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Chang'an Builds Plant in Viet Nam

Chang'an Motor, China's newly-crowned third-largest automaker, will build an assembly plant in Viet Nam to produce light-duty trucks.

The company's affiliate Chongqing Chang'an Kuayue Automobile has signed an agreement with a Vietnamese partner to jointly build the plant, which is expected to start production during the first half of next year, said sources from Chang'an Kuayue.

The initial investment in the plant will be US$15 million and annual production capacity will be 3,000 trucks, sources said.

The plant's annual capacity will increase to 5,000 units within the next two to three years.

Chang'an Kuayue will ship completed knocked-down (CKD) components to Vietnam to supply the plant.

Changan Kuayue, based in west China's Chongqing Municipality, has exported more than 300 built-up light-duty trucks to Vietnam so far this year.

The company now has a total production capacity of 30,000 light-duty trucks, agricultural-use and other special-purpose vehicles a year in Chongqing.

Chang'an Motor is one of many Chinese automakers to build CKD assembly plants overseas to boost exports.

Zhongxing Automobile, the mainland-Taiwan joint venture based in north China's Hebei Province, expects to build four to five plants in North Africa and South America in coming years.

Zhongxing, which is producing pickups and sport utility vehicles, now has three plants in Egypt, Vietnam and Turkey.

Chery, a carmaker in east China's Anhui Province, will start to produce cars in a plant in Iran next month and is also in negotiations with companies in Pakistan and Venezuela to build new plants in those two nations.

(China Daily August 3, 2004)
 

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China's Auto Co. build plants in Vietnam, Egypt, Turkey,Pakistan and Venezuela

http://www.auto-china.cn/

Chang'an Motor, China's newly-crowned third largest automaker, will build an assembly plant in Vietnam to produce light-duty trucks.

The company's affiliate Chongqing Chang'an Kuayue Automobile has signed an agreement with a Vietnamese partner to jointly build the plant, which is expected to start production during the first half of next year, said sources from Chang'an Kuayue.

The initial investment in the plant will be US$15million and annual production capacity will be 3,000 trucks, sources said.

The plant's annual capacity will increase to 5,000 units within the next two to three years.

Chang'an Kuayue will ship completed knocked-down(CKD) components to Vietnam to supply the plant.

Chang'an Kuayue, based in West China's Chongqing Municipality, has exported more than 300 built-up light-duty trucks to Vietnam so far this year.

The company now has a total production capacity of 30,000 light-duty trucks, agricultural use and other special purpose vehicles a year in Chongqing.

China'an Motor is one of many Chinese automakers to build CKD assembly plants overseas to boost exports.

Zhongxing Automobile, the mainland-Taiwan joint venture based in North China's Hebei Province, expects to build four to five plants in North Africa and South America in coming years.

Zhongxing,which is producing pickups and sport utility vehicles, now has three plants in Egypt,Vietnam and Turkey.

Chery, a carmaker in East China's Anhui province, will start to produce cars in a plant in Iran next month and is also in negotiations with companies in Pakistan and Venezuela to build new plants in those two nations.
 

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Chinese Auto

Chang'an Automotive introduces Sturgeon and Dragon


Beijing China June 7, 2004; Chang'an Automotive introduced two new concept cars at the Auto China 2004 show in Beijing which marks a radical departure from their existing Suzuki-derived range.

One of them is called the Yangtze River Sturgeon and it is aimed at a future generation MPV.

The other is a sporting roadster, powered by a 3.2-liter V8 engine and it is called the Chinese Dragon.

One auto critics remarks: I am impressed with the design and quality look these two concepts have...don't be surprised to see them at dealerships in the U.S. and Europe before long. I can foresee how the Chinese mass production economies will affect the auto industry as they have done to the consumer electronics segment...I think that the Chinese Dragon Sports Car can be a big hit in the "priced out of site " personal transportation market.


Chang'an's Chinese Dragon







Chang'an's Sturgeon



 

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The evil WTO has stabbed the Chinese car industry in the back.

First posted to the China Resurgent Forum on Oct. 10, 2004 at the following link:

http://www.network54.com/Forum/thread?forumid=238054&messageid=1097407264&lp=1097407264

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The evil WTO has stabbed the Chinese car industry in the back.

