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Engine production capacity in China by Japanese,
US, European and Korean automakers planned to reach 12 millionVW and GM plan over two million each, while Toyota, Mitsubishi,
Ford-Mazda and Hyundai over one million each

May 6, 2010 No.872
 

Index

 
VW considers an expansion of annual production capacity from 1.64 million to 2.25 million
PSA will expand the annual engine production capacity to 650,000 by the end of 2010
BMW will build the second passenger car plant accompanied by an engine plant, thus...
Fiat plans to establish a production system for 300,000 engines with GAC at Changsha, Hunan...
GM will boost its annual production capacity to 2.38 million in 2011 by expanding existing...
Ford-Mazda plans to build up a production system for over one million engines a year, as a...
Toyota's plan to construct a new complete car plant in Changchun and other locations...
Mitsubishi will expand its total engine production capacity from 1.05 million a year as of now to...
Honda enhanced production system in Wuhan, and eyes expansion of capacity to 890,000 in...
Nissan/Yulon aims a 680,000 engine production capacity starting with production of VQ...
Suzuki eyes expansion of production capacity to 600,000 engines a year at Jiangxi province...
Hyundai Motor initiated operations at the new plants in Beijing and Shandong province, while...

 

Executive Summary

  Among the 13.01 million engines produced in 2009, the production volume of passenger car engines by major Japanese, US, European and Korean auto manufacturers reached 6.492 million engines (4.55 million in 2008).

  According to a survey in March 2010, the combined production capacity of passenger car engines by major Japanese, US, European and Korean auto manufacturers counted 9.065 million. In comparison to a former survey made in mid 2007, which gave a total of 5.855 million, the capacity recorded by this survey grew by around 54%.

  Incidentally, combining the expansion plans announced by companies, an annual production capacity of over 12 million is expected to be reached by 2015. Looking at figures by company, VW plans 2.25 million, GM 2.38 million, Ford-Mazda 1.34 million. Among Japanese auto manufacturers, Mitsubishi plans 1.25 million and Toyota 1.00 million, while Korea based Hyundai Motor plans 1.10 million.


  The following outlines the engine production system by these foreign-capital and joint venture auto manufacturers in China.

The annual production capacity of passenger car engine plants by Japanese, US, European, and Korean auto manufacturers and 2009 production results in China

