SUPPLEMENT TO

May 2005 © 2005 Crain Communications. All rights reserved.

GuideGuide toto China’sChina’s AutoAuto MarketMarket

• Global automakers’ joint ventures • Domestic Chinese automakers • Vehicle production and sales data • Global OE suppliers in China 2005 Guide to China’s Auto Market

May 9, 2005 Go to www.autonews.com/chinaguide to download this guide in pdf format. Even the most blinkered optimist understood that China's Industry analyst and consultant Graeme Maxton estimates sizzling new-car market had to cool off sometime, but few that margins on vehicles sold in China have plunged to an observers expected it to be quenched so rapidly, or thoroughly. average of about 3 percent or 4 percent from a high of as After soaring 62 percent in 2002 and 76 percent in 2003, much as 25 percent just three years ago. That is hurting passenger-car sales last year rose only 15 percent over 2003 to everyone. about 2.3 million units. In January, GM forecast that net profit from its Asia Pacific China's central bank triggered the slowdown in May when it operations, where China has accounted for the bulk of profits, clamped down on credit in a bid to cool the nation's would fall to $600 million this year from $729 million in 2004. overheating economy. This year is off to an even colder start. Car sales for the first That may be optimistic. GM said its profit from China in the two months, the most recent available at press time, fell fourth quarter slid 68 percent from a year earlier to $33 million. 16 percent from a year earlier to 286,100 while output was That represented just 5.2 percent of the automaker's worldwide down 8 percent to 301,200, the China Association of net of $630 million, vs. 20 percent in the third quarter. Automobile Manufacturers reports. Jean-Martin Folz, CEO of PSA Peugeot-Citroen, disclosed Most analysts and industry executives now expect the market recently that the French automaker will lose money in China this year to be up no more than 10 to 12 percent over 2004. this year for the second year in a row because of the cutthroat Still a small pie pricing environment. While 10 percent growth in most markets today would be China produced Peugeot's highest profit margin of any cause for jubilation, it's not robust enough to support the market as recently as 2003, he said. But the carmaker lost 38 industry's ambitions in China, where automakers have spent million euros, or about $50 million at current rates, at its some $15 billion to date to build new plants and dealer venture with Dongfeng Motor last year vs. a 32 million euro networks. pretax profit in 2003. For one thing, China's growth rates come on a small base – a Officials hold firm 10 percent rise in the market this year, for example, would yield There seems to be little hope for immediate relief. Chinese only about 230,000 more unit sales. For another, nearly 50 domestic and foreign automakers are officials in March reiterated their commitment to reining in competing for a piece of what, essentially, still is a small consumer spending through tight credit policies. market. Not surprisingly, the competition has turned into a Analysts say the sudden cooling of the hot auto industry has knife fight. exposed China's age-old business risk: A period of explosive Faced with the unaccustomed problems of weakening growth may prove alluring, but not necessarily serve as an demand and excess inventory, automakers are slashing prices accurate gauge of the market's true size. across the board in a bid to keep showrooms open. Even Few would dispute, though, that China will become a huge BMW, a marque considered to have the auto industry's most auto market over the long term. But for the foreseeable future, unassailable price premium, cut prices by up to $12,100 early the industry's new operating paradigm in China will be this year after its sales in China tanked 16 percent in 2004. overcapacity, softening demand, price resistance and weaker In recent weeks, Ford, Honda and Audi have announced profits. price reductions. Honda slashed the price of its best-selling Those also are the building blocks of a shakeout. Accord by $2,425 to about $24,000 while Ford cut its compet- "The price war between automakers last year cut the overall ing Mondeo to $23,390 from $26,660. profit margin of the industry," says Jiang Yuan, a Bureau of According to the National Bureau of Statistics in Beijing, car prices in China fell about 10 percent industrywide last year, and Statistics official. "The price wars will continue until those will slump another 15 percent this year. That has taken a toll on brands that are less competitive are driven out." companies' bottom lines. James R. Crate, co-editor, Guide to China’s Auto Market Contents China passenger vehicle Map of production production and sales...... 4 facilities in China ...... 17 Global automakers/ Domestic automakers ...... 19 joint ventures...... 7 Global suppliers in China...... 25

How to reach us: Publisher and Editor-in-Chief www.autonews.com Guide to China’s Auto Market staff Keith E. Crain Editorial staff Co-Editors Associate Publisher and Editorial Director [email protected] Anne Wright Curtis James R. Crate Peter Brown Phone: 313-446-0361 Fax: 313-446-0383 [email protected] [email protected] Editor, Automotive News Circulation David Sedgwick [email protected] Contributing researcher Geoff Liu Phone: 888-446-1422 Fax: 313-446-6777 [email protected] Crain Communications Inc. Advertising Assistant Managing Editor Mary Beth Vander Schaaf Keith E. Crain Rance Crain Larry Schlagheck •Graphics Editor Susan Zavela Bamford •Asia Editor Chairman President [email protected] M.K. Crain M.P. Crain James B. Treece •China correspondent Alysha Webb Treasurer Secretary Phone: 313-446-6790 Fax: 313-446-8030 • Deb Domby, Dorota Kowalski • Researchers Web Editor Robert C. Adams WIlliam A. Morrow Subscriptions Victor Galvan •Advertising and Sales Director Tony Merpi Group Vice President/ Executive Vice To start or renew a subscription e-mail •Director of Business Development Nick White Technology, Manufacturing, President, Operations Circulation [email protected] or call 888-446-1422 •Conference Director Libby Irwin •Global E-Business (in the U.S. or Canada) or 313-446-1662 Director Andrew Smith •Director of Business Planning G.D. Crain Jr. Mrs. G.D. Crain Jr. Founder (1885-1973) Chairman (1911-1996) (in all other locations) John Fitzgerald •Circulation Manager Michelle VanArman Cover photo: Shoppers crowd around a Chevrolet Spark at an automobile market in Beijing. Photographer: Natalie Behring-Chisholm/Bloomberg News.

Data in this publication was provided by Automotive Resources Asia. Ltd., Suite 619, Chang An Building, 7 Jianguomennei Ave., Beijing 100005 P.R. China. www.auto-resources-asia.com. E-mail [email protected]. (86) 10-6510-1686.

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 3 2005 Guide to China’s Auto Market May 2, 2005 Go to www.autonews.com/chinaguide to download this guide in pdf format.

China's sizzling new-car market had to cool off sometime, In January, GM forecast that net profit from its Asia Pacific but few observers expected it to be quenched so rapidly, or operations, where China has accounted for the bulk of profits, thoroughly. After soaring 62 percent in 2002 and 76 percent would fall to $600 million this year from $729 million in 2004. in 2003, passenger-car sales last year rose only 15 percent Profit in the fourth quarter of 2004 slid 68 percent to $33 over 2003 to about 2.3 million units. million. This year is off to an even colder start. Car sales for the first Jean-Martin Folz, CEO of PSA Peugeot-Citroen, disclosed two months, the most recent available at press time, fell recently that the French automaker will lose money in China 16 percent from a year earlier to 286,100 while output was this year for the second year in a row because of the cutthroat down 8 percent to 301,200, the China Association of Automobile Manufacturers reports. pricing environment. Most analysts and industry executives now expect the China produced PSA's highest profit margin of any market market this year to be up no more than 10 to 12 percent over as recently as 2003, he said. But the carmaker lost €38 2004. million at its venture with Dongfeng Motor last year vs. a €32 Still a small pie million pretax profit in 2003. While 10 percent growth in most markets today would be Officials hold firm cause for jubilation, it's not robust enough to support the There seems to be little hope for immediate relief. Chinese industry's ambitions in China, where automakers have spent officials in March repeated their commitment to reining in some $15 billion to date to build new plants and dealer consumer spending through tight credit policies. networks. Analysts say the sudden cooling of the hot auto industry For one thing, China's growth rates come on a small has exposed China's age-old business risk: A period of base – a 10 percent rise in the market this year, for example, explosive growth may prove alluring, but not necessarily would yield only about 230,000 more unit sales. serve as an accurate gauge of the market's true size. For another, nearly 50 domestic and foreign automakers are competing for a piece of what, essentially, still is a small "The usual mistake is to extrapolate the initial trend of high market. Not surprisingly, competition has intensified. prices and growth into 1.3 billion people," said Andy Xie, Faced with weakening demand and excess inventory, Morgan Stanley's Hong Kong-based chief economist for Asia. automakers are slashing prices across the board in a bid to China is still set to become a huge auto market over the keep showrooms open. Even BMW, a marque considered to long term. But for the foreseeable future, the industry will be have the auto industry's most unassailable price premium, characterized by overcapacity, softening demand, price cut prices by up to $12,100 early this year after its sales in resistance and weaker profits. China slumped 16 percent in 2004. Those also are the building blocks of a shakeout. In recent weeks, Ford, Honda and Audi have all announced "The price wars will continue until those brands that are less price reductions. The National Bureau of Statistics in Beijing competitive are driven out," says Jiang Yuan, a Bureau of says car prices in China fell about 10 percent industrywide Statistics official. last year, and will slump another 15 percent this year. That This guide to the country's auto industry should provide has taken a toll on companies' bottom lines. some insight into the various national and international Industry analyst and consultant Graeme Maxton estimates that margins on vehicles sold in China have plunged to an companies that define China's automotive landscape. average of about 3 percent or 4 percent from a high of as much as 25 percent just three years ago. That is hurting Arjen Bongard, editor, Automotive News Europe everyone. James R. Crate, co-editor, Guide to China’s Auto Market Contents China passenger vehicle Map of production production and sales...... 4 facilities in China ...... 17 Global automakers/ Domestic automakers ...... 19 Joint ventures ...... 7 Global suppliers in China...... 25

How to reach us: Guide to China’s Auto Market staff Publisher and Editor-in-Chief www.automotivenewseurope.com Keith E. Crain Editorial staff Co-Editors Associate Publisher and Editorial Director [email protected] Anne Wright Curtis James Crate Peter Brown Circulation [email protected] [email protected] Editor, Automotive News Europe [email protected] Contributing researcher Geoff Liu Arjen Bongard [email protected] Advertising Thomas Heringer Assistant Managing Editor Mary Beth Vander Schaaf Crain Communications Inc. Sales and Marketing Director •Graphics Editor Susan Zavela Bamford •Asia Editor Keith E. Crain Rance Crain [email protected] James B. Treece •China correspondent Alysha Webb Chairman President Phone: (49) 8153-907-404 •Researchers Deb Domby, Dorota Kowalski •Web M.K. Crain M.P. Crain Treasurer Secretary Fax: (49) 8153-907-426 Editor Victor Galvan •Advertising and Sales Director Robert C. Adams WIlliam A. Morrow Tony Merpi •Director of Business Development Nick Group Vice President/ Executive Vice Subscriptions White •Conference Director Libby Irwin •Global E- Technology, Manufacturing, President, Operations Automotive News Europe Business Director Andrew Smith •Director of Business Circulation To start or renew subscription go to: Planning John Fitzgerald •Assistant Circulation G.D. Crain Jr. Mrs. G.D. Crain Jr. http://europe.autonews.com/subscription.htm Manager Myriam Duverger-Buffa Founder (1885-1973) Chairman (1911-1996)

Cover photo: Shoppers crowd around a Chevrolet Spark at an automobile market in Beijing. Photographer: Natalie Behring-Chisholm/Bloomberg News.

Data in this publication was provided by Automotive Resources Asia. Ltd., Suite 619, Chang An Building, 7 Jianguomennei Ave., Beijing 100005 P.R. China. www.auto-resources-asia.com. E-mail [email protected]. (86) 10-6510-1686.

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 3 2005 Guide to China’s Auto Market China vehicle production and sales, 2004 vs. 2003

