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Guangzhou Automobile Group: annual production capacity
of passenger cars reaches 5.2 million at the end of 2010The planned future capacity is 5.1 million for Changan Automobile Group, 2.2 million
for Beijing Automotive Group and 1.8 million for Guangzhou Automobile Group

Jan. 22, 2010 No.842
Index
Changan Automobile Group: Annual production capacity stands at 3.2 million at the end of...
Beijing Automotive Group: With annual production capacity of 1.1 million at the end of 2010...
Guangzhou Automobile Group: Brings the annual production capacity to 900K at the end of...

Executive Summary

  The production of passenger cars during the period of January to November 2009 by Changan Automobile Group (China Changan Automobile Group Holdings Co., Ltd.) reached 1,332,527 (it was 847,875 during January to November 2008), while Beijing Automotive Group (Beijing Automotive Industry Holding Co., Ltd.) produced 650,250 (307,175 in the same period of the previous year) and Guangzhou Automobile Group (Guangzhou Automobile Group Co., Ltd.: GAC) produced 541,142 (476,073 in the same period of the previous year). The production of the three manufacturers in total reached 2,523,919 (1,631,123 in the same period of the previous year), accounting 27.42% (26.13% in the same period of the previous year) of the whole passenger car production in China.

  The following outlines the annual production plans by the above-mentioned three companies, which have been announced at the present time, for their passenger car plants in China (some of the plants include light weight/small-sized commercial vehicles in their production capacity).

  Changan Automobile Group's annual production capacity reached 2.8 million as of October 2009 and is planned to reach 3.2 million at the end of 2010. The Company further aims to expand it to 4.4 to 5.1 million.

  Beijing Automotive Group has its annual production capacity reached 720,000 and plans to expand it to 1.1 million at the end of 2010. The Company further aims to increase the capacity to over 2.2 million.

  Guangzhou Automobile Group has its annual production capacity reached 750,000 and plans to bring it to 920,000. The Company further aims to increase the capacity to 1.7 to 1.8 million.

Changan Automobile Group/Beijing Automotive Group/Guangzhou Automobile Group:
  Production of passenger cars and production capacity of passenger car plants in China
Figures with "*" in front includes the production capacity for small-sized commercial vehicles.
  Production volume of
passenger cars (in units)		 Annual production capacity for
passenger cars (in 1,000 units)
2008 Jan.-Nov.
2008		 Jan.-Nov.
2009		 As of
Oct.
2009		 2010
plan		 Future plan
Chongqing
Changan
Automobile		 Chongqing Xincheng
new plant		 Operations will begin in 2012 *300 → *600
Chongqing Yubei plant 43,742 41,409 96,708 400 400 400
Chongqing main plant 224,783 210,891 383,776 *400 *400 *400
Hebei Dingzhou
existing plant		 *200 *200 *200
Hebei Dingzhou
new plant		 Operations will begin in 2010 *200 *300
Jiangsu Nanjing plant 46,354 45,896 127,632 *200 *200 *200
Total 314,879 298,196 608,116 *1,200 *1,400 *1800 → *2,100
Jiangling
Holding		 Jiangxi Changbei plant 4,527 4,217 4,099 50 50 50
Xiaolan (Landwind) plant 3,537 3,226 60 50 50 100
Xiaolan (Jiangling) plant Operations are scheduled to begin in 2015 0 *150
Jiangling-Isuzu
Motors plant		 2,621 2,352 3,066 *150 *150 *150
Jiangling Motors plant 0 0 0
Total 10,685 9,795 7,225 *250 *250 *450
Hafei
Automobile		 Shenzhen branch plant 5,709 5,573 3,287 100 100 *200
Harbin Main plant 147,317 134,947 173,103 *300 *300 *300
Weihai branch plant *30 *30 *30
Total 153,026 140,520 176,390 *430 *430 *530
Changhe
Automobile
Liability		 Anhui Hefei plant 95,768 85,968 115,808 *100 *100 *160 → *500
Changhe-Suzuki
Automobile		 Jiangxi Jingdezhen plant 100 100 200
Jiangxi Jiujiang plant 4,671 4,163 2,026 *100 100 200
Total n.a. n.a. n.a. *200 200 400
Changan Suzuki
Automobile		 Chengqing plant 123,389 118,003 137,270 200 200 200
New plant Review resumed in July 2009.
Location not yet determined.		 0 200
Total 123,389 118,003 137,270 200 200 400
Changan
Ford-Mazda
Automobile		 Chongqing existing plant 186,802 177,327 223,468 250 250 250
Chongqing new plant Operations will begin at the
end of 2010 at the earliest.		 160 210 → 300
Nanjing branch plant 14,290 13,903 62,224 160 160 160
Total 201,092 191,230 285,692 410 570 620 → 710
Changan Automobile Group total 903,510 847,875 1,332,527 *2,790 *3,150 *4,360 → *5,090
Own Beijing brand (Shunyi)
passenger vehicle plant		 Operations will begin in 2011 0 150
Beijing Automotive Group,
New Energy Automobile		 Capacity to produce 50K/year
to be maintained by the end of 2011.		 *50 → *100
Beijing
Automoble
Works		 Beijing plant 12,473 11,758 10,470 *100 *100 100
Southern (Zhuzhou)
Base		 Operations are scheduled
to begin in March 2010		 *200 *200
Total 12,473 11,758 10,470 *100 *300 *300
Beiqi Foton
Motor		 Beijing MPV Plant
of Foton		 Operations will begin in 2011 *200
Beijing MP-X
Automotive Plant		 3,099 2,788 12,068 60 60 60
(Guangdong) Nanhai
Automobile Plant		 821 807 778 *30 *30 *30
Total 3,920 3,595 12,846 *90 *90 *290
Beijing
Hyundai
Motor		 The first plant 300,323 269,215 613,057 300 300 300
The second plant 200 300 300
The third (new) plant Operations will begin in 2012 0 300→400
The fourth (new) plant Planning stage.
Likely to be located in Beijing.		 0 300
Total 300,323 269,215 613,057 500 600 1,200 → 1,300
Beijing Benz
Automotive		 existing Benz plant 15,385 13,196 12,887 25 80 100
former Chrysler plant 9,416 9,411 990 n.a.
Total 24,801 22,607 13,877 25 80 100
Beijing Automotive Group total 341,517 307,175 650,250 *715 *1,070 *2,090 → *2,240
GAC Passenger Vehicle
(Fanyu) plant		 Operations will begin in 2010 100 200
GAC Changfeng
Motor		 Hunan prov.
Yongzhou plant		 27,200 25,298 29,004 50 50 *500
Hunan prov.
Changsha plant		 50 50
Total 27,200 25,298 29,004 100 100 *500
GAC Honda
Automobile		 Huangpu plant 308,376 288,771 328,178 240 240 240
Zengcheng plant 120 120 240
Total 308,376 288,771 328,178 360 360 480
GAC Toyota
Motor		 The first line
(Guangzhou)		 175,870 162,004 183,960 200 200 200
The second line
(Guangzhou)		 90 160 200
Total 175,870 162,004 183,960 290 360 400
GAC Fiat Motor
(Hunan prov. Changsha plant)		 Operations will begin in 2011 0 140 → 250
Guangzhou Automobile Group total 511,446 476,073 541,142 750 920 *1,720 → *1,830
The three Groups total 1,756,473 1,631,123 2,523,919 *4,255 *5,140 *8,170 → *9,160
(reference)
Fujian Benz Automotive		 Expected to be restructured
by Beijing Automotive Group		 40 60
(reference)
Honda Automobile (China) Co., Ltd.		 44,675 40,658 25,477 50 50 50
(Note)  Honda Automobile (China) Co., Ltd. is an export exclusive plant jointly held by Guangzhou Automobile Group (25%), Dongfeng Motor Group (10%) and Honda (65%).

