China Auto Elec   

China Auto Electronics Group Ltd

CHINA AUTO ELECTRONICS GROUP LIMITED
Part 1 - Information required for announcements of quarterly (Q1, Q2 & Q3), half-year and full year results.
1(a)(i)
THIRD QUARTER
FY2009 FY2008 FY2009 FY2008 FY2009 FY2008
Q3 ended
30/9/09
Q3 ended
30/9/08 % change
Q3 ended
30/9/09
Q3 ended
30/9/08 % change
Q3 ended
30/9/09 Q3 ended 30/9/08 % change
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
Restated Restated Restated
Continuing operations
Revenue 2 32,358 170,240 36% 12,753 38,685 -67% 245,111 2 08,925 17%
Cost of sales ( 166,537) (132,865) 25% (23,131) (45,852) -50% (189,668) ( 178,717) 6%
Gross profit/(loss) 6 5,821 37,375 76% (10,378) (7,167) 45% 55,443 3 0,208 84%
Other operating income 7 92 ( 3,046) -126% 122 106 15% 914 (2,940) -131%
Distribution and selling expenses ( 2,870) ( 3,040) -6% (307) - NM (3,177) (3,040) 5%
Administrative expenses ( 30,288) ( 21,881) 38% (1,878) (5,934) -68% (32,166) ( 27,815) 16%
Other operating expenses 3 23 ( 1,553) -121% (16,666) - NM (16,343) (1,553) 952%
Profit/(loss) from operations 3 3,778 7,855 330% (29,107) (12,995) 124% 4,671 (5,140) -191%
Share of gain/(loss) from associated companies (141) 395 -136% (104) - NM (245) 3 95 -162%
Financial expenses , net ( 5,074) ( 4,780) 6% (3,722) ( 57) 6430% (8,796) (4,837) 82%
Profit/(loss) before tax 2 8,563 3,470 723% (32,933) (13,052) 152% (4,370) (9,582) -54%
Income tax ( 4,649) ( 5,860) -21% - - NM (4,649) (5,860) -21%
Profit/(loss) from continuing operations 2 3,914 ( 2,390) -1101% (32,933) (13,052) 152% (9,019) ( 15,442) -42%
Discontinued operations
Loss from discontinued operations - - NM - - NM - - NM
Other comprehensive income
Exchange differences on translating foreign operations - - NM 1,192 (1,358) NM 1,192 (1,358) NM
Gain on revaluation reserve - - NM - - NM - - NM
Total comprehensive income/(loss) 2 3,914 ( 2,390) -1101% (31,741) (14,410) 120% (7,827) ( 16,800) -53%
Attributable to:
Shareholders of the Company 21,562 (2,048) -1153% (30,491) (11,800) 158% (8,929) ( 13,848) -36%
Minority interests 2,352 (342) -788% (1,250) (2,610) -52% 1,102 (2,952) -137%
Profit/(loss) after tax 23,914 (2,390) -1101% (31,741) (14,410) 120% (7,827) (16,800) -53%THIRD QUARTER AND THREE QUARTER UP-TO-DATE FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT FOR THE PERIOD ENDED 30 SEPTEMBER 2009
A statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year
China operations America operations Total
1

i thought turn around liao-overall including loss in US...in the black now??

 

Nov 09, 2009 10:03 am    Post subject: 中国10月份乘用车销量同比激增79.6%
<中国日报>(China Daily)上周六援引中国乘用车协会(China Passenger Car Association)秘书长饶达的话报导称，中国10月份乘用车销量较上年同期攀升79.6%，至923,154辆。 该报援引饶达的话报导称，10月份乘用车销量强劲主要受政府税收优惠政策和国庆长假提振。 该报称，1-10月份中国乘用车销量较上年同期增长52.4%，总计808万辆。 报导还援引饶达的话表示，中国全年乘用车销售量可能会较上年增长44%，达到1,350万辆，如果这一预期能够实现，中国将成为本年度全球最大的汽车市场。 source of info: http://www.chinese.wsj.com/gb/20091109/bch082716.asp?source=whatnews2

 

GM said on 9th Nov 2009 that its sales in China last month more than doubled from a year earlier to 166,911 vehicles, continuing its monthly sales records this year in the chinese market, media reported.