Some statistics of China’s car industry as of 2003:

Private car ownership: 10 million;
Number of cars produced: 4.4 million;
World ranking in annual car produced: 4th;
Sales income of car and related industries: 680 billion yuan
Work force engaged in car and related industries: 12 million;
Foreign cars sold as percentage of total car sold: 90%.

I have repeatedly warned that China has made a seriously wrong decision to join the evil WTO. Many people think I am being melodramatic or even kooky for calling the WTO evil and think it is bad for China. These people think that the WTO must be good for China because the Chinese government had decided to join it. For a long time I have warned that the evil WTO will push many Chinese companies into bankruptcies because as the foreign companies are allowed to take over majority shares of joint ventures or even set up wholly owned subsidiaries they will out-compete against the smaller and more backward Chinese companies because the Chinese companies don’t have the advanced technologies to compete against the well organized and highly advanced foreign companies.

I had also repeatedly warned that it is a pipe dream to think the foreign companies will transfer their cutting edge technologies to their Chinese partners after China joined the evil WTO. I had pointed out that in a joint venture China could required the foreign partner to transfer its advanced technologies to its Chinese partner in exchange for access to the Chinese market if China stayed out of the evil WTO. But the evil WTO requires that the member nations open up its economy totally and remove all restrictions to trade and foreign investment. This means that the foreign partner can, after China joined the evil WTO, ultimately buy out its former Chinese partner or dissolve the partnership and set up its own wholly owned subsidiary to make and sell its goods and services. This means that the foreigners would immediately regard their Chinese partners as competitors as soon as China joined the evil WTO. I think it is clear even to the dimmest mind that no foreigners will continue to transfer their most advanced technologies to their Chinese partners when they look forward to compete against their Chinese partners as serious competitors in due time as the foreign partners set up their own wholly owned subsidiaries as sanctioned by the evil WTO. I had made it very clear that to expect foreigners to continue to transfer their advanced technologies following the Chinese accession to the evil WTO is nothing more than a pipe dream born out of Chinese leaders’ one sided wish to quickly advance China’s economy. I had warned that contrary to this rosy pipe dream the ultimate reality is that China will cause the Chinese companies to go into massive bankruptcies.

In a recent article first published by China Daily and re-published in peopledaily.com.cn at the following link, the writer has expressed his fear on all that I had warned against about the danger of the evil WTO.

http://english.peopledaily.com.cn/200410/06/eng20041006_159181.html

Consider the following quote:

“These small players are newcomers to the auto industry without the government's blessing. "The phenomenon is a big embarrassment for China's auto industry," said Jia Xinguang, chief analyst with China National Automotive Industry Consulting and Development Corp. "This is the aftermath of the government's market-for-technology policy on foreign automakers over the past two decades," Jia said.

“The government expected foreign automakers to transfer much advanced technology to their Chinese partners by allowing them to produce vehicles in China. However, what has happened has been contrary to the government's wishes. Foreign automakers have grabbed the lion's share of the lucrative domestic car market through local production, while Chinese firms have failed to assimilate enough technology to greatly enhance their development capabilities.

“"Chinese automakers should possess their own strong development capabilities and brands for fear of any future uncertainties," Jia said. "You can imagine what would happen if foreign automakers were permitted to control majority stakes in joint ventures with Chinese partners or even to set up wholly-owned plants in China one day." ”

As you can see from the above quote the writer has said that the government’s expectation that foreign car companies would transfer their technologies to the Chinese companies has turned out to be wrong. But to me this is nothing surprising as I had warned about this inevitability based on common sense that foreign car companies would not be willing to transfer their best technologies to their future Chinese competitors. Frankly, I don’t know how the Chinese leaders could be so stupid as to expect the foreigners to give away their best technologies to their Chinese competitors. Furthermore, the foreigners might have transferred their technologies if compelled to through strict laws governing joint ventures. But in the ever increasingly permissive “opening up” environment under the evil WTO, the foreign car companies would be stupid to give away their best technologies to nurture Chinese car companies which would ultimately out-compete the foreign car companies. Therefore, it is common sense to expect that the foreign car companies would simply drag their feet and do everything they can to evade the requirement to transfer their best technologies to their Chinese partners. In the end, the Chinese government has stabbed the Chinese companies in the back in joining the evil WTO which now makes it smart for the foreign car companies to evade technology transfer especially when they are looking forward to become competitors against their Chinese partners in due course of time as the evil WTO deliver the entire Chinese car market into their laps.