Changan Automobile Group: Annual production capacity stands at 3.2 million at the end of 2010, aiming to sell 5 million/year in 2020

  Changan Automobile Group in November 2009 set the production and sales target, which includes figures from Hafei Automobile (Harbin Hafei Automobile Industry (Group) Co., Ltd.), Changhe Automobile Liability (Jiangxi Changhe Automobile Liability Co., Ltd.) and Changhe Suzuki Automobile (Jiangxi Changhe Suzuki Automobile Co., Ltd.), which have all been incorporated into the Group, at 2 million in 2010, 2.6 million or over in 2012 and 5 million in 2020.

  The Group aims to increase the annual production capacity of passenger cars gradually from 2.8 million as at October 2009 to 3.2 million by the end of 2010 and further expanding to 4.4 million and then to 5.1 million.

Changan Automobile Group: The production capacity for passenger cars under its own brands to 3.2 million by the end of 2010

  Changan Automobile Group merged China Aviation Automotive (China Aviation Automotive Industry Co., Ltd.), which has Hafei Automobile and Changhe Automobile Liability under its group umbrella, and reformed its organization in November 2009. The production and sales target for vehicles under its own brands, which are namely Chana (Changan), JMC (Jiangling) and Landwind with newly added Hafei and Changhe, are 2 million for 2010, over 2.6 million for 2012 and 5 million for 2020. The Group will also increase the annual production capacity, which is 2.8 million as at October 2009, to 3.2 million by the end of 2010. The Group aims to enhance the capacity to 4.4 million and then to 5.1 million in the future.
(Notes) 1. Changan Automobile Group before the reform had control over the automobile business of China South Industries Group Corporation (CSGC: China Ordnance Equipment Group Corporation) and had eight automotive manufacturers (such as Chongqing Changan Automobile, Ford-Mazda (Changan Ford-Mazda Automobile), Changan Suzuki Automobile, Jiangling Holding, Jiangling Motors and Jiangling-Isuzu Motors) as well as more than 20 parts manufacturers under its group umbrella.
2. In November 2009, China South Industries Group Corporation and Aviation Industry Corporation of China agreed to have their automobile businesses merged into and reorganized under Changan Automobile Group. China Aviation Automotive, which is a subordinate company of Aviation Industry Corporation of China, sells its stakes in Hafei Automobile, Changhe Automobile Liability, Changhe-Suzuki Automobile, Harbin Dongan Auto Engine and Shenyang Aerospace Mitsubishi Motors Engine, over which it has control, to Changan Automobile Group while it receives 23% shares of Changan Automobile Group in return.
3. The target figure for 2012 that Changan Automobile Group announced in April 2009 was production/sales of 2 million (over 1 million of mini vehicles and over 800,000 of 2/3 box cars) and a market share of 12% (15% or over for 2/3 box cars under its own brands).
4. The production and sales targets that China Aviation Automotive released in March 2009 were 400,000 for 2011 (800,000 for engines) and 1.3 million for 2017 (1.5 million for engines).