Production Production Percent Sales Sales Percent Automaker 2004 2003 change 2004 2003 change Brilliance China Automotive Holdings Ltd. D Shengyang Brilliance Jinbei Automotive Co. (Page 23) 11,806 26,841 –56.0 10,982 25,600 –57.1 G BMW Brilliance Automotive Co. (Page 7) 15,138 7,500 101.8 8,708 4,359 99.8 Beijing Automotive Industry Holdings Co. G Beijing Hyundai Motor Co. (Page 10) 150,158 55,113 172.5 144,090 52,128 176.4 G Beijing Benz-DaimlerChrysler Automotive Ltd. (Page 7) 33,679 19,441 73.3 31,505 19,829 58.9 D Beijing Automotive Industry Corp. (Page 19) 25,036 N.A. – 25,062 N.A. – Changan Automotive Co. D Chongqing Changan Automobile Group* (Page 20) 582,367 469,651 24.0 579,520 472,114 22.8 G Chongqing Changan Suzuki Automobile Co. (Page 13) 107,337 102,083 5.1 110,052 100,018 10.0 G Changan Ford Automobile Co. (Page 8) 50,000 18,535 169.8 47,119 17,301 172.3 Dongfeng Motor Corp. G Dongfeng Peugeot Citroen Automobile Co. (Page 13) 88,034 105,475 –16.5 89,129 103,126 –13.6 G Dongfeng Yueda Kia Automobile Co. (Page 10) 63,267 52,017 21.6 62,506 51,008 22.5 D Dongfeng Automobile Co. (Page 20) 66,000 N.A. – 61,000 66,048 –7.6 G Dongfeng Motor Co. (Nissan) (Page 11) 64,197 66,134 –2.9 60,784 65,108 –8.0 D Dongfeng Liuzhou Motor Co. (Page 20) 16,486 10,302 60.0 16,589 10,079 64.6 G Dongfeng Honda Automobile (Wuhan) Co. (Page 10) 11,898 – – 10,472 – – First Auto Works Group G FAW-Volkswagen Automotive Co. (Page 14) 287,117 302,346 –5.0 300,117 302,385 –0.8 D Tianjin FAW Xiali Automobile Co. (Page 22) 130,506 117,186 11.4 130,182 117,335 10.9 G Tianjin FAW Toyota Motor Co. (Page 14) 83,437 49,535 68.4 77,739 48,567 60.1 D FAW Haima Automotive Co. (Page 22) 66,954 54,824 22.1 66,055 54,406 21.4 D FAW Car Co. (Page 22) 50,066 48,219 3.8 50,789 51,266 –0.9 D FAW Huali (Tianjin) Motor Co. (Page 22) 9,127 742 1,130.1 8,995 713 1,161.6 D Changchun FAW Fengyue Auto Co. (Page 22) 4,207 666 531.7 3,939 666 491.4 G Sichuan Toyota Motor Co. (Page 14) 3,110 397 683.4 3,047 397 667.5 Guangzhou Automotive Group G Guangzhou Honda Automobile Co. (Page 10) 202,312 117,178 72.7 202,066 117,129 72.5 G Honda Automobile (China) Co. (Page 10) N.A. N.A. – N.A. N.A. – Shanghai Automotive Industry Corp. (SAIC) G Shanghai Volkswagen Automotive Co. (Page 14) 346,338 405,252 –14.5 353,649 396,006 –10.7 G Shanghai General Motors Corp. (Page 9) 253,000 206,964 22.2 252,000 201,188 25.3 G SAIC GM Wuling Automobile Co. (Page 9) 228,839 N.A. – 225,046 N.A. – G Shangahi GM Dongyue Motors Co.† (Page 9) 50,270 N.A. – 57,839 N.A. – G Shanghai GM Norsom Motors Co. (Page 9) 737 3,559 –79.3 1,653 3,285 –49.7 D Anhui Jianghuai Automobile Co. (Page 23) 17,245 14,746 16.9 17,900 14,263 25.5 D BYD Auto Co. (Page 23) 17,245 20,100 –14.2 17,900 20,100 –10.9 D Chery Automobile Co. (Page 23) 79,565 91,223 –12.8 86,567 85,349 1.4 D Geely Holding Group (Page 24) 91,744 81,285 12.9 96,693 80,056 20.8 D Great Wall Automobile Holding Co. (Page 24) 27,540 28,067 –1.9 27,436 27,101 1.2 D Guizhou Skylark Automobile Co. (Page 24) 165 1,180 –86.0 183 1,144 –84.0 D Hafei Motor Co. (Page 24) 28,599 32,387 –11.7 29,816 33,047 -9.8 D Hebei Zhongxing Automobile Co. (Page 24) 16,192 28,500 –43.2 16,249 28,500 -43.0 G Hunan Changfeng Motor Co. (Page 11) 24,986 29,230 –14.5 24,345 29,693 -18.0 D Jiangling Landwind Automobile Co. (Page 24) 10,000 N.A. – 10,000 N.A. – G Jiangling Motor Corp. (Page 8) N.A. 60,276 – N.A. 58,518 – G Jiangxi Changhe Suzuki Co. (Page 13) 19,354 37,333 -48.2 21,101 36,429 –42.1 D Jiangxi Changhe Automobile Co. (Page 23) 7,402 2,711 173.0 6,288 2,078 202.6 D Jilin Tongtian Automobile Co. (Page 24) 1,200 N.A. – 1,207 N.A. – G Nanjing Fiat Co. (Page 8) 26,598 37,418 –28.9 26,553 37,271 –28.8 D Rongcheng Huatai Automobile Co. (Page 24) 11,000 N.A. – 10,008 N.A. – D Soueast (Fujian) Motor Corp. (Page 24) 41,468 83,535 –50.4 41,089 84,535 –51.4 G Zhengzhou Nissan Automobile Co. (Page 11) 9,383 10,056 –6.7 9,083 10,000 –9.2 Note: Production and sales data reflect personal-use vehicles and some light-commercial vehicles unless noted; D = domestic automaker; G = global joint venture; N.A. = not available *Includes light-commercial vehicles †Included in Shanghai General Motors Corp. totals

4 Automotive News • Automotive News Europe • Automotive Resources Asia 2005 Guide to China’s Auto Market Global automakers/Joint ventures

BMW AG Beijing Representative Office 23/F Millennium Tower, No. 38 Xiaoyun Road Chaoyang District, Beijing 100027, P.R. China (86) 10-8453-9900e Top executive: Christoph Stark, president & CEO BMW Group Region China

JV: BMW Brilliance Automotive Ltd. BMW was humbled in China last In a bid to revive its sagging sales year. Hit by a general slowdown in the and slash the inventory overhang, No. 14 Shanzuizi Road, Dadong District, Shenyang overall market and a sharper pullback BMW has fallen back on a tactic not Liaoning Province, 110044 P.R. China in the luxury segments, BMW sales usually associated with a luxury (86) 24-8455-6000, www.bmw-brilliance.cn tumbled 16 percent to 15,500 units, marque: across-the-board price cuts. Top executive: Heinz Preissler, president & CEO including imports, in 2004 after The company early this year slashed posting a 176 percent gain the year prices by up to 100,000 yuan, or Ownership before. about $12,100. BMW - 50%; Brillance China Automotive Holdings - 50% Of the total, only 8,708 units were Executives said they expect demand produced at its joint venture with to firm up later this year with the Models produced: BMW 318i, BMW 325i, 520i, 525i, 530i Brilliance China Automotive Holdings market introduction of the redesigned Ltd. The venture, which assembles Note: A new 3 series will be launched in mid-2005 3 series and the new X3 SUV. 3- and 5-series sedans, produced 15,138 units last year, double the level BMW's performance last year was Capacity Production Unit sales of 2003. the worst of the three German luxury 2004: 30,000 2004: 15,138 2004: 8,708 That left the joint venture with a glut marques competing in China. Segment leader Audi AG said its sales 2003: 30,000 2003: 7,500 2003: 4,359 of nearly 7,000 unsold vehicles at the beginning of 2005, or nearly a one- rose 0.8 percent while Mercedes-Benz year supply. claimed a 5 percent gain.

DaimlerChrysler China Ltd. Landmark Tower 1/24F, No. 8 N. Dongsanhuan Road Chaoyang District, Beijing 100004, P.R. China (86) 10-6590-6668, www.daimlerchrysler.com Top executive: Roman Fischer, president & CEO

JV: Beijing Benz-DaimlerChrysler Automotive Ltd. DaimlerChrysler AG is moving facility in Fuzhou City with Fujian No. 36, Guangqu Road, Chaoyang District swiftly to leverage its diverse assets Motor Industry Group and China Beijing 100022, P.R. China into a major presence in China, having Motor Corp. That facility, with a (86) 10-6771-223, www.beijing-jeep.com committed some $1.7 billion to the designed annual capacity of 40,000 push. Top executive: Juergen Ziegler, president & CEO units, is expected to start operating by In its marquee venture, the 2006. Ownership automaker will begin production of DaimlerChrysler also says it will DaimlerChrysler - 50%; Beijing Automotive Industry Holding Co. - 50% Mercedes-Benz E- and C-class sedans begin assembling the Chrysler 300C this summer in a new facility in in China if the decision is warranted Models produced: Jeep4700/Jeep4000, Jeep2500, Jeep Grand Cherokee; Beijing with long-time partner Beijing by import sales of the sedan, which Mitsubishi Pajero Sport, Outlander Automotive Industry Holding Co. The has been a smash hit in the U.S. Note: Production of Mercedes-Benz C and E class sedan to start this Summer 2005 facility is designed to produce up to market. The company expects to sell 25,000 units a year. as many as 2,000 in China this year. Capacity Production Unit sales To reflect the start of Mercedes Meanwhile, the German company production, DaimlerChrysler late last 2004: 100,000 2004: 33,697 2004: 31,505 continues to rely on former global year created Beijing Benz- partner Mitsubishi Motors to buoy 2003: 80,000 2003: 19,441 2003: 19,829 DaimlerChrysler Automotive Ltd. as production at Beijing Jeep. the umbrella organization for its China Although DaimlerChrysler has passenger car manufacturing dumped most of its former controlling operations. Beijing Jeep Corp., the equity stake in Mitsubishi and landmark joint venture with Beijing essentially divorced the Japanese Automotive that was launched in 1984 automaker, the two continue to as China's first foreign automaking cooperate in China. venture, is part of the new entity. Beijing Jeep produces the Jeep Mercedes-Benz said its import sales in China rose 5 percent last year to Grand Cherokee and 2500 as well as 11,500 units, although that was below the Mitsubishi Outlander and Sport the target of 13,000 to 14,000 units. SUVs. Output and sales were up Mercedes-Benz C class S-class sedans accounted for more sharply last year, but the two than 50 percent of volume. Japanese vehicles accounted for 68 Mercedes also has agreed to build percent of production and 66 percent Sprinter and Viano/Vito vans at a new of sales.

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 7 Global automakers/Joint ventures

Fiat China Business Co. Unit 2011, Beijing Silver Tower, No. 2 Dongsanhuan North Road Beijing 100027, P.R. China (86) 10-6410-0666, www.fiatgroup.com Top executive: Franco Amadei, chairman & CEO

JV: Nanjing Fiat Co. Fiat Auto operations in China Polo. But it's badly outgunned in No. 66 Shengtai Road, Jiangning High-Tech Park withered on the vine last year, a terms of marketing and after-sales Nanjing, Jiangsu Province 211100, P.R. China reflection of the toll being exacted by support. continuing financial turmoil and The one-car, three-model lineup also (86) 25-5210-0000, www.fiat.com.cn executive upheavals at world is too thin to attract significant Top executive: Su Tongchang, genaral manager headquarters in Italy. The Italian numbers of buyers. Fiat said in 2002 automaker, which has lost more than that it would launch three new models Ownership $9 billion since 2000, got its fourth at its Nanjing Fiat joint venture by Fiat Auto S.p.A. - 50%; Nanjing Automobile Group Corp. - 50% CEO in just over three years in 2003-04, but they have not February. materialized. Nor are they likely to Models produced: Fiat Palio, Palio Weekend, Siena After a strong launch in 2002-03, anytime soon, given Fiat's problems at Fiat sales in China slid 29 percent last home and new CEO Sergio year, including imports, in a market Capacity Production Unit sales Marchionne's determination to return that was up 15 percent. Production, in to profitability. 2004: 100,000 2004: 26,598 2004: 26,553 a plant designed to produce 100,000 2003: 100,000 2003: 37,418 2003: 37,271 cars a year, also fell 29 percent to Meanwhile, partner Nanjing Auto under 27,000. has been looking for insurance against The company produces three Fiat's woes. Under a deal that versions of the Palio world car at its appeared to be dead at press time, the joint venture with state-owned Nanjing company planned to join Shanghai Automobile Group Corp.: a hatchback, Automotive Industry Corp. in taking a wagon and the Siena sedan. In control of Britain's ailing MG Rover terms of standard equipment, group. performance and quality, the compact Although the equity takeover Palio offers strong competition for the appeared to be ruled out, an outright segment leaders, the Buick Sail, purchase of Rover assets was still Fiat Palio Toyota-based Xiali and Volkswagen being considered at press time.

Ford Motor (China) Ltd. 33F Shanghai Information Tower, 211 Century Blvd. Pudong New District, Shanghai 200120, P.R. China (86)21-2891-6688, www.ford.com.cn Top executive: Mei-Wei Cheng, chairman & CEO

JV: Changan Ford Automobile Co. After a clunky start in 2002, Ford manufacturing capacity to 200,000 No.1, ChangFu West Road, Yuan Yang Town Motor Co. appears to be mastering the units a year this year while ground New Northern Zone basics of selling cars in China. The has been broken for a greenfield plant Chongqing 401122, P.R. China lesson learned: The Ford oval alone in Nanjing, in eastern China. (86) 23-6745-8888 isn't enough to satisfy China's finicky Industry sources say the Focus Top executive: Ron Tyack, president & CEO buyers. sedan likely will go into production at Ford's launch model in China, the Changan this year, but Ford has not let Ownership Fiesta subcompact, was lambasted for dealers know when it will be available. Ford Motor Co. - 50%; Changan Automotive Co. - 50% being old technology. Car shoppers Dealers and analysts view the Focus largely bypassed Ford showrooms in as a potential breakout car for Ford in Models produced: Ford Fiesta, Mondeo 2003, and the company was seen as China. not being committed to China. The Nanjing plant, expected to come Capacity Production Unit sales But the automaker last year began on line in 2008, will have capacity to 2004: 150,000 2004: 50,000 2004: 47,119 production of the European Mondeo build 200,000 units a year. Ford has 2003: 50,000 2003: 18,535 2003: 17,301 sedan at its Changan Ford joint not disclosed what models will be venture, adding special luxury touches produced there, but supplier sources to woo the chauffeured set. The car say the plant will build the next JV: Jiangling Motors Corp. has been a hit: Changan Ford sales generation Fiesta and the Mazda2. 509, Ying Bin Da Dao, Nanchang, Jiangxi Province 330001, P.R. China surged 172 percent over 2003 to Both cars will be based on a new (86) 791-523-2888, www.jmc.com.cn 47,119 units, with the Mondeo global platform being developed Top executive: York Chen, President accounting for 67 percent of total. jointly by Ford and affiliate Mazda But Ford remains a second-tier Motor Corp. Ownership player in China, with a thin lineup and Meanwhile, Ford is expected to Jiangling Motors Corp. Ltd. - 70%; Ford Motor Co. - 30% relatively small footprint in the market. begin import sales of the Lincoln It has increased its dealer count to Navigator SUV this year. The vehicles Models produced: Ford Transit about 105 from 20 just 15 months will be priced at about $84,500. ago, for example, but General Motors Although several other imported has more than 250, Volkswagen more premium SUVs are sold in China, Capacity Production Unit sales than 1,000. volumes are small. The segment is 2004: 100,000 2004: N.A. 2004: N.A. Even with its slow start, Ford has dominated by Toyota's Land Cruiser 2003: 100,000 2003: 60,276 2003: 58,518 set a lofty goal of becoming one of the and Prado models, both of which are N.A = not available top three producers in China in the made in China. The Land Cruiser goes next five to 10 years. Toward that end, for $74,600, and the Prado sells for Changan Ford will more than triple its $54,400.