Given the increasingly permissive environment mandated by the evil WTO for greater opening up, it is obvious that when the Chinese car market is totally opened up, the Chinese car companies will not be in any fit position to compete against the big efficient foreign car companies. I have repeatedly warned against this. But many people don’t seem to understand the critical dangers impending. Now I am glad to see that at least some people are beginning to realize the horrendous danger confronting the Chinese car companies in the shadow of the evil WTO and are speaking out to warn against it. In the quote above, Jia Xinguang, chief analyst with China National Automotive Industry Consulting and Development Corp., had asked the reader to imagine what would happen if and when foreign car companies were allowed to control the majority share of joint ventures or even set up wholly owned subsidiaries. While he merely asked the question, it is obvious he expected the readers to understand that the result would be whole sale bankruptcies for the Chinese car companies which is exactly what I have been warning futilely since the Chinese government stupidly joined the evil WTO in 2001. I hope those people who thought I was being kooky in warning about the evil and dangers of the WTO would now ask themselves more seriously about the evil nature of the evil WTO in light of what perceptive people like Jia are now warning.

I have also advocated that the Chinese government immediately implement a policy to nurture at least 1 million science and engineering doctorates within 10 years in order to rapidly advance China’s technologies and enable the Chinese companies to go head to head in open competition against foreigners especially in car industry. From the article I referred to above, it is obvious that the main reason why Chinese car companies cannot achieve advanced technologies is that there are few Chinese scientists and engineers of the highest intellectual level and also there is a great lack of science and engineering research and development. Because of these reasons, the Chinese car companies cannot develop independently their own technologies and brands and must simply serve as factories and workshops to make cars whose intellectual properties are wholly owned by their foreign partners.

But even in spite of the fact that the large state owned car companies are turning themselves into factories and workshops for foreign car companies, there are a few small Chinese car companies that are hanging on and developing cars whose technologies are domestically owned. Some of these are China Brilliant Auto, Chery, and Geely. Unfortunately, the Chinese government is stabbing these small domestic car companies in the back also by forcing them to compete against big efficient foreign car companies such as GM, Toyota, and VW. It is obvious that the entire system of the current economic policy is discriminating against the Chinese domestic car companies. In other words, the Chinese government in joining the evil WTO and implementing subsequent economic policies is systematically forcing the Chinese companies into bankruptcies in favor of the foreign companies. Frankly, it pains me no end to see reported everyday about some one or another Chinese company got bought up by some foreign companies. It surprises me especially that these reports sounded like they are reporting some wonderful news when in fact the truth is it is reporting the slow demise of the Chinese economy and the slow but certain transformation of China into an economic colony. Chinese people must now rise up and speak out in one voice of righteous anger to condemn the evil WTO and those traitorous Chinese officials who have sold out and are continuing to sell out the rights and properties of the Chinese people to the very foreigners who have invaded and murdered tens of millions of Chinese people in the last centuries.

But in spite of the fearsome competition facing the Chinese domestic car companies, it is also clear that they are hanging on. This would immediately imply that the Chinese car companies, if given even just some minimal government help and more favorable economic policies would be able to become competitive in due time. But because of the ill advised joining of the evil WTO and the obviously discriminatory economics policies in general against the Chinese domestic companies including those in the car industry, the Chinese government has endangered the chances for survival let alone great prosperity of the domestic car companies.

In the final analysis, the Chinese government must adopt my 12 guidelines for the rapid advancement of China’s society and economy. Among my main points are the nurturing of the Chinese scientists and engineers and the expansion of science and engineering R&D, the immediate withdrawal from the evil WTO, trade by forming bilateral or regional trade agreements, and the shifting to the urbanization of the farmers as the main engine for the internal development of China‘s economy. To read my post on my 12 guidelines, please go to the following link which lists the 12 guidelines following comments on the use of China‘s foreign reserves:

http://www.network54.com/Forum/thread?forumid=238054&messageid=1085395333&lp=1085395333
 

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I understand your sentiments, however what you must try to understand is China's development is the direct result of international integration. The Foreign Direct Investment that China recieves at 60Billion dollars at an annual level is all driven by the idea that the Chinese market and human resources will prove valuable for international commerce. If China embraces an inward vision and policy it could well result in a drop in FDI and could create bad PR for the nation as a whole. Do not take the 9% growth of the Chinese economy for granted it has a lot to do with international corporations. Having said that I remember reading an article as to how much Chengdu's Aeronautical industry has achieved from Tech transfers. I'm not disagreeing with you in any way shape or form, I just believe a China with Advanced Automotive and Industrial infrastructure no matter who the owner is better off than a China without it.
 