Chongqing Changan Automobile: Annual production capacity for Chana (Changan)/JMC (Jiangling)/Landwind branded passenger cars to reach 1.65 million at the end of 2010

  Chongqing Chanan Automobile (Chongqing Changan Automobile Co., Ltd. - the largest shareholder is Changan Automobile Group, which holds 45.55% of the Company) will increase the annual production capacity of passenger car plants for its own brands under the group such as Chana, Landwind and JMC from 1.45 million (among which 1.2 million are Chana branded cars) when combined with Jiangling Holding as at October 2009 to 1.65 million (among which 1.4 million are Chana branded cars) in 2010. The Company aims to further expand the production to 2.25 million (among which 1.8 million are Chana branded cars) and 2.55 million (among which 2.1 million are Chana branded cars) in the future.
■Chongqing Xincheng new plant with the annual production capacity of 300K starts operating in 2012
  Chongqing Changan Automobile started the construction of the Xinchang new plant (in the Eastern part of Chongqing city) that manufactures small vehicles in June 2009. The new plant has an engine plant in the same compound and plans to manufacture HEVs/EVs. The plant will start its operation in 2012 with the initial annual production capacity of 300,000 and a planned annual production capacity of 600,000 (2 million engines) for the future.
■Chongqing Yubei plant: Enhances the annual production capacity of Chana branded cars from 160K to 400K
  Chongqing Changan Automobile in October 2009 completed the second phase of the construction of the Yubei plant (construction commencement in July 2009), which produces Chana branded passenger cars such as the CM8, the Benni, the Z-Shine (CV8), the Jiexun (CV11) and the Alsvin (V10), in Chongqing and increased the annual production capacity from 160,000 to 400,000.
(Note)  The Yubei plant also produces the HEV model of the MPV Jiexun. The EV model of the hatchback Benni also rolled out in December 2009.
■Hebei Changan Automobile: Establishes the annual production capacity of 500K small vehicles by building a new plant
  Hebei Changan Automobile (Hebei Changan Automobile Co., Ltd.: 96.27% held by Chongqing Changan Automobile), in July 2009, started the construction of a new plant that manufactures mini and light-duty trucks as well as mini vans under Chana brand, at the south side of the premises of the Dingzhou plant (Baoding city, Hebei prov. The annual production capacity is 200,000). The initial annual production capacity of the new plant, which is scheduled to start the operation in 2010 at the earliest, is 200,000 with a plan to increase to 300,000 in the future.
(Note) The target sales of Hebei Changan Automobile for 2012 are 350,000.
■Nanjing Changan Automobile: Refurbishes the Nanjing plant and expands the annual production capacity to 200K
  Nanjing Changan Automobile (Nanjing Changan Automobile Co., Ltd.: 73.66% held by Chongqing Changan Automobile) refurbished and extended the Nanjing plant in Jiangsu prov. at the end of 2009 and established the structure to produce 200,000 of small vehicles annually at the end of 2009.

Jiangling Holding: Increases the annual production capacity of JMC/Landwind branded vehicles from 250K to 450K

  Jiangling Holding (Jiangling Holding Co., Ltd: 50% held by Chongqing Changan Automobile) will expand the annual production capacity of JMC/Landwind brand passenger cars, which was 250,000 as at October 2009, to 450,000 by establishing seven series of SUV, MPV and 2/3 box type lineups for Landwind brand.
  Jiangling Holding announced in February 2008 that it would expand the annual production capacity at the Xiaolan (Landwind) plant in Nanchang city, Jiangxi province from the current 50,000 to over 100,000 in 2010 at the earliest. When combined with the Jiangxi Changbei plant (former Landwind Motor), the annual production capacity of the two plants that are directly managed by the Company will be increased to 150,000.
  Jiangling Motors (Jiangling Holding holds a 41.03% stake and Ford holds a 30% stake in the Company) says it will establish a production structure for the next generation pickup/SUV (N350) projects that the Company developed by the end of 2010 and also the production structure for the light trucks N800 (the development code) by the end of 2012. In November 2007, the Company started building the Xiaolan (Jiangling) plant near the Xiaolan (Landwind) plant. The annual production capacity of the new plant is 150,000 small vehicles with a plan to be in full production in 2015.