8 Automotive News • Automotive News Europe • Automotive Resources Asia 2005 Guide to China’s Auto Market Global automakers/Joint ventures

General Motors China Investment Co. Jinmao Tower 10/F, No. 88 Shiji Road PuDong District, Shanghai 200121, P.R. China (86) 21-2898-7000, www.gm.com.cn Top executive: Kevin Wale, chairman & CEO

JV: Shanghai General Motors Corp. General Motors continued its Chevrolet Sail is based on a modified No. 1500 Shenjiang Road, Jin Qiao pedal-to-the-metal expansion pace in Opel Corsa platform. The Epica is a Pudong, Shanghai 201206, P.R.China China in 2004, and the automaker mid-sized sedan derived from the (86) 21-2890-2890 plans to move even faster this year. Daewoo Magnus. The cars will be sold Top executive: Ding Lei, president GM sold a record 492,014 vehicles through a Chevrolet dealership in China last year, up 27.2 percent over Ownership network that is expected to reach 150 the previous year, while market share Shanghai Automotive Industry Corp. - 50%; General Motors - 50% stores by year end. rose to 9.3 percent from 8.5 percent. GM already sells a Chevrolet-badged The figures include Wuling-brand minicar in China, the Spark. Based on Models produced: Buick Regal, Royaum, Excelle, GL8* minivehicles produced by joint-venture *Production moved from SGM to SGM Norsom in late 2004; production and sales data included in the Daewoo Matiz, the Spark is SGM totals partner Wuling Automobile Co., and assembled at the SAIC-GM-Wuling imported Cadillacs, Saabs and Opels. joint venture in southwest China. Sales Capacity Production Unit sales Sales by the automaker's core totaled 10,142 in 2004. production operation in China, 2004: 200,000 2004: 253,000 2004: 252,000 Despite its stellar growth in 2004, Shanghai GM, rose 25.3 percent last GM has not been immune from the 2003: 200,000 2003: 206,964 2003: 201,188 year, to 252,000 units, and the Note: Shanghai GM Dongyue Motors production and sales included general market slowdown. company is forecasting a 15 percent Sales in the second half of 2004 increase this year. A 50-50 partnership slowed from the first six months, and JV: Shanghai GM Dongyue Motors Co. with Shanghai Automotive Industry are off another 55 percent for the first No. 118, Changjiang Road, Development Zone, Yantai Corp., Shanghai GM produces Buick two months of 2005, the most recent Shandong Province 264006, P.R. China and Chevrolet vehicles, and will add data available at press time. (86) 535-6966-666, www.shanghaigm.com the Cadillac CTS sedan and SRX SUV Top executive: Huang Keji, general manager this year as part of a plan to bring 10 Profits nosedive More tellingly, the automaker's net Ownership new or upgraded vehicles to the market. profit from China in the fourth quarter Shanghai General Motors Corp. - 50%; Shanghai Automotive Industry On the other hand, GM ended plunged 68 percent from a year earlier Corp. - 25%; GM China - 25% production of the Blazer SUV in China to just $33 million. in 2004, throwing in the towel after That represented only 5 percent of Models produced: Chevrolet Sail, Sail SRV, Epica several years of weak sales. To replace the company's worldwide net income Capacity Production Unit sales it at the newly named Shanghai GM of $630 million, down dramatically (Shenyang) Norsom Motors Co., the from about a fifth in the third quarter. 2004: 100,000 2004: 50,270 2004: 57,839 former Jinbei General Motors, GM Still to be 2003: 100,000 2003: N.A. 2003: N.A. shifted production of the Buick GL8 determined is Note: N.A. = not available; Shanghai GM Dongyue Motors production and sales included in Shanghi minivan from Shanghai. what impact the General Motos Corp. totals The joint venture has capacity to surprise build 50,000 vehicles a year; GM sold departure of JV: SAIC GM Wuling Automobile Co. 29,000 GL8s in 2004. CEO Phil No. 18 Hexi Road, Liuzhou Target: Volkswagen Murtaugh will Guangxi Province 545007, P.R. China GM has boldly declared that it have on the (86) 772-3750-258, www.wuling.com intends to displace Volkswagen AG as company's mid-term Top executive: Shen Yang, general manager the leader in China, an ambitious goal fortunes in to say the least. Even with its position Ownership China. under attack by most of the world's Murtaugh Shanghai Automotive Industry Corp. - 50%; General Motors China - 34%; Murtaugh, who principal automakers, VW still Wuling Automotive - 16% launched Shanghai GM in 1996 and commands about a quarter of the who had been CEO of GM China Group Chinese market. Models produced: Chevrolet Spark, Wuling-brand minivehicles since July 2000, resigned suddenly in To challenge that lead, GM says it March, citing personal reasons. Capacity Production Unit sales will raise vehicle capacity at its various He has been replaced by Kevin Wale, 2004: 200,000 2004: 228,839 2004: 225,046 joint ventures from about 550,000 chairman of GM's Vauxhall unit in units a year now to 1.3 million in 2003: 180,000 2003: N.A. 2003: N.A. Britain and a vice president of GM N.A = not available 2007. In November, GM had said it Europe. The 50-year-old Australian would raise capacity to 865,000. In the was head of GM Asia Pacific from JV: Shanghai GM Norsom Motors Co.* same timeframe, GM says it will bring September 1998 to August 2001. No. 15 Beidaying St., Dadong District, Shenyang 20 new or upgraded products to the On Murtaugh's watch, GM China Liaoning Province 110044, P.R. China market. became a rare bright spot in the U.S. (86) 24-8834 5678 To spearhead the next phase of its automaker's troubled global empire. expansion in China, GM is turning to Top executive: Xu linhua, general manager Although no clarification was issued, *Formerly known as Jinbei GM Automotive Co. its mainstay U.S.-market brand, the 50-year-old Murtaugh was believed Chevrolet. Ownership to be chafing under a new GM The automaker has begun building corporate decision-making process Shanghai General Motors Corp. - 50%; Shanghai Automotive Industry the Chevrolet Sail and Epica at that diluted his autonomy and ability to Corp. - 25%; General Motors China - 25% Shanghai GM Dongyue Motors Co. in give firm commitments to suppliers Models produced: Buick GL8* northeast China. and partners. *Production moved from SGM to SGM Norsom in late 2004; production and sales data included in GM won't say how many Chevrolets "Phil's word was the gold standard," SGM totals it expects to sell in China, but the joint said one supplier executive. "If he gave venture plant has a 100,000-unit you specs and volume numbers, you Capacity Production Unit sales annual capacity. could take them to the bank. He felt 2004: 50,000 2004: 737 2004: 1,653 Like the Buick Sail, which was some resentment that he couldn't offer 2003: 30,000 2003: 3,559 2003: 3,285 discontinued last year, the subcompact that anymore."

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 9 Global automakers/Joint ventures

Honda Motor Co. Beijing Suite 2101 Beijing Fortune Building, No.5 N. Dongsanhuan Road Chaoyand District, Beijing 100004, P.R. China (86) 10-6590-9011 Top executive: Hyogo Atsuyoshi JV: Guangzhou Honda Automobile Co. Moving to cement its position in Honda executives say the new plant No.1, Guangben Road, Huangpu District, Guangzhou China as the No. 3 foreign automaker could build a hybrid-electric version of Guangdong Province 510700, P.R. China behind Volkswagen and GM, Honda the Accord, but no decision has been (86) 20-8227-7789, www.guangzhouhonda.com.cn made. Top executive: Sho Minekawa, president Motor Co. will add still more capacity there this year and next. Honda, which Simultaneously, Honda and Ownership: Guangzhou Automotive Industry Group - 50%; Honda Motor Co. - 50% started passenger-car operations in Dongfeng are spending some $340 million to quadruple production Models produced: Honda Accord, Fit, Fit Saloon, Odyssey China in 1999 by taking over a 30,000-unit Peugeot plant, has capacity of their joint venture in Hubei Capacity Production Unit sales expanded production capacity and to 120,000 units a year next year. The 2004: 240,000 2004: 202,312 2004: 202,066 sales every year since. Dongfeng-Honda venture, which The Japanese automaker is started to produce CR-V SUVs in April 2003: 120,000 2003: 117,178 2003: 117,129 2004, will add a Civic sedan this year. investing more than $600 million with A third venture, Honda Automobile partners Dongfeng Motor Corp. and JV: Dongfeng Honda Automobile (Wuhan) Co. (China) Co., a partnership with both No.283, Checheng Dongdao, Economic & Tech Development Zone Guangzhou Automobile Group to Guangzhou Auto Group and Dongfeng Wuhan, Hubei Province 430056, P.R. China nearly double its annual production Motor, produces the Jazz subcompact (86)27-8428-6000, www.dhac.com.cn capacity in China to 530,000 units exclusively for export. The 50,000-unit Top executive: Mitsuru Ozaki, president next year. plant is expected to begin shipping Ownership: Dongfeng Motor Corp. - 50%; Honda Motor Co. - 50% A second plant with capacity for cars to Europe this summer. 120,000 cars a year is being built at Honda aims to sell 271,000 vehicles Models produced: Honda CR-V, Civic* the joint venture with Guangzhou, in China this year, including 230,000 To be added in late 2005 which builds the mid-sized Accord, units from Guangzhou Honda and Capacity Production Unit sales compact Fit and the Japan-market 41,000 units from the venture with 2004: 30,000 2004: 11,898 2004: 10,472 Odyssey minivan. That will raise Dongfeng. Honda's sales last year Production began late 2004 capacity at the complex to 360,000 surged 74.8 percent over 2003 to units a year. 215,000 units. JV: Honda Automobile (China) Co. No.363, Kai Chuang Da Dao, East Section Guangzhou Economic & Tech Development District Guangdong 510760, P.R. China Ownership: Honda Motor Co. - 65%; Guangzhou Auto - 25%; Dongfeng Motor Corp. - 10%

Models produced: Honda Jazz Capacity Production Unit sales 2004: 50,000 2004: N.A. 2004: N.A. N.A. = not available Honda Jazz

Hyundai Motor Group (China) Ltd. Room 79, Millennium Tower, No. 38 Xiaoyun Road, Chaoyang District, Beijing 100027, P.R. China (86) 10-84539666, www.hyundai-motor.com Top executive: Lee Il Jang, president

JV: Beijing Hyundai Motor Co. Hyundai Motor Co. has exploded out million to double capacity to 300,000 No. 18 Shuntong Rd., Linhe Industry Dev. Area of the blocks in China. Just two years cars per year by 2007, and to add a Shunyi District, Beijing 101300, P.R. China (86) 10-8008101100 Top executive: J.M. Noh, president after coming into existence, the second 300,000-unit plant by 2008. Korean automaker's Beijing Hyundai Including subsidiary Kia Motors, Ownership: Hyundai Motor Co. - 50%; Beijing Automobile Investment Co. - 50% Motor Co. joint venture sold 144,000 Hyundai Group wants to be producing Models produced: Hyundai Elantra, Sonata units last year, a 176 percent increase 1 million vehicles a year in China by over 2003. 2010. Capacity Production Unit sales The venture, a partnership with Kia and partners Dongfeng Motor 2004: 150,000 2004: 150,158 2004: 144,090 Beijing Automobile Industry Corp., Industry Investment Co. and Jinagsu 2003: 50,000 2003: 55,113 2003: 52,128 aims to hit 200,000 sales this year. Yueda Co. have committed to That would represent a 39 percent spending some $650 million to JV: Dongfeng Yueda Kia Automobile Co. gain in a market expected to be up quadruple capacity at Dongfeng No.18 Kaifang Road, Yancheng City only 10 to 12 percent, but analysts Yueda Kia to 400,000 units by 2008. Jiangsu Province 224002, P.R. China (86) 515-8226-262 Top executive: Hu Youlin, president say the target is realistic given the The joint venture produces Accent sudden popularity of Hyundai and its and Optima sedans and the Carnival Ownership: Kia Motors - 50%; Dongfeng Motor Industry Investment Co. - affiliate brand, Kia, among China's minivan, and will add the 1.6- and 25%; Jinagsu Yueda Co. - 25% youth. 1.8-litre Cerato sedan later this year. Models produced: Accent, Carnival, Optima Beijing Hyundai produces Sonata The venture also is considering and Elantra sedans and will add the launching an SUV. Capacity Production Unit sales 2004: 100,000 2004: 63,267 2004: 62,506 Tucson SUV this year. The venture's sales rose 22.5 2003: 100,000 2003: 52,017 2003: 51,008 The partners are spending $740 percent last year to just over 62,500.

10 Automotive News • Automotive News Europe • Automotive Resources Asia 2005 Guide to China’s Auto Market Global automakers/Joint ventures

Mitsubishi Motors Corp. Eastern Wing F18, Hanwei Plaza, No. 7 Guanghua Road Chaoyang District, Beijing 100021, P.R. China (86) 10-6561-3030 Top executive: Hiromi Endo, general manager

JV: Hunan Changfeng Motor Co. Given the financial pressures and on the mainland, plus 15.4 percent of Lengshui Beach, Yongzhou sweeping organizational changes it Taiwan's China Motor Corp. Hunan Province, 425000 P.R. China has been dealing with, China wasn't Mitsubishi says it wants to obtain a (86) 746-8456-019 exactly Mitsubishi Motors' No. 1 significant equity stake in all its Top executive: Li Jianxin, president priority last year. partners, and late last year agreed in As part of the major restructuring it principle to take an undetermined Ownership unveiled in 2003, Mitsubishi had stake in Southeast (Fujian) Motor Co. Changfeng Group - 47%; Others - 33%; Mitsubishi Motors Corp. - 20% planned to increase sales in China to China Motor in turn owns 50 300,000 units a year by 2007. It percent of Southeast (Fujian). Models produced: Mitsubishi Pajero (Liebao) would sell its newest models under its Mitsubishi said that agreement opens own brand while local partners would the way for it to begin production of Capacity Production Unit sales continue selling rebadged vehicles Mitsubishi-brand vehicles in China, 2004: 80,000 2004: 24,986 2004: 24,345 under their Chinese brands. although no timetable or details have 2003: 50,000 2003: 29,230 2003: 29,693 Executives envisioned building a been announced. plant in China to produce For now, Beijing Jeep Corp. will Mitsubishi-badged vehicles. remain the only production source for But the Japanese automaker was Mitsubishi-brand vehicles in China. part of the DaimlerChrysler empire The brand had mixed results in 2004. then, and its China scenario was Sales of the Pajero Sport fell 20 based on having access to capital and percent to 4,659 units while the other resources that have since been Outlander, which was launched in withdrawn. DaimlerChrysler pulled out January 2004, registered sales of of Mitsubishi's restructuring, and has 16,162 units. since dumped most of its previous 37 Sales of Hunan Changfen Motor Co., percent equity stake. which rebadges the Mitsubishi Pajero Mitsubishi Pajero Mitsubishi owns 25 percent or less as the Liebao, slumped 18 percent to of three vehicle or engine producers 24,345.

