling Motors Co. 50% Top executive: Lu Shuifang, general manager

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24 DOMESTIC AUTOMAKERS

Chongqing Lifan Automobile Co. 2008 2007 Ownership: No. 60 Zhangjiawan, Shangqiao, Shapingba District Sales, locally produced Chongqing Lifan passenger vehicles 33,112 30,099 Chongqing City, 400037, P.R. China Industry Co. 86% (86) 236-6166-000, www.auto.lifan.com American Insurance Models produced: Group 14% Top executive: Yin Mingshan, chairman Lifan 320, 520, 520i, 620

After making a fortune producing In 2009, the company plans to add motorcycles, Yin Mingshan, president of a minivan, SUV and electric car. The Chongqing Lifan Holdings, started making electric will be based on the 520 and cars in 2006. will look a lot like the Mini Cooper. Just two years later, Yin obtained a $90 In 2010, Lifan plans to launch a million investment from insurance giant premium model called the 720 and a American International Group Inc. Yes, that multipurpose vehicle. The company A.I.G., the company at the center of the also is working to increase exports and collapse of the credit market in the United has built assembly plants in Vietnam, States and now controlled by the U.S. Egypt, Ethiopia, Russia and Iran. government. With the support of ’s Martin LIFAN 620 Indirectly, the United States owns about 14 Motors, Lifan plans to sell its 520 and percent of Lifan. Yin told newspapers in 520i under the Martin badge in China that so far, A.I.G.’s troubles have not JATO Dynamics. About two-thirds of its cars Europe this year. The two cars are fitted with bothered his company. were exported to small markets. a 1.6-liter gasoline engine produced in Lifan’s automaking subsidiary, Chongqing Lifan makes four models: the 520 sedan, by Tritec Motors, an engine company Lifan Automobile Co., is aiming high. 520i hatchback, 620 sedan and 320 small sold to Fiat Powertrain Technologies by Lifan Automobile sold 33,112 cars in 2008, car. They are priced between $5,800 and Chrysler LLC in 2008. up 10.0 percent from 2007, according to $11,700. — Yang Jiana

Dongfeng Motor Corp. No. 1 Dongfeng Ave., Wuhan Economic-Technological Development Area

Wuhan City, Hubei Province 430056, P.R. China 2008 2007 (86) 27-8428-5000, www.dfmc.com.cn Sales, locally produced Top executive: Xu Ping, general manager passenger vehicles 23,611 22,196

Dongfeng Motor Corp., a large state- to boost sales. The automaker has not Dongfeng also needs a marketing plan to owned automaker that builds mainly released a timetable for the new cars. integrate the new brand into its lineup. and , will take a huge step forward in Parts for Fengshen will be supplied by 188 Several companies affiliated with Dongfeng the first half of 2009, when it plans to start companies — including some global have been producing small vans, pickups producing its own brand of cars. suppliers, such as Visteon Corp., Robert Bosch and that carry Dongfeng’s badge. The brand is called Fengshen, or in GmbH and Delphi Corp., says Dongfeng. The For example, Dongfeng Liuzhou Motor Co., English. Aeolus used to be the brand of company just finished building an r&d center of which Dongfeng and Nissan together own Dongfeng’s joint venture with Taiwan’s and plant in the central China city of Wuhan. 75 percent, produces the Dongfeng-badged Motor Co. and Nissan Motor Co. But the The plant, which has a capacity of 120,000 Future seven-seat and Joyear five-seat vans. brand went out of production in 2003 after units, will be expanded to 240,000 in a second Zhengzhou Nissan Automobile Co., in Dongfeng and Nissan established closer ties stage. Construction on the second stage is which Dongfeng has a 51 percent stake, is and launched the Nissan brand here. expected to start in 2010. producing some Dongfeng-badged SUVs, The first Dongfeng sedan, the Aeolus S30, While Dongfeng can rapidly boost pickups and seven-seat vans based on debuted at the Shanghai auto show this production of its own brand of cars in the Nissan platforms. month. The small sedan, powered by a 1.6- coming years, marketing them could be Dongfeng Yuan Vehicle Co. in Hubei liter gasoline engine, competes against the challenging. province is producing Dongfeng-badged Buick Excelle and Hyundai Elantra. The company is familiar with selling minivans, while Dongfeng Rongcheng Auto Dongfeng has ambitious plans to assemble commercial vehicles — a pitch that largely Co. in Shandong province plans to launch a a lineup of large sedans to build its brand depends on business-to-business Dongfeng-badged sporty sedan. image, along with inexpensive smaller cars relationships, not mass-marketing skills. — Kevin Huang