Engine manufacturer, Plant Location of
main plant		 Annual Production Capacity
(in 1,000 units)		 Production Volumes (unit)
as of
March
2010		 Expansion plan 2008 2009
total total gasoline diesel
Shanghai
VW		 Existing line Shanghai 350 450 323,275 355,191 355,191  
EA888 line 180 300 The production system for
300,000 engines will be
arranged by March 2011.
Shanghai VW Powertrain 300 600 148,912 343,916 343,916  
FAW VW EA111 plant Changchun 300 300 The plant started operations
in February 2010.
Existing
plant		 300 300 485,907 670,926 652,255 18,671
VW FAW Engine Dalian 210 300
VW, Audi total 1,640 2,250 958,094 1,370,033 1,351,362 18,671
Dongfeng-
Peugeot-
Citroen
Automobile		 Xiangfan
plant		 Xiangfan 600 650 175,430 290,680 290,680  
PSA total 600 650 175,430 290,680 290,680  
BMW
Brilliance
Automotive		 The second
plant		 Shenyang 0 100 An engine plant will be attached
to the second passenger car
plant in Shenyang.
The construction will begin in 2010,
and the new plant is planned
to start operations in 2012.
BMW total 0 100
GAC Fiat
Automobile		 Changsha
plant		 Changsha 0 220 →300 The plant construction started
in November 2009.
It is planned to start operations
with an annual production
capacity of 220,000
in September 2011 at the earliest.
Fiat total 0 220 →300
*SAIC-GM-
Wuling
Automobile		 Liuzhou
main plant		 Liuzhou 350 500 179,386 555,622 555,622  
Qingdao
plant		 Qingdao 350 350
Liuzhou
new plant		 Liuzhou 0 525 The plant construction started in
March 2010, and will be completed
by the end of the same year.
Shanghai GM
Dong Yue Powetrain		 Yantai 660 750 293,868 453,010 453,010  
Shanghai
GM		 Jinqiao
plant		 Shanghai 255 255 247,412 214,105 214,105  
GM total 1,615 2,380 720,666 1,222,737 1,222,737  
Changan Ford-Mazda Engine Nanjing 350 500 →750 71,949 172,290 172,290  
Changan
Ford-Mazda
Automobile		 Main plant
of Chongqing		 Chongqing 200 200 115,176 142,769 142,769  
New plant
of Chongqing		 0 150 The plant will be built and attached
to the new passenger car plant
in Chongqing which has a
maximum annual production
capacity of 300,000 cars.
*FAW Car The second
engine plant		 Changchun 150 200 →240 124,342 142,652 142,652  
Ford, Mazda total 700 1,050→1,340 311,467 457,711 457,711  
FAW Toyota (Changchun)
Engine		 Changchun 130 130 95,026 75,651 75,651  
Tianjin FAW
Toyota Engine		 The first
plant		 Tianjin 150 150 312,362 300,739 300,739  
The second
plant		 220 220
GAC Toyota Engine
(Guangqi Toyota Engine)		 Guangzhou 500 500 309,806 361,407 361,407  
Toyota total 1,000 1,000 717,194 737,797 737,797  
Harbin Dong'an
Automotive Engine		 Harbin 650 650 332,358 479,090 479,090  
Shenyang Aerospace
Mitsubishi Motors Engine		 Shenyang 400 600 106,171 165,095 165,095  
Mitsubishi Motors total 1,050 1,250 438,529 644,185 644,185  
Dongfeng Honda Automobile Wuhan 240 300 →480 165,295 208,131 208,131  
Dongfeng Honda Engine Guangzhou 360 360 308,295 364,830 364,830  
Honda Automobile (China) 50 50 n.a. n.a. n.a.  
Honda total 650 710 →890 473,590 572,961 572,961  
Dongfeng Nissan
Passenger Car		 Guangzhou 360 480 296,040 450,986 450,986  
Dongfeng Yulon
Automobile		 Hangzhou 0 200 The plant is planned to start
operations in 2011 at the earliest.
Nissan, Yulon total 360 680 296,040 450,986 450,986  
*Changhe Suzuki
Automobile, etc.		 Jiujiang 150 300 55,176 69,431 69,431  
Changan Suzuki Automobile Chongqing 200 300 102,557 145,391 145,391  
Suzuki total 350 600 157,733 214,822 214,822  
Beijing
Hyundai
Motor		 The first
plant		 Beijing   300 300 301,668 530,098 530,098  
The second
plant		 200 200
Dongfeng Yueda Kia Yancheng Over 200 Over 200 n.a. n.a. Details have yet
to be announced.
Waiya
Automotive
Engine		 Existing
plant		 Rizhao 100 100 n.a. n.a. Production in 2007
counted 50,060.
The second
plant		 300 300 The plant began
operations
in July 2008.
The third
plant		 0 n.a. Construction has already began.
Hyundai Group total Over 1,100 Over 1,100 301,668 530,098 530,098  
Inclusive sum Over
9,065		 Over 11,990
→
Over 12,540		 4,550,411 6,492,010 6,473,339 18,671
(Notes) 1. Figures for manufacturers marked with (*) include engines with the Chinese manufacturer's own brand.
2. The expansion plans are based on each company's announcement or reports from major publishers as of March 2010. Figures on the left side of the arrow (→) shows the first step of the expansion plan, and the right side for the next step.

 

Production of engines for automobile in China (reference)

  Production volume of
car engines (unit)		 Production volume
of vehicles (unit)
2008 2009 2008 2009
Disel engine Passenger car 2,348,793 3,051,301 53,405 81,367
Commercial vehicle 2,086,361 2,772,434
Gasoline engine Passenger car 6,086,034 9,140,179 6,551,296 10,057,666
Commercial vehicle 472,742 629,005
Others Passenger car 5,679 6,512 0 62
Commercial vehicle 1,537 5,035
Domestic production total (1) 8,440,506 12,197,992 9,165,341 13,545,569
Import KD engine Passenger car 604,402 813,550 133,044 244,736
Commercial vehicle 795 689
Total (2) 604,402 813,550 133,839 245,425
Total (1) + (2) 9,044,908 13,011,542 9,299,180 13,790,994

Production of passenger cars in China by displacement (2008 to 2009, for your reference)

 (unit)
Displacement Domestic production Import KD engine total
2008 2009 2008 2009 2008 2009
1,000cc or less 700,519 1,284,753 0 0 700,519 1,284,753
1,000cc to 1,600cc 3,491,928 5,975,544 874 16,731 3,492,802 5,992,275
1,600cc to 2,000cc 1,590,974 1,875,072 58,068 110,780 1,649,042 1,985,852
2,000cc to 2,500cc 716,451 857,612 55,142 103,170 771,593 960,782
2,500cc to 3,000cc 93,357 136,349 20 6 93,377 136,355
3,000cc to 4,000cc 11,027 9,699 13,741 11,888 24,768 21,587
Over 4000cc 445 66 5,199 2,161 5,644 2,227
Total (Passenger car) 6,604,701 10,139,095 133,044 244,736 6,737,745 10,383,831

(Note) Figures include the numbers of diesel engines.


