Asian Automotive Newsletter

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Asian Automotive Newsletter ASIAN AUTOMOTIVE NE WSLETTER SEPTEMBER 2010, ISSUE 64 A Quarterly newsletter of developments in the auto and auto components markets Emerging Asia remains the world’s most Business Development Asia LLC (“BDA”) CONTENTSC O N T E N T S significant growth region and this applies is an investment banking firm which fully to the automotive sector. China is specializes in Asian M&A. We have CHINA……………………….. 1 now the second largest market for many offices in all of the major Asian INDIA………………………… 4 auto and auto components suppliers and automotive markets, as well as London JAPAN……………………….. 4 in not a few cases, the largest. While and New York. If you are interested in many Chinese auto suppliers have their discussing any of the articles in this KOREA……………………….. 5 hands full in their home market, an newsletter, please contact me directly. MALAYSIA…………………… 5 increasing number are acquisitive THAILAND…………………… 5 globally and with increasing success Charles Maynard rates. This trend both for Chinese as well TAIWAN……………………… 5 Senior Managing Director, as Indian acquirers will only grow. [email protected] China Anhui Jianghuai Automobile Corp (AJAC) Automotive Stock Indices for Selected Countries (12 months ending plans to set up a 50:50 JV with HK CapitaCapita, 10Sep10) a subsidiary of HK based Hybrid Kinetic GroupGroup, which is engaged in environmental products and natural resources. The JV 180 India plans to produce 1 million new energy 170 vehicles in the next eight years for an estimated US$4.4bn and an initial 160 minimum investment of US$295m. The JV 150 Korea would provide AJAC with advanced 140 China technologies to build environmentally 130 US friendly vehicles. August 11, 2010 120 Europe 110 Beijing Hyundai MotorMotor, a JV in China 100 between Beijing Auto and Hyundai 90 Japan MotorsMotors, has agreed to set up a third plant 80 in the Beijing River Industrial Development Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Zone in Shunyi district, now making its China operations bigger than Korea. The plant is expected to boost Beijing Source: Thomson One, BDA Hyundai's capacity to more than 900,000 vehicles. Beijing Hyundai plans to build 2 A SIAN A UTOMOTIVE NEWSLETTER SEPTEMBER 2010, ISSU E 6 4 Automotive Trading Multiples for Selected Countries (15Sep10) includes stamping, welding, painting, 30.0x general assembly, resin workshops and test grounds. The facility is scheduled to 24.0x 25.0x enter production by June 2012 at a capacity of 400,000 units. 20.0x August 02, 2010 14.7x 14.9x Ford Motor and its Chinese partner 15.0x 12.3x 13.1x 12.6x 11.8x Jiangling Motors CorpCorp, a Chinese 9.8x commercial vehicles manufacturer, began 10.0x 8.1x 7.8x 7.2x building a new assembly plant in 4.6x Nanchang for an estimated US$300m. The 5.0x new plant will commence production in 2012 and will have the capacity to build 0.0x 300,000 vehicles a year for Ford. July 19, 2010 China India Japan Korea US EU General Motors (GM) has agreed to Source: Thomson Reuters, BDA EV/EBITDA P/E construct an R&D facility, China Advanced Technical Center, to develop electric cars, lightweight materials and alternative fuel 150,000 Avante compacts a year at the will have capacity of 100,000 vehicles and technology in Shanghai. The facility is plant from May 2012, and is also 45,000 heavy diesel engines. The trucks expected to be completed by Q4 2011 and considering its new Grandeur sedan at the produced would bear Foton's Auman would include nine research labs and 62 plant. July 26, 2010 nameplate and use engine technology test labs for new propulsion systems, from Daimler's Mercedes-Benz unit. gasoline alternatives, electrification Chery AutoAuto, a Chinese automaker, plans July 16, 2010 systems, new engines and battery cells. to build an auto plant in Jacarei City, Brazil, The R&D facility will have over 300 for an estimated US$700m. The plant will Faurecia SASA, a majority owned unit of PSA designers, engineers, researchers and have capacity of 170,000 units and will Peugeot CitroenCitroen, acquired 18.75% of technicians. July 19, 2010 commence operations in 2013 . Chinese state-owned Changchun Xuyang August 10, 2010 Industry GroupGroup, a manufacturer of auto Great Wall MotorsMotors, a Chinese automaker, accessories, bumpers and car seat frames. has started the construction of an auto Chery Auto plans to acquire a controlling As a result, two new JVs will be created, parts industrial park in China for a total stake in Fabyka Samochodow OsoOso---- adding to the existing 60:40 JV between investment of US$2.4bn. The park covers bouych (FSO), a Polish automaker. The Faurecia and Changchun for complete 4sq km and is expected to commence deal would enable Chery