Domestic JV: Dongfeng Liuzhou Motor Co. Global JVs No. 286 Pingshan Ave., Liuzhou City Dongfeng Honda Automobile (Wuhan) Co. – Wuhan, Hubei Province – Honda Guangxi Province 545005, P.R. China Civic, CR-V, (Page 11) (86) 772-3281-218, www.fxauto.com.cn Dongfeng Yueda Kia Automobile Co. – Yancheng City, Jiangsu Province – Kia Top executive: Cheng Daoran, general manager Carnival, Cerato, Cerato H/B, Optima, Rio, DYK Sportage (Page 12) Models produced: Dongfeng Future Ownership: Dongfeng Motor Co./Dongfeng Nissan Passenger Vehicle Co. – Guangzhou, Joyear Dongfeng Motor Co. 75% Guangdong Province – Nissan Bluebird Sylphy, Geniss, Livina, Teana Liuzhou Industrial Holding Co. 25% Tiida, X-Trail (Page 14) Dongfeng Peugeot Citroen Automobile Co. – Wuhan, Hubei Province – Citroen C2, C-Elysee, C-Quatre, C-Triomphe, New Xsara, Picasso Peugeot 206, 207, 307 (Page 15) Zhengzhou Nissan Automobile Co. – Zhengzhou, Henan Province – Nissan MPV, NT400 Cabster, Paladin, Pickup, Rich, SUV (Page 14)

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26 DOMESTIC AUTOMAKERS

Great Wall Motor Co. 2008 2007 Ownership: Sales, locally produced No. 2266 South of Chaoyang Road, Baoding City Baoding Ruifeng Corp. passenger vehicles 73,030 64,732 Planning Co. 24% Hebei Province 071000, P.R. China Baoding Innovation Great Wall (86) 312-2197-855, www.gwm.com.cn Models produced: Asset Management Co Ltd. 38% Top executive: Wei Jianjun, chairman Coolbear, Cowry, Florid, GWPeri, Hover, Safe, Sing Public shares 38%

In 2009, Great Wall Motor Co. seeks a comeback in the SUV market. It also wants to grab more market share in cars. The company plans to achieve both with more fuel-efficient vehicles. Small engines are in demand because the Chinese government halved the vehicle purchase tax to 5 percent on vehicles with engines of 1.6 liters or smaller. Great Wall says it plans to launch 13 new or redesigned vehicles in 2009, nine of which will have engines smaller than 1.6 liters. The first of the new vehicles, the Coolbear, went on sale in March. In 2008, Great Wall’s Hover SUV lost first place as China’s top-selling SUV to Honda’s CR-V. The Hover had been on top since 2003. The automaker plans to launch five SUVs, and three will be offered with 1.3- and 1.5-liter engines. GREAT WALL FLORID Clean diesel is also a strategy of Great Wall. This year the company will offer 2.0-, 2.4- and 2.5-liter clean-diesel engines from 2007. Exports increased 15 percent to domestic cities in 2009. in the Hover. about 55,000 units. Great Wall targets sales The company predicts the number of its In 2008 the automaker launched its first of 200,000 vehicles in 2009, including dealerships in China will increase to 550 this two small sedans, the Gwperi and Florid. 80,000 cars. year, from about 450 at the beginning of the The company sold about 125,000 vehicles, Great Wall says it will expand its network year. including exports, in 2008, up 10 percent of dealers in the second- and third-tier — Lan Lana