VW considers an expansion of annual production capacity from 1.64 million to 2.25 million

  VW started operations of the new Changchun engine plant of FAW-VW in February 2010, and put the new Shanghai engine line of Shanghai VW into operation in March 2010. Consequently, the passenger car engine production capacity of VW in China reached around 1.64 million a year. Moreover, VW currently has a scheme to boost the capacity to 2.25 million.

FAW-VW started operations of its new EA111 engine plant establishing an annual production capacity of 300,000 engines.

  FAW-VW started operations of the new Changchun plant for VW's EA111 series engines in February 2010 (the construction started in 2007). The 1.4TSI engine was first put on the volume production line. Accordingly, FAW-VW switched the EA111 engines, which had been procured from Shanghai VW Powertrain, a joint engine plant of SAIC Motor and VW located in Jiading District, Shanghai, to those produced in-house.
  The new engine plant has an annual production capacity of 300,000. Combined with existing engine plants, the production system expanded to 600,000 a year. The 1.6L MPI engine of EA111 series will be put on the new plant's line additionally.

Shanghai VW started operations of its line to produce EA888 engines, along with the plan to establish production system for 750,000 engines a year by March 2011.

  Shanghai VW completed the first stage modification of the engine plant attached to the Shanghai plant in March 2010, where the company launched the new line for EA888 series engines, actually starting with 1.8TSI version engines. The 2.0TSI version will be additionally produced there.
  The new line has an initial production capacity of 180,000 a year. With existing engine production lines (capacity of 350,000), combined capacity was boosted to 530,000. By March 2011, the company will finish the second stage expansion of the new engine line to raise the EA888 series engine production capacity to 300,000 a year. Thus, enhancing other existing lines, the company plans to build up a production system with annual capacity of 750,000 engines.

Dalian and Shanghai engine exclusive plants will have an annual production capacity of 900,000 in total. Of them, Shanghai accounts for 600,000.

  VW has a policy to expand the production system of the engine exclusive plants in China. The annual capacity of Volkswagen FAW Engine, an engine exclusive plant in Dalian, Liaoning province which started operations in 2006, is under the construction for capacity expansion from 210,000 to 300,000.
  On the other hand, Shanghai VW Powertrain, an engine exclusive plant in Loutang in the surburbs of Shanghai, started second stage plant construction in 2008. The plan was to complete the construction by the end of 2010, to double the production capacity for the EA111 series engines (1.4/1.6L MPI and 1.4 TSI versions) from current 300,000 to 600,000 a year. (The current progress situation has yet to be revealed.)

 

■FAW-VW and Shanghai VW plan to build passenger car assembly plants in Guangdong province with capacity of 200,000 a year for each.

  VW, through each of its joint ventures (FAW-VW and Shanghai VW), considers construction of passenger car assembly plants adjacent to each other, in Guangdong province investing a total of over four billion Euro. (Shunde city is the leading candidate while Nanhai city and Dongguan city are following.)
  The passenger car production capacity of both plants are planned to be 200,000 each. The construction will begin in 2011 at the earliest and start operations in 2013. The branch plant of Shanghai VW will produce VW/Skoda brand cars, and the branch of FAW-VW VW/Audi brand cars. (Manufacturing SEAT brand cars will be considered in the future.)

 

■A production system for DSG transmissions in Dalian will be built with annual production capacity of 300,000, which will be expanded to 500,000 by the end of 2012.

  VW plans to arrange a production system for DSG (direct shift gear box) transmissions in China with the production capacity of over 500,000 a year by the end of 2012.
  VW started operations of Volkswagen AT (Dalian) Co., Ltd., a plant for DSG transmissions fully owned by VW on the adjacent site of VW FAW Engine at the beginning of 2009 (the construction began in November 2007), first putting DSG DQ200 transmissions on the production line. The production system is capable of 300,000 DSG transmissions a year and the products are supplied to Shanghai VW and FAW-VW.

(Note) DSG is VW's trade name for the dual clutch transmissions.

VW's strategy pushes down-sizing of engines and technological development of next generation powertrain to promote better fuel efficiency and more effective utilization of resources.

  As a matter of main strategy for China in 2009, VW plans to further promote the powertrain strategy, which the company conducted since 2007, focusing on the penetration of TSI engines and DSG transmissions. The company has set a target to reduce the fuel consumption and emission gases of every model which VW sells in China by 20% by the end of 2010.
  Additionally, toward the development of powertrain technologies in the future, VW promotes down-sizing of engines mounted on all models of VW group sold in China and introducing TFSI/TDI engines, VW's BlueMotion technologies and Skoda's GreenLine technologies, to strive for efficient utilization of resources and fuel efficiency.

