AUTO MANUFACTURERS IN CHINA: PROFILES - SAMPLE · 4.12 China North Industries (NORINCO) Vehicle...

AUTO MANUFACTURERS IN CHINA:

PROFILES - SAMPLE

© Access Asia Limited, 2003

Auto Manufacturers in China: Profiles

© Access Asia Limited, 2003 Page ii

Contents

CHINA CONTACT....................................................................................................... I

CONTENTS................................................................................................................. II

INTRODUCTION.........................................................................................................1

Report Coverage.....................................................................................................................................................1

Executive Summary...............................................................................................................................................2

Glossary.....................................................................................................................................................................3

Other Related Reports in the China Contact Series.....................................................................................4

Free Monthly Online Newsletters ......................................................................................................................5

China Fast Facts .....................................................................................................................................................6

1 CHINA’S AUTOMOBILES MARKET...................................................................7

1.1 Total Market.....................................................................................................................................................7 Table 1.1 TOTAL AUTOMOBILE SALES VOLUME & VALUE, 1994-Q1/2003 ........... 9

1.2 Sector Breakdown ...........................................................................................................................................9 Table 1.2 TOTAL VEHICLE VALUE SALES BY SECTOR, 1994-2002.................... 10

2 AUTOMOBILE PRODUCTION IN CHINA........................................................11

2.1 Total Domestic Production..........................................................................................................................11 Table 2.1 TOTAL OUTPUT VOLUME, 1994-2002............................................................... 11

2.2 Domestic Production by Sector..................................................................................................................11 Table 2.2 TOTAL OUTPUT VOLUME BY VEHICLE TYPE, 2000-2003* ................ 11

2.3 Domestic Production by Region.................................................................................................................12 Table 2.3 REGIONAL STATISTICS OF CHINA’S LEADING SALOON CAR MANUFACTURERS, 2001......................................................................................................... 13

3 KEY MANUFACTURERS BY REVENUES......................................................14 Table 3.1 SUMMARY STATISTICS OF CHINA’S LEADING SALOON CAR MANUFACTURERS, 2001......................................................................................................... 14

4 MAJOR COMPANY PROFILES.........................................................................15

4.1 Anhui Jianghuai Automobile Chassis Co., Ltd. ....................................................................................15 4.1.1 Anhui Jianghuai Automobile Chassis: Company Details ................................................................. 15 4.1.2 Anhui Jianghuai Automobile Chassis: Company Background........................................................ 15 4.1.3 Anhui Jianghuai Automobile Chassis: Financial Results................................................................. 16


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Table 4.1 ANHUI JIANGHUAI AUTOMOBILE CHASSIS CO., LTD.: FINANCIAL RESULTS, 2000-2002 ....................................................................................................................... 16

4.2 ASIMCO ..........................................................................................................................................................17 4.2.1 ASIMCO: Company Details .................................................................................................................. 17 4.2.2 ASIMCO: History ................................................................................................................................... 17 4.2.3 ASIMCO: China Operations ................................................................................................................. 17

Table 4.2 ASIMCO SUBSIDIARIES 2003.......................................................................... 18 4.2.4 ASIMCO: Beijing Tianwei Fuel Injection Equipment Inc. (BYC) ................................................ 18 4.2.5 ASIMCO: Harbin Flying Automotive Electric Apparatus Co., Ltd............................................... 18 4.2.6 ASIMCO: Sichuan Danchi Industry Co., Ltd..................................................................................... 19 4.2.7 ASIMCO: Langfang Meilian Brake Installation Co., Ltd................................................................ 19 4.2.8 ASIMCO: CAC Brake Co., Ltd............................................................................................................ 19 4.2.9 ASIMCO: Hubei Super-Elec Auto Electric Motor Ltd., Liability Co. (HSE) .............................. 19 4.2.10 ASIMCO: Anhui Ningguo Zhongding Automobile Components Co., Ltd. ............................... 20 4.2.11 ASIMCO: Shanxi International Casting Co. Ltd............................................................................. 20 4.2.11 ASIMCO: Nanyue Fuel Injection Pump Assembly Co., Ltd. (NYC).......................................... 20 4.2.12 ASIMCO: Sichuan Shuangtai Wheel Co., Ltd................................................................................. 20 4.2.13 ASIMCO: Yizheng Shuang Huan Piston Ring Co., Ltd. (CYPR)................................................ 20 4.2.14 ASIMCO: Alliance Brewing Group................................................................................................... 20 4.2.15 ASIMCO: Products and Services ....................................................................................................... 21

Table 4.3 ASIMCO PRODUCTS AND JOINT VENTURE PARTNERS.......................... 21 4.2.16 ASIMCO: Future Strategy................................................................................................................... 21

4.3 Audi AG ...........................................................................................................................................................22 4.3.1 Audi AG: Company Details ................................................................................................................... 22 4.3.2 Audi AG: Comp any Background ......................................................................................................... 22 4.3.3 Audi AG: China-Related Activities ..................................................................................................... 23

Table 4.4 AUDI AG: PRODUCTION OF VEHICLES, 2002 2001 ..................................... 23 Table 4.5 AUDI AG: SALES OF VEHICLES, 2002 2001..................................................... 24 Table 4.6 AUDI AG: CHINA SALES OF AUDI A6, 2000-2002......................................... 24

4.3.4 Audi AG: Financial Results................................................................................................................... 24 Table 4.7 AUDI AG: FINANCIAL RESULTS, 2001-2002 ................................................... 25

4.3.5 Audi AG: Future Strategies ................................................................................................................... 25

4.4 Beijing Jeep Corporation Ltd. ...................................................................................................................26 4.4.1 Beijing Jeep: Company Details ............................................................................................................. 26 4.4.2 Beijing Jeep: Company Background.................................................................................................... 26 4.4.3 Beijing Jeep: Products & Brands.......................................................................................................... 27 4.4.4 Beijing Jeep: Product Offering.............................................................................................................. 27 4.4.5 Beijing Jeep: The Beijing Jeep Engine Plant...................................................................................... 27 4.4.6 Beijing Jeep: After Sales Service.......................................................................................................... 27 4.4.7 Beijing Jeep: Recent Developments..................................................................................................... 28 4.4.8 Beijing Jeep: Financial Results ............................................................................................................. 29

Table 4.8 BEIJING JEEP CORPORTATION: FINANCIAL RESULTS, 2000-2001 ...... 29

4.5 Beiqi Futian Automobile Co., Ltd.............................................................................................................30 4.5.1 Beiqi Futian Automobile: Company Details ....................................................................................... 30 4.5.2 Beiqi Futian Automobile: Company Background ............................................................................. 30 4.5.3 Beiqi Futian Automobile: Financial Results....................................................................................... 31