 

chinastar      ( Date: 20-Oct-2009 08:41) Posted: General Motor Co.'s sales in China this year will likely exceed 1.6 million units, Kevin Wale, president and managing director of GM China Group, said on 14th Oct 2009. chinastar      ( Date: 09-Oct-2009 21:12) Posted: General Motors co. said in a statement on 9th Oct 2009 that its China vehicle sales in the first nine months of this year jumped 55.6% from a year earlier, hitting a record with 1,292,549 units being sold

 

PMI of China's manufacturing sector rose to 55.2% in october 2009.

 

From Jan to Sept 2009, SAIC booked 3.97 bn yuan in net profit, up from 2.23 bn yuan a year earlier, SAIC said on 30-10-2009.

SAIC, which runs vehicle manufacturing ventures with General Motors and Volkswagen, has been a major beneficiary of Beijing's policy support.

chinastar      ( Date: 01-Oct-2009 07:54) Posted: Dongfeng automobile co., ltd saw a revenue of 39.046 billion yuan in the first half of 2009, and net profit of 2.606 billion yuan, citing its financial report. China's largest automaker Shanghai Automotive Industry Corporation (SAIC) saw an operating revenue of 61.585 billion yuan in the first half of 2009, and net profit of 1.416 billion yuan. chinastar      ( Date: 28-Sep-2009 13:07) Posted: Q3 and Q4 results should be profitable

 

China will lead the U.S. for a "long time" as the world's biggest auto market, where demand will grow in 2010 even as stimulus measures are reduced, said Nick Reily, General Motors' Internation Operations President, Bloomberg reported.

Vehicles sales in China, the world's most populous nation of over 1.3 billion, may increase to more than 13 million units next year from about 12.5 million in 2009, Reilly told reporters in Seoul on 28-10-2009.

 

E Fund gets US$ 1 bn for overseas investment (China Daily)

E Fund Management Co, China's fifth-largest mutual fund company by assets, said on 26th Oct 2009 that the quota it received from the government to invest in overseas securities indicates that regulators believe the global economy has exited the worst of the financial crisis and will generate business opportunities for domestic fund houses.

chinastar      ( Date: 27-Oct-2009 10:39) Posted: Straits Times, 26th Oct 2009 China resumes quotas for overseas investment (QDII) Hope it will benefit some of the S shares in the long run.     starlene      ( Date: 24-Oct-2009 23:54) Posted: Do U notice for the last week,always last minute 5 lot buy up so ultimately CAE will close unchanged even in a down market. This last minute 5 lot buy-up is a good sign to show that there is support unltimately and not a free fall in weak market-from its heydays 80-84cents in 2007 when it was relisted afterc RTO at 58cts and along the way drop to a low of 3 cents company directors have also been buying during its steep falls to 50-40-30-20cts so at this price 15-15.5cts ,just keep and one day maybe before year end CAE fair value shd be >20cts possibly 25-30cts as its fair value

 

CAE 3rd Qtr result will be out on 2nd week of November.

Hope it will be good.

chinastar      ( Date: 27-Oct-2009 10:39) Posted: Straits Times, 26th Oct 2009 China resumes quotas for overseas investment (QDII) Hope it will benefit some of the S shares in the long run.     starlene      ( Date: 24-Oct-2009 23:54) Posted: Do U notice for the last week,always last minute 5 lot buy up so ultimately CAE will close unchanged even in a down market. This last minute 5 lot buy-up is a good sign to show that there is support unltimately and not a free fall in weak market-from its heydays 80-84cents in 2007 when it was relisted afterc RTO at 58cts and along the way drop to a low of 3 cents company directors have also been buying during its steep falls to 50-40-30-20cts so at this price 15-15.5cts ,just keep and one day maybe before year end CAE fair value shd be >20cts possibly 25-30cts as its fair value

 

Straits Times, 26th Oct 2009

China resumes quotas for overseas investment (QDII)

Hope it will benefit some of the S shares in the long run.

 

 

starlene      ( Date: 24-Oct-2009 23:54) Posted: Do U notice for the last week,always last minute 5 lot buy up so ultimately CAE will close unchanged even in a down market. This last minute 5 lot buy-up is a good sign to show that there is support unltimately and not a free fall in weak market-from its heydays 80-84cents in 2007 when it was relisted afterc RTO at 58cts and along the way drop to a low of 3 cents company directors have also been buying during its steep falls to 50-40-30-20cts so at this price 15-15.5cts ,just keep and one day maybe before year end CAE fair value shd be >20cts possibly 25-30cts as its fair value

 

Do U notice for the last week,always last minute 5 lot buy up so ultimately CAE will close unchanged even in a down market.