  Moreover, VW plans aggressive development of next-generation powertrain technologies such as hybrid, twin drive (VW's concept for the plug-in hybrid), electric driving systems, etc., based on existing major volume production models led by the Lavida and Golf, to replace conventional internal combustion engine systems. (VW will reportedly start production of EVs in China in 2013.)

PSA will expand the annual engine production capacity to 650,000 by the end of 2010

  PSA, as of the end of March 2010, arranged an annual production capacity of 600,000 at the Xiangfan power train plant of Dongfeng-Peugeot-Citroen Automobile, a joint venture with Dongfeng Motor Group. The capacity will be further raised to 650,000 by the end of 2010.

  Further expansion plans have yet to be announced for engines, but the company is considering enhancing the production system of passenger cars, which is jointly operated with Dongfeng Motor Group, to 900,000 by constructing a new plant. In addition, the PSA reportedly restarted the negotiation with Changan Automobile Group, which had made Hafei Motor a subsidiary, to establish a joint plant for light vehicles with a capacity of 200,000 in Guangdong province, thus alluding to further possible expansion of engine production capacity in the future.

Xiangfan powertrain plant expands to increase the production capacity

  PSA began the second stage construction to expand its own powertrain plant of Dongfeng-Peugeot-Citroen Automobile in Xiangfan in January 2007.

  The annual engine production capacity of the plant increased from 300,000 to 400,000 in March 2008, and to 450,000 at the end of 2008. The capacity was 600,000 as of March 2010, and will further expand to 650,000 by the end of 2010

BMW will build the second passenger car plant accompanied by an engine plant, thus establishing the engine production capacity to 100,000 a year

  BMW has never built engines in China but imported all the engines for the BMW 3/5 series produced at BMW Brilliance Automotive, while the company announced expanding the plant of BMW Brilliance Automotive in November 2009. An engine plant was included in the plan to be attached to the second (new) passenger car plant which will start operations in 2012.

  BMW is believed to establish an annual engine production capacity of 100,000 by the end of 2012.

BMW Brilliance Automotive will build the second passenger car plant with an engine plant attached, thus structuring the engine production system.

  BMW agreed with Brilliance Automobile Group on the second stage plant expansion of BMW Brilliance Automotive and signed the conference document in November 2009.
  The second stage expansion covers increasing the annual production capacity of existing plant in Dadong district of Shenyang, Liaoning province from 41,000 to 75,000 by the end of 2010, and newly constructing a plant accompanied by an engine plant in Shenyang Economic & Technical Zone. The annual production capacity of the engine plant will reportedly be arranged to reach 100,000 by the end of 2012.
  The construction (total investment is worth over five billion RMB) will begin in 2010, and the new plant is planned to start operations in around 2012. The passenger car production capacity of the new plant will be initially 100,000 a year. Accordingly, BMW Brilliance Automotive will have an annual production capacity of 175,000 in 2012, combined with the capacity of existing passenger car plant (75,000 after the expansion).

  BMW is expected to raise the passenger car production capacity of BMW Brilliance Automotive further to 300,000 a year. At the new plant, the 3/5 series, volume production models of existing plants, will be built, while production of the 7 series, X3 and Mini brand models are studied to be added.

Fiat plans to establish a production system for 300,000 engines with GAC at Changsha, Hunan province

  Fiat canceled the joint business tie-up contract with Nanjing Automobile Group (currently a subsidiary of SAIC Motor) and liquidated the manufacturing business of passenger cars and engines for them at Nanjing.

  Fiat newly established a contract with Guangzhou Automobile Group (GAC), and started the first stage construction of GAC Fiat Automobile which is a joint venture for passenger cars accompanied by an engine plant at Changsha, Hunan province, in November 2009. The scheme is to establish a production system for 220,000 engines a year in 2011, and to increase the annual capacity to 300,000 in the future.

Fiat began construction of the Changsha plant with an engine plant attached, as a joint venture with GAC, to establish a production system for 300,000 engines.

  Fiat started the construction of the plants of GAC Fiat Automobile, a joint venture equally owned by Fiat and GAC, which has an attached engine plant and a development center in Changsha Economic & Technical Development zone, Hunan province, in November 2009.
  The first stage construction of the joint plants (site area of 700,000 square meters) will be finished in around September 2011, to establish an annual production capacity of 220,000 engines and 140,000 passenger cars. Further, through the second stage construction, the capacity will be raised to 300,000 engines and 250,000 passenger cars.
  The operation of the joint plants will be initiated by the production of the Linea, a medium-sized Fiat sedan, and the Fire (T-Jet), a 1.4L turbo charged gasoline engine of FPT (Fiat Powertrain Technology) which is an engine manufacturing subsidiary of Fiat.
  Incidentally, the transmission coupled to the in-house engine of GAC Fiat Automobile will be the new 6-speed DDCT transmission (C635) of FPT manufactured at Hangzhou Iveco Automotive Transmission, a joint plant of Iveco, in Hangzhou, Zhejiang province.