Table 4.9 BEIQI FUTIAN AUTOMOBILE CO., LTD.: SECTORAL RESULTS, 2002. 31 Table 4.10 BEIQI FUTIAN AUTOMOBILE CO., LTD.: FINANCIAL RESULTS, 2000-2002 31

4.6 Brilliance China Automotive Holdings....................................................................................................32 4.6.1 Brilliance: Company Details ................................................................................................................. 32 4.6.2 Brilliance: Company Details ................................................................................................................. 32 4.6.3 Brilliance: China Related Activities..................................................................................................... 32


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4.6.4 Brilliance: Financial Results.................................................................................................................. 34 Table 4.11 BRILLIANCE CHINA AUTOMOTIVE HOLDINGS: INTERIM FINANCIAL RESULTS, 2000-2002*............................................................................................ 34

4.7 BMW Group...................................................................................................................................................35 4.7.1 BMW: Company Details ........................................................................................................................ 35 4.7.2 BMW: Company Background............................................................................................................... 35 4.7.3 BMW: China-Related Activities........................................................................................................... 35 4.7.4 BMW: Financial Results ........................................................................................................................ 36

Table 4.12 BMW GROUP: PRODUCTION OF VEHICLES, 2001/2002 .......................... 36 Table 4.13 BMW GROUP: SALES OF VEHICLES, 2001/2002 ......................................... 36 Table 4.14 BMW GROUP: FINANCIAL RESULTS, 2000-2002 ........................................ 37

4.7.5 BMW: Future Strategies......................................................................................................................... 37

4.8 Changchun Changling Group....................................................................................................................38 4.8.1 Changchun Changling: Company Details ........................................................................................... 38 4.8.2 Changchun Changling: Company Background.................................................................................. 38 4.8.2 Changchun Changling: Financial Results ........................................................................................... 39

Table 4.15 CHANGCHUN CHANGLING: FINANCIAL RESULTS, 2000-2002 ........... 39

4.9 Changchun First Automobile Works (FAW) Car Stock Ltd. Corporation ..................................40 4.9.1 FAW: Company Details ......................................................................................................................... 40 4.9.2 FAW: Company History ........................................................................................................................ 40 4.9.3 FAW: Recent Developments................................................................................................................. 41 4.9.5 FAW: Financial Results ......................................................................................................................... 42

Table 4.16 FAW: FINANCIAL RESULTS, 2000-2002 ......................................................... 42 4.9.6 FAW: Future Strategies .......................................................................................................................... 42

4.10 China Aviation Industry Corporation (CAIC) ...................................................................................43 4.10.1 CAIC: Company Details ...................................................................................................................... 43 4.10.2 CAIC: Company Background............................................................................................................. 43

Table 4.17 CAIC: LIST OF SUBSIDIARIES, 2003........................................................... 44 4.10.3 CAIC: Vehicle Related Activity......................................................................................................... 44

4.11 China Jialing Industrial Group Co. Ltd. ..............................................................................................46 4.11.1 China Jialing: Company Details ......................................................................................................... 46 4.11.2 China Jialing: Company Background................................................................................................ 46 4.11.3 China Jialing: Financial Results ......................................................................................................... 47

Table 4.18 CHINA JIALING: FINANCIAL RESULTS, 2000-2002 ................................... 47

4.12 China North Industries (NORINCO) Vehicle Works.......................................................................48 4.12.1 NORINCO: Company Details ............................................................................................................. 48 4.12.2 NORINCO: Company Background ................................................................................................... 48

Table 4.19 NORINCO: PRODUCT RANGE 2003.................................................................. 50

4.13 China Space Industry Corporation (CSIC) .........................................................................................51 4.13.1 CSIC: Company Details ....................................................................................................................... 51 4.13.2 CSIC: Company Background.............................................................................................................. 51 4.13.3 CSIC: Guizhou-Subaru ........................................................................................................................ 51

4.14 Chongqing Chang’an Automobile Co., Ltd. ........................................................................................52 4.14.1 Chongqing Chang’an Automobile Co. Ltd.: Company Details .................................................... 52 4.14.2 Chongqing Chang’an Automobile Co. Ltd.: Company Background ........................................... 52

Table 4.20 CHONGQING CHANG’AN AUTOMOBILE CO. LTD.: UNIT PRODUTION BY PRODUCT, 2002.............................................................................................. 53 Table 4.21 CHONGQING CHANG’AN AUTOMOBILE CO. LTD.: TURNOVER BY PRODUCTS, 2002 ............................................................................................................................. 53


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Table 4.22 CHONGQING CHANG’AN AUTOMOBILE CO. LTD.: AUTOMOTIVE MANUFACTURER COMPARATIVE RANKING, 2002 ......................................................... 54

Table 4.23 CHONGQING CHANG’AN AUTOMOBILE CO. LTD.: OPERATIONS AND PERFORMANCE OF SUBSIDIARIES, 2002 .............................................................. 54

4.14.3 Chongqing Chang’an Automobile Co. Ltd.: Financial Results..................................................... 54 Table 4.24 CHONGQING CHANG’AN AUTOMOBILECO. LTD.: FINANCIAL RESULTS, 2000-2002 ....................................................................................................................... 55

4.15 Cummins Inc.................................................................................................................................................56 4.15.1 Cummins Inc.: Company Details ........................................................................................................ 56 4.15.2 Cummins Inc.: History ......................................................................................................................... 56 4.15.3 Cummins Inc.: China Operations....................................................................................................... 56 4.15.4 Cummins Inc.: Financial Results........................................................................................................ 57

Table 4.25 CUMMINS CORPORATION: FINANCIAL RESULTS, 2000-2001 ............. 57

4.16 Daewoo Group..............................................................................................................................................58 4.16.1 Daewoo: Company Details .................................................................................................................. 58 4.16.2 Daewoo: Company Background......................................................................................................... 58 4.16.3 Daewoo: China Automotive Activities.............................................................................................. 58 4.16.4 Daewoo Group: China Auto Parts Operations................................................................................. 59 4.16.5 Daewoo Group: Financial Results...................................................................................................... 59

Table 4.26 DAEWOO GROUP: FINANCIAL RESULTS, 2001-2002 ............................... 60 4.16.6 Daewoo Group: Future Strategy......................................................................................................... 60

4.17 Daihatsu Motor Company.........................................................................................................................61 4.17.1 Daihatsu: Company Details ................................................................................................................. 61 4.17.2 Daihatsu: Company Background........................................................................................................ 61 4.17.3 Daihatsu: China Activities ................................................................................................................... 61 4.17.4 Daihatsu: Financial Results ................................................................................................................. 61