Nissan Motor Co. Rm. 802, The Exchange-Beijing, No. 118 Jian Guo Lu Yi Chaoyang District, Beijing 100022, P.R. China (86) 10-6567-9623 Top executive: Tadashi Ishihara, general manager

JV: Dongfeng Motor Co. Nissan Motor Co. missed its target in Nissan Automobile Co., into Dongfeng No. 13 Che Cheng Xi Lu, Shiyan China by a wide margin last year amid a Motor. Zhengzhou, based in Henan Hubei Province 442001, P.R. China government clampdown on consumer Province in central China, produces the (86) 719-8201-255 credit and stiffening competition, but the Paladin SUV and had assembled the Top executive: Katsumi Nakamura, CEO & president Japanese automaker says it expects to Frontier compact pickup until late last Ownership more than double sales this year. year. Nissan Motor Co. - 50%; Dongfeng Motor Industry Investment Co. - 50% Sales of Nissan's 50:50 joint venture Analysts said the merger paves the in China, Dongfeng Motor Co., slipped way for Nissan's controlling Models produced: Bluebird, Sunny, Teana, Tiida 6.7 percent last year to 60,784 units, shareholder, Renault SA, to proceed 20,000 units shy of target. with its plan to set up a joint venture But officials early this year reiterated with Dongfeng Motor Corp., a parent of Capacity Production Unit sales the company's goal of selling 300,000 Dongfeng Motor Co. Renault said last 2004: 150,000 2004: 64,197 2004: 60,784 Nissan-brand cars in China by 2007, year that it wanted to begin producing 2003: 100,000 2003: 66,134 2003: 65,108 and said sales in 2005 would hit 150,000 cars a year in China by 2007, 140,000 with the addition of new rising to 300,000 units annually by JV: Zhengzhou Nissan Automobile Co. models. 2010. No. 62 Longhai Dong Lu, Zhengzhou Nissan late last year added the high- But Dongfeng President Miao Wei Henan Province 450004, P.R. China end Teana sedan to Dongfeng, which disclosed recently that the deal had (86) 371-6311-931 builds the Sunny and Bluebird sedans, become stalled for undetermined Top executive: Guo Zhenfu, general manager and the Tiida compact. reasons, although he said he still hoped Nissan also will begin importing the to seal an agreement by year end. Ownership 3.5-liter Fuga luxury sport sedan in In another development, Nissan and Nissan Motor Co. - 30%; Dongfeng Motor Co. - 51%; mid-2005 to go head to head with Dongfeng are underway this year on a Zhengzhou Light Vehicle Co. - 19% Toyota's Crown. The Fuga is sold in the $365 million greenfield engine plant in United States as the Infiniti M series. Guangzhou. The plant, scheduled to Models produced: Nissan Paladin Like other automakers, Nissan has start up in early 2006, will have capacity been forced to compete on price as well for 360,000 engines a year. Capacity Production Unit sales as quality. In mid-2004, it announced Having a local source for engines will 2004: 60,000 2004: 9,383 2004: 9,083 price cuts averaging $3,010 on its give Nissan a critical cost advantage in 2003: 60,000 2003: 10,056 2003: 10,000 bread-and-butter Bluebird line. China's ever more competitive market. Nissan also moved late last year to Taxes on imported components such as streamline operations by folding its engines can run as much as 30 percent other joint venture in China, Zhengzhou of their assessed value.

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 11 Global automakers/Joint ventures

PSA/Peugeot-Citroen Group Beijing Office, Unit 416, 4th Floor, Tower A Beijing Kelun Building 12A Guanghua Lu, Chaoyang District, Beijing 100020, P.R. China (86) 10-6581-4682, www.psa-peugeot-citroen.com Top executive: Jean-Claude Germain, chief representative

JV: Dongfeng Peugeot Citroen Automobile Co. PSA/Peugeot-Citroen struggled in PSA Peugeot Citroen CEO Jean- 165 Ave. Shenlong Wuhan Economic & Tech Development Zone the first full year of the Peugeot Martin Folz attributed the loss to a Hubei Province 430056, P.R. China brand's re-introduction to China. Sales failure to upgrade the Citroen lineup (86) 27-8429-0095, www.dpca.com.cn of the automaker's joint venture with as the venture focused on the launch Top executive: Liu Weidong, general manager Dongfeng Motor Corp. fell 13.6 of the Peugeot brand. A strong euro Ownership percent last year to 89,129 units, added to the company's woes. PSA - 50%; Dongfeng Motor Industry Investment Co. - 50% despite several price cuts on the Folz pledged to push ahead with Peugeot 307 sedan. expansion plans regardless of the Models produced: Citroen Elysee, Fukang, Picasso, Xsara; Peugeot 307 The 307 accounted for sales of market's slowdown. In early 2004, 11,291 units, or 12.7 percent of total. the joint venture announced plans to Capacity Production Unit sales PSA was among the first foreign spend more than $800 million to 2004: 150,000 2004: 88,034 2004: 89,129 automakers to set up shop in China, double capacity to 300,000 by 2006. 2003: 150,000 2003: 105,475 2003: 103,126 opening a joint venture with PSA Peugeot Citroen aims to sell Guangzhou Auto Group in 1985. But 115,000 cars in China in 2005, and to the venture flopped, and Peugeot sold its stake to Honda Motor in 1997. launch at least one new model a year It then folded Peugeot production going forward. The Peugeot 206 into the Dongfeng venture, which compact car is scheduled for a late opened in 1994 to produce Citroens. 2005 roll out, and the company says The venture reported a loss of $60 two new Citroen models will be million last year. launched in 2006.

Suzuki Motor Corp. Room 502, Beijing Fortune Building, No. 5 Dong San Huan Bei Chaoyang District, Beijing 100004, P.R. China (86) 10-6590-8040, www.suzuki.com Top executive: Kunihisa Matsubara, general manager

JV: Chongqing Changan Suzuki Automobile Co. Suzuki Motor Corp. predicted in plethora of brand names. Yu Dong Town, Ba Nan District 2002 that it would be producing more Suzuki's other equity venture in Chongqing 401321, P.R. China than 100,000 vehicles a year in China China, Jianxi Changhe Suzuki, (86) 23-6628-8600 by 2005 at its principal joint venture, produces the Wagon R for sale as Top executive: Tosiaki Hasimoto, general manager Chongqing Changan Suzuki the Bei Dou Xing. Production and Ownership Automobile Co. They were wildly sales fell sharply last year, but the Changan Auto Shareholding Co. - 51%; Suzuki Motor Corp. - 35%; wrong – Suzuki cracked the 100,000 company did not provide any Nisshio Iwai Trading - 14% threshold in 2003, producing just over clarification. 102,000 Alto and Swift subcompacts Indeed, if every Suzuki sold in Models produced: Suzuki Alto, Swift that year. China carried a Suzuki badge sales Production edged up another 5.2 would have been 553,500. The Capacity Production Unit sales percent last year, to 107,337. Officials Japanese automaker would be the 2004: 100,000 2004: 107,337 2004: 110,052 have said the venture will double No. 2 brand in China behind 2003: 100,000 2003: 102,083 2003: 100,018 production capacity to 200,000 units a Volkswagen. year by 2007, and that one new model Not including its equity venture with will be launched every year for the Suzuki, the Changan Automobile JV: Jiangxi Changhe Suzuki Co. next three. Group sold some 422,349 Suzuki- Mail Box 518, No. 1 East Road The venture will launch the derived and Suzuki-licensed mini- and Jin De Zhen, Jiangxi Province 333002, P.R. China redesigned Swift this summer. subcompact vehicles last year through (86) 798-8462-611 The Changan venture, in which five wholly controlled companies. All Top executive: Takeuchi Masahiro, general manager Suzuki has a 35 percent stake, is the produce versions of the Suzuki Alto, Ownership only one in China producing Suzuki- Swift and Wagon R for sale under SC Changhe Group - 51%; Suzuki Motor Corp. - 39%; Okaya - 10% badged vehicles. model names. But Suzuki minivehicles, vans and The vehicles are widely used as Models produced: Suzuki Wagon R (Bei Dou Xing) subcompacts are widely manufactured taxis, minibuses and vans. in China under a tangle of licensing Changan sold another 110,052 Capacity Production Unit sales agreements the automaker signed in Suzuki-badged Altos and Swifts 2004: 100,000 2004: 19,354 2004: 21,101 the 1980s and 1990s. The vehicles are through its joint venture with the 2003: 100,000 2003: 37,333 2003: 36,429 everywhere on China's roads under a Japanese company.

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 13 Global automakers/Joint ventures

Toyota Motor Corp. Room 3806-11 Jin Guang Center Hujialou, Chaoyang District, Beijing 100020, P.R. China (86) 10-6597-3995, www.toyota.com.cn Top executive: Hattori Etsuo, chief representative

JV: Tianjin FAW Toyota Motor Co. Unaccustomed to lagging the pack in 20,000 this year. No. 2 LiuLi Road, Yang Liu Qin, Xiqing District any market, Toyota Motor Corp. The two assembly plants are part of Tianjin Province 300380, P.R. China continues laying the foundation for an Tianjin FAW Toyota Motor Co., (86) 22-2794-4050 Top executive: Takemoto Shozo, general manager aggressive catch-up program in China. Toyota's core partnership in China with Ownership: Toyota Motor Corp. - 40%; Toyota Motor (China) Investment Co. - 10%; Toyota, which did not open a joint First Auto Works, . FAW Xiali Automobile Co. - 30%; First Auto Works - 20% venture in China until mid-2002, says FAW Toyota produced 83,437 Corolla it will invest up to $2.5 billion in new and Vios compact cars in 2004, up 59 Models produced: Toyota Corolla, Vios, Crown capacity to increase its market share percent from a year earlier. To prop up Capacity Production Unit sales to 10 percent in 2010 from about 3 sales in last year's cut-throat market, 2004: 120,000 2004: 83,437 2004: 77,739 percent last year. Among foreign Toyota cut prices on the two models 2003: 50,000 2003: 49,535 2003: 48,567 passenger-vehicle makers, the by an average of $2,410. company is a distant fifth in China FAW also assembles versions of the JV: Sichuan Toyota Motor Co. after Honda and Hyundai. Toyota Yaris/Echo at Tianjin FAW Xiali; No. 9 Tiao Den He Nan Lu, Chenghua District Despite the market's recent the Land Cruiser Prado at Sichuan Sichuan Province 610051, P.R. China cool-down, senior executives vow, the Toyota, in which Toyota has a 50 (86) 28-8472-7491 Top executive: Jiang Zhizhong, president company will not change that goal. percent stake; and another version of Ownership: Chengdu FAW Auto - 50%; Toyota Motor Corp. - 45%; Underscoring the point, Toyota the Land Cruiser at FAW's main facility Toyota Tsusho Corp. - 5% executives disclosed at the opening of in Changchung. the company's second assembly plant In still another assembly venture, Models produced: Toyota Land Cruiser Prado in Tianjin in March that the automaker Toyota late last year won approval for will build still another plant there. The what will be its fourth plant in China. Capacity Production Unit sales third plant will have the capacity to The $460 million venture in the 2004: 10,000 2004: 3,110 2004: 3,047 produce 500,000 vehicles a year by southern city of Guangzhou will have 2003: 10,000 2003: 397 2003: 397 2007, executives said. an initial capacity of 100,000 Camry The new facility was announced at sedans a year, rising to 250,000 as JV: Guangzhou Toyota Motor Co. the opening of a plant designed to demand warrants. No. 8 Huangge Duan Huangge Zhen, Shi Nan Road Panyu District, Guangzho, P.R. China produce up to 100,000 Toyota Crown Operating at maximum capacity, the (86) 20-3939-8888 Top executive: Toru Kuzuhara, general manager sedans a year, marking the first time four plants would give Toyota the that the luxury car will be built outside capability of producing some 950,000 Ownership: Guangzhou Auto - 50; Toyota Motor Corp. - 50% Japan. Toyota has targeted sales of vehicles a year by 2008. Plant is under construction. Production of the Camry to begin in 2006.