Hafei Automobile: With annual production capacity of 430K, it considers producing mini vans for Changan Automobile Group

  The annual production capacity of Hafei Automobile, which has been merged into Changan Automobile Group, totaled 430,000 as at October 2009 with 100,000 at the Shenzhen branch plant in Guangdong prov. (the operation started in October 2006 as an exclusive plant for sedan cars) and 30,000 at the Weihai branch plant in Shandong prov. (all these plants produce Hafei branded vehicles only).
  Although the Company has shelved the plan to increase the annual production capacity to 600,000 in 2010 (announced in January 2006) due to sluggish sales, it is believed that the Company is under consideration to establish the production structure for the Chanan Star, which is Changan Automobile Group's core model among mini vans. Furthermore, the Company plans to double the annual production capacity at the Shenzhen branch plant, which produces the sedan Saibao, if the alliance with PSA is successfully signed.
(Notes) 1. Hafei Automobile's sales in 2009 were approximately 240,000. The Company sets the production and sales target for 2010 in which year it introduces new six models including minor remodels such as the Luzun Xiaobawang, the Lubao and the long type Minyi at 300,000 or over.
2. Hafei Automobile and PSA signed a memorandum of understanding (MOU) in June 2007, which included the establishment of a joint venture company with the Shenzhen branch plant as its parent organization. However, the negotiation was put on hold for a while until it resumed in September 2009. Changan Automobile Group has expressed its intention to take over the negotiation on the alliance with PSA from Hafei Automobile.

Changhe Automobile: Increases the annual production capacity for Changhe brand vehicles to 160K by 2012

  Changhe Automobile Liability, which has been merged into Changan Automobile Group, set the production and sales target in its new mid-long term development plan for 2011 to 2020 (announced in November 2009) at 205,000 in 2010, 261,000 in 2011, 308,000 in 2012, 350,000 in 2013, 630,000 in 2017 and 900,000 in 2020, when combined with Hefei Changhe Automobile (Hefei Changhe Automobile Co., Ltd.), which is a plant that the Company directly manages, and Changhe-Suzuki Automobile (Jiangxi Changhe-Suzuki Automobile Co., Ltd.), which is its subordinate company.
  As for the annual production capacity, the Company will expand the capacity at the Hefei plant in Anhui province that produces mini vans and mini/light weight trucks under Changhe brand from approximately 100,000 of the current volume to 160,000 by 2012. Also, it will double the annual production capacity at the Jingdezhen plant as well as the Jiujiang plant, which are both Changhe-Suzuki Automobile's plants in Jiangxi prov., to 400,000, totaling 560,000 when the three plants combined (currently 300,000).
(Notes) 1. There is also a plan to bring the annual production capacity of the Hefei plant to 500,000 in the future (announced in May 2007), which is in line with the target production and sales volume of 900,000 for 2020.
2. Changhe Automobile (Jiangxi Changhe Automobile Co., Ltd.), which had held a 100% stake in Hefei Changhe Automobile and a 41% stake in Changhe-Suzuki Automobile, disposed all the shares it held in companies related to the automotive industry to Changhe Automobile Liability and withdrew from the industry in July 2009 following the reorganization of Aviation Industry Corporation of China to which the Company belonged.

Alliance with Suzuki: Considers building a new plant with a plan to double the annual production capacity to 800K

  Suzuki, which had Changhe-Suzuki Automobile merged into Changan Automobile Group, announced in December 2009 that Suzuki (China) Investment Co., Ltd., which administers the Chinese business, would push ahead the consolidation of the sales structures of two joint venture companies (Changan Suzuki Automobile and Changhe-Suzuki Automobile).
  Suzuki aims to expand the annual production capacity to 800,000 in total by doubling the annual production capacity at Changan Suzuki Automobile to 400,000 (considering building a new plant) and also doubling the annual production capacity at Changhe-Suzuki Automobile's two plants (Jingdezhen and Jiujiang) in Jiangxi province to 400,000. The production and sales target for 2010 is 180,000 (actual figure for 2009 was just over 150,000) for Changan Suzuki Automobile and 205,000 for Changhe-Suzuki Automobile (including Changhe branded small vehicles).
(Notes) 1. It is believed that it is now possible for Suzuki to enter into an alliance with another company as Suzuki's Chinese business has been consolidated into the alliance with Changan Automobile Group. Some media reported that Suzuki had already started looking for potential alliance partners.
2. Suzuki relocates Suzuki (China) Investment Co., Ltd. and its Beijing Office (Suzuki (Beijing) Office) from Beijing city to Shanghai city in January 2010.
■Changhe-Suzuki Automobile: Starts producing Splash from 2010 and doubles the annual production capacity to 400K
  Changhe-Suzuki Automobile will expand the annual production capacity at the Jingdezhen plant in Jiangxi prov. that manufactures the Beidouxing (Wagon R+) and the Langdi (Landy) from the current 100,000 to 200,000 by 2014. It also plans to expand the annual production capacity at the Jiujiang plant in Jiangxi province, which produces the Liana and small-sized trucks, from the current 100,000 to 200,000 upon rearranging the production structure to enable the production of the Liana and the Splash in 2010.
■Changan Suzuki Automobile: Introduces the Kizashi in 2010 and considers building a new plant with the annual production capacity of 200K
  Changan Suzuki Automobile (Chongqing Changan Suzuki Automobile Co., Ltd.) produced and sold over 150,000 in 2009 and aims to expand the figure to 180,000 in 2010 (the annual production capacity is 200,000). It is said to have started preparing to introduce the Kizashi, which is a new model in the D segment, in 2010.
  Changan Suzuki Automobile is believed to have resumed the review in July 2009 to construct a new plant with the annual production capacity of 200,000, as the production at the Chongqing plant is expected to crunch anytime soon (the Company started considering the new plant in 2004 with the potential location being Nanjing city, Jiangsu province. However, the consideration was put on hold after then.).
(Note)  Changan Suzuki Automobile announced in August 2008 that it would produce the Fiat Sedici, which shares the same platform with the SX4, at the Chongqing plant on commission. However, the progress after the announcement is unknown.