Table 4.27 DAIHATSU MOTOR COMPANY: FINANCIAL RESULT S, 2000-2002 .... 62

4.18 DaimlerChrysler AG..................................................................................................................................63 4.18.1 DaimlerChrysler: Company Details ................................................................................................... 63 4.18.2 DaimlerChrysler: Company Background.......................................................................................... 63

Table 4.28 DAIMLERCHRYSLER: TOTAL UNITS SALES OF VEHICLES WORLDWIDE 1995-1999 ............................................................................................................... 64

4.18.3 DaimlerChrysler: China Activities ..................................................................................................... 64 4.18.4 DaimlerChrysler: Financial Results ................................................................................................... 65

Table 4.29 DAIMLERCHRYSLER GROUP: FINANCIAL RESULTS, 2000-2002 ....... 66 Table 4.30 DAIMLERCHRYSLER GROUP: % REVENUES BY BRAND, 2002 .......... 66 Table 4.31 DAIMLERCHRYSLER GROUP: ASIAN OPERATIONAL STATISTICS AND SALES REVENUES, 2002 .................................................................................................... 67

4.18.4 DaimlerChrysler: Future Strategy ...................................................................................................... 67

4.19 Dana Corporation .......................................................................................................................................68 4.19.1 Dana Corporation: Contact Details .................................................................................................... 68 4.19.2 Dana Corporation: History .................................................................................................................. 68 4.19.3 Dana Corporation: China Operations................................................................................................. 68 4.19.4 Dana Corporation: Products and Services......................................................................................... 69 4.19.5 Dana Corporation: Company Structure ............................................................................................. 69

Automotive Systems Group........................................................................................................................ 69 Automotive Aftermarket Group................................................................................................................. 69 Engine Systems Group................................................................................................................................. 69 Heavy Truck Group...................................................................................................................................... 69 Off-Highway Systems Group ..................................................................................................................... 70 Fluid Systems Group.................................................................................................................................... 70 Leasing Services ........................................................................................................................................... 70

4.19.6 Dana Corporation: Financial Results................................................................................................. 70


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Table 6.32 DANA CORPORATION: FINANCIAL RESULTS, 2001/2002...................... 70 4.19.7 Dana Corporation: Future Strategy .................................................................................................... 70

4.20 Delphi Automotive Systems ......................................................................................................................71 4.20.1 Delphi Automotive Systems: Contact Details .................................................................................. 71 4.20.2 Delphi Automotive Systems: Company Background..................................................................... 71 4.20.3 Delphi Automotive Systems: China Operations.............................................................................. 72 4.20.4 Delphi Automotive Systems: Products and Services ...................................................................... 73 4.20.5 Delphi Automotive Systems: Financial Results............................................................................... 73

Table 4.33 DELPHI AUTOMOTIVE SYSTEMS: FINANCIAL RESULTS, 2000-200274 4.20.6 Delphi Automotive Systems: Future Strategy.................................................................................. 74

4.21 Denway Motors Ltd. ...................................................................................................................................75 4.21.1 Denway Motors: Contact Details ....................................................................................................... 75 4.21.2 Denway Motors: Company Background........................................................................................... 75 4.21.3 Denway Motors: China Operations.................................................................................................... 75 4.21.4 Denway Motors: Financial Results .................................................................................................... 76

Table 4.34 DENWAY MOTORS: FINANCIAL RESULTS, 2001/2002............................ 76 4.21.5 Denway Motors: Future Stategy......................................................................................................... 77

4.22 Dongfeng Motor Company Ltd. ..............................................................................................................78 4.22.1 Dongfeng Motor Company: Contact Details .................................................................................... 78 4.22.2 Dongfeng Motor Company: Company Background....................................................................... 78

The Light Truck Company.......................................................................................................................... 79 The Diesel Engine Company...................................................................................................................... 79 The Foundry Company................................................................................................................................ 79

4.22.3 Dongfeng Motor Company: Dongfeng-Citroen Automobile Co., Ltd. ....................................... 80 4.22.4 Dongfeng-Citroen: Dongfeng Cummins Engine Company Ltd.................................................... 81 4.22.5 Dongfeng Motor Company: Nissan Joint Venture .......................................................................... 81 4.22.6 Dongfeng Motor Company: Financial Results................................................................................. 81

Table 4.34 DONGFENG MOTOR COMPANY: FINANCIAL RESULTS, 2000-2002 .. 82

4.23 Eaton...............................................................................................................................................................83 4.23.1 Eaton: Company Details ...................................................................................................................... 83 4.23.2 Eaton: Company Background............................................................................................................. 83 4.23.3 Eaton: China Operations...................................................................................................................... 84 4.23.4 Eaton: Products and Services .............................................................................................................. 85 4.23.5 Eaton: Financial Results....................................................................................................................... 85

Table 4.35 EATON: FINANCIAL RESULTS, 2001/2002 .................................................... 85

4.24 Fiat Auto ........................................................................................................................................................86 4.24.1 Fiat: Company Details .......................................................................................................................... 86 4.24.2 Fiat: Company Background................................................................................................................. 86 4.24.3 Fiat: China-related Activities .............................................................................................................. 86 4.24.4 Fiat: Financial Summary ...................................................................................................................... 87

Table 4.36 FIAT: FINANCIAL RESULTS, 2000-2002 ......................................................... 87

4.25 Ford Motor Company ................................................................................................................................88 4.25.1 Ford: Company Details ........................................................................................................................ 88 4.25.2 Ford: Company Background............................................................................................................... 88

Table 4.37 FORD MOTOR COMPANY: TOTAL UNIT SALES OF VEHICLES WORLDWIDE, 2001/2002............................................................................................................... 88

4.25.3 Ford: China-related Activities............................................................................................................. 89 4.25.4 Ford: Jaguar dealers in China.............................................................................................................. 90 4.25.5 Ford: Financial Summary .................................................................................................................... 90

Table 4.38 FORD MOTOR COMPANY: AUTOMOTIVE BUSINESS FINANCIAL RESULTS, 2000-2002 ....................................................................................................................... 90


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4.26 Geely Group..................................................................................................................................................91

4.27 General Motors China, Inc./Shanghai GM ..........................................................................................93 4.27.1 GM: Company Details .......................................................................................................................... 93 4.27.2 GM: Background................................................................................................................................... 93

Table 4.39 GM: TOTAL INTERNATI0NAL UNIT SALES OF VEHICLES, 1995-1999 94

4.27.3 GM: Shanghai Office & China Operations....................................................................................... 94 Shanghai GM ................................................................................................................................................. 94

4.27.4 GM: Shanghai GM/Buick Operations............................................................................................... 95 4.27.6 GM: Financial Services ........................................................................................................................ 98 4.27.7 GM: Financial Summary ...................................................................................................................... 98