to manufacture seats. The interior systems JV will be 60:40 operation in H2 2013. The company plans the QQ models locally in Poland and will majority owned by Faurecia, and the to produce environmentally friendly high- also strengthen its existing production acoustic modules and interior trim JV will end auto parts for its SUVs, sedans, network in Europe. The terms of the be 40:60 minority owned by Faurecia. pickups and other future models. proposed deal have not been disclosed. Terms of the transaction were not August 9, 2010 July 09, 2010 disclosed. July 1, 2010 HyundaiHyundai----KiaKia Automotive Group has Daimler AG and Beiqi Foton Motor have FAW Jilin AutomobileAutomobile, a Chinese minivan signed a cooperation agreement with the agreed to set up a 50:50 JV in China to producer and subsidiary of FAW GroupGroup, municipal government of Rizhao to manufacture medium- and heavy-duty announced that it would build a new plant construct an auto components facility. The trucks for an estimated US$937m. The JV at the Automobile Industrial Park in Jilin. new plant will have a capacity of 800,000 The new plant covers 700,000sqm and sets of core auto parts and components, at 3 A SIAN AUTOMOTIVE NEWS LETTER SEPTEMBER 2010, ISSU E 6 4 an estimated investment of US$290m. Automot ive EV/Revenue for Selected Countries (15Sep10) The first phase of the new plant is expected 1.6x to be completed by 2011. July 20, 2010 1.4x 1.4x Pacific Century MotorsMotors, a Tempo Group 1.2x subsidiary in China, agreed to acquire 1.0x 1.0x Nexteer AutomotiveAutomotive, a US manufacturer 1.0x of steering and driveline systems, from General Motors (GM). The details of the 0.8x 0.6x 0.6x deal have not been disclosed. 0.6x July 7, 2010 0.5x 0.4x PSA PeugeotPeugeot----CitroenCitroen and Changan Automobile Group have formed a 50:50 JV 0.2x to manufacture passenger cars and light commercial vehicles in China at an 0.0x estimated initial investment of US$1.1bn. China India Japan Korea US EU The new plant will have a capacity of Source: Thomson Reuters, BDA 200,000 vehicles and engines. July 9, 2010 150,000 units to 300,000 units by 2013 to Tata Motors plans to build an assembly meet rising demand in the Chinese plant in China in order to expand the Shanghai Shenhua Nuoyu Medical AutoAuto, domestic market. SEM plans to introduce supply capacity of its luxury car brand a Chinese ambulance manufacturer and six models in the Chinese market from Jaguar , and enhance its sales network in subsidiary of Brilliance AutoAuto, has formed 2010 to 2012. In addition to Mitsubishi's China. Tata expects to sell 20,000 Land a JV with Austria's Dlouhy GmbH in small SUV RVR and Colt car, SEM will Rovers as well as 5,000 Jaguars in China by Shanghai to manufacture specialized and launch several self-developed models 2011 as well as launch an entry-level Jaguar modified vehicles in China. The JV would including the V3 electric car, an economy car, a new sports car, a new Range Rover give Brilliance access to Dlouhy’s car, a MPV and a SUV. July 22, 2010 SUV and other hybrid models in the future. Mercedes-Ben z chassis technology to August 5, 2010 manufacture advanced ambulances and Subaru and Beijing Auto Industry Corp also cooperate in localizing high-end (BAIC) and Power Diversity Automobile modified vehicles, modified auto parts and Trade Group have signed a preliminary ZAPZAP, a US manufacturer of battery- components and core technologies. agreement to establish a 50:25:25 JV in powered vehicles, has agreed to buy 51% July 21, 2010 China. The JV plans to build a facility in of Chinese automaker Zhejiang Jonway Automobile Co for US$43m. ZAP and Shanghai Volkswagen Automotive CoCo, a Tangshan and produce 50,000 Subaru SUVs in a first phase, followed by Subaru Jonway intend to manufacture battery JV between China's SAIC Group and powered SUVs for China’s taxi industry and VolkswagenVolkswagen, has agreed to build its fifth sedans in a second phase. The project is expected to commence operations by mid- also market the SUVs in other countries. assembly plant in Jiangsu province. The July 9, 2010 new plant is expected to commence 2012. July 23, 2010 operations in 2012 and will have a capacity of 300,000 vehicles. Suzuki Motors is currently in discussions ZotyeZotye, a Chinese car maker, has invested July 16, 2010 with Volkswagen and SAIC Motor to set US$280m in a new plant that would be up a three-way JV called Suzuki Motor able to produce 10,000 new energy Southeast Motor (SEM), the Chinese (China) InvestmInvestmentent Co in China. vehicles per year. Zotye plans to produce partner of Mitsubishi MotorsMotors, announced Volkswagen holds a 19.9% stake in five different electric cars, the 2008EV and that it plans to expand its capacity from Suzuki.
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