Volkswagen China Investment Co. 3A Sanlitun Road Chaoyang District 100027, Beijing P.R. China (86) 10-6505-3232, www.volkswagen.com.cn Top executive: Bernd Leissner, president Volkswagen Group China

JV: Shanghai Volkswagen Automotive Co. Volkswagen AG posted an and expand an existing one as a means No. 63 Luo Pu Road, An Ting unwelcome first in China last year - its of cutting costs. Jiading Distict, Shanghai 301805, P.R. China first year-to-year sales decline since it VW also has launched a brand- (86) 21-5956-1888, www.csvw.com started local production almost two building campaign, its first, and is Top executive: Chen Zhixin, general manager decades ago. Combined sales at its two studying the possibility of producing Ownership joint ventures, FAW Volkswagen and one of its other brands, such as Skoda, Shanghai Volkswagen, slipped 6.4 in China. Volkswagen - 40%; Shanghai Automotive Industry Corp. - 50%; percent last year to 653,766. Shanghai VW makes the Volkswagen Volkswagen (China) Investment Co. - 10% The German automaker has steadily Santana, Santana 3000, Passat, Polo lost market share in China in recent Touran and Gol, and will launch a new Models produced: VW Gol, Passat, Touran, Polo, Santana, Santana 3000 years in the face of rising competition, Passat later this year. Volkswagen-FAW falling 5.6 points last year to 25.2 produces the Volkswagen Jetta, Bora, Capacity Production Unit sales percent. As recently as 2001, VW Caddy and Golf, and the Audi A6 and 2004: 450,000 2004: 346,338 2004: 353,649 commanded a 50 percent share. A4. 2003: 450,000 2003: 405,252 2003: 396,006 But the declines in share had always Because its two joint ventures build come on higher volumes as the market different vehicles and compete with expanded at often astonishing rates. each other with separate sales, service JV: FAW-Volkswagen Automotive Co. That cycle ended last year when overall and distribution networks, low brand Dongfeng Street, Changchun market growth slowed to about 15 recognition remains a problem for VW Jilin Province 130011, P.R. China percent vs. a 76 percent gain from in China. (86) 431-5990-151 2002 to 2003. Sales continue to be soft The Santana sedan, the first VW Top executive: Qin Huanming, general manager this year. model made in China, is ubiquitous. Ownership But VW is not taking the slippage But many Chinese consumers don't lying down. Executives insist the realize that newer models such as the First Auto Works - 60%; Volkswagen AG - 20%; Volkswagen (China) automaker is working intensively to Bora and Passat also are Volkswagens, Investment Co. - 10%; Audi AG - 10% maintain market share at 25 percent to executives say. Models produced: Audi A4, A6; VW Bora, Golf, Jetta, Caddy 30 percent. VW also is willing to remain flexible Despite the market cool-down, the on prices, which fell an estimated 13 Capacity Production Unit sales automaker still plans to double percent for the entire industry in China capacity in China to 1.6 million cars a last year. Responding quickly to sharp 2004: 400,000 2004: 287,117 2004: 300,117 year by 2008 by expanding both of its price cuts by rival BMW on its 3- and 2003: 300,000 2003: 302,346 2003: 302,385 joint ventures at a cost of some 5-series sedans, FAW Volkswagen in $8 billion. March slashed prices on the Audi A4 It also will build two engine plants and A6 by as much as $5,200.

14 Automotive News • Automotive News Europe • Automotive Resources Asia 2005 Guide to China’s Auto Market Production facilities in China

Heilongjiang

16

Jilin MONGOLIA 23 5 KYRGYZSTAN 3 20

Liaoning 1 6 10 Inner Mongolia Xinjiang Beijing 2 13 22 AKISTAN 21 Tianjin Hebei 6 7 9 14 17 18

CHINA Ningxia Shandong Shanxi Qinghai Gansu 11 17 Jiangsu 14 Shaanxi Henan 3 Anhui JAPAN

Tibet 16 Shanghai 2 9 8 24 Hubei 11 18 8 22 13 NEPAL Chongqing Zhejiang Sichuan 23 4 19 20 12

Guizhou Hunan 5 21 Fujian 15 Jiangxi 15 19 INDIA

Yunnan 7 1 Guangdong 10 12 Taiwan

Guangxi Hong Kong VIETNAM MYANMAR LAOS 4 Hainan PHILIPPINES

Global automakers/Joint ventures Domestic automakers

1 - BMW Brilliance Automotive Ltd. 13 - Beijing Hyundai Motor Co. 1 - Dongfeng Liuzhou Motor Co. 13 - Geely Automobile Holdings Ltd. Shenyang, Liaoning Province Shunyi District, Beijing Liuzhou, Guangxi Province Hangzhou, Zhejiang Province 2 - Beijing Benz-DaimlerChrysler 14 - Dongfeng Yueda Kia Automobile Co. 2 - Dongfeng Automobile Co. 14 - Great Wall Automobile Holding Co. Automotive Ltd. Yangcheng City, Jiangsu Province Xiangfan, Hubei Province Baoding City, Hebei Province Chaoyang District, Beijing 15 - Hunan Changfeng Motor Co. 3 - FAW Car Co. 3 - Nanjing Fiat Co. 15 - Guizhou Skylark Automobile Co. Yongzhou, Hunan Province Changchun, Jilin Province Nanjing, Jiangsu Province Anshun City, Guizhou Province 16 - Dongfeng Motor Co. 4 - FAW Haima Automotive Co. 4 - Changan Ford Automobile Co. Shiyan, Hubei Province 16 - Hafei Motor Co. Haikou, Hainan Province New Northern Zone, Chongqing 17 - Zhengzhou Nissan Automobile Co. Harbin, Heilongjiang Province 5 - Changchun FAW Fengyue Auto Co. 5 - Jiangling Motors Corp. Zhengzhou, Henan Province 17 - Hebei Zhongxing Automobile Co. Nanchang, Jiangxi Province Changchun, Jilin Province 18 - Dongfeng Peugeot Citroen Automobile Baoding City, Hebei Province 6 - Shanghai GM Norsom Motors Co. 6 - FAW Huali (Tianjin) Motor Co. Wuhan, Hubei Province 18 - Rongcheng Huatai Automobile Co. Shenyang, Liaoning Province Xiqing District, Tianjin Province 19 - Chongqing Changan Suzuki Automobile Rongcheng CIty, 7 - SAIC GM Wuling Automobile Co. 7 - Tianjin FAW Xiali Automobile Co. Liuzhou, Guangxi Province Ba Nan District, Chongqing Shangdong Province Xiqing District, Tianjin Province 8 - Shanghai General Motors Corp. 20 - Jiangxi Changhe Suzuki Co. 19 - Soueast (Fujian) Motor Corp. Jin De Zhen, Jiangxi Province 8 - Chery Automobile Co. Pudong, Shanghai Fuzhou, Fujian Province 21 - Tianjin FAW Toyota Motor Co. Wuhu, Anhui Province 9 - Shanghai GM Dongyue Motors 20 - Jilin Tongtian Yantai, Shandong Province Xiqin District, Tianjin 9 - Anhui Jianghuai Automobile Co. Longtan, Jilin Province 10 - Guangzhou Honda Automobile Co. 22 - Sichuan Toyota Motor Co. Hefei City, Anhui Province Guangzhou, Guangdong Province Chenghua District, Sichuan Province 10 - Shenyang Brilliance Jinbei 21 - Jianglin Landwind 11 - Dongfeng Honda Automobile Co. 23 - FAW-Volkswagen Automotive Co. Automotive Co. Nanchang, Jiangxi Province (Wuhan) Changchun, Jilin Province Shenyang, Liaoning Province 22 - Beijing Automotive Industry Corp. Wuhan, Hubei Province 24 - Shanghai Volkswagen Automotive Co. 11 - BYD Auto Co. Chaoyang District, Beijing 12 - Honda Automobile (China) Co. Jiading District, Shanghai Xian, Shaanxi Province 23 - Chongqing Changan Automobile Group Guangzhou, Guangdong Province 12 - Jiangxi Changhe Automobile Co. Jang Bei, Chongqing Jing De Zhen, Jiangxi Province

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 17 Domestic automakers Big 5 tighten grip on production, sales China's tier 2 automakers last year were again squeezed by declining profit sales in China, including a downturn at its joint venture with BMW AG. The margins and government pressure to consolidate or die. The pressure likely company was scheduled to report in late April after this went to press. will worsen this year as the government's crackdown on consumer credit According to the Ministry of Commerce, the combined profit of China's 5,857 continues and auto sales soften, or decline outright. assemblers and parts makers fell 6 percent last year to 72 billion yuan, or $8.7 The five biggest automakers strengthened their chokehold on the market last billion, as price-cutting eroded margins. The ranks of unprofitable companies year, leaving fewer crumbs for the tier 2s. According to data from the China grew by 17.4 percent to 1,020, and their combined losses worsened by a quarter Association of Automobile Manufacturers, the top five automakers raised their to about $785 million, the ministry said. share of the total market to 68.9 percent from 63.5 percent in 2003 as each The combined profit of the 15 largest automakers fell 5.12 percent to about $4.6 increased sales in a softer market. billion, the ministry said. The five – First Automotive Works Group, Shanghai Automotive Industry "More auto companies will report losses and some may go bankrupt before the Corp., Chongqing Changan Automotive Group, Beijing Automotive Industry industry consolidates and restructures into a few big players," said Hu Song, an Corp. and Dongfeng Motor Corp. – reported combined sales of 3.49 million analyst at Haitong Securities in Shanghai, in an interview with Xinhua news commercial and passenger vehicles last year, up 23.8 percent from 2.82 million agency. in 2003. Adding to the price pressure on automakers has been the government's push to Most growth came from the companies' joint ventures with foreign force consolidation in the market. The Ministry of Commerce says that makers automakers. Beijing Automotive sales, for example, surged 57.7 percent to with capacity of less than one million will not be able to survive, and those with 531,000 units, including commercial vehicles and a boost from partner capacity of less than two million will face strong restructuring pressure. Hyundai Motor, whose sales jumped 176.5 percent to 144,090. Faced with intense price pressure in China, and reluctant to be forced into But the growth in passenger-vehicle sales in China slowed to about 15 shotgun alliances, some tier 2 companies such as Chery Automobile Co. are percent last year from a 76 percent increase in 2003, and few tier 2 makers looking at exports to Europe and North America as a possible relief valve. have the resources to compete for long in the kind of price-driven market Although Volkswagen exports China-made Golfs to Australia and Honda shaping up in China. Motor Co. is beginning to ship 50,000 Fit subcompacts a year to Europe, it's still Brilliance China Automotive Holdings Ltd. warned in early March, for an open question whether a car sporting a Chinese company's badge can be sold example, that its 2004 profit would be hurt by a significant setback in vehicle in appreciable numbers in the developed markets.

No. 25, Dong San Huan South Road Beijing Automotive Industry Corp. Beijing 200021, P.R. China (86) 10-8766-9888 Top executive: Dong Yang, president

Beijing Automotive Industry Corp. straddles three of the compact Elantra, Beijing-Hyundai sales rose second 300,000-unit plant by 2008. of China's hottest segments – premium and to 144,090 from 52,128 in 2003, the venture's first Sales at Beijing Benz-DaimlerChrysler, the group's economy sedans, and SUVs – through joint full year of production. other joint venture, soared 59 percent over 2003 venture partnerships. Sales are projected to be up another 39 percent with the introduction of the Mitsubishi Pajero Sport The city-owned automaker, which produces heavy, this year, to 200,000. and Outlander SUVs. medium and light trucks, and passenger vans for The partnership with Hyundai bodes well for The two Japanese vehicles accounted for 66 sale under the Beijing name, assembles cars with Beijing Automotive. As the government's credit percent of the venture's sales last year. Hyundai, and Jeep and Mitsubishi SUVs with tightening shifts auto demand toward "economy" But as Mitsubishi continues to search for a way to DaimlerChrysler. and "value" purchases, Hyundai stands to be a major produce vehicles on its own in China, it's unclear Production of Mercedes-Benz C- and E-class beneficiary because these are attributes closely sedans is scheduled to begin this summer. how long Beijing Benz will continue to produce the Buoyed by a 176 percent surge at its Beijing- identified with the Korean automaker. Japanese company's SUVs. Hyundai joint venture, the group posted a 58 Indeed, the partners have committed some $750 Exclusive of its joint ventures, Beijing Automotive percent gain in unit sales last year to 531,000, million to double the capacity of their existing plant Industry Corp. has 10 manufacturing plants with a including commercial trucks. With the introduction to 300,000 units a year by 2007, and to add a cumulative capacity of more than 300,000 units.

Ownership: Municipal government - 100% Global JV’s: Beijing Benz-DaimlerChrysler Automotive Ltd. – Beijing – Models produced: Beijing SUV Jeep4700/Jeep4000, Jeep2500, Jeep Grand Cherokee; Mitsubishi Pajero Sport, Outlander (Page 7) Capacity Production Unit sales 2004: 100,000 2004: 25,036 2004: 25,062 Beijing Hyundai Motor Co. – Beijing – 2003: N.A. 2003: N.A. 2003: N.A. Hyundai Elantra, Sonata (Page 10) N.A. = Not available

Workers assemble a ‘Jie Fang’ model truck at the First Auto Works plant in Changchung. FAW, which is partnered in the world’s fastest growing car market with Volkswagen AG, Toyota Motor Corp. and Mazda Motor Corp., is China’s biggest automaker with sales of more than 1 million units in 2004.

Photographer: Natalie Behring-Chisholm/Bloomberg News

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 19 Domestic automakers

No. 260 Jian Xin East Road, Jiang Bei District Chongqing Changan Automobile Group Chongqing 400023, P.R. China (86) 23-6759-1349, www.changan.com.cn Top executive: Yin Jiaxu

The Changan Automobile Group, which traces its Changan's rice bowl continues to be its relationship the Chinese Dragon, was powered by a 3.2-liter roots back to a 1950s military truck factory in the with Suzuki, which dates back to 1982. V-8. western city of Chongqing, has become China's Not including its joint venture with the Japanese Like other Chinese carmakers, Changan has third biggest vehicle maker through licensing and automaker, Changan sold 422,349 Suzuki-derived made no secret of its desire to begin exporting joint-venture ties with Japan's Suzuki Motor Corp. and Suzuki-licensed mini- and subcompact cars to Europe and the United States. Some Also known as the Chana Automobile (Group), vehicles last year through a tangle of five wholly observers see the two concept cars as a step Changan sold 579,520 light trucks, cars and controlled companies: Chongqing Changan toward that goal. minibuses last year, up nearly 23 percent over Automobile Co.; Nanjing Changan Automobile Co.; Meanwhile, government planners in January 2003. But only 157,000 units were sold by the Hebei Changan Automobile Co.; Hebei Changan approved Changan Ford's request to build a group's two joint ventures, Changan Ford Shengli Automobile Co.; and Chongqing Changan second assembly plant. The plant, in Nanjing, will Automobile Co. and Chongqing Changan Suzuki Kuayue Automobile Co. begin producing 160,000 to 200,000 cars annually Automobile Co. All produce versions of the Suzuki Alto, Swift in 2007-08 and will raise the partners' capacity in Changan Suzuki sales edged up 10 percent in and Wagon R under SC model names. China to some 400,000 cars a year. 2004 to 110,052 units while Ford sales jumped Changan surprised many industry observers last 172 percent to 47,119, reflecting the addition of year, though, by introducing two proprietary Changan Ford produces the Ford Fiesta and the European Mondeo. The Ford venture began concept cars at the Auto China 2004 exhibition in Mondeo, and is expected to begin assembling the production in 2003. Beijing. One, named the Yangtze River Sturgeon, Focus this year. The new plant is expected to build Although the joint venture with Ford promises to was a handsome proposal for a European-style the next generation Fiesta and the Mazda2, which become increasingly important to its fortunes, sport sedan. The other, a roadster proposal called share a common platform.