Table 4.40 GM: FINANCIAL RESULTS, 2000-2002............................................................ 98 4.27.8 GM: Future Strategies .......................................................................................................................... 98

4.28 Hainan Sundiro (Xindazhou) Motorcycle Co. Ltd.............................................................................99 4.28.1 Hainan Sundiro: Company Details ..................................................................................................... 99 4.28.2 Hainan Sundiro: Company Background............................................................................................ 99 4.28.3 Hainan Sundiro: Financial Results...................................................................................................100

Table 4.41 HAINAN SUNDIRO: FINANCIAL RESULTS, 2000-2002...........................100

4.29 Hebei Xinglin Automotive Body Group............................................................................................. 101

4.30 Honda/Guangzhou Honda Automobile Company Ltd .................................................................. 102 4.30.1 Honda: Company Details ...................................................................................................................102 4.30.2 Honda: Company Background..........................................................................................................102 4.30.3 Honda: China-related Activities .......................................................................................................102 4.30.4 Honda: Motorbike Activities.............................................................................................................104 4.30.5 Honda: Financial Results ...................................................................................................................105

Table 4.42 HONDA MOTOR: FINANCIAL RESULTS, 2000-2003 ................................105

4.31 Hyundai Motor Company...................................................................................................................... 106 4.31.1 Hyundai: Company Details ...............................................................................................................106 4.31.2 Hyundai: Company Background ......................................................................................................106 4.31.3 Hyundai: China-related Activities ....................................................................................................106 4.31.4 Hyundai: Financial Summary ...........................................................................................................107

Table 4.43 HYUNDAI: FINANCIA L RESULTS, 2000-2002 ............................................107

4.32 ITT Industries ........................................................................................................................................... 108 4.32.1 ITT Industries: Company Details .....................................................................................................108 4.32.2 ITT Industries: Company Background............................................................................................108 4.32.3 ITT Industries: China Operations.....................................................................................................108

Connectors & Switches..............................................................................................................................109 Pumps & Complementary Products.........................................................................................................109 Other..............................................................................................................................................................109

4.32.4 ITT Industries: Products and Services.............................................................................................109 Connectors & Switches..............................................................................................................................109 Defence Products & Services ...................................................................................................................110 Pumps & Complementary Products.........................................................................................................110 Speciality Products .....................................................................................................................................110

4.32.5 ITT Industries: Company Structure .................................................................................................110 4.32.6 ITT Industries: Financial Results .....................................................................................................110

Table 4.44 ITT INDUSTRIES: FINANCIAL RESULTS, 2000-2002 ...............................111

4.33 Jiangling Motors Co. Ltd. ...................................................................................................................... 112 4.33.1 Jiangling Motors: Company Details ................................................................................................112 4.33.2 Jiangling Motors: Co mpany Background .......................................................................................112


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Table 4.45 CHINA JIANGLING: TOP TEN SHAREHOLDERS AS OF DECEMBER 31, 2002 112

4.33.3 Jiangling Motors: Financial Results.................................................................................................113 Table 4.46 CHINA JIANGLING: FINANCIAL RESULTS, 2000-2002 ..........................113

4.33.4 Jiangling Motors: Future Strategy....................................................................................................113

4.34 Jiangsu Peony Automobile Group Co., Ltd. ..................................................................................... 114

4.35 Jiangsu Yueda Motor Co........................................................................................................................ 115

4.36 Jinan Qingqi Motorcycle Co. Ltd. ....................................................................................................... 116 4.36.1 Jinan Qingqi Motorcycles: Company Details .................................................................................116 4.36.2 Jinan Qingqi Motorcycles: Company Background .......................................................................116 4.36.3 Jinan Qingqi Motorcycles: Financial Results.................................................................................116

Table 4.47 JINAN QINGQI MOTORCYCLES: FINANCIAL RESULTS, 2000-2002 .117

4.37 Jinbei GM Automotive Company Ltd. ............................................................................................... 118

4.38 Koito Manufacturing Company Ltd. .................................................................................................. 119 4.38.1 Koito: Company Details .....................................................................................................................119 4.382.2 Koito: History ....................................................................................................................................119 4.38.3 Koito: China Operations ....................................................................................................................119 4.38.4 Koito: Products and Services ............................................................................................................119 4.38.5 Koito: Company Structure .................................................................................................................120 4.38.6 Koito: Financial Results.....................................................................................................................120

Table 4.48 KOITO: FINANCIAL RES ULTS, 2001-2003 ...................................................121

4.39 Mazda .......................................................................................................................................................... 122 4.39.1 Mazda: Company Details ...................................................................................................................122 4.39.2 Mazda: Company Background..........................................................................................................122 4.39.3 Mazda: China Operations ..................................................................................................................122 4.39.6 Mazda: Financial Results...................................................................................................................122

Table 4.49 MAZDA: FINANCIAL RESULTS, 2000-2002 .................................................123

4.40 Mitsubishi Motor Corporation/Harbin Automotive ....................................................................... 124 4.40.1 Mitsubishi: Company Details ............................................................................................................124 4.40.2 Mitsubishi: Company Background...................................................................................................124 4.40.3 Mitsubishi: China-related Activities ................................................................................................124 4.40.4 Mitsubishi: Financial Summary ........................................................................................................125

Table 4.50 MITSUBISHI: FINANCIAL RESULTS, 2000-2002........................................125

4.41 Nissan Motor Company.......................................................................................................................... 126 4.41.1 Nissan: Company Details ...................................................................................................................126 4.41.2 Nissan: Company Background..........................................................................................................126 4.41.3 Nissan: China Operations ..................................................................................................................126 4.41.4 Nissan: Financial Results...................................................................................................................127

Table 4.51 NISSAN: FINANCIAL RESULTS, 2000-2002.................................................127

4.42 Proton .......................................................................................................................................................... 128

4.43 PSA Peugeot Citroen/Guangzhou-Peugeot ....................................................................................... 129 4.43.1 Peugeot Citroen: Company Details ..................................................................................................129 4.43.2 Peugeot Citroen: Company Background.........................................................................................129 4.43.3 Peugeot Citroen: Guangzhou-Peugeot.............................................................................................129 4.43.4 Peugeot Citroen: Financial Results ..................................................................................................131

Table 4.52 PSA PEUGEOT CITROEN: FINANCIAL RESULTS, 2000-2002 ...............131

4.44 Qianjiang Group Co., Ltd...................................................................................................................... 132


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4.44.1 Qianjiang Group: Company Details .................................................................................................132 4.44.2 Qianjiang Group: Company Background........................................................................................132 4.44.3 Qianjiang Group: Financial Results.................................................................................................132

