“First” Chinese Auto Plant in Europe to Open in February


Great Wall’s Bulgarian factory is ready to open its doors according to this AFP press report, however it seems that AFP have forgotten that SAIC already have a factory in the UK that is busy producing MG6′s from knock down kits sent over from Shanghai. Although, AFP maybe onto something: the Bulgarian factory will be actually producing rather than assembling, thus making it the first real Chinese car producing plant in Europe.

From AFP:

Chinese automaker Great Wall Motor will open on February 21 a plant in Bulgaria, producing the first Chinese cars assembled in Europe, its local partner Litex Motors said Thursday.

The plant in the northern village of Bahovitsa near Lovech has been test-producing since mid-November. It has a planned annual capacity of 50,000 cars for the Bulgarian and European market and will employ up to 2,000 people.

The company also launched already its official advertising campaign in European Union member Bulgaria for the three models to be made here — the Hover H5 SUV, the Steed 5 pick-up and the Voleex C10 city car.

Litex Motors and Great Wall Motor, one of China’s leading maker of sports utility vehicles, signed the contract for the plant in 2009.

It will first assemble cars from Chinese-imported parts but Litex Motors said recently it was in talks with different subcontractors to gradually organise the production of some parts in Bulgaria.

Expert Ferdinand Dudenhoeffer from the Center for Automotive Research in Duisburg, Germany, said Great Wall had every chance to sell well in eastern Europe.

“Within five-six years, they will reach five-percent market shares in eastern European countries,” Dudenhoeffer told AFP, adding that Great Wall would open the way for other Chinese carmakers to come to Europe.

“This will be a new competitor on the Bulgarian market… But it is not bad to have a carmaker in Bulgaria,” Renault-Nissan’s Bulgaria CEO Bernard Neuviale also told AFP at the launch of their new Renault Twingo here Wednesday.

Great Wall cars would not directly threaten the sales of Renault’s Romania-made Dacia, he predicted.

“Great Wall will first have to prove many things — in the first place that it can produce here a car of good quality and then we’ll see. Their prices are also not so good,” Neuviale said.

ash 010 web avatar First Chinese Auto Plant in Europe to Open in February

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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2 Comments so far, please add your thoughts!

  1. avatar dragin says:

    Great Wall has some experience assembling outside the country (Russia, Indonesia, Iran, Vietnam, etc.) but this try will be a good test of its cross border skills.

    “..in talks with different subcontractors to gradually organise the production of some parts in Bulgaria.”

    Reaching full production will be a challenge.

  2. avatar santos palisander says:

    I had the opportunity to examine the Hover H5 SUV, and the Wingle 5 pickup, and I thought they were both competitive vehicles. They are not marketed as bottom-end vehicles so, as Bernard Neuviale stated, there may be some initial resistance to the pricing, but GWM has maintained a good reputation in many markets, and in time, may be quite successful in Eastern Europe.

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