Ownership: Municipal government - 100% Global JV’s: Changan Ford Automobile Co. – Chongqing – Models produced: Suzuki-based SC models Ford Fiesta, Mondeo (Page 8) Capacity Production Unit sales Chongqing Changan Suzuki Automobile Co. –- Chongqing – 2004: N.A. 2004: 425,030 2004: 422,349 Suzuki Alto, Swift (Page 13) 2003: N.A. 2003: 349,033 2003: 344,795 N.A. = Not available

No. 747 Jianshe Ave. Dongfeng Motor Corp. Hankou, Wuhan, Hebei 430015, P.R. China (86) 27-8428-5000, www.dfmc.com.cn Top executive: Miao Wei, chairman

Dongfeng Motor Corp., the state-run automaker Elysee, and Peugeot 307; the Honda CR-V and around $600 million in the face of China's overall that has production ventures with Nissan, Honda, Civic; and the Kia Accent and Optima and the market slowdown. Peugeot and Kia, says it expects to sell more than Carnival minivan. All but the Peugeot venture In an interview with Reuters, Dongfeng CEO Miao 600,000 vehicles this year valued at some 100 registered sales gains in 2004. Wei confirmed that the IPO still is a possibility. But billion yuan, or about $12.1 billion. This year has opened strong, Dongfeng said. he declined to give a timetable or value for the deal. In a market that was up 15 percent, the Sales for the first two months, the most recent data Miao also disclosed that talks have stalled on a company's sales rose 7 percent last year to 523,000 available at press time, rose 24 percent from a year proposed joint venture with France's Renault SA, vehicles (including commercial trucks), generating earlier to 91,000 units, while production is up 32.6 turnover of $11.2 billion yuan, up 17 percent. Profit but that he still hoped to conclude a deal by year percent to 95,000 units. rose 23 percent to $507 million, the company said. end. Dongfeng produces heavy-duty and light-duty Dongfeng hopes to launch an IPO on the Hong Renault, which owns a controlling 44 percent trucks under its own name and cars with its Kong exchange this year. The group had planned to stake in Dongfeng's partner, Nissan, has said it partners: the Nissan Teana, Sunny and Bluebird and raise $1 billion from a Hong Kong share offering hopes to make 150,000 cars a year in China starting Tiida; the Citroen Picasso, Fukang, Xsara and last year, but apparently has scaled that back to in 2007.

JV: Dongfeng Liuzhou Motor Co. JV: Dongfeng Automobile Co. No. 286, Pingshan Ave., Liuzhou 1 Dongfeng Qiche Da Dao, Auto Industry Development Zone Guangxi Province, 545005 P.R. China Xiangfan, Hubei Province 441004, P.R. China (86) 772-3383-908 Top executive: Cheng Daoran, general manager (86) 710-339-6006 Top executive: Zhu Fushou, general manager

Ownership: Dongfeng Motor Corp. - 100% Ownership: Dongfeng Motor Co. - 70%; Others - 30%

Models produced: Future Models produced: Light-commercial vehicles, Cummins diesels Capacity Production Unit sales Capacity Production Unit sales 2004: 50,000 2004: 16,486 2004: 16,589 2004: 150,000 2004: 61,000 2004: 61,000 2003: 50,000 2003: 10,302 2003: 10,079 2003: 100,000 2003: N.A. 2003: 66,048

Global JV’s: Dongfeng Motor Co. – Shiyan, Hubei Province – Nissan Bluebird, Sunny, Teana, Tiida (Page 11) Dongfeng Honda Automobile (Wuhan) Co. – Wuhuan, Hubei Province – Honda CR-V, Civic (Page 10) Dongfeng Yueda Kia Automotible Co. – Yancheng City, Jiangsu Provice – Kia Accent, Carnival, Optima (Page 10) Dongfeng Peugeot Citroen Automobile Co. – Wuhan, Hubei Province – Citroen Elysee, Fukang, Picasso, Xsara; Peugeot 307 (Page 13)

20 Automotive News • Automotive News Europe • Automotive Resources Asia 2005 Guide to China’s Auto Market Domestic automakers

No. 83 Dongfeng Street First Automobile Works Group Changchun Province, Jilin 130011, P.R. China (86) 431-5901-140, www.faw.com.cn Top executive: Zhu Yanfeng, president

First Automobile Works Group set an important Sales of FAW's legacy vehicles – the company Both Volkswagen and Toyota have vowed to benchmark for China's auto industry in 2004 was founded in 1953 to make heavy trucks – proceed with their plans despite the market's when it became the country's first vehicle maker soared 34 percent last year to 127,850, while dramatic slowdown in 2004 and so far this year. to produce and sell more than 1 million cars and medium-truck sales rose 39 percent to nearly Volkswagen, FAW's senior partner, is building a trucks in a year. 60,000. The company exports small numbers of second, 300,000-unit plant at Changchun to open The threshold is important because the higher commercial vehicles to developing countries. in 2007, and expanding the existing plant to volume can generate significant cost savings FAW's two joint ventures accounted for 59 330,000 units a year. through economies of scale – yielding a potential percent of passenger-vehicle sales in 2004. FAW Toyota, a late entry to China and FAW's newest competitive edge for FAW in China's newly Volkswagen sold 300,117 Volkswagens and Audis partner, has announced plans to build a third hypercompetitive marketplace. while Tianjin Toyota sales totaled 77,739 units. plant in Tianjin that would raise its maximum The No. 2 automaker in China last year, FAW sold another 260,000 units under its own capacity there to some 700,000 cars a year. Shainghai Automotive Industry Corp., trailed FAW badge or under license, including: 35,740 In addition, FAW and Mazda have agreed to put by nearly 159,000 units. Mazda6s; 66,000 Mazda Familias and Premacys; all of the Japanese automaker's sales in China, FAW, which is partnered with Volkswagen AG, 130,182 Toyota-based Xialis; and 15,000 Red Flag including units produced at a Ford Motor Co. Toyota Motor Corp. and Mazda Motors in joint (Honqui) limousines. joint venture with Changan Automotive Group, venture and licensing deals, sold 1,007,471 Because FAW's two partners are underway on under a new FAW-Mazda joint venture. vehicles in 2004, up 12.4 percent over 2003, the capacity expansions totaling 930,000 units, the FAW will hold a 75 percent stake in the sales China Association of Automobile Manufacturers state-owned automaker appears to be solidly on company, which will be based in Changchun. said. Passenger-vehicle sales rose 11 percent to track to hit its target of 2 million sales annually by Mazda announced last week that it aims to sell 639,863 units, accounting for 63.5 percent of total. 2008. 300,000 cars in China annually by 2010.

JV: FAW Car Co. JV: Changchun FAW Fengyue Auto Co. No. 4888 Weishan Road, High Technology Development Zone No. 5 Dongfeng Street Changchun, Jinlin Province 130011, P.R. China Changchun, Jilin Province 130011, P.R. China (86) 431-5781108 , www.fawcar.com.cn (86) 431-5786-808 Top executive: Zhang Pijie Top executive: Dai Zhi, general manager

Ownership: First Auto Works - 64%; Others - 36% Ownership: First Auto Works - 100%

Models produced: Red Flag, Mazda6 Models produced: Toyota Land Cruiser

Capacity Production Unit sales Capacity Production Unit sales 2004: 100,000 2004: 50,066 2004: 50,789 2004: 10,000 2004: 4,207 2004: 3,939 2003: 90,000 2003: 48,219 2003: 51,266 2003: 10,000 2003: 666 2003: 666

JV: FAW Haima Automobile Co. JV: FAW Huali (Tianjin) Motor Co. 22 Jinpan Road, Jinpan Industry Development Area, Haikou Yan Liu Qing Li Lou Nan, Xiqing District Hainan Province 570216, P.R. China Tianjin Province 300380, P.R. China (86) 898-6682-0333, www.hnmazda.com (86) 22-2794-4446 Top executive: Jing Zhu, gen. mgr. Top executive: Fang Yongping, general manager Ownership: First Auto Works - 49%; Haima Automobile Group - 49%; Ownership: First Auto Works - 75%; Golden Lion Group of Malaysia - 25% Haima Provincial Government - 2% Models produced: Daihatsu Terios, Move Models produced: Mazda Familia, Premacy Capacity Production Unit sales Capacity Production Unit sales 2004: 60,000 2004: 9,127 2004: 8,995 2004: 150,000 2004: 66,954 2004: 66,055 2003: 50,000 2003: 742 2003: 713 2003: N.A. 2003: 54,824 2003: 54,406

JV: Tianjin FAW Xiali Automobile Co. Global JV’s: Lilou Nan Zhong Bei Street, Xiqing District FAW-Volkswagen Automotive Co. – Changchun, Jilin Province – Tianjin Province 300380, P.R. China Audi A4, A6; Volkswagen Bora, Golf, Jetta, Caddy (Page 14) (86) 22-2305-6010, www.tjfaw.com.cn Top executive: Xu Xianping, gen. mgr. Tianjin FAW Toyota Motor Co. – Xiqing, Tianjin – Toyota Crown, Corolla, Vios (Page 14) Ownership: Subsidiary State Holding - 51%: Corporate - 34%; Others - 15%

Models produced: Charade, Vizi, Vela Capacity Production Unit sales 2004: 180,000 2004: 130,506 2004: 130,182 2003: 180,000 2003: 117,186 2003: 117,335

22 Automotive News • Automotive News Europe • Automotive Resources Asia 2005 Guide to China’s Auto Market Domestic automakers

489 Weihai Rd. Shanghai Automotive Industry Corp. Shanghai 200041, P.R. China (86) 21-2201-1888, www.saicgroup.com Top executive: Hu Maoyuan, president

Shanghai Automotive Industry Corp. is a distant All of GM's ventures in China are linked to ambitious bid to acquire a 70 percent stake in second to giant First Auto Works in annual unit Shanghai Automotive in one way or another. Britain's MG Rover Group appeared to be dead, sales, but its ambitions take a back seat to no But SAIC is looking for growth separate from victim of the British government’s refusal to one. its partners. guarantee Rover’s huge pension liabilities. SAIC, which is partnered with Volkswagen and In 2003, Shanghai Automotive became the first In any event, many analysts question whether General Motors in what for now are China's Chinese carmaker to take a stake in a foreign the Chinese company could have made a success biggest automotive joint ventures, aims to be one automaker when it took a 10.6 percent share of of a carmaker that BMW AG once owned – and of the world's top six automakers by 2020. The GM Daewoo in Korea. The link gives it direct could not turn around. company would need sales of some 4.0 million access to state-of-the-art small-car engineering On an even more ambitious scale, SAIC has cars a year by then to achieve its target. that can be used in developing its own-brand confirmed that it's in discussions with Italy's Fiat SAIC's sales rose 8.5 percent last year to vehicles. The company has said it intends to be Auto concerning a possible, unspecified 848,542 units. The automaker, which is owned by the City of selling 50,000 Shanghai-badged cars a year collaboration. Shanghai, is counting on its own international beginning in 2007. Fiat has not done well in China, where it is initiatives, as well as its partnerships with China's Then, last year, SAIC agreed to acquire a partnered with Nanjing Automobile Group, so the biggest foreign automakers, to fuel that growth. controlling 48.9 percent stake in Korea's Italian automaker may be looking for ways to Volkswagen aims to double capacity of its Ssangyong Motors, a maker of SUVs, for some extend its reach there. Shanghai joint venture to near 1 million units a $500 million. The deal gives it direct access to On the other hand, SAIC has what Fiat needs year by 2008, while General Motors says it will the Korean market, as well as a way to enter most – cash – and Fiat has what SAIC desires raise capacity in China to 1.3 million units a year China's fast-growing SUV segment. most: automotive technology and a global reach. by 2007 from 550,000 now. But as this was going to press, SAIC's A deal of some kind seems likely. Ownership: Shanghai municipal government - 100% Global JV’s: SAIC GM Wuling Automobile Co. – Liuzhou, Guangxi Province – Chevrolet Spark (Page 9) Shanghai General Motors Corp. – Pudong, Shanghai – Buick Regal, Royaum, Excelle (Page 9) Shanghai GM Dongyue Motors – Yantai, Shandong Province – Sail, Sail SRV, Epica (Page 9) Shanghai Volkswagen Automotive Co. – Jiading Distict, Shanghai – VW Gol, Passat, Polo, Santana, Santana 3000, Touran (Page 14) Shanghai GM (Shenyang) Norsom Motors Co. – Shenyang, Liaoning Province – Buick GL8 (Page 9)

No. 176 DongliuNo. Road, 176 HefeiDongliu City, Road, Anhui Hefei Province City, Anhui230022, Province P. R. China 230022, P.R. China Anhui Jianghuai Automobile Co. (86) 55-1229-6839,(86) 55-1229-6839,www.jac.com.cn www.jac.com.cn TopTop executiveexecutive:: ZuoZuo Yanan,Yanan, presidentpresident Ownership: Anhui Jianghuai Auto Group - 43%; Others - 41%; Malaysia Capacity Production Unit sales Angkasa Transport Equipment - 16% 2004: 40,000 2004: 17,245 2004: 17,900 2003: N.A. 2003: 14,746 2003: 14,263 Models produced: Refine (Hyundai Starex) N.A. = Not available

No. 14 Shanzuizi Road, Dadong District, Shenyang, Liaoning Province 110044, P.R. China Shenyang Brilliance Jinbei Automotive Co. (86) 24-8820-1183, www.brilliance-auto.com Top executive: Lin Xiaogang, chairman Ownership: Brilliance China Automotive Holdings - 51%; Capacity Production Unit sales Shenyang Jinbei Automotive Co. - 49% 2004: 120,000 2004: 11,806 2004: 10,982 2003: 100,000 2003: 26,841 2003: 25,600 Models produced: Zhonghua, New Zhonghua Grandor, Jinbei Granse

Yan An Road, Kuichong Longgang, Shenzhen, Guangdong Province 518119, P.R. China BYD Auto Co. (86) 755-8421-8888, www.bydauto.com.cn Top executive: Wang Chuanfu, president Ownership: BYD Co. - 92%; Shanxi Investment Group - 8% Capacity Production Unit sales 2004: 60,000 2004: 17,245 2004: 17,900 Models produced: Flyer, BYD F3* 2003: 50,000 2003: 20,100 2003: 20,100 *Production to begin late 2005.