Table 4.53 QIANJIANG GROUP: FINANCIAL RESULTS, 2000-2002.........................133

4.45 Qingling Automobile Group Co., Ltd. ................................................................................................ 134

4.46 Renault ........................................................................................................................................................ 135 4.46.1 Renault: Company Details .................................................................................................................135 4.46.2 Renault: Company Background........................................................................................................135 4.46.3 Renault: China-related Activities .....................................................................................................135 4.46.4 Renault: Financial Summary .............................................................................................................136

Table 4.54 RENAULT : FINANCIAL RESULTS, 2000-2002 ............................................136

4.47 Rolls Royce/Bentley.................................................................................................................................. 137

4.48 Shanghai Automotive Industry (Group) Corporation (SAIC) .................................................... 138 4.48.1 SAIC: Company Details .....................................................................................................................138 4.48.2 SAIC: Company Background ...........................................................................................................138 4.48.3 SAIC: SAIC Chery Automobile Co., Ltd. ......................................................................................139 4.48.4 SAIC: Financial Results.....................................................................................................................139

Table 4.55 SAIC: FINANCIAL RESULTS, 2000-2002.......................................................140

4.49 Shanghai Huizhong Automobile Manufacturing Co., Ltd............................................................ 141

4.50 Skylark Automotive Company Ltd. .................................................................................................... 141

4.51 Suzuki Motor ............................................................................................................................................. 142 4.51.1 Suzuki: Company Details ..................................................................................................................142 4.51.2 Suzuki: Company Background & China-related Activities .........................................................142 4.51.3 Suzuki: Financial Results...................................................................................................................142

Table 4.56 SUZUKI: FINANCIAL RESULTS, 2000-2002 .................................................143

4.52 Tianjin FAW Xiali Automotive Industry Co.................................................................................... 144 4.52.1 Tianjin FAW Xiali Automotive: Company Details .......................................................................144 4.52.2 Tianjin FAW Xiali Automotive: Company Background .............................................................144 4.52.3 Tianjin FAW Xiali Automotive: Vehicle Production...................................................................145 4.52.4 Tianjin FAW Xiali Automotive: Financial Results.......................................................................145

Table 4.57 TIANJIN FAW XIALI: FINANCIAL RESULTS, 2000-2002 ........................146

4.53 Timken......................................................................................................................................................... 147 4.53.1 Timken: Company Details .................................................................................................................147 4.53.2 Timken: History...................................................................................................................................147 4.53.3 Timken: China Operations.................................................................................................................147 4.53.4 Timken: Products and Services.........................................................................................................147 4.53.5 Timken: Company Structure .............................................................................................................147 4.53.6 Timken: Financial Results .................................................................................................................148

Table 4.58 TIMKEN: FINANCIAL RESULTS, 2001-2002 ................................................148

4.54 Toyota Motor Company ......................................................................................................................... 149 4.54.1 Toyota: Company Details ..................................................................................................................149 4.54.2 Toyota: Company Background.........................................................................................................149 4.54.3 Toyota: China-related Activities.......................................................................................................149 4.54.4 Toyota: Financial Summary ..............................................................................................................150

Table 4.59 TOYOTA : FINANCIAL RESULTS, 2000-2002 ...............................................150

4.55 Volkswagen AG/Shanghai Volkswagen Automotive Company Ltd. ......................................... 151 4.55.1 VW/Shanghai VW: Company Details .............................................................................................151


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4.55.2 Volkswagen AG: Company Background........................................................................................151 4.55.3 Volkswagen AG: Shanghai Volkswagen Company Background...............................................151 4.55.4 Volkswagen AG: China Vehicle Production..................................................................................152 4.55.5 Volkswagen AG: Financial Results .................................................................................................153

Table 4.60 SHANGHAI VOLKSWAGEN: FINANCIAL RESULTS, 2001-2002 .........154 Table 4.61 VOLKSWAGEN: FINANCIAL RESULTS, 2001-2002..................................154

4.56 Volvo China Ltd........................................................................................................................................ 155

4.57 Xi’an Qinchuan Automotive Co. Ltd.................................................................................................. 157

4.58 Yuejin Motor Group................................................................................................................................ 158

4.59 Zhengzhou Yutong Bus Co., Ltd.......................................................................................................... 159 4.59.1 Zhengzhou Yutong Bus: Company Details ....................................................................................159 4.59.2 Zhengzhou Yutong Bus: Company Background...........................................................................159 4.59.3 Zhengzhou Yutong Bus: Financial Results.....................................................................................159

Table 4.62 ZHENGZHOU YUTONG BUS: FINANCIAL RESULTS, 2000-2002........159

4.60 Zhuzhou Nanfang Motor Co. Ltd. ....................................................................................................... 160 4.60.1 Nanfang Motors: Company Details .................................................................................................160 4.12.2 Nanfang Motors: Company Background ........................................................................................160 4.12.3 Nanfang Motors: Financial Results ..................................................................................................160

Table 4.63 NANFANG MOTORS: FINANCIAL RESULTS, 2000-2002........................161

5 CONTACTS......................................................................................................... 162

5.1 Chinese Government Organisations...................................................................................................... 162 5.1.1 Ministry of Machinery Industry (MMI) ............................................................................................162 5.1.2 Ministry of Foreign Trade & Economic Co-operation (MOFTEC) .............................................163 5.1.3 China State Office of Machinery & Electronics Products Import and Export ............................163 5.1.4 General Administration of Customs ...................................................................................................163

5.2 Trade Promotion Organizations And Associations ........................................................................... 164 5.2.1 China Association of Auto Manufacturers........................................................................................164 5.2.2 China Council for the Promotion of International Trade (CCPIT)/China Chamber of International Commerce .................................................................................................................................164 5.2.3 Information Center of Beijing Automotive Industry.......................................................................164

6 Exchange Rates............................................................................................................................................... 165 6.1 Exchange Rates: China ............................................................................................................................165

Table 6.1 AVERAGE ANNUAL EXCHANGE RATES, 1997–2002...........................165 6.2 Exchange Rates: Hong Kong..................................................................................................................165

Table A.31 AVERAGE ANNUAL EXCHANGE RATES, 1997–2002........................165

7 Selected Automobile Prices ......................................................................................................................... 166 Table 7.1 RETAIL PRICES ON SELECTED CAR MAKES, 2003...................................166


© Access Asia Limited, 2003 Page 1

Introduction

Report Coverage This report profiles the major domestic and foreign automobile manufacturers in the People’s Republic of China, including sedan cars, hatchback cars, minivans, sports utility vehicles and taxis, commercial vehicles (including trucks, light buses and buses), motorcycles and automotive parts, accessories and bodies.



