China Automobile Industry, Technology (NEV, Driverless, etc): News & Images

[TaiShang]

VW to build joint venture with JAC
China Daily, September 7, 2016

German auto giant Volkswagen AG will likely build a joint venture with Chinese automaker JAC Motors, a source close to the matter told China Daily.

JAC suspended trading at the Shanghai stock exchange on Sept 7 because "we are to sign a memorandum of important effects", the automaker said in a public notice.

A public relations manager at Volkswagen China confirmed that there was something going on between the two but did not specify what type of cooperation it was, merely saying that details would be released this afternoon.

Volkswagen already has two passenger joint ventures in China-FAW Volkswagen and Shanghai Volkswagen.

Some believe it might build a joint venture on commercial or new-energy cars with JAC because industrial regulations in China stipulate that one international automaker is not allowed to have more than two joint ventures in the same category.

The possible cooperation started after Premier Li Keqiang's visit to JAC in October 2015. Chinese media reported that JAC told Li of its intention to work with Volkswagen and Li agreed to send the message.

**

When I was in the Mainland, I saw some JAC SUVs. Not cross-overs, real, full size SUVs. Cool-looking cars. Totally liked.

 

[ZY-CN-CA]

Nothing beats an HQ L5

@TaiShang

100 0000 0000 ￥for one car,and almost no one to buy .Hateful boss, waste large amounts of money！Wasted the old brand

 

[Jlaw]

| Sat Sep 3, 2016 9:10pm EDT
Chinese consumers take credit for boom in car loans

View attachment 332084
A Baojun 560 car is seen at a dealership in Linyi, Shandong province, China, July 7, 2016.

By Jake Spring | BEIJING

Chinese households, traditional savers with an aversion to debt, are rapidly warming to the idea of borrowing to buy a car, as automakers push financing deals to boost sales and margins in an increasingly competitive market.

Nearly 30 percent of Chinese car buyers bought on credit last year, up from 18 percent in 2013, according to analysts from Sanford C. Bernstein and Deloitte, helping a rebound in the car market after a sticky 2015.

That is welcome news to China's government, which wants consumers to borrow and spend more to shift its slowing economy away from heavy industry and investment-led growth.

Beijing resident Wang Danian said he planned to buy his first car on credit, saying it was the smart move.

"I can use my cash to do other things," the 28-year-old said while looking at an FAW [SASACJ.UL] Besturn X80 sport utility vehicle. "If I use all my savings at once to buy a car, and then something happens, I can't manage the risk."

Six consumers interviewed by Reuters said they would all consider loans, lured by low-fee and interest-free deals, with half saying they'd prefer to buy on credit and save cash for other items.

"I'd estimate after the manufacturer came out with the low-interest deal that about 30 percent of potential cash buyers switched to buying on credit," said a salesman at a Volkswagen (VOWG_p.DE) dealership in eastern China's Jiangsu province who gave his name as Mr. Zhao.

That is still a far cry from the more than 80 percent of cars bought on loans in the United States, but Deloitte predicts China will reach 50 percent by 2020.

Global automakers have struggled to encourage this trend for some time; Volkswagen established its finance subsidiary in 2004, but was held back by strict regulations on underwriting loans and sources of funding.

As the government gradually relaxed those restrictions over the last seven or eight years, financed purchases have grown, with Daimler's (DAIGn.DE) Mercedes saying more than 30 percent of its cars in China are now bought on credit, and it reported 31 percent year-on-year growth in net lending as at the end of July.

China's auto market struggled last year thanks to the slowest economic growth in 25 years and a stock market rout, but rebounded in October when the government cut sales tax on smaller cars. By July, vehicle sales were rising at their fastest monthly rate in three and a half years.

"While the government's tax reduction was the most obvious explanation for the rebound in Chinese car sales at the end of 2015, soaring auto financing penetration represented another, lesser noticed, driver of the boom," Bernstein said in April.

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More Chinese automakers jumped into the loans market last year, with Guangzhou Automobile Group (601238.SS)(2238.HK) and Geely (0175.HK) setting up financing firms.

