Volkswagen given the green light for two plants in China

• Chinese government approves plans for Foshan and Yizheng Planned annual capacity of 300,000 vehicles for each plant

WOLFSBURG/BERLIN : June 28, 2011 - As planned, the Volkswagen Group can build two further automobile plants in China, continuing its long-term growth strategy in the world's largest market for passenger cars. During the German-Chinese government consultations in Berlin, final approval was granted today for the plants to be built at Foshan and Yizheng. Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, today signed appropriate declarations together with the Presidents of the Chinese partner organizations.


The factory at Yizheng, in Jiangsu Province in eastern China, is to be developed together with partner Shanghai Volkswagen, and the plant at Foshan, in Guangdong Province in southern China, will be built together with the FAW-Volkswagen joint venture. The first documents for the development of the two sites were signed in the summer of 2010. "China is already the world's largest sales market for automobiles and further substantial growth is expected in the future," Winterkorn said on the occasion of signing the contracts at the Federal Chancellor's Office in Berlin. "The Volkswagen Group intends to play a major role in shaping this growth with new environmentally compatible models and the expansion of local production capacity. Our new plants show that Volkswagen remains a strong motor for the Chinese automobile industry."

Each of the two plants will be designed for an annual capacity of 300,000 vehicles and production is due to start in 2013. "The new factories are a key element in our plans to increase annual production capacity in China to three million vehicles in the medium term together with local partners," said Dr. Karl-Thomas Neumann, President and CEO of Volkswagen Group China in Berlin.

In view of the dynamic development of the Chinese automobile market, Volkswagen had boosted its investment program for China to 10.6 billion euros for the period from 2011 to 2015. In addition to the two new plants, plans have already been announced to expand production capacity at each of the existing Nanjing and Chengdu plants to between 300,000 and 350,000 vehicles per year.

[Source : VOLKSWAGEN]

SEAT to launch in China, extending its international reach

2011 SEAT Range

• Company to make official presentation this month at the Shanghai Motor Show
• Presentation of SEAT’s most popular models – the IBIZA and LEON

MARTORELL : April 12, 2011 - For the first time in SEAT’s history the company will be present at the Shanghai Motor Show (April 21-28, 2011) as part of the Brand’s strategy of expansion into new markets. The Company’s immediate objective is to establish the Brand in the mind of potential customers before sales begin with the LEON and IBIZA models in 2012.


SEAT Chairman James Muir said: “the Chinese market offers a great opportunity for a brand like ours. SEAT is synonymous with design, being young in spirit and sportiness, attributes which are greatly appreciated in this market”.

SEAT has identified that there is a large demand for distinctive European cars among consumers in China and believes that the timing is right to expand into this key market. “Our research shows that Chinese car-buyers value performance and dynamism. Furthermore, technology and state-of-the-art engineering are important to them and they are very design conscious. On this basis, we are satisfied that SEAT will bring something fresh and new to the car market in China, helping us to establish a brand identity and a position in the market which is uniquely SEAT’s,” explained Muir.

SEAT’s aim is to gradually enlarge its footprint in China with vehicles manufactured in Spain, at the Martorell production plant.


SEAT is the only company in its sector with the full-range capacity to design, develop, manufacture and market cars in Spain. A member of the Volkswagen Group, the multinational has its headquarters in Martorell (Barcelona), exporting approximately 75% of its production to 72 countries. SEAT is market leader in Spain, and in 2010 reached a trade volume amounting to 4.7 billion euros, with total sales of 339,500 vehicles.

SEAT Group employs 13,000 professionals at its three production centres in Barcelona - Zona Franca, El Prat de Llobregat and Martorell, where it manufactures the highly successful Ibiza and Leon, amongst other models. The Volkswagen Group production facility at Palmela in Portugal supplies the SEAT Alhambra.

The Spanish multinational also has a Centre of Excellence or ‘knowledge hub’, bringing together more than 900 engineers whose remit is to be the driving force behind innovation for the number one industrial investor in R&D+i in Spain. In line with its declared commitment to environmental protection, SEAT undertakes and bases its core activity on criteria of sustainability, namely reduction of CO2 emissions, energy efficiency, as well as recycling and re-use of resources.