Changan Ford-Mazda Automobile: Chongqing new plant starts its operation in 2010, the future annual production capacity expands to 710K

  Ford-Mazda (Changan Ford-Mazda Automobile), which is a joint venture company between Chongqing Changan Automobile, Ford and Mazda, started the construction of the Chongqing new plant in September 2009. The new plant starts its operation in 2010. The Company will further enhance the new plant after the completion of the construction to expand the annual production capacity from the current 410,000 to 570,000 in 2010 and then to 620,000 and finally 710,000 when combined with the existing plants of Chongqing plant and Nanjing branch plant.
(Note)  The joint sales company between Chongqing Changan Automobile and Mazda sets out its sales target of Mazda brand vehicles including import vehicles at 90,000.
■Starts building a Ford brand exclusive plant Chongqing new plant with the annual production capacity of 210K
  Ford-Mazda (Changan Ford-Mazda Automobile) started the construction of the Chongqing new plant, which will be an exclusive plant for Ford brand vehicles, in September 2009. The new plant will start the operation at the end of 2010 at the earliest initially with the annual production capacity of 160,000, which will be expanded to 210,000 (the new plant will have an engine plant as well) upon completion of the first phase of the construction. The annual production capacity when combined with the existing plants of the Chongqing existing plant (250,000) and the Nanjing branch plant (160,000) will be 620,000. The annual production capacity at the new plant will be gradually increased to 300,000.
■Nanjing branch plant: Modified the production structure in Oct. 2009 to a 2-shift/full production to produce 160K/year
  In October 2009, Changan Ford-Mazda Automobile modified its production structure at the Nanjing branch plant from a single shift to a two shift and switched to full production to produce 160,000 annually. The Nanjing branch plant was only producing 2,000/month of the Mazda 2 (Demio) and 4,000/month of the New Fiesta in single shift production prior to the modification.
(Note)  Changan Ford-Mazda Automobile is expected to make the Chongqing plant (the full plant in Chongqing of Changan Ford-Mazda Automobile) and the Nanjing branch plant exclusive for the production of Ford brand vehicles and Mazda brand vehicles, respectively. It is believed that Chongqing Changan Automobile is considering reorganizing them as separate joint venture companies eventually.

Beijing Automotive Group: With annual production capacity of 1.1 million at the end of 2010, sales target for 2011 is 2 million

  Beijing Automotive set the production and sales target for 2009 at 1.2 million, for 2010 at 1.5 million and for 2011 at 2 million in its three-year business plan to 2011 announced in September 2009.

  The Company will increase the production capacity of its passenger car plant from 700,000 as at October 2009 to 1.1 million in 2010, and then gradually further expanding to 2.1 million and 2.3 million.

Beijing Automotive Group: Brings the annual production capacity for its own brands to 500K in 2011 with Saab based models at its center

  In December 2009, Beijing Automotive Group acquired the assets related to three passenger car models including production technologies from Saab. The Group has already started four development projects for its own brand models based on the Saab 9-5 2/3box and the Saab 9-3 3box/SUV, with a plan to develop a longer wheelbase model (Saab sends engineers to support the projects to Beijing Automotive Group from January 2010).
  Beijing Automotive Group plans to expand the annual production capacity for its own brand vehicles from 300,000 including lightweight commercial vehicles in 2010 to 500,000 in 2011 with Saab-based models at the core. Furthermore, the Company plans to introduce Beijing brand passenger cars in 2010 with the production and sales target of 50,000 in 2010, 100,000 in 2011 (among which Saab-based 2/3 box vehicles account 67,000 and off-the-road/SUV vehicles account 33,000) and 300,000 in 2015.
(Note)  Beijing Automotive Group and GM announced in December 2009 that Beijing Automotive Group would acquire a part of Saab's assets. The assets to be acquired were the intellectual property rights in the platforms and the powertrains of three models including the Saab 9-3/9-5 sedan, some molds and the complete set of production equipment to produce the Saab 9-5, which will be relocated to China.
■Starts building an exclusive plant for Saab-based models with annual production capacity of 150K at the end of 2010
  Beijing Automotive Group will start the construction of the own Beijing brand (Shunyi) Passenger Vehicle plant, which will produce own brand passenger cars such as Saab-based cars, in Shunyi District outskirt of Beijing city at the end of 2010. The first phase of the construction will be completed in 2010 with the annual production capacity of 150,000. (The Company also plans to build a powertrain plant for passenger cars under its own brand in February 2010 in Tongzhou District outskirt of Beijing city.)
  Beijing Automotive Group will start CKD assembly of two new models based on the Saab 9-5/9-3 in Beijing (at which plant the assembly will be operated is unknown) at the end of 2010, prior to the operation commencement of the own Beijing brand (Shunyi) passenger vehicle plant, and will release the models under its own brands. The Company plans to switch the assembly to full-scale production when the own Beijing brand (Shunyi) passenger vehicle plant starts the operation.

