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CAR TECH
China 2014 auto sales beat 23 mn, but growth slows
By Bill SAVADOVE
Shanghai (AFP) Jan 12, 2015


Chinese-made Volvo to be China's first car export to US
Detroit (AFP) Jan 13, 2015 - China's first-ever car export to the United States is going to be a Chinese-made Volvo, the company announced.

Hakan Samuelson, president and chief executive officer of the Volvo Car Group, said Monday that the company will begin shipping a new S60 model produced in China to the US market in mid-year.

The move will be a landmark for Volvo, which was bought by China's Geely Holding auto group in 2010.

The S60 will be built at a brand new factory in Chengdu that was developed to help launch the Volvo brand in the Chinese market.

Samuelson said the factory where the S60 is being built uses the very latest technology and operates on the strict standards laid down by Volvo.

"It's built like a Volvo in every way. You can't tell the difference between a Volvo built in China and Volvo built in Gothenborg (Sweden) or Ghent (Belgium)," Samuelson said.

Sales personnel in Volvo's dealerships around the US will be coached to make the same point, he said, given the potential skepticism that could greet a made-in-China vehicle.

However, the long-wheel base S60 will not be exported to Europe from China because of regulations and tariffs, he said.

Samuelson told AFP that Volvo is in the midst of overhauling its product line in the United States. Volvo's US sales dropped 8 percent to just over 56,000 units last year, according to AutoData.

Something fishy: Chinese car boasts tank in back seat
Detroit (AFP) Jan 13, 2015 - Combine a fish tank and a driverless car and what do you get? The WitStar, an autonomous electric vehicle from China's GAC.

The concept car, on display at the Detroit auto show, also boasts a wooden floor and swish front seats that swivel around so the family can enjoy the sight of the fish all together -- all while in transit.

"In southern China, water means fortune and wealth," Tang Xiaojian, studio engineer for the ambitious Guangzhou Automobile Industry Group, told AFP. "So many people will have a fish tank in their home.

"So in this concept, the interior will feel like your living room at home."

GAC had another concept car with the whole dashboard an elongated fish tank, he said.

But asked the likelihood of the fish tank staying when the WitStar is one day produced, Tang said: "The final product -- maybe not because you need to keep the water in the tank clean."

And when will the driverless WitStar make it to market?

"Every company is developing autonomous cars, but probably it will take a long time."

China's auto sales exceeded 23 million vehicles last year, an industry group said Monday, but annual growth halved from 2013 as a weaker economy took its toll on the world's biggest car market.

Sales rose 6.9 percent, or 1.51 million vehicles, to 23.49 million, the China Association of Automobile Manufacturers (CAAM) said.

That was short of an 8.3 percent growth target given by CAAM in July, itself a cut from an earlier forecast of 10 percent, Bloomberg News reported.

In 2013, sales surged 13.9 percent to 21.98 million vehicles, helped by a recovery in Japanese brands that were earlier hurt by a political row between Beijing and Tokyo.

CAAM described 2014 sales as "stable" in a statement.

"Faced with a complex international environment and the arduous task of domestic reform, development and stability, the auto sector... achieved sound development," it said.

China's economic growth eased to 7.3 percent in July-September, the worst quarter since the depths of the global crisis in early 2009, as policymakers accept slower expansion to carry out structural reforms.

At least seven cities have slapped limits on vehicle numbers to cut congestion and pollution, including the southern boomtown of Shenzhen, which just announced a new policy to issue only 100,000 licence plates annually.

But China remained the world's biggest auto market last year, a title it has held since 2009, well ahead of the United States.

Industry consultant Autodata has estimated total US sales last year reached 16.5 million units, up 5.9 percent from 2013.

- Foreign brands shine -

China's passenger car sales, which account for the bulk of the market, rose a stronger 9.9 percent to 19.70 million vehicles in 2014, CAAM said.

"The performance of the passenger car sector was within expectations and the slower overall growth is mainly due to a decline in sales of commercial vehicles," John Zeng, general manager of LMC Automotive Consulting in Shanghai, told AFP.

For 2015, passenger car sales were likely to maintain "relatively high" growth of nine to 10 percent, but an economic slowdown and stricter emissions regulations will hurt overall vehicle sales, Zeng said.

He forecast overall auto sales growth of 7.2 percent for this year, nearly unchanged from 2014.

Foreign automakers in China outpaced the overall market, with Germany's Volkswagen (VW) as well as General Motors (GM) and Ford of the United States all reporting record sales for last year.

VW delivered 3.67 million cars to customers in China in 2014, up 12.4 percent, the company said Sunday, despite recalling more than 500,000 of its vehicles.

GM sold 3.54 million vehicles in China, up 12 percent from the previous high in 2013, it said last week.

"GM expects industry demand to rise once again this year in China," President of GM China Matt Tsien said in a statement.

Ford sold 1.11 million vehicles in China in 2014, up 19 percent from 2013, according to the company.

CAAM said that the market share of Chinese companies for passenger cars alone fell 2.1 percentage points in 2014, but gave no overall figure. Chinese firms held a 40.3 percent market share for passenger vehicles in 2013, previous figures showed.


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