Executive Summary • China has emerged rapidly as a consumer market, thanks to the

socialist economic polic ies of the Chinese government, particularly guided by the ideas of late premier Deng Xiaoping. The result has been a break-neck expansion in the consumer economy and industrial output.

• Along with the growth in the economy, the government has radically reformed the country’s infrastructure, and transport has been a key part of this reform. Not only are more new roads being built, but new city and town development is now designed much more with the needs of a travelling public in mind.

• This travelling public is increasingly aspiring to own a car. Although public transport has improved greatly in recent years, rising average consumer incomes have meant that Chinese consumers have started to set their aspirations much higher, and are not only wishing to buy cars , but are increasingly able to afford to buy.

• The industry has helped by focusing attention on manufacturing more cars aimed at the mass market – with the encouragement of the government. The race between manufacturers to come up with the family car of the future is now on.

• Despite rising incomes, buying a car is still expensive in China. Not only are ticket prices for cars higher than equivalents in the West, but taxes are also high. Add to this the fact that few households have parking facilities, and the situation becomes even more difficult for many households to buy a car.

• Things are getting easier though. Chinese retail banks now offer loans for car purchase. Car insurance policies are now more common, and can even be taken out over the Internet. Car prices have also come down, although many consumers are holding off buying, waiting for China to enter the World Trade Organisation (WTO), which should mean that tariff on imported cars come down, thus forcing prices of domestic cars to fall.

• Dealerships are springing up all over the country, making availability easier. Government taxes and official red tape is being reduced, making the car buying process easier. There is also a flourishing second-hand market emerging, especially as many of China’s taxi fleets are being forced to replace vehicles on a much more frequent basis.



Glossary CCTV - China Central Television

COFCO - China National Cereals, Oils & Foodstuffs Import and Export Corporation

DIY – Do It Yourself

GATT – General Agreement on Trade & Tariffs

GDP – gross domestic product

HoReCa – hotel, retail & catering

KG – kilogram

JV – joint venture

IPO – initial public offering

ISO - International Standard Organisation

ML – millilitres

MOFTEC - Ministry of Foreign Trade and Economic Relations

Mu – Chinese measurement of land

PRC – People’s Republic of China

RMB – Renminbi (Chinese unit of currency)

SAR – Special Administrative Region (as in Hong Kong & Macau)

SEZ – Special Economic Zone

SOE - state-owned enterprises

SAIC - State Administration of Industry and Commerce

WTO – World Trade Organisation



China Fast Facts

Area: 9,596,960 sq km

Population (2002): 1,300,499,000

Capital: Beijing (population 12.3 million)

Government: Single-party communist dictatorship under Chinese Communist Party (CCP)

Ethnic groups: Han Chinese (92%) 55 minority nationalities (8%)

Languages: Mandarin Chinese (official); numerous other Chinese dialects and minority languages

Religions: Predominantly atheist; Buddhist communities in Tibet and Qinghai; Muslim communities in Xinjiang, Gansu and Ningxia; Christianity, Daoism and Confucianism increasingly popular

Currency: Renminbi (RMB) or Yuan = 10 jiao or 100 fen

GDP per capita (2002): US$824.20



4 Major Company Profiles

4.1 Anhui Jianghuai Automobile Chassis Co., Ltd.

4.1.1 Anhui Jianghuai Automobile Chassis: Company Details Address: 176, Dongliu Road, Hefei City, Anhui Province 230022, PR China

Tel: +86-551-341-5133 Fax: +86-551-342-5437

URL: www.jac.com.cn

Ticker: 600418

4.1.2 Anhui Jianghuai Automobile Chassis: Company Background Anhui Jianghuai Automobile Co., Ltd. is a Shanghai-listed company, located in Hefei province, that manufactures and distributes automotive chassis and gearbox components for manufacturers of bus, truck and chassis. Anhui Auto is one of the largest automotive chassis companies in China, and it has representative offices in Beijing, Chengdu, Shanghai, Guangzhou, Hangzhou, Jinan and Zhengzhou.

The company is part of Lion Asiapac. Lion Asiapac was incorporated in Singapore on 6 December 1968 as a private limited company under the name of Metal Containers (Pte) Ltd. On 18 December 1981, it turned public and changed its name to Metal Containers Ltd. In 1996, the Company was acquired by The Lion Group of Malaysia and adopted its present name. The major shareholders are Amalgamated Containers Berhad and Silverstone Corporation Berhad (formerly known as Angkasa Marketing Berhad), both of which are listed on the Kuala Lumpur Stock Exchange.

The Group is a diversified regional manufacturer and distributor. It operates 2 core businesses, namely automobile manufacturing and electronic component distribution. The automotive division operates in China and its portfolio of principal products comprise motorcycles, light trucks for commercial and agricultural use, chassis for passenger vehicles, and gearbox components.

The motorcycle business is mainly handled by Zhejiang Qianjiang Motorcycles Co., Ltd. Qianjiang Motor is listed on the Shenzhen Stock Exchange, and is China’s second largest motorcycle manufacturer by market share. It assembles more than 15 models of motorbikes with a wide range of engine capacities from 50cc to 250cc. It has considerable sales support from about 4,000 dealers and agents all over China.

The manufacturing and selling of light trucks is carried out by Hefei Jianghuai Automotive Co., Ltd. The light trucks are catered for construction companies, public transport departments, commercial transport companies, etc. With a wide distribution network of approximately 120 authorised distributors and 300 authorised service centres, Hefei Auto is one of the largest manufacturers of light trucks in China.



On 29 November 2002, the Group successfully completed the acquisition of Angkasa Transport Equipment Sdn Bhd, which holds a 16% stake in Anhui Jianghuai Automobile Co., Ltd (AHJA) and another 25% stake in Hefei Jianghuai Automotive Co., Ltd (HFJH).

4.1.3 Anhui Jianghuai Automobile Chassis: Financial Results The company saw a massive 73% sales rise in 2002, resulting in a profit growth of nearly 49%. Anhui Jianghuai leads the rest of the manufacturers in supplying chassis to the majority of automotive manufacturers in China. As a leading bus manufacturer, the company also has a strong hold over the market for buses. In both these core markets, there has been particularly strong grow over recent years, and it would be expected that 2003 results would also show strong growth.

Table 4.1 ANHUI JIANGHUAI AUTOMOBILE CHASSIS CO., LTD.: FINANCIAL RESULTS, 2000-2002

RMB million 2000 2001 2002 Sales revenue 1,793.64 1,989.38 3,443.00 Net profits 81.65 88.96 132.41 Sales growth (%) - 10.91 73.07 Net profit growth (%) - 8.95 48.84 Net profit as % of sales 4.55 4.47 3.85 Total assets 651.41 1,371.37 1,817.74

Source: Access Asia from company information.