Several Chinese carmakers also reported a significant impact from financing activity on their accounts for the first half of 2016.

SAIC Motor Corp (600104.SS), China's largest automaker, said its net operating cash flow dropped by 16.6 billion yuan ($2.5 billion) from the same period a year ago, as money was diverted to its financing unit for consumer loans.

Dongfeng Motor Group (0489.HK) similarly reported a 3.6 billion yuan year-on-year fall in net cash flow due to an increase in loans and receivables of its financial business.

Great Wall Motor (601633.SS) recorded a 140 percent increase in interest income, mainly because of its finance subsidiary.

BYD (002594.SZ)(1211.HK), backed by Warren Buffett's Berkshire Hathaway (BRKa.N), said with 13.6 percent of its sales done on credit, financing was already making considerable contribution to its profits.

Controlling the risk of default on these loans can be difficult in China, where there isn't a reliable credit rating system for individuals comparable to the U.S., said Yale Zhang, managing director of consultancy Automotive Foresight in Shanghai.

"You cannot spend one month to investigate one person and then in the end you only land 100,000 yuan," Zhang said.

That got the sector into trouble when China previously tried to pump up car sales through loans after the Asian financial crisis of the late 1990s. A lack of risk control resulted in widespread defaults and a government clampdown for several years in the mid-2000s, he said.

"It arguably remains open to question whether Chinese auto (non-performing loans) will remain similarly low, should macro conditions deteriorate," Bernstein said in April, observing low delinquency rates thus far.

Chinese e-commerce giant Alibaba (BABA.N), which last year inked a collaboration deal with China Yongda Automobiles Services (3669.HK), says it can address this risk thanks to 'big data' it has on its customers, including their credit records.

The company's auto web portal offers "instant automobile financing", approving loans in as little as 20 seconds, a spokeswoman said.


(Reporting by Jake Spring and Beijing newsroom; Editing by Will Waterman)

what is a typical down payment for Chinese car buyers ? In US it's very low. But I'm sure Chinese are smarter and will put down a sizeable amount.

100 0000 0000 ￥for one car,and almost no one to buy .Hateful boss, waste large amounts of money！Wasted the old brand

your boss is Justin trudeau. He rather spend billions looking after useless Syrian refugees and legalizing marjuana

 

[ZY-CN-CA]

what is a typical down payment for Chinese car buyers ? In US it's very low. But I'm sure Chinese are smarter and will put down a sizeable amount.


your boss is Justin trudeau. He rather spend billions looking after useless Syrian refugees and legalizing marjuana

yes you are right.

 

[Indika]

Roaring car sales in china while US auto market sputters (http://www.wsj.com/articles/ford-gm-report-declines-in-auto-sales-1472738613).

US car sales,

http://www.bloomberg.com/news/artic...es-rise-24-5-on-rush-to-beat-expiring-tax-cut

• Passenger-vehicle sales rose to 1.8 million units last month
• Industrywide deliveries rose 13% in year’s first eight months

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China’s passenger-vehicle sales climbed for a sixth consecutive month as consumers rushed to buy ahead of a tax cut due to expire at year-end and General Motors Co. and Great Wall Motor Co. emerged from stiff pricing competition with rising deliveries.

Retail sales of cars, sport utility and multipurpose vehicles increased 24.5 percent to 1.8 million units in August, the China Passenger Car Association said Thursday. Deliveries climbed 13 percent to 14.2 million units through the first eight months of this year.

Consumers are anticipating the expiration of a tax cut on purchases of vehicles with smaller engines, according to Cui Dongshu, secretary general of the association. Automakers also are discounting to draw buyers, narrowing the average profit dealers are making for selling a premium car in China to 66 yuan ($10) from 487 yuan in June, according to data compiled by WAYS Consulting Co.

“In our recent dealer interviews, it was clear that pre-buying had already begun to influence industry volumes,” Robin Zhu, an analyst at Sanford C Bernstein, wrote in a report dated Sept. 5. “We expect the pull-forward of demand to persist through the end of the year, and support year over year growth.”

