Explaining the Chinese Car Industry and Chinese Cars
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Spy photos of the Honda City have surfaced only a few times, mostly in India, but it looks like China is getting in on the act too. Guangzhou Honda are most probably getting ready to show off the Honda City, but they may not have to do so, Chinese car fans are finding pictures of the new Honda City everywhere:
The design of the Honda City certainly looks interesting, the front grill gives us the impression that the Honda City is trying to become the ‘Baby Accord’.
The new Honda City has been spotted on the back of a truck in China, previously it was only seen in rendered form in India, which made Chinese consumers wonder if it really would come to China.
These pictures, taken from pcauto.com show the Honda City being taken around Chengdu on the back of a flatbed truck. The Honda City appears to have taken on an entirely new design, which is a departure from the previous rebadged Honda Jazz/Fit sedan. The new City looks like a cross between the new 8th Gen Accord, and the Honda Civic.
Last weeks First Economic Daily newspaper reported that Guangzhou Auto and Changfeng Auto were in take over talks. This week, the talks have turned into facts: Guangzhou Auto plans to buy Changfeng Auto and will take control in the fourth quarter of 2008. The Changfeng-Mitsubishi joint venture will continue under Guangzhou management, just as Mitsubishi announced a new range of engines for the Chinese market.
Rumors of Guangzhou Auto wanting to purchase a smaller rival for quite some time, with Guangzhou Auto being linked to buying Beijing Auto. Talks between Changfeng and Guangzhou Auto have been reportedly going on for over a year, Changfeng currently produces trucks for the Peoples Liberation Army, as well as certain Mitsubishi SUV’s from CKD kits imported from Japan. By gaining control of Changfeng, Guangzhou sets to gain Changfengs automobile production factories which are located in the South of China. Changfeng have also been linked to buying the stricken Hummer brand from General Motors, although new further news on this situation has risen.
Guangzhou Auto executives will be feeling confident about purchasing Changfeng Auto, as a recent press release showed that Guangzhou Auto was sitting pretty after making over 6 Billion RMB profit in the first six months of 2008.
Mitsubishi have been losing money in the Chinese automarket place in recent years, with the takeover of Changfeng, Mitsubishi will get a certain amount of time in which to restructure their Chinese market offerings.
The Honda Fit has been a top seller in China for the past few years, it has proved to be popular with those that live in an inner city environment and need an automobile that combines good looks, with fuel economy and at a low price. The new Honda Fit was launched in China earlier this week, starting at at mere 80,680rmb to 120,980rmb depending on specification. The top end model for 120,980rmb is the 1.5l sports model, and the base model is a 1.3l model.
The slightly modified looks of the Fit are mostly certainly sure to guarantee that Honda will continue to have a hit on their hands for the forseeable future.
Massive rain storms have severely affected automotive output in Southern China over the weekend. Guangzhou Honda have been forced to stop production at two car factories, and one engine factory due to flooding, Guangzhou Honda have also cut their sales forecasts considerably for the coming months. Guangzhou Honda believe that they will be on target to sell 340,000 vehicles this year, rather than the 360,000 vehicle marker they previously forecast.
Dongfeng also suspended production of the best selling CRV and the Civic over the weekend, although the reason for suspension was due to a shortage of parts rather than the weather.
Reuters has the latest on the storms:
BEIJING (AP) — At least 55 people have died and seven are missing in flooding across a broad stretch of southern China, state media reported Sunday.
More than 1.2 million people have been forced to flee their homes across nine provinces, including Sichuan, which is still reeling from last month’s earthquake that killed almost 70,000 people, the official Xinhua News Agency said.
Heavy rain in Sichuan, Guizhou and Yunnan provinces will further raise water levels downstream, especially in the coastal manufacturing powerhouse of Guangdong, Xinhua says. Most of those areas are expected to receive more heavy rain over the next 10 days.
Just to the south, communities with tens of thousands of people were threatened by the swollen Xijiang River in the Guangxi region, where a 130-foot crack had opened in an embankment near Changzhou, Xinhua said.