4.2 ASIMCO

4.2.1 ASIMCO: Company Details China Office: Parkview Center, 4/F, No. 2 Jiangtai Road, South Side, Chaoyang District Beijing 100016, PR China

Tel: +86-10-6438-2750 Fax: +86-10-6438-2735/6

US Office: 924 “B” Calle Negocio, San Clemente, CA 92673, USA

Tel: +1-714-369-1005 Fax: +1-714-369-1166

URL: www.asimco.com

4.2.2 ASIMCO: History Asian Strategic Investments Corporation (ASIMCO) was established in February, 1994 when it raised US$ 300 million through two limited partnerships and completed its first joint venture in August of that year. ASIMCO is owned equally by Management, General Electric Pension Trust and Trust Company of the West, which is the managing general partner. Included among the partners are pension funds, insurance companies, financial institutions and individual investors.

During ASIMCO’s acquisition phase, 11 joint ventures were established and majority interests in core companies were acquired. During 1998 and 1999, the company initiated a process of management restructuring, beginning with the ownership of ASIMCO. In April 1998, the General Electric Pension Trust replaced two former shareholders of ASIMCO. General Electric has agreed to provide ASIMCO with access to training and other corporate resources, and has placed retired senior executives of GE to serve on ASIMCO’s board of directors.

In most of the joint ventures, established Chinese management was replaced with younger, management-educated professionals who had experience working for multinational corporations and managing operations in China.

4.2.3 ASIMCO: China Operations In China, ASIMCO’s broad range of manufacturing capabilities provides the market with “one stop shopping”, eliminating the need for car manufacturers to work with many different suppliers.

Because ASIMCO has management and operating control of all of its factories and its basic strategy is designed around building a global market, it has concentrated on improving Chinese production product and service quality. ASIMCO also holds safety stock inventories in close proximity to its customers production facilities in order to avoid supply problems.

It is for these reasons that ASIMCO has so many ventures spread throughout China. These factories are detailed below:



Table 4.2 ASIMCO SUBSIDIARIES 2003

Location Company names Products Beijing ASIMCO Casting Aluminum and investment castings ASIMCO Tool and Die Molds and dies BYC Diesel fuel injection systems Danling/Sichuan ASIMCO Danchi Gears and shafts Guangzhou/Guangdong ASIMCO Brake Light duty brake systems Harbin/Heilongjiang Harbin Feiben Ignition coils, horns, relays and other electrical parts Langfang/Hebei ASIMCO Meilian Brake Brake Parts, air-brake compressors; ductile iron castings ASIMCO Meilian Foundry Brake Parts, air-brake compressors; ductile iron castings Ningguo/Anhui ASIMCO Anhui Rubber Seals, o-rings, rubber parts, hydraulic jacks, oil seals CR Oil Seals Nanyue/Hunan NYC Diesel fuel injection systems Shashi/Hubei ASIMCO Hubei Starters, heavy duty alternators and DC motors; passenger car alternators Hubei Delphi Starters, heavy duty alternators and DC motors; passenger car alternators Shanxi SICC Engine blocks and heads Shuangtai/Sichuan ASIMCO Shuangtai Wheels, wheel rims and chrome parts Yizheng/Jiangsu ASIMCO CYPR Piston rings Zhuhai/Guangdong CAC Disc brake pads and shoes; clutch facings Cleveland, Ohio ASIMCO International Sales, engineering and product and San Clemente development support

Source: Access Asia from company information

ASIMCO companies sell to China-based assemblers, Chinese aftermarket customers and international customers. ASIMCO’s operating units maintain their own sales forces, primarily dealing with the OE customers. However, there is a trend towards co-ordinating marketing throughout the group and to eventually centralise sales through ASIMCO International, which already co-ordinates marketing for export.

ASIMCO established a technical center in the Pudong district of Shanghai during the first half of 2000. In addition to sales and technical personnel, the center includes prototype manufacturing and test equipment.

4.2.4 ASIMCO: Beijing Tianwei Fuel Injection Equipment Inc. (BYC) BYC produces diesel fuel injection pumps, nozzles, and components. It supplies mechanical A- and P-type pumps and injector nozzles to over 50 major manufacturers of diesel engines. The company’s specialised production techniques include high-volume precision grinding, machining and assembly operations, each of which are controlled by ISO9000 QC inspection and testing processes.

4.2.5 ASIMCO: Harbin Flying Automotive Electric Apparatus Co., Ltd. Harbin is a high-volume manufacturer of electrical automotive components, ranging from plastic injection molding to metal stamping and precision



machining. Many of its over 100 products are used as original equipment for many of the world’s leading automobile marques.

4.2.6 ASIMCO: Sichuan Danchi Industry Co., Ltd. Known as Danling, this enterprise is an ISO 9000-certified metal processing facility specialising in the production of gears and related components. It is China’s leading producer of motorcycle gears, with a 33% market share., Danling offers cold headed metal forming to precision grinding and honing, and has become a key supplier of a wide range of processed metal products.

Danling growth plans include raising total production capacity to exceed 24,000 sets of gears by end of 2000, making it the largest single producer of motorcycle gears. Danling’s customers include the Honda, Kawasaki, Yamaha and Suzuki joint ventures in China.

4.2.7 ASIMCO: Langfang Meilian Brake Installation Co., Ltd. Langfang is a foundry and metal processing facility supplying the international automotive market with brake, chassis and steering components. Its foundry features duplexing furnaces, a Koyo moulding line, a GF sand system and Pangborn shot blasting. It is a preferred supplier to Audi and supplier of 60% of all brakes and air compressors installed as original equipment in China.

4.2.8 ASIMCO: CAC Brake Co., Ltd. CAC is a leading producer of brake and friction products, supplying domestic and foreign automobile producers. CAC has invested heavily in new, high-tech equipment, to provide high-quality production and precision capability. With over 400 products exported to OEM and aftermarket applications in Asia, Africa, North America, Europe, South America and other world markets, CAC competes on a global scale. Automobile assemblers such as Volkswagen Audi and Jeep use its products. Its replacement parts applications cover virtually all brands in the global car market, plus many applications for light and heavy trucks and agricultural and industrial equipment.

4.2.9 ASIMCO: Hubei Super-Elec Auto Electric Motor Ltd., Liability Co. (HSE) HSE is an integrated manufacturing facility covering die casting and tooling to production of solid state electrical assemblies. It is a full service supplier of automotive electrical components and employs sophisticated testing capabilities and Western-influenced management processes.

HSE was founded in 1965 as a producer of DC generators for China’s agricultural industry. By 1969, HSE was supplying generators to the growing domestic automotive industry, and had expanded into starter motors, voltage regulators and fan motors. In 1992, HSE signed a licensing and technology transfer agreement with General Motors. HSE also has an established network of aftermarket services centres with offices in more than 30 major cities throughout China. It also has an internal technical service department at the factory site.