Great Wall, the top-selling sport utility vehicle maker that started to cut prices of its H6 and H2 models last year, boosted deliveries by 25 percent in August. Guangzhou Automobile Group Co.’s sales increased 31 percent, with its SUV deliveries almost doubling. Geely Automobile Holdings Ltd.’s sales climbed 69 percent.

Deliveries for GM increased 18 percent in August, while Nissan Motor Co.’s rose 17 percent. Ford Motor Co.’s sales climbed 22 percent.

The state-backed China Association of Automobile Manufacturers has urged the government to make the tax cut on small cars permanent to encourage development of fuel-efficient vehicles. China cut levies on small-engine cars by half beginning in October after lobbying by the carmakers association to buttress the nation’s slowing economic growth.

— With assistance by Tian Ying

 

[TaiShang]

Success and challenges of Chinese-brand vehicles
Reporter: Zhao Lingfeng 丨 CCTV.com

09-10-2016

In the middle of August, BAIC announced a 5-year milestone: car number one million.

At almost the same time, rivals Chang'an and Geely also say they too hit the one-million mark.

"This means that after years of hard work, our own brands and independent innovation have reached an outbreak period," said Fu Yuwu, chairman of Society of Automotive Engineers of China.

Most China's car companies have turned to research and quality improvement to win the market.

From January to July this year, the total sales of Chinese-brand cars topped 4 million units, with a year-on-year increase of 21.4 percent. For Guangzhou Automobile Group alone, it was over 190 thousand units, with a year-on-year growth of 161 percent. As one of the rising stars, this company has its own strategy.

It's reported the R&D division of Guangzhou Automobile receives six to seven percent of the company's annual revenue. The level is almost the same as in companies like Mercedes-Benz and BMW.

More and more Chinese automakers are moving away from imitation.

Their goal is 100% innovation.

"In terms of researching a new product, we know how to "shoot the arrow at the target" now. But before, we just copied from abroad," said Zhang Fan, head of design, Guangzhou Automobile Group.

1,200 engines roll off the line every day. And quantity does not come at the expense of quality.

"We allow only one mistake per thousand cars," said Guo Yunqiang, productin responsible person.

In 2014, the domestic brand share of the Chinese market was 33.8%. In the first half of this year, the number soared to 41%.

And here's one of the key factors for the jump: increasing investment in sport utility vehicles, or SUVS.

Geely recently introduced another compact SUV, a sister to its Emgrand Boyue, but priced a bit lower.

"The parallel increase in price and market share -- this is one sign of the improvement of our brand's competitive power. And this power mainly relies on the production of SUVs," said Xu Changming, state information center.

But experts advise against betting everything on SUV production.

Joint venture brands still hold an absolute advantage in car sales and production. And many Chinese brands are still not turning a profit after years of investment.

They need to build competitive power and brand premium to go the distance.

@Economic superpower

 

[ahojunk]

Baidu USA permitted to test self-drive vehicle in California
2016-09-16 09:49 | Xinhua Editor: Mo Hong'e

A driverless vehicle developed by the internet giant Baidu on display in December at an
exposition in Wuzhen, Zhejiang province. (Photo/China Daily)​

The U.S. subsidiary of Baidu Inc, a Chinese web services company, has been issued a permit to test self-drive vehicles in California.

The testing permit, from the California Department of Motor Vehicles (DMV) in the first week of month, would allow Baidu USA to test its autonomous driving technologies in the Golden State.

Headquartered in Beijing, China, Baidu announced the formation of an autonomous driving team in the United States, as part of Baidu Autonomous Driving Unit that operates in Chinese cities of Beijing, Shanghai and Shenzhen.

Following 14 other companies, including German automakers Mercedes Benz and BMW and US automaker Ford, that have obtained the permit to operate self-drive vehicles on public roads in California, Baidu said it would test its vehicles "very soon."

"Baidu has already built a strong team in Silicon Valley to develop autonomous driving technologies, and being able to do road tests will greatly accelerate our progress," Jing Wang, senior vice president of Baidu and general manager of Baidu's Autonomous Driving Unit, was quoted as saying in a web posting earlier in the month.

Wang later talked about the testing permit at a forum in China.

Baidu USA is based in Sunnyvale, northern California.