Mail Box No. 108, Jing De Zhen, Jiangxi Province 333002, P.R. China Jiangxi Changhe Automobile Co. (86) 798-8462-032, www.chideal.com Top executive: Cai Suping, general manager Ownership: Jiangxi Changhe Aviation Industry Co. - 64%; Others - 28%; Capacity Production Unit sales Hefei Changhe Automobile Co. - 8% 2004: 60,000 2004: 7,402 2004: 6,288 2003: 60,000 2003: 2,711 2003: 2,078 Models produced: Ideal

No. 8 Changchun Road, Anhui Province 241009, P.R. China Chery Automobile Co. (86) 553-5843-348, www.chery.cn Top executive: Yin Tongyao, president Ownership: Chery Automobile Co. - 100% Capacity Production Unit sales 2004: 350,000 2004: 79,565 2004: 86,567 Models produced: Fengyun, QQ, Qiyun, Son of East, Tiggo 2003: N.A. 2003: 91,223 2003: 85,349 N.A. = Not available

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 23 Domestic automakers

Jiangnan Ave., Binjiang District, Hangzhou, Zhejiang Province, 301152 P.R. China Geely Automobile Holdings Ltd. (86) 431-5990-471, www.geely.com Top executive: Li Shufu, president Ownership: Founder-member - 53%; Public - 47% Capacity Production Unit sales 2004: 360,000 2004: 91,744 2004: 96,693 Models produced: Beauty Leopard, Haoqing, Maple, Merrie, Uliou 2003: N.A. 2003: 81,285 2003: 80,056 N.A. = Not available

No. 115 South Great Wall Road, Baoding City, Hebei Province 071000, P.R. China Great Wall Automobile Holding Co. (86) 312-2192-888, www.gwm.com.cn Top executive: Wei Jianjun, president Ownership: Founder-member - 72%; Public - 28% Capacity Production Unit sales 2004: 170,000 2004: 27,540 2004: 27,436 Models produced: Safe, Pegasus, Sing, Hover* 2003: 45,000 2003: 28,067 2003: 27,101 *Production to begin in 2005

Shuangyang Economy & Tech. Development Zone, Anshun City, Guizhou Province 561018, P.R. China Guizhou Skylark Automobile Co. (86) 853-3413245 Top executive: Chi Yaoyong, president Ownership: China-National Guizhou Aviation Industry Group - 51%; Capacity Production Unit sales Tan Chong International - 49% 2004: 50,000 2004: 165 2004: 183 2003: 50,000 2003: 1,180 2003: 1,144 Models produced: Skylark GHK7071 Series

No. 1 Yantai Road, Pingfang Industrial Area, Harbin, Heilongjiang Province 150060, P.R. China Hafei Motor Co. (86) 451-8658-1122, www.hafeiauto.com Top executive: Liu Tao, president Ownership: Harbin Aircraft Industry Group - 100% Capacity Production Unit sales 2004: 300,000 2004: 28,599 2004: 29,816 Models produced: Lobo, Saima, Saibao 2003: 150,000 2003: 32,387 2003: 30,047

No. 29 Jianguo Road, Baoding City, Hebei Province 071001, P.R. China Hebei Zhongxing Automobile Co. (86) 312-2172-251, www.zxauto.com.cn Top executive: Xiao Wei, general manager Ownership: Hebei Zhongxing - 67%; Taiwan United Leaders Co. - 33% Capacity Production Unit sales 2004: 100,000 2004: 16,192 2004: 16,249 Models produced: Star SUV, Admiral SUV, Cruiser 2400 2003: 100,000 2003: 28,500 2003: 28,500

Jiaoqiao, Nanchang, Jiangxi Province 330044, P.R. China Jiangling Landwind Automobile Co. (86) 791-3806-666, www.landwind.cn Top executive: Lu Shuifang, president Ownership: Jiangling Motors Co. Group - 100% Capacity Production Unit sales 2004: 50,000 2004: 10,000 2004: 10,000 Models produced: Landwind SUV 2003: N.A. 2003: N.A. 2003: N.A. N.A. = not available

No.16 Ningbo Road, Longtan District, Jilin Province 132021, P.R. China Jilin Tongtian Automobile Co. (86) 432-3044-919, www.ttauto.com Top executive: Li Xubin, president Ownership: Jilin Jiangbei Machine Factory - 10%; Capacity Production Unit sales Lingtian Automobile Co. - 90% 2004: 30,000 2004: 1,200 2004: 1,207 2003: N.A. 2003: N.A. 2003: N.A. Models produced: Glow N.A. = not available

Middle Part of Rongshan Ave., Rongcheng City, Shangdong Province 264300, P.R. China Rongcheng Huatai Automobile Co. (86) 631-7554-888, www.huataixiandai.com Top executive: Zhang Xiugen, president Ownership: Rongcheng municipal government - 100% Capacity Production Unit sales 2004: 30,000 2004: 11,000 2004: 10,008 Models produced: Terracan 2003: 30,000 2003: N.A. 2003: N.A. N.A. = not available

Soueast Auto City, Fuzhou, Fujian Province 350119, P.R. China Soueast (Fujian) Motor Corp. (86) 591-2276-6566, www.soueast-motor.com Top executive: Ling Yuzhang, president Ownership: Fujian Motor Industry Group - 50%; China Motor Corp. - 50% Capacity Production Unit sales 2004: 150,000 2004: 41,468 2004: 41,089 Models produced: Freeca, Lioncel, Soveran 2003: 120,000 2003: 83,535 2003: 84,535

24 Automotive News • Automotive News Europe • Automotive Resources Asia 2005 Guide to China’s Auto Market Global suppliers in China Suppliers feel bite of market slowdown Lured by promises of long-term, high-volume contracts from their major The pain has worsened so far in 2005. According to the National Bureau of customers – and sometimes encouraged at gunpoint, metaphorically speaking – Statistics, profits in the automobile sector in the first two months of this year slid auto suppliers are finding plenty of justification for their early caution about 61.5 percent from a year earlier to the equivalent of $423 million. Profits of the committing to the Chinese market. country's 100 vehicle manufacturers dived 78.5 percent year-on-year to about The sharp, government-driven pullback in demand for passenger vehicles that $154.6 million while parts suppliers as a group posted a 20 percent decline, the began last year has jolted every rung in the supply chain. Automakers began first for the segment in the past decade, the agency said. trimming production in the third quarter last year as inventories of unsold cars built "This is a poor start for the auto sector and shows that a full-year profit decline up, and most are basing their future parts orders on the expectation of lower sales will be inevitable in 2005," the bureau's auto analyst, Jiu Jiang, told the China Daily this year. newspaper. According to the semi-official China Auto publication and Web site, the industry's Some suppliers see a silver lining in the slowdown. "It is not a bad thing for BorgWarner," said Freeman Shen, president of overhang of unsold cars stood at 500,000 cars at year end–200,000 units more BorgWarner China. "In the past, the OEMs just picked a supplier, not necessarily the than what it considers a normal inventory. best supplier. We had to compete with a lot of local companies, who were copiers. Suddenly, suppliers have found themselves holding parts ordered, but not Now that the market is slower and OEM competition is higher, they want to go with accepted, by the customer. And capacity added in the expectation of steadily a company like BorgWarner." increasing production has become unused and expensive excess capacity. Long-term proposition Jinya Chen, president of Delphi China, says the company's long term plans in In any case, he says, suppliers know they have to look at China for the long term. China are unchanged. But "in the short term, we have to adjust our way of The company is investing $90 million to build a production campus in Ningbo, forecasting and manufacturing," he says. "We have a lot of work to do at this point just down the coast from Shanghai, that includes a plant to assemble components to adjust ourselves." for Volkswagen-Audi's four-cylinder world engine. The plant is scheduled to open in Delphi, GM's biggest supplier, has invested more than $400 million to open 11 May. The company also is moving production of emissions systems for Beijing factories in China since 1991 and is building a $15 million research and Jeep Corp. from a plant in Dixon, Ill., to Ningbo. development center in Shanghai. GM says it expects to increase its parts purchases BorgWarner supplies transmission, engine and powertrain assemblies. from China 20-fold in six years – from $200 million in 2003 to $4 billion in 2009 – Customers in China include First Auto Works, Dongfeng, Shanghai-VW, FAW-VW, while spending another $6 billion on sourcing for its China production. Shanghai-General Motors, Changan Ford, Beijing Jeep and Chery. But those forecasts were made while automakers were basking in the heat of the Denso Corp. says it also intends to maintain its pace of investment. It will industry's hottest demand curve. proceed with plans to invest $67 million on a plant in Tianjin to produce heat Cooldown chills profits exchangers for car air conditioners and radiators. The new company, which will be Passenger-car sales last year rose only 15 percent over 2003 to about 2.3 million Denso's fourth air conditioning venture in China, will begin production in July 2006. units after soaring 62 percent in 2002 and 76 percent in 2003. This year is off to an Denso projects sales of some $130 million a year for the venture by 2010. even colder start. Car sales for the first two months, the most recent available at Mike McKenzie, a senior emerging market analyst with PricewaterhouseCoopers press time, fell 16 percent from a year earlier to 286,100 while output was down LLP, says the China market may not grow as fast as some have thought, and probably won't hit the predicted 10 million units a year by 2008. But it will still be a 8 percent to 301,200, the China Association of Automobile Manufacturers reports. major player on the world stage. China's central bank triggered the slowdown in May when it clamped down on From 2003 to 2012, China will represent 30 percent of all automotive growth credit in a bid to cool the nation's overheating economy. worldwide, he predicts. But with that growth will come challenges. The slowdown quickly showed up on the industry's bottom line. For example, China faces a serious shortage of electricity as well as rising raw According to the Ministry of Commerce, the combined profit of China's 5,857 material costs. Other potential negative factors include the likelihood of wage assemblers and parts makers fell 6 percent last year to 72 billion yuan, or $8.7 increases, misaligned supply and demand, increased domestic competition and the billion. The ranks of unprofitable companies grew by 17.4 percent to 1,020, and global ambitions of Chinese suppliers. their combined losses worsened by a quarter to about $785 million, the ministry "As margins thin and pricing competition intensifies," McKenzie says, "an efficient said. and developed low-cost assembly and supply base will be essential for financial But the impact is more severe than the percentages suggest; most of the hit on success." profits was incurred in the third and fourth quarters, after sales began tumbling and Note: The companies listed on the following pages were identified from the makers began cutting production. Sales through the first five months of 2004 had Automotive News list of the Top 100 global suppliers as also being the top OEM been up over the year-earlier periods. suppliers in China. They are ranked by global OEM parts sales.

Bosch 13/F Bank of China Tower, 200 Yincheng Road Central, Pudong, Shanghai 200120, P.R. China (86) 21-2898-1111, www.bosch.com.cn Plants Bosch Automotive Products (Suzhou) Co. Suzhou, Jiangsu Province Chassis and energy systems, electronics, multimedia United Automotive Electronic Systems Co. Shanghai Gasoline engine management systems Nanjing Huade Spark Plug Co. Nanjing, Jiangsu Province Spark plugs Bosch Automotive Diesel Systems Co. Wuxi, Jiangsu Province Diesel fuel injection systems Bosch Automotive Products (Changsha) Co. Changsha, Hunan Province Energy and body systems ZF Shanghai Steering Co. Shanghai Steering pumps ZF Steering Jincheng (Nanjing) Co. Nanjing, Jiangsu Province Steering pumps FAW Zexel Climate Control Systems Co. Changchun, Jilin Province Condensers, evaporators Huada Zexel Automotive Air conditioner Co. Loudi, Hunan Province Air-conditioning compressor components Shanghai Delphi Automotive Door Systems Co. Shanghai Door hardware

12 A Pos Plaza, No. 1600 Century Ave., Shanghai 200122, P.R. China Delphi (86) 21-6875-8866, www.delphi.com Plants Beijing Delphi Wan Yuan Engine Management Systems Co. Beijing Engine management systems, parts Shanghai Delphi International Battery Co. Shanghai Maintenance-free batteries Delphi Saginaw Lingyun Drive Shaft Zhuozhou, Hebei Province Constant velocity joints, half-shafts Shanghai Delphi Emission Control Systems Co. Shanghai Catalytic converters, catalysts Shanghai Delphi Automotive Air Conditioning Systems Co. Shanghai HVAC, heat exchangers Delphi Shanghai Dynamics and Propulsion Systems Co. Shanghai ABS brakes, steering systems, fuel injectors Shanghai Delco Electronics and Instrumentation Co. Shanghai Instrument clusters, sensors, HVAC equipment Delphi Electronics Suzhou Co. Suzhou, Jiansu Province Entertaiment systems, electronics Delphi Packard Electric Systems Co. Shanghai, Guangzhou; Changchun, Baicheng Wiring harnesses, ignition cables, Cables Shanghai Delphi Automotive Door Systems Co. Shanghai Door hardware

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 25 Global suppliers in China