4.2.10 ASIMCO: Anhui Ningguo Zhongding Automobile Components Co., Ltd. Ningguo is a rubber molding and processing facility offering a broad range of products from simple “O” ring seals to speciality seals, boots and covers. Ningguo is also one of China’s largest exporters of hydraulic automobile jacks, producing hydraulic jacks and other related products including components and assemblies used in machine tools, automobile braking systems, shock absorbers, mining machines, agricultural equipment and CV lenses for use in medical applications. The company attained CCIB and QCC ISO9000 registration in December of 1995.

4.2.11 ASIMCO: Shanxi International Casting Co. Ltd. Located at the site of an existing foundry in Shanxi Province, this joint venture is aiming to become one of the world’s lowest cost sources of castings. In the first phase of operations, the factory will produce up to 55,000 tons per annum of iron diesel engine castings. Caterpillar will manage the day-to-day operations of the joint venture and has already assigned four western engineers to work at the joint venture full-time. Shanxi began trading in late 1998.

4.2.11 ASIMCO: Nanyue Fuel Injection Pump Assembly Co., Ltd. (NYC) An industry leader for over 40 years, NYC’s processing and manufacturing capabilities have improved significantly as a result of the co-operation between the joint venture management teams. New state-of-the-art equipment such as Studer match grinders, UVA internal grinders, and Schaudt cam grinders have greatly enhanced the level of NYC’s machining precision and quality.

4.2.12 ASIMCO: Sichuan Shuangtai Wheel Co., Ltd. Shuangtai is a metals processing facility offering alu minium die casting, steel stamping and chrome plating services. It is one of the most modern and well-equipped wheel production facilities in the world, capable of producing 6,000,000 motorcycle wheels and an additional 800,000 scooter and automobile wheels per year. Commanding a full 30% of the domestic market, Shuangtai supplies to all major Chinese motorcycle manufacturers including the Honda, Yamaha and Suzuki joint ventures.

4.2.13 ASIMCO: Yizheng Shuang Huan Piston Ring Co., Ltd. (CYPR) CYPR is the largest producer of piston rings for internal combustion engines in China. CYPR is a leading manufacturer of ductile iron castings, for automobiles, motorcycles, air compressors and agricultural and industrial machinery.

4.2.14 ASIMCO: Alliance Brewing Group ASIMCO’s investments in the Beijing Shuanghesheng Five Star Beer Co. Ltd. and Beijing Three Ring Asia Pacific Beer Co. Ltd. were completed in 1995. The ASIMCO Brewing Group was formed to co-ordinate strategic



planning, manufacturing, marketing, distribution and finance. The Group has been particularly active in distribution both inside and outside China. It also owns a distribution company in Beijing (SAM) and has worked with Five Star to expand its distribution throughout China. In addition, the Group has developed export programs to the UK and US. The Group is one of the leading brewing companies in China. Established in 1915, Five Star has a long history as a leading Chinese beer brand. Once a Five Star licensee, Three Ring has developed a very successful regional brand, Yun Hu.

See Access Asia’s report on the beer market in China for more detail.

4.2.15 ASIMCO: Products and Services ASIMCO’s auto parts production in China includes foundry products, brakes, diesel engines, electrical products and engine parts.

Table 4.3 ASIMCO PRODUCTS AND JOINT VENTURE PARTNERS

Company Relationship Area of Co-operation General Electric Shareholder Strategy / Management Bosch License Light Duty Brakes Caterpillar Co-investment Engine Blocks and Heads Chicago Rawhide (SKF) Sub-Joint Venture Oil Seals Honeywell Proprietary Various Products Manufacturing Delco Remy America License Starters Delphi Sub-Joint Venture Alternators Nippon Piston Ring License Steel Rings Stribel (Alcoa Fujicora) License Central Electric Blocks


4.2.16 ASIMCO: Future Strategy From 2000 forward, ASIMCO accelerate growth by emphasising product and market development, increasing production at several start-ups and targeting key global customers. It is the company’s goal that by the end of 2003, 50% of its revenue will be generated by export sales. ASIMCO already supplies a number of major US automotive companies including Delphi and Honeywell. ASIMCO also intends to diversify from the automotive sector and start supplying manufacturers in other industries.



4.60 Zhuzhou Nanfang Motor Co. Ltd.

4.60.1 Nanfang Motors: Company Details Address: 1, Tiantai Xilu, Zhuzhou Hi-Tech Development Zone, Zhuzhou City, Hunan Province 412007, PR China

Tel: +86-733-855-9515 Fax: +86-733-855-9714

URL: www.nanfangmotor.com.cn

Key personnel: Cai Sanding –chairman.

Ticker: Shenzhen SE: 000738

4.12.2 Nanfang Motors: Company Background Nanfang Motors began from the setting up of the Zhuzhou Army Factory in 1950. The company was then involved in the aerospace industry for several years throughout the 1980s, and has since been involved in the manufacture of aero engines.

The company began manufacturing motorcycles only in 1997, being one of the companies to jump on the bandwagon of this then growth market. The company’s core market continues to be engines, especially aero engines, as well as other heavy industrial products. It is therefore less exposed to the drop in motorcycle demand than many other leading manfaucturers, and has thus been able to survive the market slump by reverting to largely concentrating on non-motorcycle products.

The company will continues to produce a line of motorbikes though, through its 75% -owned motorcycles subsidiary, and is likely to continue to be a key player in the market.

4.12.3 Nanfang Motors: Financial Results Nanfang Motorcycles cleared RMB 1,412 million in 1997 but was struggling to maintain sizeable sales during the first 6 months of 2000 with only RMB 658.1 million recorded. The company has been seeing its sales drop over a number of years, and this can be taken as a direct reflection of the effects of the market contraction and continuing price war.

Nanfang saw its sales continue to drop until 2002,when the company recorded both its first sales increase in many years, and its first clear profit.

As with other motorcycle manufacturers in China, Nanfang will need to both step-up its targeting of overseas markets, and increase its spending on marketing and advertising within the domestic market, if it is to reverse its current declining sales revenue trend. The company now attainst almost two thirds of its sales revenues from overseas markets.



Table 4.63 NANFANG MOTORS: FINANCIAL RESULTS, 2000-2002

RMB million 2000 2001 2002 Total sales revenues 440.04 203.33 347.52 Total net profit -161.96 -219.02 2.23 Turnover annual % growth - -53.79 70.91 Net profit annual % growth - 35.23 101.02 Net profit as a % of turnover -36.81 -107.72 0.64 Total assets 880.92 661.90 1,109.96


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