Geely LG-1 to Hit Market Soon

(SinoCast Via Thomson Dialog NewsEdge)ZHEJIANG, Mar 22, 2006 (SinoCast via COMTEX) --China's private carmaker, Zhejiang-based Geely will see its new model, Geely LG-1, roll off the production line officially on March 31.The Geely LG-1 has three models, respectively equipped with engines of 1.3L, 1.5L and 1.6L.The model will come into the market during May to June this year.Besides LG-1, Geely will put another new model, Geely FC-1, into production in the middle of next month, which will be the highest-level sedan model for Geely.The arrival of LG-1 and FC-1 will mark the carmaker's entrance into the medium and high-grade sedan segment as well as a turning point for Geely to change its previous product layout focusing only on economical small-sized and mini vehicles.

However, because the target market of LG-1 and FC-1 is close to the position of Maple autos, a brand under Geely's subsidiary Shanghai Maple Automobile, which specializes in high and medium-class automobiles, the two auto brands are supposed to go through a future with more subtle rivalship

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No gear shift in Geely US plan

BEIJING, March. 4 -- Geely Automobile Corp, one of the Chinese private automakers that plans to export to the US market, denied a report that it would postpone its plans due to its failure of a recent emission test in North America.

John Harmer, vice president of Geely USA Inc in charge of business expansion in the US market, said Geely failed to pass the first emission test held by the US Environmental Protection Agency due to engine problems, USA Today reported.

Harmer also said if the carmaker were to buy engines from other engine makers, it would greatly increase its costs, making it difficult to achieve its target to sell its Free Cruiser model below US$10,000 in the United States, according to the report.

"The failure is acceptable as our original plan is to start selling (our cars) in 2008, before which we would conduct a series of tests on both safety and emission," said Qu Wei, project manager of Geely International Corp.

"Through the tests, we would know better the higher US emission standard and improve our standard to bring it fully in compliance with the local regulation."

Qu also mentioned that the firm is currently focusing its capability on more technological improvements of the Free Cruiser model at a research and development center in Linhai City, Zhejiang Province. The company plans to have another crack at the US market soon.

Geely’s car assembly hinges on NAP

Chinese carmaker, Geely Automobile Holdings Ltd’s proposed assembly of cars in Malaysia is still on hold pending the outcome of Malaysia’s national automotive policy (NAP), said executive director Lawrence Ang.

He said Geely had earlier planned to produce its car in Malaysia last year after sealing an agreement with Information Gateway Corporation Sdn Bhd (IGC). However, Geely’s assembly plan had been delayed as it awaited details of NAP.

Speaking to reporters after CIMB’s investors conference “Hong Kong’s China Plays” in Kuala Lumpur on Feb 21, Ang said Geely hopes to make Malaysia its manufacturing hub for the Asean market to enjoy lower tariffs.

IGC currently holds the entire stake in the Kuantan assembly plant and there are no immediate plans to take up any stake. Under the agreement, Geeley would provide the technical support and design to the local partner only.

Ang said the Kuantan assembly plant would be capable of assembling 50,000 cars annually.

Geely is looking at a return on investment in Malaysia of at least 15% to justify any move to expand abroad. If all goes well, Geely plans to assemble the Freedom Cruiser, a compact car, with engine capacity of 1.3 litres and 1.6 litres.

A 1.3-litre is retailed in China at US$6,000 (RM22,320) while a 1.6-litre car costs US$8,000 (RM30,000). Currently 95% of the cars made in China are sold in the domestic market

Jones introduces bill to raise tariff on Chinese-made cars

Sun Journal (New Bern, NC)(KRT) Via Thomson Dialog NewsEdge) Mar. 3--The Chinese government slapped a 28 percent tariff on American-made cars, but the U.S tariff on Chinese-made cars is only 2.5 percent.

The disparity in the tariff prompted Rep. Walter B. Jones, R-3rd District, to introduce a bill in Congress Wednesday aimed at leveling the playing field for domestic auto manufacturers.

The bill, co-sponsored by Rep. Dale Kildee, D-Mich., would prevent imports of passenger cars from China until U.S. and Chinese tariffs are equal.

"China has enough trade advantages already," Jones said Thursday in a press release that cited examples including currency manipulation, intellectual property rights violations, heavy government subsidies, and lower worker pay and environmental standards.

"The tariff disparity just gives China another unfair advantage -- an advantage that threatens the job of every worker in the U.S. auto industry," he said.

Two Chinese manufacturers -- Chery and Geely -- have announced plans to begin exporting low-priced, Chinese-made cars to the United States as soon as next year with plans to eventually sell 250,000 cars annually in this country.

Geely reportedly plans to enter the U.S. market by 2008, and anticipates sales of 100,000 by 2012, and other manufacturers already exporting vehicles from China to Europe and elsewhere may also soon export Chinese-made vehicles to America.

"U.S. auto workers deserve nothing less than the opportunity to compete on a level playing field," Jones said. "This legislation would help give U.S. auto workers a fighting chance."

The legislation does not require U.S. tariffs on passenger cars be raised or Chinese tariffs be lowered, rather it states that until tariff rates are equal, no Chinese-made cars may be imported into America.

China's Geely developing hybrid autos for 2007 launch - report

SHANGHAI (AFX) - Geely Automobile Holding Corp, which makes small cars with internally-developed technology, said it plans to develop more energy-saving cars, including hybrid models, the Shanghai Daily reported citing the company's top executive.

The Hangzhou-based private automaker said it has already conducted research and development into hybrid cars using its own technology, the paper said citing Li Shufu, chairman of Geely.

The first hybrid model is expected to roll off the assembly line early next year and this will kick off mass production at its plant in Xiangtan, Hunan Province in central China, the paper said.

Construction of the Xiangtan plant started at the end of last month and the facility will be able to produce 50,000 units annually initially before expanding to 100,000 units by the end of 2010, the paper said.

It said hybrid cars, which switch between an electric motor and a gas or diesel engine, can save up to 30 pct in fuel compared to standard cars.

Other domestic automakers such as Chery Automobile Corp, Shanghai Maple Automobile Corp and Chang'an Automobile Group have started to make hybrid cars while joint ventures like Shanghai Volkswagen and Shanghai General Motors are also competing to roll out such models, the paper said.