Fiat achieves its 2006 profit targets; sues Great Wall Motor

Fiat met its profit target in 2006 and lifted the number of vehicles sold globally, a trend that continued in January with an "exceptional" performance in Italy, Reuters has reported Sergio Marchionne, chief executive of Fiat Group, as saying.
Without divulging details, Marchionne said the Fiat group will pay a dividend on its 2006 results, the first in five years. For 2006, Fiat Group had set a target of achieving a trading profit of €1.85bn (US$2.39bn) and an operating margin of 4%.
Marchionne added that the Fiat group increased its European market share in 2006 and is aiming for 11% by the end of 2010. In Western Europe, Fiat's market share rose to 7.5% in 2006 from 6.5% a year earlier, AFX News noted.
Fiat's CEO also says that government incentives have greatly boosted vehicles sales in Italy so far this month.
"There were some uncertainties in December because of the lack of a clear position on new legislation. In the first 15 days of January, the market has picked up. We are talking about exceptional numbers," Marchionne said.
Marchionne also said the company is launching legal proceedings against Great Wall Motor, which he accused of copying the Panda small car, sales of which have helped the group's recent recovery.

Great Wall Motor to move to Europe!

If BMW can drive into China, why can't the Great Wall of China move to Europe? That's exactly why the Chinese motor company displayed its Hover SUV and Wingle pick up at the Paris Motor show. And like its namesake, this one too attracted viewers by the dozens. If the curiosity translates into buying interest Great Wall will be here by 2008.

Supervisor - Intl Division, Great Wall Motor, Jie Zhu said, "The European market is mature and developed. We are at the Motor Show to understand more of the market."

But another Chinese company already has the first mover advantage. Landwind launched in Europe with an SUV but hit a speed breaker when its first vehicle failed to clear a mandatory crash test. The image was dented but the spirit was not.

Landwind's hoping a safer SUV at a 25% discount to competition will jumpstart sales. Add to that Fashion and the sales target is 10,000 units by 2008.

China becomes net vehicle exporter

SHANGHAI (Reuters) - China became a net vehicle exporter for the first time last year, an official industry association said on Friday, helped by the sale of cheap models mostly to developing markets.

The country exported 172,800 units in 2005, up 120 percent from a year earlier, with imports up a much smaller 8 percent at 161,900 units, a senior executive with the China Association of Automobile Manufacturers told Reuters.

"Most of the exports are for lower-end models, popular in developing markets," the official said.

These models tend to be made by smaller Chinese car makers, such as Chery Automobile, Geely Automobile and Great Wall Automobile, which are forced to look overseas on rising domestic competition.

Great Wall is aiming to ship 30,000 to 40,000 units overseas this year after exporting 18,526 vehicles in 2005, mostly to the Middle East, Africa and Asia, a company official said on Friday.

And it plans to increase that target to 100,000 units by 2008 as it eyes a plan to build a $100 million (57 million pound) assembly plant in Russia with annual capacity of 50,000 units, he said, joining regional rival Ssangyong Motors in producing sport utility vehicles there.

Chery, which already exports 10 percent of its cars, said this week it had been talking with Avtotor, a Kaliningrad plant that currently assembles vehicles for BMW, GM and Kia Motors, about the production of 15,000 to 20,000 Chery cars a year.

Geely has set its long-term sights on developed markets in the United States and Europe. Its exports jumped over 60 percent to 7,000 units in 2005, mostly to developing markets, it said on its Web site (www.geely.com).

Shipments overseas are expected to hit 1.33 million by 2015, accounting for two-thirds of total sales, it said.

China, once an easy profit centre providing global carmakers with double-digit margins, has become one of the industry's most intense battlegrounds.

Foreign auto makers such as General Motors Corp., Ford Motor Co. and Volkswagen are investing $15 billion to triple capacity to over 7 million cars by 2008 -- sparking fears of an impending glut

Great Wall Motor exports pickups to Cuba

A ceremony for handover of 660 Great Wall pickup trucks to Cuba were held in Baoding, north China's Hebei Province on Wednesday. At the ceremony, Great Wall Motor Company Limited displayed its gift to president of the Cuban Council of State Fidel Castro ¨C two newly-developed Hover vehicles.

The Great Wall Deer series pickup trucks exported comprise trucks with gasoline engine, trucks with diesel engine, regular double and special tool vehicle. The batch of trucks will substitute the old cars used in the power companies in Cuba.