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Without the WTO, the US can stop importing Chinese goods at any time.

For example, Bush imposed steel tariffs on Chinese steel, until the WTO ruled against the US and allowed European/Asian countertariffs.

Besides, foreign companies are losing technology to their Chinese partners every day. I wouldn't worry about tech transfer. Historical experience with Korea and the other NICs show that the multinationals will keep their most advanced technologies back home. But using profits from lower-tech items, the local companies will spend enough on R&D to purchase and develop high-tech items. That's how Hyundai became a global carmaker.

Even if Toyota keeps hybrid technology in Japan and LG-Phillips keeps LCD technology in Korea, the Chinese will catch up tech-wise in 20 years or so.
 

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If China wants to compete, it should either send more of its people to train in foreign countries OR start awarding and encouraging innovation. I remember that Japan greatly rewards its inventors.
 

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VAN-TO said:
If China wants to compete, it should either send more of its people to train in foreign countries OR start awarding and encouraging innovation. I remember that Japan greatly rewards its inventors.
Japan has either the lowest or the second-lowest venture capital investment as a percentage of its GDP among OECD members. Although its large firms produce many innovations, it's less than what you'd expect from 120 million well-educated, 1st world people.

From what I hear, the corporate culture in large Japanese firms discourages innovation.
 

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Upgraded air cars can be as good as gasoline engine cars.

First posted to the China Resurgent Forum on March 3, 2005 at the following link:

http://www.network54.com/Forum/thread?forumid=238054&messageid=1109115100&lp=1109836457

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Upgraded air cars can be as good as gasoline engine cars.

The concept of a car running on compressed air is very appealing to me. The compressed air car model Mini-CATS (Mini-compressed air transport system) as made by MDI has the following characteristics:

Weight: 550 kg. or 1,210 lbs.
Range: 90 miles;
Speed: 50 kph or 30 mph to 110 kph or 70 mph;

Engine:
Power output: 52 MJ or 14.4 kwh (3.6 MJ/kwh);

Refueling: 5.5 hours with 220 volts or 4 hours with 380 volts.

Air tank:
Capacity: 100 liters;
Max Pressure: 200 bars or 2,900 psi.
No. of air tanks: 1.

7,562 lb-mile/kwh

From the above it is very clear that the Mini-CATS is very small. The small size is constrained by the relatively low pressure of the air tank which gives the total power output on one fully loaded air tank of only 14.4 kwh. In contrast to this, 1kg of hydrogen can provide some 32 kwh of power. Considering a 100 liter tank pressurized to 10,000 psi can hold 12 kg of hydrogen to provide 384 kwh of power, it is clear that the fuel cell car can provide much more power than a compressed-air car.

However, if the air-tank of the Mini-CATS can use the same 100 liter-10,000 psi tank it could produce about 3.5 times more power than the Mini-CATS or some 50 kwh. This is enough to provide 378,199 lb-miles. That is, if the range is 100 miles the car can weight 3,781 lbs or more than 3 times the weight of the Mini-CATS. Or the range may be increased to 200 miles with the weight of the car increased to 1,890 lbs. Or roughly about 50% increase in the weight of the car. With the increased power the acceleration will also be increased to give better overall performance.

The 10,000 psi tank has already been developed and certified and put into actual operation on prototype fuel cell cars with good results. However, the cost of the 10,000 psi tank is still very high. The current objective is to reduce the cost of making one such tank to $1,000 or less. The main reason why the 10,000 psi tank is so costly is due to the high cost of the carbon fiber of the aero-space grade. Currently experiments are underway to use lower grade carbon fibers to achieve the same level of safety and performance at a lower cost. Initial indications are that the objective of lowering the cost of the 10,000 psi tank to less than $1,000 is achievable within a few years or sooner.