This last minute 5 lot buy-up is a good sign to show that there is support unltimately and not a free fall in weak market-from its heydays 80-84cents in 2007 when it was relisted afterc RTO at 58cts and along the way drop to a low of 3 cents company directors have also been buying during its steep falls to 50-40-30-20cts so at this price 15-15.5cts ,just keep and one day maybe before year end CAE fair value shd be >20cts possibly 25-30cts as its fair value

 

Posted: Thu Oct 22, 2009 11:31 pm    Post subject:
Newbie Posts: 1 Points: +0/-0 [Good!] [Bad!] Online Re: CHINA AUTO ELECTRONICS GRP LTD « Reply #10 on: Yesterday at 04:16:24 pm » -------------------------------------------------------------------------------- I am more towards negative for CAE for time being till result out around 14th Nov or 1 week before. ie no breakout. of course i prefer i am wrong as i am vested more than 500 lots average $0.1715. The Chart looks a little complex to me, hope it is worth what it is See this newbie bought so much CAE...is it true its results is out around 14Nov

 

Changan, China's fourth-largest automaker, said it expects its net profit for the Jan-Sept period of 2009 rose 133%-150% to 800 million-860 million yuan, up from 343.55 million of a year earlier.

chinastar      ( Date: 17-Oct-2009 10:14) Posted: Changan Automobile Co. said its sales in the nine-month period of 2009 rose 51.19% to 1 million vehicles. Changan is scheduled to issue their third-quarter financial results on 30 th Oct 2009. starlene      ( Date: 30-Aug-2009 23:36) Posted: This was what i meant when I sais China Auto Elec will benefit from China Tariff cut on auto parts. SHANGHAI (AP) -- General Motors China and state-owned automaker FAW Group Corp. launched a 2 billion yuan ($293 million) joint venture Sunday to make light-duty trucks and vans, initially for the fast-growing Chinese market. GM said the joint venture will use two existing factories affiliated with FAW and have a capacity of over 100,000 vehicles. That is expected to double by the end of 2010, GM China Group President Kevin Wale told reporters in a conference call. Plans call for building a new assembly plant in Harbin, he said. China is a key growth market for GM, which is expanding here despite its difficulties in the U.S. market. "Light trucks and vans have a significant role in China and other parts of the world," Wale said. "Adding trucks rounds out our vehicle portfolio in China. It's really a key focus for future growth." The 50-50 joint venture, based in the northeastern Chinese city of Changchun, where FAW is also based, will make FAW-branded vehicles for the Chinese market, GM said in a statement. The venture might make GM-branded vehicles for export later, but the focus for now is on meeting demand in China, Wale said. Production will be at the existing factories in southwestern China's Yunnan province, a facility owned by FAW-affiliate Hongta Yunnan Automobile Manufacturing Co. Ltd., and at Harbin Light Vehicle Co. Ltd. in the northeastern city of Harbin, GM said. It said the two companies will conduct research and development, exports and after-sales support as well as vehicle production. "Our new joint venture combines the expertise of two industry leaders in a partnership that benefits both," Nick Reilly, GM executive vice president, said in a statement. "It will address demand in China and other markets for high-quality, affordable products in one of the industry's most robust segments, while complementing the portfolio of products that GM and FAW currently offer," Reilly said. Discussions on the venture began in early 2007 and it obtained regulatory approval in July, GM said. FAW, originally known as First Auto Works, was founded in 1953 and began production in 1956. It sold 1.53 million vehicles, including sedans, vans and trucks, in 2008. GM's sales in China jumped 38 percent in the first half of this year, helped by strong demand for its minivans and other small vehicles. The automaker sold more than 100,000 vehicles a month in China from January to June for a total of 814,442, a record for any half year, the company said. That compares with sales of 1,094,561 GM vehicles in China for all of 2008. Adding truck production will help expand the company's exposure in one of the few major markets that continues to grow. "These are quite different customers and quite different products," Wale said. He said he expected GM's commercial vehicle sales to reach 80,000 to 90,000 this year and to rise further next year. Buzz up! 1 Back to top imba1328 Joined: 06 Aug 2009 Posts: 35 Posted: Sun Aug 30, 2009 4:30 pm    Post subject: And both FAW and GM are customers of China Auto Elec. China Auto Electronics Group Limited Formerly known as China Transcom Technologies Limited. The Group's principal activity is manufacturing automobile wire harness and connectors. It has 8 manufacturing facilities in China and one in Central America. The Group is the OEM supplier for automakers such as Dongfeng Motor Corporation, Shanghai Volkswagen Automotive Company Ltd, FAW-Volkswagen Automobile Company Ltd, General Motors Corporation, Chery Automobile Company Ltd and Changan Automobile Group Ltd. The Group also manufactures crimping machines and moulds. In 2007, the Group disposed its telecommunication, data network products and transportation communication products division. Back to top imba1328 Joined: 06 Aug 2009 Posts: 35 Posted: Sun Aug 30, 2009 4:33 pm    Post subject: Thats a 2 billion RMB JV!