Guangzhou Automobile Industry Group Global JVs: Floor 19-21, 23, Chengyue Mansion, No. 448 Middle of Dongfeng Road Guangzhou Honda Automobile Co. – Guangzhou, Guangdong Province – Honda Accord, Fit, New City, Odyssey (Page 11) Guangzhou City, Guangdong Province 510030, P.R. China Honda Automobile (China) Co. – Guangzhou, Guangdong (86) 20-8315-0411, www.gaig.com.cn Province – Honda Jazz (Page 11) Top executive: Zhang Fangyou, president Guangqi Toyota Motor Co. – Guangzhou, Guangdong Province – Toyota Camry, Yaris (Page 16)

Guangzhou Automobile Industry Group partners are Japanese, it seeks technologies will expand its dealer network in 2009 and from European companies for its own brand. finish testing the first car of its own brand, a For example, Fiat Powertrain Technologies is mid-sized sedan due early in 2010. helping Guangzhou develop engines. At the 2008 Guangzhou auto show in The company’s joint ventures with Honda November, the company unveiled a concept and Toyota grew less than the overall sedan, the VIP-Lounge. Guangzhou says the market’s 6.9 percent increase in 2008. concept is close to the 2010 production Guangzhou Honda Automobile Co. sold model. 305,998 cars in China last year. Although Guangzhou is a major state-owned sales rose 3.6 percent from 2007, the figure automaker. But it has fallen behind other was well below the company’s target of state-owned giants, such as Shanghai 340,000 units. Automotive Industry Corp., in the race to Guangzhou Toyota Motor Co. sold 172,004 develop brands. Guangzhou does have two cars last year, up 1.0 percent. But it, too, joint ventures, with Honda Motor Co. and failed to meet its sales target of 210,000 units. GUANGZHOU VIP-LOUNGE CONCEPT Toyota Motor Corp. According to reports in the Chinese media, Late in 2007, Guangzhou joined the rush Guangzhou may set up a joint venture with by Chinese automakers to develop their an engine plant in Guangzhou with annual Fiat Group in 2009 to produce Fiat own brands. The automaker plans to spend capacity of 100,000 units per year. Con- passenger vehicles. Both companies have about $916 million by 2010 on that project. struction is expected to be finished in May. declined to confirm the reports. The company is building a car plant and Although Guangzhou’s two assembly — Kevin Huang

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Shanghai Automotive Industry Corp. 2008 2007 Ownership: No. 489 Weihai Road Sales, locally produced Shanghai government 100% Shanghai 200041, P.R. China passenger vehicles 35,208 19,680 (86) 21-2201-1688, www.saicgroup.com Top executive: Hu Maoyuan, president

Shanghai Automotive Industry Corp. is the own brand, Roewe. It now has three most global minded of China’s domestic passenger-vehicle plants with annual automakers. But so far its record with capacity of 400,000 units. international projects is mixed. SAIC touts the British heritage of its Roewe On the downside, SAIC’s 51 percent and MG brand cars. But sales of the two interest in Korea’s Ssangyong Motor Co. has brands have been modest. In 2008, SAIC been a huge headache. In January, only sold 26,007 Roewes and 9,201 MGs. Ssangyong filed for bankruptcy protection SAIC now is consolidating operations of its from creditors in Korea, and SAIC lost three car plants so MG and Roewe models control of the company. can share platforms and be assembled in On the other hand, SAIC bought the each plant. 75 platform and shipped the tooling to Meanwhile, SAIC is racing other domestic China in 2005. It also recruited many former automakers such as BYD Auto Co. and MG Rover engineers to staff its r&d center in global automakers and developing its own Chery Automobile Co. to develop England, which helped it develop cars for its auto brand. It set up a 50-50 joint venture alternative-energy vehicles. In late 2008, it own brand, Roewe. The brand has two cars, with Volkswagen AG in 1983 and with set up a subsidiary in Shanghai to develop the 750 mid-sized sedan and the 550 General Motors in 1997. hybrid and electric cars. compact sedan, with more on the way. In 2002, SAIC and GM established a Before the end of 2010, SAIC expects to After acquiring Nanjing Automobile Corp. successful joint venture with Liuzhou Wuling start mass producing a mild hybrid powered in late 2007, SAIC took over the MG brand Motor Co. to make minivans under the by lithium ion batteries. The car will be a that Nanjing Auto bought from MG Rover. Wuling brand and the Chevrolet Spark small refitted . SAIC, established in the 1950s, has deep car. Wuling now is China’s top-selling It also plans to launch an electric car in roots as a state-owned company. But it was domestic brand. about 2012. quick to see the potential of partnering with In 2006, SAIC started making cars of its — Yang Jian