[Source : SEAT]

Dongfeng Honda to build second Auto Plant in China

Dongfeng-Honda Spirior

WUHAN, China, January 20, 2010 - Dongfeng Honda Automobile Co., Ltd., an automobile production and sales joint venture of Honda in China, announced plans to build a second automobile production plant in order to meet continued growing demand in the Chinese market.


To build the second plant, the company is planning to acquire one million square meters of land, approximately four kilometer northeast of the existing plant, within the Wuhan, Hubei Province, Economic and Technological Development Area where the first plant is based. The new plant is scheduled to become operational in the latter half of 2012 with annual production capacity of 60,000 units. The company envisions the future expansion of production capacity to 240,000 units. The initial investment will be approximately 1.15 billion R.M.B. (approximately 15.4 billion yen*).

Dongfeng Honda’s new plant will accommodate production processes including welding, painting and assembly and is expected to be an advanced plant utilizing production technologies refined at the existing plant, as well as adopting new environmental technologies. In fact, this plant will be the first Honda production plant to generate a portion of the electricity used for production processes from solar panels, which is expected to lead to a reduction of CO2 emissions by approximately 500 tons a year. In addition, the new plant will strive to achieve a significant reduction of CO2 through other measures such as utilization of natural light and waste heat.

Prior to building the second plant, Dongfeng Honda is planning to expand annual production capacity of its existing plant from the current 200,000 units to 240,000 units in early 2010. When the second plant begins production, Dongfeng Honda will have a combined annual production capacity of 300,000 units. In addition, flexible production between the two plants will enable Dongfeng Honda to better fulfill the ever diversifying needs of customers in China.

Dongfeng Honda has been producing the CR-V since April 2004, the Civic since 2006 and the Spirior since August 2009. The company's sales results have continued strong, with 2009 sales of 211,000 units, up 28.2% compared to 2008, achieving a record high for a fifth consecutive year.

When Dongfeng Honda’s second plant begins production, Honda’s overall annual automobile production capacity in China will reach 710,000 units -- 300,000 units at Dongfeng Honda; 360,000 units at Guangzhou Honda; and 50,000 units at Honda Automobile (China), an export automobile production joint venture.

[Source : HONDA]

Shanghai GM introduced Chevrolet New Sail Small Car

2010 Chevrolet Sail - Chinese Market

• First car developed in China by a joint venture
• Best in class fuel economy
• Will be sold in China and exported to other emerging markets

SHANGHAI – Shanghai GM introduced the Chevrolet New Sail sedan, the first passenger car created in China by a Sino-foreign joint venture. The new small car was developed by Shanghai GM and the Pan Asia Technical Automotive Center (PATAC), both GM-SAIC joint ventures. In addition to being sold in China, the New Sail will also be exported to other emerging markets.

Shanghai GM offers five variants of the New Sail with the base model priced from RMB 56,800 (US$8,400) to RMB 68,800 (US$10,100). This marks a breakthrough in the under-RMB 70,000 (US$10,300) small car segment, where Chinese brands have traditionally been dominant. Shanghai GM also began taking orders for the New Sail today.

“Our mission has always been to enable more individuals and families to realize their dream of owning a car,” said Kevin Wale, President and Managing Director of the GM China Group. “With the New Sail, we are setting a new standard for the lower-end small car segment while fully living up to the global standards of Chevrolet, one of the world’s leading vehicle brands. The fact that the New Sail will be exported is a testament to the capabilities of our product development organization in China.”

Class-Leading, Fuel-Efficient Powertrains

The New Sail is available with a choice of class-leading 1.2-liter S-TEC II and 1.4-liter S-TEC III engines. The 1.2-liter engine achieves best in class fuel economy under comprehensive road conditions of 5.7 L/100 km. It also generates power of 64 kW, enabling the New Sail to go from 0 to 100 km/h in 12.9 seconds. The 1.4-liter engine offers power 76 kW, goes from 0 to 100 km/h in 11.9 seconds, and has fuel economy under 5.9 L/100 km.