 

China's annual auto sales will likely reach 20 million units by 2015 as demand will be growing with rising family income, Dongfeng vice president Ren Yong said on 21th Oct 2009, Dow Jones reported.

chinastar      ( Date: 01-Oct-2009 07:54) Posted: Dongfeng automobile co., ltd saw a revenue of 39.046 billion yuan in the first half of 2009, and net profit of 2.606 billion yuan, citing its financial report. China's largest automaker Shanghai Automotive Industry Corporation (SAIC) saw an operating revenue of 61.585 billion yuan in the first half of 2009, and net profit of 1.416 billion yuan. chinastar      ( Date: 28-Sep-2009 13:07) Posted: Q3 and Q4 results should be profitable

 

"As a locomotive of the world economy, China keeps growing at a high rate," Volkswagen Group China Chief  Executive Winfried Vahland said in the statement on 12th Oct 2009.

Volkswagen sales in mainland China and Hong Kong in the January-September period of 2009 rose 37% to 1.06 million units, from 775,341 units a year earlier.

Volkswagen makes vehicles in China through its joint ventures FAW-Volkswagen Co. and Shanghai Volkswagen Automotive Co.

starlene      ( Date: 30-Aug-2009 23:36) Posted: This was what i meant when I sais China Auto Elec will benefit from China Tariff cut on auto parts. SHANGHAI (AP) -- General Motors China and state-owned automaker FAW Group Corp. launched a 2 billion yuan ($293 million) joint venture Sunday to make light-duty trucks and vans, initially for the fast-growing Chinese market. GM said the joint venture will use two existing factories affiliated with FAW and have a capacity of over 100,000 vehicles. That is expected to double by the end of 2010, GM China Group President Kevin Wale told reporters in a conference call. Plans call for building a new assembly plant in Harbin, he said. China is a key growth market for GM, which is expanding here despite its difficulties in the U.S. market. "Light trucks and vans have a significant role in China and other parts of the world," Wale said. "Adding trucks rounds out our vehicle portfolio in China. It's really a key focus for future growth." The 50-50 joint venture, based in the northeastern Chinese city of Changchun, where FAW is also based, will make FAW-branded vehicles for the Chinese market, GM said in a statement. The venture might make GM-branded vehicles for export later, but the focus for now is on meeting demand in China, Wale said. Production will be at the existing factories in southwestern China's Yunnan province, a facility owned by FAW-affiliate Hongta Yunnan Automobile Manufacturing Co. Ltd., and at Harbin Light Vehicle Co. Ltd. in the northeastern city of Harbin, GM said. It said the two companies will conduct research and development, exports and after-sales support as well as vehicle production. "Our new joint venture combines the expertise of two industry leaders in a partnership that benefits both," Nick Reilly, GM executive vice president, said in a statement. "It will address demand in China and other markets for high-quality, affordable products in one of the industry's most robust segments, while complementing the portfolio of products that GM and FAW currently offer," Reilly said. Discussions on the venture began in early 2007 and it obtained regulatory approval in July, GM said. FAW, originally known as First Auto Works, was founded in 1953 and began production in 1956. It sold 1.53 million vehicles, including sedans, vans and trucks, in 2008. GM's sales in China jumped 38 percent in the first half of this year, helped by strong demand for its minivans and other small vehicles. The automaker sold more than 100,000 vehicles a month in China from January to June for a total of 814,442, a record for any half year, the company said. That compares with sales of 1,094,561 GM vehicles in China for all of 2008. Adding truck production will help expand the company's exposure in one of the few major markets that continues to grow. "These are quite different customers and quite different products," Wale said. He said he expected GM's commercial vehicle sales to reach 80,000 to 90,000 this year and to rise further next year. Buzz up! 1 Back to top imba1328 Joined: 06 Aug 2009 Posts: 35 Posted: Sun Aug 30, 2009 4:30 pm    Post subject: And both FAW and GM are customers of China Auto Elec. China Auto Electronics Group Limited Formerly known as China Transcom Technologies Limited. The Group's principal activity is manufacturing automobile wire harness and connectors. It has 8 manufacturing facilities in China and one in Central America. The Group is the OEM supplier for automakers such as Dongfeng Motor Corporation, Shanghai Volkswagen Automotive Company Ltd, FAW-Volkswagen Automobile Company Ltd, General Motors Corporation, Chery Automobile Company Ltd and Changan Automobile Group Ltd. The Group also manufactures crimping machines and moulds. In 2007, the Group disposed its telecommunication, data network products and transportation communication products division. Back to top imba1328 Joined: 06 Aug 2009 Posts: 35 Posted: Sun Aug 30, 2009 4:33 pm    Post subject: Thats a 2 billion RMB JV!