SAIC Motor Co. Global JVs: Building 3, 615 Ningqiao Road, Jinqiao, Pu Dong District Shanghai General Motors Corp. – Shanghai – Buick Excelle, Excelle HRV, LaCrosse, Shanghai 201206, P.R. China Regal, Park Avenue; Cadillac SLS (Page 10) (86) 21-5899-9522, www.roewe.com.cn Shanghai GM Dongyue Motors Co. – Yantai, Shandong Province – Chevrolet Aveo Top executive: Hu Maoyuan, president Cruze, Epica, Lova (Page 10) SAIC-GM-Wuling Automobile Co. – Liuzhou, Guangxi Province – Chevrolet Spark; , Hongtu, Sunshine, Xingwang, Single & Double Pickup Models produced: Roewe 550, 750 Ownership: (Page 10) Shanghai Automotive Shanghai GM (Shenyang) Norsom Motors Co. – Shenyang, Liaoning Province – Industry Corp. 84% Buick GL8 (Page 10) Public shares 16% Shanghai Volkswagen Automotive Co. – Shanghai – VW CrossPolo, Lavida Passat Lingyu, Polo, Santana, Santana Vista, Touran; Skoda Fabia, Octavia (Page 17)

Shenyang Brilliance Jinbei Automotive Co. 2008 2007 Ownership: No. 39, Dongwang Street, Dadong District, Sales, locally produced Brilliance Automobile Holdings 51% Shenyang City, Liaoning Province 110044, P.R. China passenger vehicles 103,737 126,571 JinBei Automobile Co. 39% (86) 24-3166-6666, jinbei.chinaepu.com Models produced: Grandeur, Splendor, Huaxia North Investment Co. 10% Splendor FRV, Splendor Wagon, Top executive: Qi Yumin, president Brilliance Coupe

Shenyang Brilliance Jinbei Automotive Co., Sales of the mid-sized Splendor dropped Production is scheduled to start in 2010. The BMW AG’s partner in China, is counting on 11.2 percent in 2008, and the Grandeur was plant’s annual capacity will be 150,000 units. a new compact to reverse off 46.8 percent. Italy’s S.p.A. In 2006, Brilliance’s plans to enter Europe declining sales. styled the cars, while AG helped were delayed when the Grandeur fared poorly Brilliance makes cars under its Brilliance engineer them. in a crash test. Brilliance resumed exports of brand and produces vans, small buses and Brilliance launched the FRV hatchback, the Splendor to Europe in 2007. The company light trucks under the Jinbei brand. The based on a new compact car platform, in doesn’t release its European sales. company sold 285,119 units in 2008. 2008. The platform, benchmarked against The company originally planned to start Brilliance was a pioneer among domestic the Volkswagen Bora, was designed by selling cars in the United States in 2009. But automakers in developing its own brand of Brilliance’s r&d team. He Guohua, vice chairman of the company, cars. But today it remains a small player A three-box sedan version of the FRV will told Automotive News that Brilliance now because of a lack of funds and frequent go on sale in 2009, and a crossover based on has no timeline to start exports. reshufflings of top executives. the same platform will be added later, says Brilliance’s joint venture with the BMW Sales of Brilliance cars in the domestic Brilliance. Group produces the BMW 3- and 5-series market dropped 18.0 percent to 103,737 in Other cars from the same platform will be sedans in Shenyang. 2008, according to Jato Dynamics. assembled in a plant under construction. — Lan Lan

