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Friday, May 8, 2009

Shanghai Auto Show: China's auto rookie to the U.S. auto giant "sword flashed"

By Zou Frbiz

The global financial crisis, in order to plunder the world's auto market has been the first to occupy the Chinese market transactions, the plight of the U.S. auto giants have had to struggle every means in Shanghai come back home against the Chinese automobile manufacturers. Although the headquarters is a positive demand for the Government to provide financial support, but in the past few months, Ford Motor and General Motors in the Chinese market has been singing songs, the performance of gratifying. And only in the past three months, the Chinese have overtaken the United States to become the first generation of global automotive market.

However, the Chinese localized manufacturers for example Geely Automobile and Chery Automobile, in the past couple of months, there is furthermore a good performance. Financial urgent position, China's auto monsters have been other than "victims", the localized vehicle manufacturers appear to glimpse into the ranks of the international automotive foremost in hope.

Monday before the unfastening of the Shanghai International Motor Show, the market study firm TNS China Automotive Business Director Klaus Paur external grams, said: "The recession in the international finances, really for China's household vehicle manufacturers to supply a development opportunity."

Such as "small cars tax rebates" and other central social family members incentives below the drive of China's auto market in March has came an exceptional sales of 1.08 million.

Chinese Government's official knowledge demonstrated that the first quarter of 2009, China's car sales market through the same time span terminal year an enhance of virtually 6 fraction points to 2.64 million.

However, in spite of the first quarter of sales of China automobile market gratifying, but the recent TNS businesses in mainland China more than 1,000 consumers pursued a survey survey in China for virtually 45% of probable car clients out of the overall fiscal circumstances fears, delayed the pay for plan.

Paur that, for good at the lower end of market operations in terms of China's domestic car makers, these factors would be injected with one dose of stimulants. He said: "They (the Chinese automobile manufacturers) of prudent behavior from the consumers benefit. At the same time, they will be proactive in positioning itself for the foreign brands are a good alternative."

Nevertheless, the General Motors Corporation said last month in mainland China sales record, and designs to be in five years in China, impelling up annual sales of 2,000,000. Last week, GM China President Kevin Wale localities in "Wall Street Journal" in an interview said: "We are very assured, at this instant we do not have a large number of inputs, it can be a important growth."

Ford also is actively compressing ahead in the Chinese market. It is the implementation of the Beijing central social family members to seize the "small displacement car tax rebate" program opportunities, and actively promote its four-door Fiesta models such as small displacement.

At the same time, China's domestic car manufacturers are also trying to participate the U.S. giants of traditional areas of strength. Chinese automotive manufacturers Geely Automobile and Chery Automobile is planning to display a large number of them the first American luxury cars.

The existing Shanghai Auto Show, Geely Automobile will showcase its high-end "Emgrand" brand cars, Chery Automobile will also launch "Riich G6" brand of high-end cars. The couple originally planned to sell in the worker market of the brand, the couple businesses has now been included into the created markets in Europe and America. Chery Automobile five this week in a assertion said: "We ought commence at the innovation of its placement in the worldwide arena."

Chinese car manufacturers will also be on display at the auto show-powered and environmentally-friendly hybrid vehicles.

However, in spite of China's auto manufacturers eager, ready to show its mettle, the Chinese auto market has fragmented the birth has not been any global brand. China there are more than 100 local car manufacturers, and most of them funded by the local governments.

Although China's central government has repeatedly called on car manufacturers to conduct joint, mergers and acquisitions, but the reorganization of experts concluded that Alix Partners Inc., has been "slow progress in this process, 'done'."

Alix Partners, a business survey demonstrates that car production plants and the circumstances of dissimilar auto parts enterprises are broadly articulating not the encourage of the Government, there may be a virtually 40% of the enterprises are facing varying levels of liquidity shortage, and even many straight away facing the danger of bankruptcy.

Alix Partners, general manager of China, said Ivo Naumann, parts and components enterprises are facing difficulties, auto manufacturers will have a cascade effect. He said: "If your production because the supply of parts and components suppliers are forced to stop the problem, then you will have tremendous economic loss."

Ivo forecast that China's household auto components suppliers blended, the occurrence of amalgamations and acquisitions in the next 1-2 years there. - 18418

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