 

General Motor Co.'s sales in China this year will likely exceed 1.6 million units, Kevin Wale, president and managing director of GM China Group, said on 14th Oct 2009.

chinastar      ( Date: 09-Oct-2009 21:12) Posted: General Motors co. said in a statement on 9th Oct 2009 that its China vehicle sales in the first nine months of this year jumped 55.6% from a year earlier, hitting a record with 1,292,549 units being sold. chinastar      ( Date: 08-Oct-2009 08:00) Posted: just hope Ernst & Young staff have done a good job in the internal control review

 

Changan Automobile Co. said its sales in the nine-month period of 2009 rose 51.19% to 1 million vehicles. Changan is scheduled to issue their third-quarter financial results on 30 th Oct 2009.

starlene      ( Date: 30-Aug-2009 23:36) Posted: This was what i meant when I sais China Auto Elec will benefit from China Tariff cut on auto parts. SHANGHAI (AP) -- General Motors China and state-owned automaker FAW Group Corp. launched a 2 billion yuan ($293 million) joint venture Sunday to make light-duty trucks and vans, initially for the fast-growing Chinese market. GM said the joint venture will use two existing factories affiliated with FAW and have a capacity of over 100,000 vehicles. That is expected to double by the end of 2010, GM China Group President Kevin Wale told reporters in a conference call. Plans call for building a new assembly plant in Harbin, he said. China is a key growth market for GM, which is expanding here despite its difficulties in the U.S. market. "Light trucks and vans have a significant role in China and other parts of the world," Wale said. "Adding trucks rounds out our vehicle portfolio in China. It's really a key focus for future growth." The 50-50 joint venture, based in the northeastern Chinese city of Changchun, where FAW is also based, will make FAW-branded vehicles for the Chinese market, GM said in a statement. The venture might make GM-branded vehicles for export later, but the focus for now is on meeting demand in China, Wale said. Production will be at the existing factories in southwestern China's Yunnan province, a facility owned by FAW-affiliate Hongta Yunnan Automobile Manufacturing Co. Ltd., and at Harbin Light Vehicle Co. Ltd. in the northeastern city of Harbin, GM said. It said the two companies will conduct research and development, exports and after-sales support as well as vehicle production. "Our new joint venture combines the expertise of two industry leaders in a partnership that benefits both," Nick Reilly, GM executive vice president, said in a statement. "It will address demand in China and other markets for high-quality, affordable products in one of the industry's most robust segments, while complementing the portfolio of products that GM and FAW currently offer," Reilly said. Discussions on the venture began in early 2007 and it obtained regulatory approval in July, GM said. FAW, originally known as First Auto Works, was founded in 1953 and began production in 1956. It sold 1.53 million vehicles, including sedans, vans and trucks, in 2008. GM's sales in China jumped 38 percent in the first half of this year, helped by strong demand for its minivans and other small vehicles. The automaker sold more than 100,000 vehicles a month in China from January to June for a total of 814,442, a record for any half year, the company said. That compares with sales of 1,094,561 GM vehicles in China for all of 2008. Adding truck production will help expand the company's exposure in one of the few major markets that continues to grow. "These are quite different customers and quite different products," Wale said. He said he expected GM's commercial vehicle sales to reach 80,000 to 90,000 this year and to rise further next year. Buzz up! 1 Back to top imba1328 Joined: 06 Aug 2009 Posts: 35 Posted: Sun Aug 30, 2009 4:30 pm    Post subject: And both FAW and GM are customers of China Auto Elec. China Auto Electronics Group Limited Formerly known as China Transcom Technologies Limited. The Group's principal activity is manufacturing automobile wire harness and connectors. It has 8 manufacturing facilities in China and one in Central America. The Group is the OEM supplier for automakers such as Dongfeng Motor Corporation, Shanghai Volkswagen Automotive Company Ltd, FAW-Volkswagen Automobile Company Ltd, General Motors Corporation, Chery Automobile Company Ltd and Changan Automobile Group Ltd. The Group also manufactures crimping machines and moulds. In 2007, the Group disposed its telecommunication, data network products and transportation communication products division. Back to top imba1328 Joined: 06 Aug 2009 Posts: 35 Posted: Sun Aug 30, 2009 4:33 pm    Post subject: Thats a 2 billion RMB JV!