Great Wall Motor Company Limited will dispatch technicians to Cuba for training and after-sale service. The company will push ahead with its cooperation with Cuba following the deal.

Great Wall's gift to Fidel Castro, the newly developed Hover was an eye catcher at the ceremony. The super long deluxe Hover is 6.72-meter long, and is equipped with bar, fridge, LCD TV and High fidelity stereo.

China: Great Wall may enter licence agreement with Antonov

Antonov has announced that under the terms of its option agreement, Great Wall Motor may enter into a licence agreement for Antonov's six-speed automatic transmission patents any time before the expiration of the six-month option agreement period.

Chinese vehicles gaining market acceptance in Jamaica

AS A a new addition to Jamaica's motor vehicle population, Chinese vans and cars offer motorists a value proposition. With their price edge, familiar appearance and features, that proposition is starting to make an impression on the purchasing public.

"Chinese vehicles can be 20 to 40 per cent more price competitive than equivalent models, and with their high quality, more Jamaicans are beginning to add them to their line up," says Oliver Townsend, company director for China Motors Ltd.

China Motors and Worldtron are among the first dealers to sell Chinese-made vehicles in Jamaica. China Motors, now in its second year of operation, is an authorised new vehicle dealer. They acquired the exclusive license for four lines, including Great Wall, Jinbei Haise, King Long, and JAC vehicles.

On the other hand used car dealer Worldtron, has added the Geely line to their stock. Geely created waves at the recently held NAIAS auto show in Detroit when it became the first Chinese car to be displayed at a North American car show. However, they will not be available for sale there until 2008.

Mr. Townsend identifies the Great Wall and Jinbei Haise brands as being among the top three Chinese makes that have received the highest ratings from international analysts. He said these vehicles have very good prospects and he is proud to be associated with them.

He said the Great Wall brand was the flagship at China Motors. This was what they started with in late 2004 and since then over 200 units have been sold. Other lines and products came on stream later as they sought to fulfil the company's mission statement of providing vehicles and related products that offer great value to the Jamaican and Caribbean marketplace.

"The great thing is that the market can relate to our vehicles, they're very familiar in many respects to those on our road," said Townsend. This is because many Chinese vehicle producers have technological links with other car makers already established in Jamaica.

Toyota was directly involved in management structure and design of the Jinbei assembly line, including body and engine manufacture. Great Wall's petrol engine pickups are based on the venerable Toyota 4Y engine and the diesel engines on the Isuzu 4JB1 engine.

In speaking to the capability of China Motors, Mr. Townsend said they represent the best that China has to offer in light commercial vehicles, including small pick-up trucks, panel vans, passenger vans, and buses and coaches.

The pick-up trucks at China Motors start at a price range of $1.15 to $1.7 million and are available in both diesel and gas. Their range of pick-ups varies across at least 20 different types with different cab configurations and bed lengths.

Jinbei Haise minibus and panel vans start at $1.49 million, while the larger King Long brand begin at J$3 million. He is expecting to add the JAC line of trucks in the very near future.

Townsend explained that these prices are 20 to 40 per cent less than their industry counterparts because China has a lower cost production process. Operating and production costs are lower there and that general trend also manifests in the auto industry, Townsend said.

"I don't think there's anybody that can match us. We've gone way beyond giving regular service to our customers," said Townsend. He added: "We are excited what China Motors will bring to Jamaica and this includes the great price."

ADD GREAT VALUE

Townsend mentioned that China Motors now have vehicle accessories in stock such as front bars, side steps and rollovers, another step in providing vehicle related products that add great value.

'The prices are great and the vehicles are similar to the more familiar Japanese type," said Henry McCurdy, security firm proprietor of Montego Bay. "The difference though is in their service, they have all the parts available and the service is excellent. I've never experienced that before."

Clinton 'Pinky' McGann, operator of Pinky's Garage says he has never worked on any of these vehicles but he has been hearing good reports about them. People tell me... the vehicles are very reliable."

At Worldtron, two pre-owned Geely models are available, the family type HQ 3.1 for $750, 000 and the sporty MR 3.1 going at $850, 000. These are 2005 models and are only available in hatch back form. Worldtron says none has yet been since they arrived in November 2005.

"All models are equipped with standard features and we are looking to expand our line and services," said Dwayne Swaby, manager of Worldtron Ltd