(Note) DDCT is an acronym for Dry Dual Clutch Transmission.


GM will boost its annual production capacity to 2.38 million in 2011 by expanding existing plants and constructing new plants

  In March 2009, GM started operations of the Qingdao engine plant, and in May the same year, enhanced the Yantai engine exclusive plant, to attain a production system for around 1.615 million engines a year.

  The company plans construction of a new engine plant at Liuzhou and reinforcing existing plants in the future, to raise the annual production capacity in China to 2.38 million by the end of 2011.

SAIC-GM-Wuling Automobile plans to establish an annual production system for 1.375 million engines combining Liuzhou and Qingdao plants.

  SAIC-GM-Wuling Automobile, a joint venture with SAIC Motor and Liuzhou Wuling Automobile, funded by GM 34%, started operations of an engine plant attached to the Qingdao branch plant in Shandong province in March 2009 to establish an annual production capacity of 350,000 engines. The Qingdao engine plant manufactures the small-sized engines and others, of which development was led by GM Daewoo Auto & Technology (local content of the components accounts for 70%). The products are supplied for the Wuling Sunshine, Wuling Hongtu and the Wuling Rongguang, in-house mini-sized vans, and for the Chevrolet Spark, a small-sized hatchback.
  SAIC-GM-Wuling Automobile began the construction to expand its main plant at Liuzhou in August 2009. The plant expansion (required total investment of 2.1 billion RMB) includes the expansion of the East plant (complete vehicle plant) in Liuzhou and the second stage construction of the attached engine plant. Either plant is planned to complete in 2011. Consequently, the engine plant located in the site of main plant of SAIC-GM-Wuling Automobile will increase the annual production capacity from ongoing 350,000 to 500,000. (While the complete vehicle production capacity of the East plant will expand from the ongoing 200,000 to 300,000.)
  Additionally, in March 2010, SAIC-GM-Wuling Automobile revealed plans to invest around 4.35 billion RMB to construct a complete vehicle plant and a parts plant for passenger cars including engines and the components for them, a parts logistic center, etc. at the Liuzhou Hexi Industrial Park in Liuzhou city. The new engine plant will have an annual production capacity of 525,000, and will be completed by the end of 2010.

Yantai engine plant added the production of Ecotec series engines, expanding the production capacity to 660.000 engines a year.

  GM additionally started production of 1.6L and 1.8L versions of Ecotec series, GM's global four-cylinder engines, at Shanghai GM Dong Yue Powertrain which is a joint powertrain plant with SAIC Motor in Yantai in May 2009. Combined with engines ever produced (1.4 to 1.6L DOHC series), the number of volume production engine-models at Shanghai GM Dong Yue Powertrain increased to 18.
  The new engine production system raised the annual engine production capacity at Shanghai GM Dong Yue Powertrain to 660,000 (other than over 300,000 ATs). The expansion is planned to finalize with a production system for 750,000 engines a year.

GM announced its powertrain strategy for China in March 2009.

  GM announced its powertrain strategy in China in March 2009, stating its endeavor to save energy and to reduce exhaust emission gasses. In the next several years, GM will introduce 1.6L Ecotec new direct-injection turbo-engines, 6-speed ATs and others to spread the usage across the Chinese market.
  GM plans to install the 1.6L new Ecotec turbo-engines in the Chevrolet Cruze which will be built at Shanghai GM (Shenyang) Norsom Motors, a joint passenger car plant in Shenyang, and in the new Buick Regal produced at a joint passenger car plant in Shanghai since August 2009 as an additional engine, as well as in many models which will be sold in China in the future.

  With respect to the introduction of environmentally friendly vehicles to China, GM will continuously release models with mild hybrid system, 2-mode hybrid system and the like. In 2011, the company plans to launch a plug-in hybrid model, the Volt.

Ford-Mazda plans to build up a production system for over one million engines a year, as a total capacity of Chongqing, Nanjing and Changchun plants

  Ford-Mazda currently has an annual production capacity of 700,000 engines combining the capacities of Changan Ford Mazda Engine, the engine plant attached to the main plant in Chongqing and FAW Car.

  In the future, through the construction of the new plants and expansion of the facilities at each production base, the production system is expected to exceed one million in terms of annual production capacity of engines.