Suite 2311, Maxdo Centre 8, Xingyi Road, Shanghai 200336, P.R. China Visteon (86) 21-5208-1100, www.visteon.com Plants Yanfeng Visteon Automotive Trim Systems Co. Shanghai Seats, doors, consoles, trim, bumpers, steering wheels Yanfeng Visteon Electronics Co. Shanghai Clocks, instrument clusters, radios, amplifiers Shanghai Yanfeng Johnson Controls Seating Co. Shanghai Seat systems Yanfeng Visteon Automotive Trim Systems (Beijing) Co. Beijing Interiors trim systems and components Yanfeng Visteon (ChongQing) Automotive Trim Systems Co. Shanghai Cockpit assemblies, bumpers, door panels Dongfeng Visteon Automotive Trim Systems Holding Co. Wuhan, Hubei Province Interior/exterior trim Visteon Climate Control (Beijing) Co. Beijing HVAC, powertrain cooling systems, heat exchangers United Aluminum Radiator Co. Changchun, Jilin Province Aluminum radiators/heater cores Visteon Jiangxi Fuchang Climate Systems Co. Nanchang, Jiangxi Province A/C hoses and assembly, brake lines Yanfeng Key Safety Systems Co. Shanghai Steering wheels, airbags, seat belts

Denso Room 418 Fortune Building, No. 5 Dong Sanhuan North Section, Chaoyang District 100004, P.R. China (86) 10-6590-8337, www.denso.com.cn Plants Yantai Shougang Denso Co. Yantai, Shandong Province Evaporators, condensers, compressors Tianjin Denso Engine Electrical Products Co. Tianjin Starters, alternators Tianjin Denso Electronics Co. Tianjin Fuel pumps, clusters, airbags, air filters, relays, fan motors Chongqing Denso Co. Chongqing Amplifiers, ignition coils Tianjin ASMO Automotive Small Motor Co. Tianjin Wiper/washer motors, wiper links, washer tanks Tianjin Denso Air-Conditioning Co. Tianjin HVAC; condenser, radiator and blower assemblies Guangzhou Denso Co. Guangzhou, Guangdong Province Air conditioners, bus coolers, radiators Shanghai Denso Fuel Injection Co. Shanghai Fuel injection pumps, nozzles for diesel vehicles Tianjin Fawer Denso Tianjin Air Conditioner Co. Tianjin Air conditioners Tianjin GAC Air-Conditioning Corp. Tianjin Air conditioner hoses and tubes Toyota (Tianjin) Co. Tianjin Air and oil filters Denso (Guangzhou Nansha) Co. Guangzhou, Guangdong Province Fuel injection systems

Lear Room 1506 Citi Tower, No. 33 Hua Yuan Shi Qiao Road, Pu Dong, Shanghai, P.R. China (86) 21-5208-0666, www.lear.com Plants Shanghai Songjiang Lear Automotive Carpet & Acoustics Co. Shanghai Carpet, insulators Shanghai Lear Automotive Interior Trim Co. Shanghai Door trim Shanghai Lear STEC Automotive Parts Co. Shanghai Wire harnesses, switches, electrical parts Chongqing Lear Changan Automotive Interiors Trim Co. Chongqing Seats, door trims, headliners, carpets Jiangxi Jiangling Lear Interior System Co. Nanchang, Jiangxi Province Seats, door trim, headliners, carpets Wuhan LEAR-DPCA Auto Electric Co. Wuhan, Hubei Province Wire harness Nanjing Xindi-Lear Automotive Interiors System Co. Nanjng, Jiangsu Province Seats, headliners, door trim Shenyang Lear Automative Seating & Interior System Co. Shenyang, Liaoning Seats Wuhan Lear-Yunhe Automotive Interior System Co. Wuhan, Hubei Province Seats Lear Dongfeng Automotive Seating Co. Wuhan, Hubei Province Seats Lear Corp. Changchun Automotive Interior Systems Changchun, Jilin Province Seats Beijing Lear Dymos Automotive Systems Co. Beijing Seats Tacle Guangzhou Automotive Seat Co. Guangzhou, Guangdong Province Seats

Johnson Controls A-1802 Far East International Plaza, No. 319 Xianxia Road, Shanghai 200051, P.R. China (86) 21-6235-0255, www.johnsoncontrols.com Plants Shanghai Yanfeng Johnson Controls Seating Co. Shanghai Seats Beijing Johnson Controls Automotive Components Co. Beijing Seats, door panels, airbags Changchun Fawer Johnson Controls Automotive Systems Co. Changchun, Jilin Province Seats, door panels, electronics Shenyang Jinbei Johnson Controls Automotive Interiors Co. Shenyang, Liaoning Province Seat, door panels, instrument panels, sun visors Chongqing Yanfeng Johnson Controls Automotive Seating Co. Chongqing Seats

Magna River Harbor Business Park, No. 3000 Longdong Ave., Pudong, Shanghai 200000, P.R. China (86) 021-6879 6246, www.magna.com Plants Shanghai Lomason Automotive Seating Systems Co. Shanghai Seat frames, hood latches, seats Intier Closures Kunshan Kunshan, Jiangsu Province Actuators Magna Donnelly (Shanghai) Automotive Systems Co. Shanghai Rearview mirrors Guangdong Donnelly Zhenhua Automotive Systems Co., Shunde, Guangdong Province Rearview mirrors Shanghai Donnelly Fu Hua Window Systems Co. Shanghai Incapsulation windows Guangzhou Automotive Seat Co. Guangzhou, Guangdong Province Seats

Aisin Seiki 7th Floor Aster Plaza, No. 32 Taierzhuang Road, Heping District, Tianjin 300040, P.R. China (86) 22-2303-3582, www.aisin.co.jp Plants Aisin Tianjin Body Parts Co. Tianjin Body components, seat, window regulators Tianjin Aisin Automobile Parts Co. Tianjin Brake boosters, clutch covers and disks Aisin Hongda Automobile Parts Co. Taizhou, Zhejiang Province Engine components Tang Shan Aisin Gear Co. Tangshan, Hebei Province Manual transmissions Aisin Seiki (Fuoshan) Automobile Parts Co. Shunde, Guangdong Brake boosters, clutch covers and disks Aisin Seiki (Fuoshan) Body Parts Co. Xiaotang, Guangdong Body parts, seats, window regulators

26 Automotive News • Automotive News Europe • Automotive Resources Asia 2005 Guide to China’s Auto Market Global suppliers in China

6th Floor No. 88 Building, No.1199 Qinzhou North Road, Caohejing Hi-Tech Park, Shanghai, P.R. China Faurecia (86) 21-5426-3737, www.faurecia.com Plants Changchun Faurecia Xuyang Automotive Seat Co. Changchun, Jilin Province Seats Changchun Lat Exhaust Systems Co. Changchun, Jilin Province Exhaust systems Faurecia GSK (Wuhan) Automotive Seat Co. Wuhan, Hubei Province Seats Faurecia Tongda Exhaust Systems (Wuhan) Co. Wuhan, Hubei Province Exhaust systems Faurecia Honghu Exhaust Systems Shanghai Co. Shanghai Exhaust systems Faurecia (Wuxi) Seating Components Co. Wuxi, Jiangsu Province Seat components Faurecia (Changchun) Automotives Systems Co. Changchun, Jilin Province Seats Faurecia (Changchun) Automotives Systems Co. Changchun, Jilin Province Interior systems

Room 3501-3520 Central Plaza, 381 Huaihai Middle Road, Shanghai 200020, P.R. China TRW (86) 21-6120-2266, www.trw.com Plants TRW Fawer Automotive Safety Systems (Changchun) Co. Changchun, Jilin Province Rotors, drums, adapters, spindles, hubs TRW (Ningbo) Components & Fastening Systems Co. Ningbo, Zhejiang Province Valves, fasteners, plugs Shanghai TRW Automotive Safety Systems Co. Shanghai Seat belts, airbag modules TRW Automotive Components (Shanghai) Co. Shanghai Hydraulic steering systems, safety electronics TRW (Suzhou) Automotive Electronics Co. Suzhou, Jiangsu Province Switches, HVAC, steering locks TRW Automotive Lucas Varity Langzhong Brake Co. Langfang, Hebei Province Caliper machining and assembly

1905 Scitech Tower, 22 Jian Guo Men Wai Ave., Beijing 100004, P.R. China Valeo (86) 10-6515-0366, www.valeo.com.cn Plants FAW - Zexel Climate Control Systems Co. Changchun, Jilin Province Climate control systems Nanjing Valeo Clutch Co. Nanjing, Jiangsu Province Transmission Valeo Shanghaï Auto Electric Motors and Wiper Systems Co. Shanghai Electric motors, wiper wystems Valeo Automotive Air Conditioning Hubei Co. Shashi, Hubei Province Air conditioning Valeo Wenling Automotive Systems Co. WenLing, Zhejian Wiper systems Hubei Valeo Auto Lighting Co. Wuhan, Hubei Province Lighting systems Shangai Valeo Automotive Electrical Systems Co. Shanghai Electrical systems Huada- Zexel Climate Control Systems Co. Loushi, Hunan Province Climate control systems

1128 Jiaxin Road, Malu Jiading District, Shanghai 201801, P.R. China Siemens VDO (86) 21-5915-5870, www.siemensvdo.com Plants Siemens VDO Electric Motor Shanghai Window motors, cooling modules, HVAC Siemens VDO Automotive Changchun Co. Changchun, Jilin Province Electronic controls Siemens VDO Automotive Huizhou Co. Shanghai Radios and components Siemens VDO Automotive Wuhu Co. Wuhu, Anhui Province Instruments, fuel supply units, throttle body systems

3804 Bund Center Office Tower, 222 Yan An Road East, Shanghai 200002, P.R. China Dana (86) 21-6335-2336, www.dana.com Plants Dana (Wuxi) Technology Co. Wuxi, Jiangsu Province Commercial vehicle axles Fujian Spicer Drivetrain System Co. Fuzhou, Fujian Province Passenger vehicle axles Shenyang Spicer Driveshaft Co. Shenyang, Liaoning Province Driveshafts

22/F China Life Tower, No.16 Chaoyangmenwai Ave., Chaoyang District, Beijing 100020, P.R. China ThyssenKrupp (86) 10-8525-2999, www.thyssenkrupp.com.cn Plants Liaoyang K.S. Automotive Spring Co. Liaoyang, Liaoning Province Coil springs, stabilizer and torsion bars ThyssenKrupp Presta Huizhong Shanghai Co. Pudong, Shanghai Steering columns ThyssenKrupp Presta Fawer (Changchun) Co. Changchun, Jilin Province Steering columns ThyssenKrupp Zhong-Ren Chassis Co. Wuhan, Hubei Province Chassis components

No. 580 Nanjing Road West, Room 1105 Nan Zheng Building, Shanghai 200041, P.R. China ArvinMeritor (86) 21-6218-9292, www.arvinmeritor.com Plants ArvinMeritor CVS (Shanghai) Co. Pudong, Shanghai Commercial vehicle systems ArvinMeritor Light Vehicle Systems (Shanghai) Co. Shanghai Light vehicle systems Xuzhou ArvinMeritor Co. Xuzhou, Jiangsu Province Commercial vehicle systems ArvinMeritor LVS Zhenjiang Co. Zhenjiang, Jiangsu Province Light vehicle systems

1266 Nanjing Road West, 5810 Henglong Building, Shanghai 200040, P.R. China GKN Group (86) 21-6288-1059, www.gkn.com Plants Shanghai GKN Drive Shaft Co. Pudong, Shanghai Constant velocity joints, propeller shafts Jilin GKN Norinco Drive Shaft Co. Jilin, Jilin Province Constant velocity joints Krebsoge Feida Danyang Filters Co. Danyang, Jiangsu Province Special metals materials

2005 Guide to China’s Auto Market Automotive News • Automotive News Europe • Automotive Resources Asia 29 Global suppliers in China

79 Anson Road #06-01, Singapore 079906 Yazaki (65) 6226-6910, www.yazaki.com Plants Chongqing Yazaki Meter Co. Chongqing Meters Tianjin Yazaki Automotive Parts Co. Tianjin Wiring harnesses Shantou Special Economic Zone Yazki Auto Parts Co. Shantou, Guangdong Province Wwiring harnesses Yantai Yazaki Automotive Parts Co. Yantai, Shandong Province Wiring harnesses, electric wire Huanan Yazaki (Shantou) Auto Parts Co. Shantou, Guangdong Province Wiring harnesses Hangzhou Yazaki Auto Parts Co. Hangzhou, Zhejiang Province Wiring harnesses

Bridge No.5, Shengxin Road, Jiading Industrial Zone, Shanghai 201821, P.R. China Autoliv (86) 21-6916-9699, www.autoliv.com Plants Autoliv (Shanghai) Automotive Restraint Systems Co. Shanghai Automotive restraint systems Autoliv Shanghai Vehicle Safety Systems Co. Shanghai Vehicle safety systems Autoliv Shanghai Safety Belt Webbing Co. Shanghai Seat belt webbing Autoliv (Changchun) Maw Hung Vehicle Safety Systems Co. Changchun, Jilin Province Vehicle safety systems Changchun Jongguang Autoliv Changchun, Jilin Province Vehicle safety systems Nanjing Hongguang Autoliv Nanjing, Jiangsu Province Vehicle safety systems Tianjin Yizhong Autoliv Vehicle Safety Tianjin Vehicle safety systems

Citic Square 35F, No. 1168 Nanjing Road West, Shanghai 200041, P.R. China Freudenberg (86) 21-5292-5185, www.freudenberg.com Plants Freudenberg & Vilene Nonwoven (Suzhou) Co. Suzhou, Jiangsu Province Cabin filters, carpet and interior facing Freudenberg & Vilene Filter (Changchun) Co. Changchun, Jilin Province Engine intake filters Wuxi NOK-Freudenberg Oilseal Co. Wuxi, Jiangsu Province Oil seals, boots, dust covers Changchun NOK-Freudenberg Oilseal Co. Changchun Jilin Province Oil seasl, valve stem seals

Suite 4206 Maxdo Center, No. 8 Xing Yi Rd., HongQiao Development Zone, Shanghai 200336, P.R. China BorgWarner (86) 21-5208-0277 Plants BorgWarner Morse TEC China Ningbo, Zhejiang Province Engine parts, 4-wheel drive systems, thermal products

30 Automotive News • Automotive News Europe • Automotive Resources Asia 2005 Guide to China’s Auto Market