Therefore, with 2 or even 3 air tanks pressurized to 10,000 psi, as much as 150 kwh of power can be obtained. This means as much as 1,134,300 lb-miles of power can be obtained from a system of 3 10,000 psi tanks. If the range is increased to 300 miles, the weight of the car can be increased to 3,781 lbs which is as much as a compact gasoline engine car or maybe even heavier. Each air tank weighs some 100 kg or 220 lbs. So by adding 440 lbs in air tank weight it can allow the weight of the car to be increased some 2,571 lbs. Or a net increase of 2,131 lbs in the weight of the car. In other words, the characteristics of an improved version of air car with 3 tanks of 10,000 psi pressure are as follows:

Weight: 1,718 kg. or 3,781 lbs.
Range: 300 miles;
Speed: ?Probably as much as 100+ mph;

Engine:
Power output: 540 MJ or 150 kwh;

Refueling: ?Probably will take much longer than 10 hours with the onboard compressor of the Mini-CATS. However, with a much bigger onboard compressor the same number of hours and voltage may be maintained as specified for the Mini-CATS. Or maybe a bigger compressor can be installed in the home garage to refill the air tank within 5 or 6 hours.

Air tank:
Capacity of each tank: 100 liters;
Max Pressure: 690 bars or 10,000 psi.
No. of air tanks: 3.

1,134,300 lb-miles

With the new upgraded characteristics of a more powerful air car enabled by 3 10,000 psi tanks, such an air car is almost as big and powerful as a conventional gasoline engine compact car. The cost of refueling a Mini-CATS is given as $2.00. Since the amount of compressed air and pressure is some 10 times more for the possible bigger car, the cost of refueling the bigger air car may be also 10 times more to $20.00. If gasoline costs $2.00 per gallon and a gasoline engine car can get 30 miles to the gallon, then it will cost a gasoline engine car some $20.00 for the 10 gallons of gasoline to go 300 miles. This turns out to be the same cost for the air car to go the same distance at the same kind of driving performance.

Unfortunately, the air car is not cheap. The Mini-CATS cost some $10,000 to $14,000 each. With bigger size and weight and more air tanks the cost may go much higher thus making the air car uneconomical. The air car as designed by MDI is also quite noisy. However, with more R&D the performance may go up while the cost may be much reduced. For example, a rotary engine may be developed to reduce the noise and improve the smoothness of the ride. Also the cost may be reduced with volume production to take advantage of the economies of scale.

My evaluation of the possible upgrade of the Mini-CATS is based on just 2 articles about MDI air cars so I don’t really know how reliable these numbers are. But if these numbers are valid then it is good reason for the Chinese government to make a serious feasibility study of the air car concept. Many advancements are being made in the R&D of the fuel cell car and may ultimately make fuel cell cars cheaper and more reliable than the present day gasoline engine cars. But it appears compressed air cars may be just as economical as the gasoline engine cars and could be a viable alternative to the fuel cell cars.

Whether either or both the fuel cell cars and the compressed air cars can replace the gasoline engine cars, it is obvious that China cannot develop fully if gasoline engine cars are the only kind of car for the Chinese people to drive. If the Chinese people drive at the same rate as the Americans, then China will need to import some 100 million barrels of oil per day. The cost of oil is already some $50 per barrel. With increased demand it is not impossible for the price of oil to go above $100 per barrel. Therefore, the cost of 100 million barrels will be some $10 billion. This translates to some $3.6 trillion a year for China to import enough oil for the Chinese people to drive at the same rate as the Americans. This is obviously impossible. And even if China could somehow find the $3.6 trillion to pay for the oil each year, it will still produce unacceptable amount of air pollution and global warming. And there will certainly be conflicts with many countries to compete for the increasingly scarce oil which means political and military conflicts that China does not want. So it is imperative that China finds an alternative source of energy to power its hundreds of millions of cars in the decades to come.

China is very fortunate in having huge stores of uranium that is enough to provide electricity for hundreds of years to power hundreds of millions of fuel cell cars or compressed air cars. Therefore, it is good common sense for the Chinese government to expand its nuclear power generation while at the same time immediately start making plans to shift to cars that ultimately run on “fuel” that stores the electrical energy produced by the nuclear power plants such as compressed air or hydrogen.

To read about MDI and its CATS, please go to the following links:

http://www.bagelhole.org/article.php/Transportation/353/

http://www.telegraph.co.uk/motoring...01.xml&sSheet=/motoring/2005/01/01/ixmot.html

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This article may be re-posted provided attribution of source is given.
 