Construction of an engine plant attached to the passenger car plant in Chongqing

  Fiat and Changan Automobile announced, in May 2009, a plan to construct a new passenger car plant in the new northern area of Chongqing (Pingchang Industrial Park, Yuanyang town), which will be the third plant of Changan Ford Mazda Automobile. The attached new engine plant will reportedly have an annual production capacity of 150,000 for the initial operation.
  The new passenger car plant has a site area of around 1.33 million square meters, and planned to have an annual production capacity of over 300,000 cars. The plant will mainly produce Ford brand-exclusive luxury cars including SUVs and crossovers.
  Changan Ford-Mazda Engine, an engine exclusive plant in Nanjing, previously announced a plan to gradually raise the annual production capacity (which was 350,000), to 500,000 by the second stage expansion and to 750,000 by the third stage construction. However, current progress has yet to be revealed.

FAW Car upgraded the production capacity of Mazda version engines to 150,000 a year.

  The engine plant in Changchun of FAW Car (so called the second plant, FAW Car Co., Ltd.), which undertakes CKD production of Mazda version engines, spent around 1.1 billion RMB in late years in modifying the plant and accomplished a production system for 150,000 engines a year. The plant mainly manufactures engines specified by Mazda for the first generation of Mazda 6 and Besturn B50. Further, the plant plans to increase the production capacity to 200,000 and then to 240,000 gradually through the construction of a new engine plant for its own brand car models such as the Hongqi, Besturn and others.
(Note)

FAW Car does not manufacture engines except those for the first generation of Mazda6 (Atenza) for the moment. Engines for the Shengshi (former name was HQ3, based on Toyota Majesta), which is positioned above the Hongqi with its own brand, are imported from Toyota, and the engines for the second generation of Mazda6 (new Atenza) and B70 from Mazda.

Toyota's plan to construct a new complete car plant in Changchun and other locations suggests further expansion of the engine production system which currently has a capacity of one million a year

  Toyota has already accomplished a production system for one million engines a year in China as the total production capacity of FAW Toyota (Changchun) Engine which is an engine exclusive plant as a joint venture with FAW Group, Tianjin FAW Toyota Engine which is an engine exclusive plant in Tianjin and GAC Toyota Engine which is also an engine exclusive plant in Guangzhou as a joint venture with Guangzhou Automobile Group (GAC).

  A new complete car plant in Changchun with a production capacity of 200,000 is planned by Sichuan FAW Toyota, a joint venture with FAW Group. And another new plant for small-sized passenger cars is planned with a candidate location of East-China area in the neighborhood of Shanghai. Consequently, further expansion of the engine production system is expected in the future.

Guangzhou engine plant started supplying AZ series engines to the passenger car plant in Tianjin for the RAV4 in 2009

  GAC Toyota Engine at Nansha district in Guangzhou city, an engine exclusive plant jointly operated with Guangzhou Automobile Industry Group, started supplying AZ series engines for RAV4 produced at Tianjin FAW Toyota in March 2009. The AZ series engines are also supplied for the Camry produced at GAC Toyota, a joint venture with Guangzhou Automobile Group.

  The accumulated total of AZ series engine production at GAC Toyota Engine reached one million in July 2009. The engines are exported for models Toyota manufactures outside China such as the Camry, RAV4, Estima (Previa), Ipsum, Xb, Mark X Zio, and so on.

Mitsubishi will expand its total engine production capacity from 1.05 million a year as of now to 1.25 million in 2010 by expansion of the joint engine plant in Shenyang

  Mitsubishi upgraded the joint engine exclusive plant in Shenyang, Liaoning province, to have an annual capacity of 400,000 engines in June 2009. Combined with the joint engine exclusive plant in Harbin, the total capacity reached 1.05 million. Further expansion is planned to attain a capacity of 1.25 million by the end of 2010.

  Incidentally, the joint plant in Harbin started production of ATs in February 2010, and plans to increase the AT production capacity to 300,000 a year in 2015.

The joint engine plant in Shenyang reinforced the production system for the Mitsubishi A9 series engines to furnish the system with a capacity of 300,000 a year

  Shenyang Aerospace Mitsubishi Motors Engine, a joint engine plant of Mitsubishi in Shenyang (Hunnan) brought the Mitsubishi A9 series compact VVT engines (model 3A9 with 1.1L displacement and model 4A9 with 1.3/1.5/1.6L displacement) into production in June 2009. The production capacity of the A9 series new engines which comply with Euro4 emission standards is 100,000 in total. Combined with a capacity of 300,000 for existing Mitsubishi 4G6 series engines (2.0L 4G63MIVEC/4G63 and 2.4L 4G69MIVEC/4G64), Shenyang joint engine plant increased the production capacity to 400,000 a year.
  Mitsubishi plans to increase the capacity for Mitsubishi A9 series engines at Shenyang Aerospace Mitsubishi Motors Engine by another 200,000 to 300,000 a year by the end of 2010. Among them, up to 40% of 1.3/1.6L engines are planned to be exported to Asian market (including 150,000 for Japan).