Beijing Automotive Group, New Energy Automobile: New plant that manufactures new energy vehicles with annual production capacity of 50K starts operation in 2011

  Beijing Automotive Group established its wholly funded new company Beijing Automotive Group, New Energy Automobile (Beijing Automotive Group, New Energy Automobile Co., Ltd.), which undertakes research and development, production and sales of new energy vehicles and their components. The new company plans to have an annual production capacity of 50,000 by the end of 2011 and has already started the construction of a new plant outside of Beijing city in October 2009. The new company aims o produce/sell 20,000 to 40,000 in 2011 and 100,000 in 2015 (among which EVs account 5,000 and HEVs account 55,000).
  The new company will mainly produce new energy commercial vehicles including large-sized buses initially. It will then gradually introduce HEV models in the forms of taxi models, the Luba that is its own brand SUV model and the Beijing 701 3box. The new company also plans to add EV passenger models to the lineup in the future (the Group released a mass-production model of the BE701 in November 2009, which is its first PEV sedan under its own Beijing brand).

Beijing Automobile Works: New plant in Hunan prov. with annual production capacity of 200K starts operation in 2010

  The annual production capacity at Beijing Automobile Works, which is a member company of Beijing Automotive Group and manufactures its own brand SUVs, as at October 2009 is 100,000 including lightweight and mid-sized commercial vehicles. The Beijing plant is currently undergoing renovation work to increase its annual production capacity of SUVs to 100,000 by 2011. The Zhuzhou new plant, which has annual production capacity of 200,000, is planned to start its operation in March 2010.
  Beijing Automobile Works in August 2008 started the first phase of the construction of the Zhuzhou plant of Hunan province (Beijing Automobile Works (Zhuzhou) Co., Ltd.) by jointly financing with Beijing Automotive Group. The annual production capacity at the new plant, which will be the Company's Southern base for production, will be 200,000 combining lightweight commercial vehicles, pickups, SUVs and MPVs. The new plant is scheduled to start its operation in March 2010.
(Notes) 1. In November 2008, Beijing Automotive Group increased its investment ratio in Beijing Automobile Works from 33.33% to 51% by acquiring shares from Beijing Automotive Assembly Factory in order to strengthen its own brand SUV business.
2. Beijing Automotive Assembly Factory is a private company that manufactures its own brand SUVs and mid-sized/light weight commercial vehicles such as the Qishi, a SUV model based on the Jeep 2500, after acquiring the production facility of the Jeep 2500 when Beijing Jeep Corporation Ltd. was incorporated into Beijing Benz Automotive. It had a 66.67% stake in Beijing Automobile Works.
3. Beijing Automotive Group is said to have started considering the construction of a production structure for mini vehicles in August 2009. The possible location is believed to be the Zhuzhou plant of Beijing Automobile Works.

Beiqi Foton Motor: Starts building a passenger car exclusive plant with annual production capacity of 200K with a view to export to Japan/USA/Europe

  Beiqi Foton Motor says it will establish a structure to produce 1 million per year for both commercial vehicles and passenger cars by 2012 (with a structure to produce engines). For the production structure of passenger cars, which has the annual production capacity of 90,000 as at October 2009, the Company intends to expand it to 300,000 after 2011.
(Note)  Beiqi Foton Motor sets out its objectives to sell over 4 million vehicles annually in or around 2020, and to establish its commercial vehicle business as the largest in the world and its passenger car business to have a global structure.
■Acquires 2 plants with total annual production capacity of 130K from Beijing Foton Eco-Power
  Beiqi Foton Motor acquired a plant in Changping District, Beijing city, to which the Company had consigned its production, from Beijing Foton Eco-Power (Beijing Foton Eco-Power Co., Ltd.) in June 2008 and reorganized it as Beijing MP-X Automotive Plant (non-independent corporation) in January 2009. Changping plant's annual production capacity is 60,000 of passenger cars (45,000 of the MPV model MP-X and 15,000 of the CDV model Midi) and 40,000 of the lightweight bus Foton Scenic.
  Beiqi Foton Motor in January 2009 acquired Foshan Nanhai Foton Motor Co., Ltd., which was a pickup plant and a wholly owned subsidiary of Beijing Foton Eco-Power and reformed it as Nanhai Automobile Plant (Beiqi Foton Motor Co., Ltd., Nanhai Automobile Factory). Nanhai Automobile Plant's annual production capacity of the pickup model SUP and the SUV model Foton Chuanqi is 30,000.
■Starts building a passenger car exclusive plant with annual production capacity of 200K with a view to export to Japan/USA/Europe
  Beiqi Foton Motor started the construction of its global passenger car exclusive plant (Beijing MPV Plant of Foton) in Miyun country, Beijing city in December 2009. The new plant's annual production capacity is 200,000. It will produce models such as the MP-X and the Midi including EV/HEV models from 2011. The Company plans to start export to Japan, the USA and Europe in 2012.