The engines incorporate the Variable Geometry Intake System (VGIS), which provides smooth power delivery and torque across all engine speeds. Lightweight materials are used in the engine, transmission and body, further increasing fuel efficiency. The optimized friction coefficient in the transmission and tire rolling coefficient reduce energy loss caused by mechanical operation. In line with Shanghai GM’s Drive to Green strategy, both engines meet China’s Phase IV emission standard (as well as the Euro IV standard) and can be upgraded to meet China’s Phase V emission standard.

Even though it is classified as a small car, the New Sail ensures a fun driving experience. Its five-speed manual transmission offers smooth gear shifting. The sporty-looking steering wheel provides pinpoint handling and easy control, while the sporty yet solid chassis provides comfort and excellent handling. The driver enjoys maximum visibility courtesy of the New Sail’s large windshield, seats designed for local users and no-blind-spot rearview mirror.

Stylish Exterior, Spacious Interior

Like other vehicles wearing the Chevrolet bowtie, the New Sail is sporty, enjoyable to drive and offers good value for money. The New Sail features Chevrolet’s trademark horizontal split grille with the gold Chevrolet emblem showcased in the middle. Three muscular sidelines provide the car a three-dimensional look. A unique short-in-front, long-in-back suspension brings a sporty edge to the exterior. The streamlined shape of the vehicle adds a dynamic styling element while reducing drag, for lower fuel consumption. The New Sail is initially available in six exterior colors: Crescent Silver, Jasmine White, Sky Blue, Coral Red, Amber Orange and Starfish Blue.

The interior is likewise unique and all Chevrolet. It includes the brand’s twin-cockpit design as well as a flexible, modern central control panel equipped with a radio, CD player and MP3 interface. Designers have added a sporty touch through a double-digital screen and chrome plating. The New Sail’s adoption of a central fuel tank, a short front and rear suspension, and arch-shaped doors maximizes interior space for up to five people. There are 24 interior storage compartments for added convenience.

Advanced Safety

The New Sail is expected to achieve four stars in China New Car Assessment Program (C-NCAP) testing. The New Sail’s safety cage construction with crumple zones offers class-leading passenger protection. A steel frame surrounds the fuel tanks, for added safety. Dual air bags in front, a retractable steering column, antilock brakes with electronic brake-force distribution, child safety locks and a stronger child seat system are standard. The New Sail also offers outstanding pedestrian protection.

Developed in China for Emerging Markets

The New Sail was jointly developed by Shanghai GM and PATAC off a new architecture in accordance with GM’s Global Vehicle Development Process (GVDP) and worldwide standards for engineering and quality. The development team for the New Sail factored in local climate and driving conditions as well as local fuel quality and Chinese driving habits in the new model’s design. The vehicle’s assembly followed the DTS global C-BOB (best of best) standard.

The New Sail was put through more than 2 million kilometers of testing in extreme hot and cold weather conditions.

To ensure that parts and components meet Chevrolet’s international standards in terms of quality, service, technology and price, 95 percent of components were supplied by members of GM’s global supply chain, with more than 40 percent coming from industry-leading component groups or their joint ventures.

GM’s global quality management processes and regulations were also applied in R&D, procurement, quality recognition and manufacturing. Shanghai GM’s paint shop adopted Generation 6 Zero-Emission Painting for the New Sail. The vehicle meets all European Union environmental protection standards in terms of heavy metal proportion and the recycling rate of the full vehicle.

World-class Chevrolet Gold Tie Service will be offered to New Sail buyers by Shanghai GM. Approximately 380 dealers in more than 200 cities across China will offer customers nine free services as well as 24-hour emergency assistance.

According to Shanghai GM President Ding Lei, “Several years ago, Shanghai GM made the strategic decision to broaden our customer base by developing the New Sail. We improved cost efficiency while setting new quality, fuel efficiency and value standards for economical family cars. With the arrival of the New Sail, we now have an entry in every major passenger car segment.”

Images : 2010 Chevrolet Sail

[Source : GM-Chevrolet]