Harbin joint engine plant has an engine production capacity of 650,000, where AT plant started operations

  Harbin Dongan Auto Engine, a joint engine plant in Harbin funded by Mitsubishi Motors 15.3%, operates with a total capacity of 650,000 a year for gasoline engines with a displacement of 1.3 to 2.0L. The capacity consists of 500,000 4G1 series engines (1.3/1.5/1.6L) including 4G15MIVEC turbo versions and 150,000 4G9 series engines (1.8/2.0L). Among them, some 1.3 to 2.0L engines are coupled to the F5M41 series MTs, and some 1.3 to 2.4L engines to the 4-speed/5-speed ATs.

  At the joint engine plant in Harbin, the first stage construction of an automotive AT plant was completed and started production of 4-speed/5-speed ATs in February 2010 (construction began in May 2008). The new AT plant has an annual production capacity of 150,000 ATs for the initial stage of operation. Combined with existing MT plant (capacity of 400,000), total transmission production capacity boosted to 550,000 a year. Mitsubishi plans to expand the annual transmission production capacity to 700,000, through the second stage construction of the AT plant (construction will begin in 2014 and complete in 2015) to raise the AT production capacity to 300,000 a year.

Honda enhanced production system in Wuhan, and eyes expansion of capacity to 890,000 in the medium run

  Honda reinforced the engine production capacity of the powertrain plant attached to the passenger car plant in Wuhan in May 2009 and raised the capacity again to 240,000 at the beginning of 2010. Combined with Dongfeng Honda Engine, a joint engine exclusive plant in Guangzhou, and the engine plant attached to Honda Automobile (China) Co., Ltd., a joint export exclusive passenger car plant, total engine production capacity in China reached 650,000 a year. Honda's scheme is to boost the capacity through the expansion of an attached plant in Wuhan to 710,000, and then to 890,000 in the medium term.

Honda considers enhancement of production system at Wuhan engine plant to furnish it with an annual capacity of 240,000 at the beginning of 2010, and further to 480,000 later

  Honda completed construction of the powertrain plant attached to the joint passenger car plant in Wuhan (Dongfeng Honda Automobile) in May 2009 to set the KD engine production capacity at 200,000 a year. At the beginning of 2010, Honda raised it to 240,000. Continuing expansion of the plant, the company plans a capacity of 300,000 in around 2012, and subsequently to 480,000.

  Incidentally, the plant produces engine components such as cylinder blocks, cylinder heads and the like using the flexible manufacturing system.

Nissan/Yulon aims a 680,000 engine production capacity starting with production of VQ engines at Guangzhou

  Nissan started operations of Guangzhou engine plant attached to the main plant of Dongfeng Nissan Passenger Vehicle in February 2006, reinforced the plant to the capacity of 360,000 as of December 2009 and plans another expansion to 480,000 by the end of 2010.

  On the other hand, Yulon Motor is constructing an engine plant at Dongfeng Yulon Automobile in Hangzhou, Zhejiang province which is a joint venture with Dongfeng Motor. The company plans to establish an annual engine production capacity of 200,000 in Hangzhou in 2011 at the earliest.

  Nissan has not revealed its plan to expand engine production capacity, while the company plans to boost the production capacity of Guangzhou and Xiangfan passenger car plants to 700,000 a year in total. Combined with its new passenger car plant with a capacity of 300,000 which is reported to be under consideration, Nissan is eyeing an annual production of one million passenger cars in China.

Nissan will raise the engine production capacity at Guangzhou engine plant to 480,000 by the end of 2010

  The engine plant attached to the Guangzhou main plant of Dongfeng Nissan Passenger vehicle (began construction in 2004 and started operations in February 2006) completed the first stage construction to arrange a production system for 360,000 engines a year in December 2009. Dongfeng Nissan Passenger Vehicle plans to raise the capacity from 360,000 to 480,000 completing the second stage construction by the end of 2010.
  Incidentally, Dongfeng Nissan Passenger Vehicle started volume production of the VQ engine, Nissan's leading engine, in December 2009 at Guangzhou engine plant where Nissan HR and MR engines are manufactured. This enriched the engine line up supplied in China.