Beijing Hyundai Motor: Expands annual production capacity in 2010 to 600K with a plan to start building the 3rd plant

  Beijing Hyundai Motor (Beijing Hyundai Motor Co., Ltd.), a joint venture company with Hyundai Motor Company, sold 570,000 in 2009, which is nearly double of the sales in 2008 and aims to sell 670,000 in 2010. As the Company has been accelerating enhancement of its production structure, it will increase the annual production capacity of the second plant in Beijing that started its operation in 2008 from 200,000 to 300,000, totaling 600,000 when combined with the first plant.
  The Company will start the construction of its third plant in March 2010. The new plant's production capacity will be initially 300,000, which will be increased to 400,000 in the future (annual production capacity of 1 million when combined with the first and the second plants). The third plant will start its operation in 2012 with a plan to specialize in the production of SUVs. It is believed that the Company has started research and study of a fourth plant that will have an annual production capacity of 300,000 with a potential location being Beijing.

Beijing Benz Automotive: Expands the annual production capacity of the Beijing plant to 100K with a plan to make Fujian Benz Automotive as a branch plant

  Beijing Benz Automobile (Beijing Benz-DaimlerChrysler Automotive Co., Ltd.), which is a 50/50 joint venture with Daimler, has increased its Beijing plant's annual production capacity, which was 25,000 at the beginning of 2009, to 80,000 at the end of 2009 by revamping the assembly facility at the former Chrysler brand vehicle plant that was dormant as well as by establishing a production structure for the new E-class model. The Company plans to further expand the capacity to 100,000 in 2010 or later.
■Plans to reform Fujian Benz Automotive of which production plan at a standstill as Beijing Benz Automotive's branch plant
  Beijing Automotive Group is expected to acquire over 40% of shares of Fujian Benz Automotive (Fujian Daimler Automotive Industry Co., Ltd.) from Fujian Motor (Fujian Motor Industrial Group Co. (FJMG)) to incorporate it to its group and then to make it a branch plant of Beijing Benz Automotive. They are believed to be waiting for approval from the Chinese government as all the related companies have already agreed on the transfer of stocks and signed a MOU in August 2009 as well as an agreement in December 2009.
  The annual production capacity of Fujian Benz Automotive, which is said to have constructed a mass-production structure in February 2009, is 40,000 of the Viano/Vito. The Company will add the production of the Sprinter and increase the capacity to 60,000 gradually. The Company says it will export around 5,000 manufactured vehicles per year to India and South East Asian countries.
(Note)  The capital composition of Fujian Benz Automotive is Fujian Motor 50% and an investment company in Hong Kong, which is a joint venture company between Daimler and China Motor Corporation (Taiwan), 50%. Although Fujian Benz Automotive planned to start the production in September 2009, approval on the production from the Chinese government has not still been granted. The reorganization by Beijing Automotive Group is believed to resolve this difficult situation.

Guangzhou Automobile Group: Brings the annual production capacity to 900K at the end of 2010 with a plan to increase to 1.8 million in the future

  Guangzhou Automobile Group (GAC) in its five-year plan from 2006 to 2010 said it would construct an annual production capacity of 1.3 million vehicles by 2010 (announced in 2005). Furthermore, it announced in December 2009 that its planned annual production capacity for 2015 was 2 million (mini vehicles that are not introduced to the market at the present time are not included).

  As for its passenger car plant, the Group expands the annual production capacity, which was 750,000 as at October 2009, to 920,000 in 2010, aiming to further increase to 1.7 to 1.8 million gradually (including light commercial vehicles).

(Note)  The Group downwardly modified its production/sales target for 2010, which was 1.1 million in the five-year plan from 2006 to 2010 (vehicles under its own brands/Group's brands accounting 275,000 and commercial vehicles accounting 200,000), to 727,500 (including Hunan Changfeng Motor (Hunan Changfeng Motor Co., Ltd.) that was incorporated into the Group in November 2009) in the announcement made in December 2009.

Guangzhou Automobile Group: Establishes annual production capacity for its own brand vehicles of 200K in Guangzhou and 500K in Hunan province