Nearly 120,000 people fled to high ground in the nearby town of Longhua when river water began to pour through the gap, it said.
“If the crack widened and the dike collapsed, the flood would directly threaten the safety” of the city of Wuzhou on Guangxi’s border with Guangdong, Zhang Jinshen, a regional flood control official, was quoted as saying by Xinhua.
These days, the difference between a multi national and a global company is massive. Global companies seem to have only an origin, but dont truly define themselves as a certain nationality. Nike, for example, has its origins in Oregon, USA, but after 50 years of global expansion with factories in Asia, and outlets in seemingly every country in the world could they still be considered a truly American company?
Honda may well be on the way to following in Nikes footsteps. Honda has factories in China via a joint venture with its Chinese partners, Dongfeng and Guangzhou Autos. Guangzhou Autos and Honda are already making Honda Fit super minis for the Chinese market and interestingly enough, exporting them to Europe as well. A Japanese Honda executive once visited the Guangzhou Honda factory, and could not tell the difference a Chinese built Honda, and a Japanese built Honda, presumably the contrast would have been as easy as looking at what side the steering wheel was on. Honda representatives at the Beijing Auto Show last week mentioned that Guangzhou Honda could potentially sell their wares to the American market if market demands required more cars, and also stated that Honda factories in Japan and China are at the same level of quality.
Chinese made Hondas in the USA? Perhaps sooner than you think.
Honda bosses must have a great smile on their face this week after hearing the news that they have sold 21,068 eighth generation Honda Accord in March 2008 alone.
Hondas factories in Southern China are reportedly churning out 800 Accords per day to keep up with the demand. Late last month, Honda launched the 3.5 V6 version of the Accord priced at 48,000USD.
Guangzhou Auto and Honda have been in business for a few years now, Guangzhou Auto originally teamed up with Peugeot to bring French motoring to the Chinese masses, unfortunately Peugeot didn’t want to bring all their cars to China and offered up a tatty old 504 instead. We guess they thought if the Santana is selling well, then so will the 504! Sadly it went down like a lead brick, Peugeot retreated from the Chinese market and didnt come back for a few years. Guangzhou Auto then teamed up with Honda to take on the Chinese market, and have done quite well together. The Honda Oddysey, Fit, and Accord are all made by the Guangzhou Auto company.
A while back we posted about Guangzhou Auto, and Honda getting ready to launch a brand new indpendent brand in China using Guanzhous workforce and Honda technology together for the common good, the brand is going to be launched at next months Guangzhou auto show, where we will be able to see their first sedan - we are told that the sedan is based around the 2007 Honda Accord.
Guangzhou Autos own brand, one to look out for!
Previously Buick Lacrosse lovers became quite upset when they realized their friends in China were getting a better looking motor, and now it seems to the turn of the Honda Odyssey.
China Car Times was just reading good old Autoblog, especially an article about the 2008 Honda Odyssey being released onto the market, our first reaction was just ‘wow’, what an ugly vehicle! The Chinese edition of the Honda Odyssey is quite a slick looking 7 seater station wagon with a beautiful interior (at least on the top end model) and a ride so smooth yet powerful it will make your mouth water. The American model looks like a dull run of the mill soccer mom MPV, the Chinese edition looks like it means BUSINESS!
Compare for yourself:
American Odyssey:
Chinese Odyssey:
More info? Click continue reading!
Continue reading ‘USA 0 - China 2. China gets the better looking car, again.’
The new Fit is coming to China, and is likely prove more popular than the original one due to its upgraded interior. The original dashboard on the Fit always struck China Car Times as being an afterthought at Hondas HQ We think the design conversion went something like this: ‘Well, we’ve made a car, but what about the dash? - Ah just find something out back and stick it all together’
The above picture shows the newly updated dash and integrated stereo, a whole unit that looks a thousand times better. The Fit has proven to be popular with small families and the fairer sex in China, it looks like the Fit will continue on this path.
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