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28 DOMESTIC AUTOMAKERS

Liuzhou Co. 2008 2007 Models produced: No. 18 Hexi Road, Liuzhou Sales, locally produced Wuling Light Guangxi Province 545007, P.R. China passenger vehicles 545,239 464,118 (86) 772-3750-272, www.wuling.com.cn Ownership: Top executive: He Shiji, chairman State owned 100%

Liuzhou Wuling Motors Co. is a little- headquarters in the western China city of known automaker, but it owns the top- Liuzhou. It also runs an assembly plant and selling domestic brand in China. is building an engine plant in the Wuling has thrived by selling a versatile northeastern coastal city of Qingdao. small van useful for small businesses and Sales of small vans are expected to grow in families. In 2008, Wuling posted sales of coming years because the Chinese 545,239, up 17.5 percent from 2007. government is offering subsidies to farmers General Motors has been Wuling’s key to buy them. In 2006, Wuling overtook partner. Starting in 2002, GM and another Changan as the top small-van maker in partner, Shanghai Automotive Industry Corp., China. upgraded Wuling’s vans with better engines, Meanwhile, SAIC-GM-Wuling is looking to materials and manufacturing quality. produce bigger and more profitable family WULING HONGTU In 2002, Liuzhou Wuling, a state-owned cars. The company is expected to get company in the southwestern China joint venture to produce inexpensive small support from Pan Asia Technical province of Guangxi, transferred nearly all cars for global markets. Automotive Center to build a $7,300 to its automaking operations to the joint GM started a trial project in mid-2008, $8,800 compact sedan based on the Buick venture SAIC-GM-Wuling Automobile Co. the Wuling Hongtu van as a Excelle platform. Liuzhou Wuling itself now produces only Chevrolet and exporting the vehicle to Peru. Engineers from the company say SAIC- parts, engines and a small number of The Hongtu was designed by GM’s GM-Wuling also is developing a bigger van special-purpose vans. engineering team in China at Pan Asia priced at about $10,000 in the next two to GM owns 34 percent of SAIC-GM-Wuling Technical Automotive Center in Shanghai. three years. The automaker’s best-selling but has said it wants to increase the stake. SAIC-GM-Wuling operates two assembly Sunshine model sells for about $5,100. The U.S. automaker also wants to use the plants and one engine plant in its — Kevin Huang

Zhejiang Geely Automobile Group 2008 2007 Models produced: No. 1760 Jiangling Road, , Hangzhou City Sales, locally produced Free Cruise, Jinying, King Kong, Meirenbao, Un Zhejiang Province 310051, P.R. China passenger vehicles 221,151 220,832 Merrie, Panda, Ulio, Vision (86) 571-8776-6666, www.geely.com Ownership: Top executive: , chairman Li Shufu 91% Others 9%

Zhejiang Geely Automobile Group plans to include production of the TX4 Taxi. In launch two brands this year, a risky strategy 2007, Geely bought 23 percent of taxi maker for a small automaker. Manganese Bronze Holdings PLC and formed In 2008, Geely launched a brand called a joint venture. Production was to begin in with the Panda small car plus four December but was pushed back to April. new models companywide. Meanwhile, Li is trying to build a network Duan Chengwu of Global Insight says of support across China. By opening plants Geely’s multiple brands are confusing. “As a in several provinces, he is gaining backing relatively new car company without a global from local governments, says Duan. In footprint yet, Geely should instead return for his investments, the governments concentrate on building a single Geely will encourage using Geely cars as taxis. brand,” says Duan. Sales of the six Geely brand models in China But John Zeng, also of Global Insight, says totaled 183,025 in 2008, down 0.6 percent GEELY PANDA the Panda is a high-quality car. “Geely will from 2007. Geely’s Maple brand sold 36,357 do much better than Chery,” Zeng says. units in 2008, down 0.8 percent from 2007. Chery Automobile Co. also has begun a Zhang Xiao Dong. The Panda, badged with the new Eagle brand, multibrand strategy. Last year’s market slowdown caused sold 1,769 units after its November launch. Geely’s , the LE-E, is ready for Chairman Li Shufu to delay projects. For “Total sales of 230,000 units in 2009 is volume production, says the automaker. “We instance, a plan to open a plant in Mexico achievable,” Li said in an interview in estimate putting this vehicle into production was shelved. In November, Li said exports had November. “But 280,000 would probably be next year — though we still have not yet fully fallen as much as 60 percent in some markets. too optimistic.” devised the strategy,” says spokesperson Other projects likely to take a back seat — Namrita Chow