 

[jkroo]

JIER Machine tool group ranked at 64 of top 100 machinery companies in China. The company provide stamping equipments for auto industry around world.

http://www.jiermt.com/default.aspx

 

[TaiShang]

BYD to expand electric vehicles factory in California
Xinhua, September 14, 2016

Chinese carmaker BYD announced Tuesday that it would expand its electric vehicle plant in the U.S. city of Lancaster in southern California, tripling the size of its facility, employment and production capability in next three years.

Stella Li, president of BYD America, said at a groundbreaking ceremony that the world's largest manufacturer of electric vehicles would continue to invest in Lancaster and provide more development opportunities for local residents.

BYD, which stands for "Build Your Dreams", is also the world's largest manufacturer of rechargeable batteries. Based on its fire-safe, fully recyclable and long cycle battery technology, the company has expanded into other businesses, including automobiles, buses, trucks, utility vehicles and energy storage facilities.

"We are proud to produce efficient, reliable electric trucks and buses in Califonia that help boost the local economy with well-paid manufacturing and engineering jobs," Li said, after recalling why the company had decided to set up the factory in the city of Lancaster, a community of more than 156,000 inhabitants since 2013.

Lancaster boasts more than 350 days of sunshine per year, making it the ideal place to pioneer new solar energy technologies.

Li also emphasized the support that local government and skilful American engineers had given the company.

The BYD's coach and bus vehicle plant in Lancaster, which covers eight thousands square meters and is able to deliver three hundred zero-emission vehicles every year, has already employed more than three hundreds people for production and customer service.

According to the new plan, the facility will expand to 37 thousand square meters, tripling the number of its employees to one thousand and its assembling capability to one thousand vehicle per year.

"Through our growing partnership with BYD, the local economy has already realized a significant boost," said Lancaster Mayor Rex Parris, "in addition, reaching Zero Net Energy status is at the forefront of our city, and BYD is helping us achieve this vision faster."

The Shenzhen-based company has more than 160,000 employees globally and a regional headquarters in Los Angeles.

The company's electric bus, supported by its solar panels, LED lighting and energy-efficient technologies, is able to run over 248 kilometers after a single charge, which is among the longest in the world.

 

[cirr]

World's first bus using hydrogen under normal pressure rolls off in central China

Sept 17, 2016

Video: http://newscontent.cctv.com/NewJsp/news.jsp?fileId=375373

The world's first fuel cell bus which can use hydrogen fuel under normal pressure and temperature rolled off the production line in Wuhan City, Hubei Province, central China on Saturday.

The prototype bus named "Taige" finished its first trial run at a uniform speed on a 300-meter-long road at 16:00 in the afternoon.

As it is difficult to save the hydrogen fuel under the normal pressure and temperature, it has taken two years for Wuhan Geo-Resources and Environment Institute, Tongji University, Jiangsu Qingyang Energy Co., Ltd. and Yangste Automobile to solve the issue.

According to Hao Yiguo, president of the Wuhan Geo-Resources and Environment Institute, the fuel cell bus will be put into operation next year.

 

[ahojunk]

China wants 3 million electric cars by 2025
2016-09-20 11:01 | CCTV Editor: Feng Shuang

China's goal of putting three million electric cars on the road by 2025 still appears to be on track. But some automakers who took government funds without delivering as promised are being forced to pay that money back.

The electric car industry is booming in China. At the Chengdu Auto Show, held this month in southwest China's Sichuan Province, electric vehicles were seen just about everywhere. Chinese-- and foreign automakers, showcasing their latest electric innovations.

President of Volvo Car Asia Pacific, Yuan XIaolin, said, "Our objective is, by 2025, there will be one million Volvo cars that are powered by electrification. So, we have a full range of cars that have plug-in hybrid of full battery electrified."

Chinese automaker JAC just developed its first all-electric SUV. It was developed entirely by its own Chinese research and development team.

Deputy GM of Jac Motors Yan Gang said, "JAC Motors have been adhering to development driven by innovation. The main focus is on new energy vehicles, including pure electric vehicles and hybrid vehicles. Pure electric vehicles can help solve the complete structural transformation of the auto industry."

