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1. Porsche hopeful of Cayenne sales
(Automobile - Business development / Sales / Advertising / PR / Marketing)

PORSCHE AG has started to sell its new Cayenne series of sport utility vehicles over the weekend in China, hoping sales will jump by another 170 percent this year despite a vehicle excise tax that promotes environmental protection.

The German luxury sports car maker officially unveiled the second generation of the Cayenne SUV on Saturday, which are equipped with more powerful engines and features enhanced oil efficiency in all three configurations.

Porsche entered the SUV market in China with the Cayenne series in 2002. The model did well enough to be successful in China, accounting for more than 80 percent, or 1,900 vehicles, of Porsche's total sales last year.

"The Cayenne is the most important hallmark for the Porsche brand in China," said Tommy Zhao, general manager of Porsche Center Shanghai. "Chinese customers began to be more familiar with Porsche after they know the Cayenne."

The basic version of the Cayenne, equipped with a 3.6-liter V6 engine, costs 800,000 yuan (US$103,413), with the Cayenne S priced from 1.05 million yuan. The top-of-the-range Cayenne Turbo, powered by twin-turbocharged 4.8-liter V8 engines and a maximum speed of 275 kilometers per hour, is 1.52 million yuan in China.

Fueled by the Cayenne, Porsche's sales surged almost 170 percent last year to 2,305 units, compared with 857 units in 2005. The car maker is confident of achieving the same sales growth this year with the new Cayenne SUV series banking on the huge potential in China, the world's second largest economy.

Last year, China's introduction of a vehicle excise tax which encourages the use of small-engine cars for environment protection caused a sales slump in the SUV market and forced smaller-sized SUV makers to quit amid soaring oil prices on the global market. However, the bigger imported luxury sports car makers were less hit.

"Despite the falling oil prices from a year earlier, we are very conscious that there is market demand for these vehicles in very country in the world and we give the car not only new engines, new designs but also fuel economy," said Mark Bishop, managing director of Porsche China.

Bishop noted that the new Cayenne SUV would bring fuel savings of up to 15 percent compared with the previous generation of the model.

Europe's most profitable car maker earlier estimated sales will climb 30 percent in the next four years globally and sees growth at the end of this decade to come mainly from Russia and China.
26-03-2007 |  225 Hit(s) | (0 vote)

2. CHINA: Honda recall a new industry record
(Automobile - Business development / Sales / Advertising / PR / Marketing / Production / Purchasing)

Honda Motor will recall 528,406 Chinese-made cars, a record for China's fledgling auto industry, to fix faulty power steering pipes and pumps and fuel pump relays, the carmaker's venture in south China was reported to have said on Friday.

According to Reuters, price wars in the world's second-largest vehicle market have taken a toll on the quality of vehicles, with more than 350,000 units recalled last year, according to calculations from recalls announced last year.

The report added that many foreign players operating in the country were involved in last year's recalls, including PSA/Peugeot, Citroen, Toyota, Mercedes-Benz and Audi.

Bloomberg News cited Guangzhou Honda as saying it would repair faulty power-steering pipes on 419,613 Accord sedans produced between 7 January, 2003, and 21 December, 2006.

The automaker also recalled 68,993 Odysseys produced between 22 February, 2005, and 14 February this year because of faulty bolts on the cars' power-steering pumps.

A total of 39,800 Accords, Odysseys and Fits made between 1 August, 2005, and 30 September, 2005, were also recalled because glue may have leaked into fuel-pump relays. Honda dealers will offer free repairs from March 19, Bloomberg noted.

Left-hand drive Jazz models are exported from China to some European markets. A Honda executive was reported recently as saying that consumers could not detect any quality differences between the Chinese cars and Hondas built in Japan.

A Honda UK spokesman told just-auto that a number of vehicles covered by the fuel pump relay recall are in the European Union  - a total of 13,493 2005 model year Accord, FR-V and Jazz models, none of which are came to the UK.

He said the number of affected cars was likely to be very small but dealers would have to check each one to see if a particular supplier's relay was fitted and change it.

24-03-2007 |  248 Hit(s) | (0 vote)

3. CHINA: FAW profit up 2.9ù
(Automobile - Business development / Sales / Advertising / PR / Marketing / Production / Purchasing)

China's FAW Car has reported net profit for 2006 up 2.9% year on year after cutting prices to meet increased competition.

The growth rate was down from 8% in 2005, Reuters said .FAW net profit for the year ended 31 December, 2006, was $US44.88m (347.40m yuan), up from 337.62m yuan the year before.

Revenue for 2006 fell 3.6% to $US1.29bn (9.96bn yuan), in unaudited results compiled under domestic accounting standards. Reuters noted that the company will release final results on 30 April.

FAW is a unit of one of China's three largest automakers, First Automotive Works, and makes the Red Flag cars favoured by Communist Party cadres as well as the MAzda 6 sedan.

24-03-2007 |  308 Hit(s) | (0 vote)

4. Passenger car sales gain 31% in January
(Automobile - Business development / Sales / Advertising / PR / Marketing / Legal / Production / Purchasing)

CHINA'S passenger car sales grew 31 percent in January from a year earlier, the fastest growth in nine months, as automakers cut prices to make cars affordable to more people, Bloomberg said today.

12-02-2007 |  272 Hit(s) | (0 vote)

5. BMW says sales in China jumped in 2006
(Automobile - Business development / Sales / Advertising / PR / Marketing / Legal / Production / Purchasing)

German automaker BMW AG said Thursday its vehicle sales in Asia grew by nearly 14 percent last year, with sales in China jumping by more than 50 percent.

12-02-2007 |  288 Hit(s) | (0 vote)

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