JV: Shanghai Maple Automobile Co. Models produced: Ownership: Industrial Park, , Haiyu, Haixun, Haishang, Haifeng, Zhejiang Geely Automobile Shanghai 201501, P.R. China Haiyue Holdings Group 91% (86) 21-5136-9990, www.c-sma.com Zhejiang Huapu Investment Co. 9% Top executive: Yu Wei, general manager

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FAW Haima Automobile Co. Sales, locally produced Models produced: Mazda Ownership: No. 12-8 Jinpan Road, Jinpan Industry passenger vehicles Familia, Freema, Haima3 Haima Holding Group 50% Development Area, Haikou City 2008 2007 Happin, Haydo China FAW Group Corp. 49% Hainan Province 570216, P.R. China 96,099 130,988 Hainan Provincial (86) 898-6682-2672, www.haima.com Government 1% Top executive: Jing Zhu, chairman

Harbin Hafei Automobile Industry Group Co. Sales, locally produced Models produced: Ownership: No. 1 Yantai Road, Pingfang District passenger vehicles Hafei Lubao, Minyi, Minyi II, Harbin Aviation Industry 2008 2007 Harbin City, Heilongjiang Province 150060, P.R. China Ruiyi, Saibao III, Saibao V, Group Co. 74% 148,673 167,165 Saima, Zhongyi Others 26% (86) 451-8650-6688, www.hafeiauto.com.cn Top executive: Lian Gang, president

Hebei Zhongxing Automobile Co. Sales, locally produced Models produced: Ownership: No. 860, Jianguo Road, Baoding City passenger vehicles Admiral, Grand Tiger, Hebei Tianye Automobile 2008 2007 Landmark, Landmark V3 Group Co. 53% Hebei Province 071000, P.R. China 6,126 6,971 Baoding Tianwei (86) 312-2190-705, www.zxauto.com.cn Group Co. 14% Taiwan Unite Top executive: Xiao Wei, president Leaders Co. 33%

Hunan Jiang Nan Automobile Co. Sales, locally produced Models produced: Ownership: Nanzhushan, Xiangtan County passenger vehicles Alto, Chuanqi, Fengguang, Zotye Holding Group 70% Hunan Province 411207, P.R. China 2008 2007 Spirit 13,099 5,444 (86) 732-2518-018, www.jncar.net Manufacture Co. 30% Top executive: Li Xubing, president

Anhui Jianghuai Automobile Co. Sales, locally produced Models produced: Ownership: No. 176 Dongliu Road, Hefei City passenger vehicles Binyue, Refine MPV, Rein SUV, Anhui Jianghuai Anhui Province 230022, P.R. China 2008 2007 Tongyue Auto Group 35% 58,237 48,114 (86) 551-2296-666, www.jac.com.cn Public shares 65% Top executive: Zuo Yanan, president

Jiangxi Changhe Automobile Co. Sales, locally produced Models produced: Ownership: No. 208 Xingchang East Road, Jingdezhen City passenger vehicles Big Dipper, Freedom, Ideal II, China Aviation Technology 2008 2007 Landy, Liana Industry Co. 63% Jiangxi Province 333002, P.R. China 8,294 7,295 (86) 798-8462-778, www.changheauto.com Others 37% Top executive: Li Yao, president

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • JATO Dynamics