JAC is in talks to join forces with German automaker Volkswagen. This month, the two companies signed an agreement to explore electric vehicle manufacturing together.

JAC is hoping for a new breakthrough. This year, it has registered just six-thousand sales of its i-E-V 4. That's far behind the leader: BYD, which has proven to be the best-selling electric car of the year in China.

China is now the world's largest electric car market, selling some 330-thousand electric and hybrid cars last year. It is even beginning to export the technology. Two Chinese car makers-- JAC and Lifan Group-- entered Brazil in 2009 and 2010. Two others followed, including BYD Auto. Today, BYD produces both electric cars and buses in Brazil.

BYD's senior VP Li Ke said, "By bringing a series of products such as, energy storage, solar power, bus, electric truck, taxi, and customer car to Brazil, BYD will cover whole South America market."

The Chinese government has heavily subsidized electric car development, as part of plans to reduce air pollution. It is now implementing new checks, after discovering five companies had abused the subsidy program. These companies either overstated their own capabilities, or falsified sales information.

The government plans to phase out these green car subsidies by 2020 all the more reason for auto makers to innovate and boost sales.

 

[ahojunk]

For record, a copy is put in this thread.
This investment will spur the development of hydrogen energy vehicles.
Money talks, bullsh*t walks.

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China Motor City sets up fund developing hydrogen energy vehicles
(Xinhua) 16:37, September 22, 2016

WUHAN, Sept. 22 (Xinhua) -- Long positioned as China's Motor City, Wuhan, capital of central China's Hubei Province, has set up a fund to invest in the industry for the hydrogen energy automobiles of the future.

On Wednesday, the city government signed a deal with two top Chinese universities -- Tongji and China University of Geosciences -- to jointly set up a fund worth 200 million yuan (30 million U.S. dollars) in efforts to initiate the industry.

Wuhan is China's major auto production base, home to the Shanghai General Motors responsible for the Buick Excelle, the Dongfeng Renault plant, PSA, Honda and dozens of auto part-makers. The auto industry now supplies 20 percent of the city's industrial output and employs more than 1 million residents.

The government hopes the fund can obtain 10 billion yuan from the provincial fund for regional economic belt development, for clean energy auto development.

According to the deal, the government will encourage domestic auto makers to establish independent hydrogen vehicle brands.

This year trial production of prototype hydrogen-powered buses and logistic vehicles is expected.

Hydrogen fuel cells are a clean energy source used in the automobile industry. In 2015, China became the first country to utilize hydrogen-powered tram technology, with China South Rail's hydrogen-powered tram.

Source: https://defence.pk/threads/worlds-f...-in-central-china.450592/page-3#ixzz4L2AH5PGo

 

[TaiShang]

Long positioned as China's Motor City, Wuhan, capital of central China's Hubei Province, has set up a fund to invest in the industry for the hydrogen energy automobiles of the future.

So, Wuhan is China's Detroit (of the glorious1960s and 70s)?

@AndrewJin

**

 

[ahojunk]

So, Wuhan is China's Detroit (of the glorious1960s and 70s)?

@AndrewJin

**

.
I have lived in Michigan, US. To be honest, you wouldn't want to use Detroit (or Motown) as your model.

During its heyday, the big three (General Motors, Ford and Chrysler) had their headquarters in Detroit and it was doing very well. At that time, I was working for one of them.

Detroit is now in the doldrums, the city is run down and crime is everywhere. It is competing with a few other cities to be the "murder capital" of US.

Just my 2-cents.

 

[Jlaw]

.
I have lived in Michigan, US. To be honest, you wouldn't want to use Detroit (or Motown) as your model.

During its heyday, the big three (General Motors, Ford and Chrysler) had their headquarters in Detroit and it was doing very well. At that time, I was working for one of them.

Detroit is now in the doldrums, the city is run down and crime is everywhere. It is competing with a few other cities to be the "murder capital" of US.

Just my 2-cents.

i too went there before and recently and I can vouch that it's really a shithole. Guiyang before urbanization is way better than present day Detroit
@AndrewJin