  Guangzhou Automobile Group established GAC Passenger Vehicle (GAC Passenger Vehicle Co., Ltd.) as a subsidiary to produce GAC brand passenger cars in July 2008. Prior to the establishment, the Group started building an exclusive plant in Fanyu District, Guangzhou city in January 2008, which is scheduled to start its operation in 2010 with the annual production capacity of 100,000 (the annual production capacity will be increased to 200,000 eventually).
  The Group incorporated Hunan Changfeng Motor into its group through alliance with Changfeng Group (Changfeng (Group) Liability Co., Ltd.) in order to enhance its own brand passenger car business. The Group plans to build an annual production capacity of 500,000 jointly with Changfeng Group by 2014.
  Guangzhou Automobile Group is currently under negotiation with Gonow Auto (Zhejiang Gonow Auto Co., Ltd.) that manufactures pickups, mini vans and SUVs under its own brand on alliance that includes merging Gonow Auto into the Group and agreed on an initial framework towards the merger in July 2009.
■GAC brand passenger car plant: Starts operation in 2010 with an annual production capacity for finished vehicles of 100K
  The Fanyu plant of GAC Passenger Vehicle has an engine plant and a research and development facility. The investment totals 6.8053 billion Yuan with 3.8053 billion Yuan into the plants and 3 billion Yuan into the research and development facility. The annual production capacity at the plant upon completing the first phase of the construction is 100,000 finished cars and 100,000 engines. The planned capacity for the future is 200,000 finished cars and 250,000 engines.
■Partners with Changfeng Group to maintain the annual production capacity to 500K by incorporating Hunan Changfeng Motor into the Group
  In November 2009, Guangzhou Automobile Group formed a strategic alliance with Changfeng Group and acquired a 29% stake in Hunan Changfeng Motor (Hunan Changfeng Motor Co., Ltd.) from Changfeng Group, becoming the largest shareholder of the company and bringing the company into the Group (Changfeng Group is the second largest shareholder with a 21.98% stake in the company). Hunan Changfeng Motor changed its name to GAC Changfeng Motor (GAC Changfeng Motor Co., Ltd.) in November 2009.
  The two groups plan to make further investment of 10 billion Yuan in total during 2009 to 2014 to expand the annual production capacity at GAC Changfeng Motor from the current 100,000 to 500,000 (with a view to take over Anhui Yangzi Automobile that manufactures light commercial vehicles and passenger cars).
(Notes) 1. Mitsubishi Motors that holds 14.59% shares of Hunan Changfeng Motor is said to have been forced to choose either strengthening the local production business at GAC Changfeng Motor or resolving the capital partnership.
2. There are media reports in China that say Mitsubishi Motors has changed its strategy to import and sell SUVs while to produce passenger cars except SUVs at Soueast (Fujian) Motor (Soueast (Fujian) Motor Industrial Co., Ltd.), which is a joint venture company between Fujian Motor, China Motor (Taiwan) and Mitsubishi Motors.

Alliances with Toyota/Honda/Fiat: Expands annual production capacity to 720K at the end of 2010 with a planned future capacity of 1.13 million

  The joint ventures for passenger cars with Toyota, Honda and Fiat (all the joint ventures are 50/50 investment) have the annual production capacity reached 650,000 in total as at October 2009, expanding to 720,000 at the end of 2010. The capacity will then be increased to 1.02 million, aiming to bring it to 1.13 million in the future.
■GAC Toyota Motor: Expands the second line to increase the annual production capacity to 360K
  GAC Toyota Motor (GAC Toyota Motor Co., Ltd.: former Guangqi Toyota Motor Co., Ltd.) started the operation of the second line at the Nansha District plant in Guangzhou city in May 2009 (the construction started in June 2008) producing a SUV model the Highlander (2.7/3.5L). GAC Toyota Motor's annual sales in 2009 were 209,000 with an aim to sell 267,000 in 2010.
  The initial annual production capacity at the second line is 90,000 (Highlander 40,000 and Camry 50,000). As the sales were strong, GAC Toyota Motor started the construction work to expand the annual production capacity of the second line to 160,000 in August 2009, bringing the total annual production capacity when combined with the first line to 360,000. The annual production capacity of the second line is planned to be further enhanced to 200,000.
■GAC Honda Automobile: Doubles annual production capacity of second plant to 240K, constructing a structure to produce 480K/year
  The sales of GAC Honda Automobile (GAC Honda Automobile Co., Ltd.: former Guangzhou Honda Automobile Co., Ltd.) in 2009 increased by 19.4% compared to those of 2008 to 365,623 (the Accord 175,361, the City (Fengfan) 113,227, the Fit 48,640 and the Odyssey 28,395), exceeding the annual production capacity of 360,000. The target sales of 2010 are 386,000, also exceeding the annual production capacity.
  In December 2009, GAC Honda Automobile revealed that it would start the construction work to expand the Zengcheng plant located outskirt of Guangzhou in 2010. The annual production capacity at the Zengcheng plant will be doubled from the current 120,000 to 240,000 by increasing the number of facilities and cutting down the production time. This will expand the annual production capacity of GAC Honda Automobile from the current 360,000 to 480,000 when combined with 240,000 at the Huangpu plant in Guangzhou city.
■GAC Fiat Motor: Builds a passenger car plant in Changsha, Hunan province starting the operation in 2011 with annual production capacity of 140K
  GAC Fiat Motor (GAC Fiat Motor Co., Ltd.) in November 2009 started the construction of a new plant (which has an engine plant as well as a development center) in Changsha city, Hunan province. The annual production capacity after the completion of the first phase construction is 140,000 of passenger cars (220,000 engines). The plant will start its operation in 2011 to produce the mid-sized sedan Linea initially. The future plan for the annual production capacity is 250,000 (300,000 engines).
source: MarkLines Co., Ltd. Copyright(C)MarkLines Co., Ltd. All rights reserved.