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China automakers expanding oversea, local assembly plants

Geely to assemble cars in Malaysia
By Gong Zhengzheng (China Daily)
Updated: 2005-05-31 08:46

Hong Kong-listed mainland car maker Geely Automobile Holdings Ltd yesterday signed a partnership agreement to assemble its own brand cars in Malaysia.

According to Geely vice-president Zhao Jie, production of Geely cars in the Southeast Asian country will kick off next March at a plant owned by Malaysian manufacturers Information Gateway Corporation SDN BHD (IGC).

Employing around 500 Malaysian workers, the plant will turn out 30,000 Geely branded cars next year with components supplied from China, Zhao said.

The first Geely car to be produced in Malaysia will be the 1.6-litre Freedom Cruiser, the company's latest model launched last month, he said.

Two new models, larger than the Freedom Cruiser, will be introduced at the Malaysian plant later, said Zhao.

Geely, 60.68 per cent owned by Li Shufu - one of the mainland's richest people - will be the third Chinese automaker to produce cars abroad.

Chery Automobiles, controlled by the local government in Wuhu,East China's Anhui Province, began to produce cars in Iran at the end of last year.

Chery is also in talks with Malaysia's Alado Automobiles to produce cars there.

Brilliance China Autos, another Hong Kong-listed mainland based car maker, signed an agreement with an Egyptian partner last month to produce cars in the North African country.

Egyptian production of its Zhonghua-brand sedans will begin at the end of August.

As well as producing cars in Malaysia, Geely's Zhao said the company would also export 10,000 cars to the country through IGC next year.

This year, Geely hopes to export 3,000 Haoqing compact cars to Malaysia, he added.

"The plant in Malaysia will be Geely's manufacturing base for Southeast Asia, which will target the whole market in the region," said Zhao.

Malaysia is one of 10 member countries of the Association of Southeast Asian Nations (ASEAN), which have signed an agreement to slash tariffs on automobile exports to each other.

Tariffs on vehicles imported from ASEAN members were cut to 20 per cent at the beginning of this year from as much as 190 per cent in the past.

"Chinese-made cars will have good prospects in Southeast Asia, especially when China reaches a free trade agreement with ASEAN," said Liang Yangchun, an industry analyst with the State Council Development and Research Centre.

China is in talks with ASEAN to clinch an overall free trade agreement in 2010.

"However, Chinese car makers will only be able to play in the economy end of Southeast Asia's car market as many international auto giants, such as Toyota, already have a strong presence there," Liang told China Daily.

"To go abroad is a good way for some Chinese car makers to expand their business as they face mounting competition from the world's auto giants in the slowing domestic market," he added.

All of the world's major automakers have formed joint ventures in China.

Demands for cars in China will grow by 15 per cent to 2.6 million units this year, the China Association of Automobile Manufacturers predicted.

The growth figures are the same as in 2004 but down from more than 70 per cent in 2003.

Zhao said Geely aims to double its overall car exports this year to 10,000 units.

In the first four months of this year Geely exported more than 3,000 cars.
 

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Chinese Car Companies

Just curious, but I recently read an article in Businessweek Magazine that says by 2007, China could be exporting its own brand name cars into the North American Market. It said that this car company was called Chery.

I was curious but what other Chinese car companies are there? I know of Chery (now) and Shanghai Autos. Could someone please post pictures of Chinese cars? Thanks.
 

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中华 Zhonghua is my favorite for both design and name. I don't know WTF is "Chery", does anyone know what their name is in Chinese? Is that the same as "Geely"? Why can't they just spell it 吉利 Jili like how it's supposed to be spelled instead in the ugly English way of "Geely"?

Anyway, here are some pictures of Zhonghua's autos.

http://www.zhonghuacar.com/english/index.htm





More images on their website. I didn't want to spam the thread...
 

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奇瑞 Qirui (Chee-Ray) sounds nothing like "Chery" to me... what China needs above all else is marketing skills...
 

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i would say the single biggest obstacle to chinese automakers is most of them are controlled by the local governments, they always put obstacles in the way of companies from other provinces trying to sell cars and acquire local automakers, that's a big problem. it's said that the competition among chinese automakers in china auto industry is so so fierce that they have to take full advantage of their lower market price of products to export.
 
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