On the same day that the United Auto Workers (UAW) decided to strike GM, the automaker has announced it's ramping-up its US to China exports by $800m. The Economic Times reports that Shanghai GM (GM's joint venture with China's SAIC Group) will import the Buick Enclave CUV for China's 400 Buick dealers. As concerns about Chinese outsourcing form no small part of the UAW's beef with The General, the timing of the announcement can be seen as a carrot or a palliative for union reps and members who consider job security Job One. Of course, the strike obviates Enclave export for the foreseeable future, and the union is keenly aware that GM imports billions of dollars worth of Chinese parts for their North American products, with the threat of fully-assembled cars from The Peoples Republic replacing NorAm products. Still, nice try.
Category: China
It looks like everyone wants a piece of the burgeoning Chinese auto market. The latest player: the Iran Khodro Industrial Group (IKCO). The Iranian conglomerate has joined forces with Chinese busmaker Jinhua Neoplan to build vehicles in China, according to China Car Times. IKCO is Iran's primary auto manufacturer; they assemble cars in Iran under license from PSA Peugeot Citroen and trucks under license from Mercedes-Benz. They also build cars under the Iranian brands Samand, Sarir and Soren. There's no word on whether IKCO's Chinese vehicles will be existing models or new ones, or whether they're destined for the Chinese market or export to Iran and/or other markets. So far together they've invested over $60m in the project, and are expected to sink another $140m into the venture in the near future.
American greenies don't hold a monopoly on Hummer hatred. China Car Times reports a Mazda6 club outing encountered a Hummer H2. In a move that would make Greenpeace proud, the school of 20 Mazdas surrounded the H2 and forced the driver to slow to 30kph (about 18mph). They were so proud of their actions they videotaped the entire incident and put it on the internet. Hummer-positive internet viewers tracked down the license plate numbers on the Mazdas and posted the drivers' names, home addresses and telephone numbers along with negative comments. The Mazda drivers should just be thankful the H2 driver didn't put it in 4wd low and pretend he was a tank driver in Tiananmen Square.
Realizing that meeting American and European safety and emission standards is a bitch, Chinese automakers are turning their attention to Africa. According to the Wall Street Journal, Great Wall, Chery Automobile Co. and Geely Group Ltd. are all aggressively targeting developing African nations with low-cost vehicles, successfully competing against the less-than-stellar used vehicles flooding in from Europe. Zheng Guoqing, African sales manager for Great Wall, makes no bones about the "legislative advantages" involved. "The emissions standard is not particularly high there. The requirement for safety is also not high." In the first five months of 2007, China has more than doubled its African auto exports, compared to the same period last year. It'll be interesting to see if those Great Wall Hover II SUVs hold up to the African desert like Land Cruisers and Peugeots, and how easily Cherys and Geeleys can be fixed with a piece of wire and whatever the owner has on hand.
Chrysler is sending the Sebring to China. The Auto Channel tells us they're going to inflict launch the critically panned midsize on the Chinese market in October, where it'll do battle against Camry, Accord and the new Ford Mondeo. The rental car companies needn't worry, though; they won't stop producing them here. They'll be building them in Beijing along side the 300C currently in production under a joint venture with Beijing Automotive Industry Holding Co. You could say that sending the Sebring to China is fitting retaliation for the tainted dog food and lead-painted baby toys sent here, but I couldn't possibly comment.
General Motors is offering interest-free financing on new Buicks. But don't bundle up grandma and grandpa and trundle down to your local Enclave emporium. You'll have to go to China to take advantage of this deal. Bloomberg reports GM has the dubious honor of being the first automaker in China to cave to competition and offer interest-free loans to try to bolster sales. The only stipulation is that the buyer has to make a 40 percent down payment. While that seems excessive on this side of the Pacific, banks there usually require 60 percent down for financing so it's a pretty good deal. Whether this will lead GM into an [all-too-familiar] incentive spiral is yet to be seen. But they may have taken the first step on that slippery slope.
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