Yulon Motor plans to set up an engine production system for 200,000 a year at the joint passenger car plant in Hangzhou

  Yulon Motor is constructing a passenger car plant (construction began in 2008), to which an engine plant and a development center are attached, at Dongfeng Yulon Automobile (establishment approved in November 2009 and equally owned by Yulon Motor and Dongfeng Motor) located in Xiaoshan Linjiang Industrial Park, in the suburbs of Hangzhou city, Zhejiang province. The plant is expected to start operations in 2011 at the earliest with the initial annual production capacity of 200,000 engines and 120,000 passenger cars. After completion of the first stage construction, the capacity for passenger cars will be raised to 240,000.

  The building of engine plant completed in September 2009. For the moment, stamping, welding, painting, assembling, general testing and inspection facilities for passenger car production are under construction. At an initial stage of operation, one model for each of the SUV, MPV, passenger car (2/3 box car) with Yulon Motor's own brand will be put on the production line. Finally the product line up will be enriched with A, B, C and D class passenger cars including EVs.

Suzuki eyes expansion of production capacity to 600,000 engines a year at Jiangxi province and Chongqing

  Suzuki will expand the annual engine production capacity of Chongqing engine plant attached to Changan Suzuki Automobile from the current 200,000 to 300,000. Suzuki plans expansion of the engine production capacity from 150,000 to 300,000 at the engine plant attached to the Jiujiang plant (located in Jiangxi province) of Changhe Suzuki Automobile, a joint venture with Changhe Automobile which was reorganized under Changan Automobile Group, and is considering an increase of annual production capacity in China from 350,000 to 600,000 engines.

The engine plant in Jiangxi province will start supplying the K14B engines to auto manufacturers other than Suzuki in China

  Suzuki's Juijiang engine plant in Jiangxi province will start supplying K14B (displacement 1,372cc), one of Suzuki's global strategic engine to the auto manufacturers other than Suzuki in China in 2010.

  The K14B engine delivers maximum power of 67kW and Maximum torque of 112Nm, and has been installed in the Beidouxing (Wagon R+) of Changhe Suzuki Automobile (a partner of Suzuki) and in the Ideal 2 of Changhe Automobile.

Hyundai Motor initiated operations at the new plants in Beijing and Shandong province, while further enhancement raises the capacity over 1.10 million a year

  Hyundai Motor started running of the second engine plant attached to Beijing Hyundai Motor at the end of 2008 and also the second plant of the joint engine company in Rizhao city, Shandong province in October 2009, and raised the annual capacity of production to 500,000 and 400,000, respectively. Combining with the engine plant (in Jiangsu province) owned by Kia, a subordinate business of Hyundai, the group's annual capacity reached 1.10 million engines.

  Additionally, since the third plant is under construction at a joint engine company in Rizhao city, Shandong province, further capacity increase is expected.

Hyundai Motor initiated operations at the new plants in Beijing and Shandong province, while further enhancement raises the capacity over 1.10 million a year

  Hyundai Motor started operations of the second Beijing (new) engine plant attached to the Beijing joint passenger car plant at the end of 2008 (construction began in May 2006) to newly add the capacity of 200,000 engines a year. Combined with the existing (the first) engine plant (capacity of 300,000) in Beijing, Hyundai Motor's annual engine production capacity in Beijing reached 500,000.
  The company produces 1.4/1.6L Alpha 2 series engines at two engine plants in Beijing as well as 1.8/2.0L Beta series engines at the first plant. The engines produced at Beijing plants are supplied also to Dongfeng-Yueda-Kia Motors, a joint passenger cars plant of Kia in Hyundai group in Yancheng, Jiangsu province.
  In the meantime, the Beijing engine plant produces 2.7L Delta engines with components imported from Korea, as well as engine components such as crank shafts, cylinder blocks, cylinder heads, etc.

A new plant at the engine plant in Shandong province started running expanding the capacity to 400,000 a year

  Weiya Automotive Engine (Shandong) Co., Ltd., a joint engine company in Rizhao, Shandong province, funded 70% by Hyundai group including Hyundai Motor started operations of the second (new) plant in July 2009 (construction began in July 2008) to produce 1.4/1.6L Gamma series engines. The company completed the construction of the second plant in October 2009 and boosted the production capacity from 100,000 to 400,000 a year combined with existing first plant (started operations in March 2007).
  The products are supplied to Dongfeng-Yueda-Kia Motors as well as exported to Russia, India. Turkey and other countries same as the first plant which produces 1.4/1.6L Alpha series engines. In the future, 2.0/2.4L Theta series engines will be additionally produced for the joint plants of Hyundai Motor and Kia in China (Beijing Hyundai Motor and Dongfeng-Yueda-Kia Motors, respectively).
  Weiya Automotive Engine eyes further expansion of the engine production capacity through the third plant construction (already began in January 2010) (details have yet to be revealed.).

 
source: MarkLines Co., Ltd. Copyright(C)MarkLines Co., Ltd. All rights reserved.