 

For the first nine months of the year, China's vehicle sales increased  34.2% y/y to 9.66 million units.

Automobile sales in China are expected to break the 10 million unit mark in the middle of October and surpass 12 million for the full year of 2009, the China Association of Automobile Manufacturers (CAAM) said on 13th Oct 2009.

starlene      ( Date: 15-Oct-2009 00:07) Posted: Good sign close at today's high..all done at asking price,time to move

 

Good sign close at today's high..all done at asking price,time to move

 

CaiShen888 wrote:

wait till 3Q strong results, it will chiong to 30 cents... ho ho ho!

..Good sign today all done at 14.5cts


14:38:31 0.145 63,000 A
14:22:16 0.145 52,000 A
12:16:09 0.145 8,000 A
12:10:59 0.145 27,000 B
12:02:03 0.145 3,000 B
11:37:24 0.145 80,000 A
11:12:10 0.145 20,000 B
10:52:16 0.145 20,000 A
10:35:50 0.145 50,000 B
10:34:27 0.145 68,000 A
10:32:18 0.145 50,000 A
10:27:15 0.145 20,000 A
10:03:58 0.145 52,000 B
09:32:27 0.145 46,000 B
09:29:10 0.145 20,000 B
09:20:09 0.145 32,000 A
09:08:12 0.145 18,000 B
09:07:39 0.145 30,000 B
09:03:20 0.145 2,000 A

chinastar      ( Date: 14-Oct-2009 07:12) Posted: sales of china's home-made automobiles totaled 1.33 million units in september 2009, up 77.88% over the same period last year, the china association of automobile manufacturers (CAAM) said on 13th oct 2009. chinastar      ( Date: 13-Oct-2009 09:12) Posted: Chery Auto saw its vehicle sales in September 2009 increase 110% year on year to a monthly record high at 51,453 units, leading in the month's sales of chinese-brand car makers, sina.com said on 12th Oct 2009

 

sales of china's home-made automobiles totaled 1.33 million units in september 2009, up 77.88% over the same period last year, the china association of automobile manufacturers (CAAM) said on 13th oct 2009.

chinastar      ( Date: 13-Oct-2009 09:12) Posted: Chery Auto saw its vehicle sales in September 2009 increase 110% year on year to a monthly record high at 51,453 units, leading in the month's sales of chinese-brand car makers, sina.com said on 12th Oct 2009. starlene      ( Date: 30-Aug-2009 23:36) Posted: This was what i meant when I sais China Auto Elec will benefit from China Tariff cut on auto parts. SHANGHAI (AP) -- General Motors China and state-owned automaker FAW Group Corp. launched a 2 billion yuan ($293 million) joint venture Sunday to make light-duty trucks and vans, initially for the fast-growing Chinese market. GM said the joint venture will use two existing factories affiliated with FAW and have a capacity of over 100,000 vehicles. That is expected to double by the end of 2010, GM China Group President Kevin Wale told reporters in a conference call. Plans call for building a new assembly plant in Harbin, he said. China is a key growth market for GM, which is expanding here despite its difficulties in the U.S. market. "Light trucks and vans have a significant role in China and other parts of the world," Wale said. "Adding trucks rounds out our vehicle portfolio in China. It's really a key focus for future growth." The 50-50 joint venture, based in the northeastern Chinese city of Changchun, where FAW is also based, will make FAW-branded vehicles for the Chinese market, GM said in a statement. The venture might make GM-branded vehicles for export later, but the focus for now is on meeting demand in China, Wale said. Production will be at the existing factories in southwestern China's Yunnan province, a facility owned by FAW-affiliate Hongta Yunnan Automobile Manufacturing Co. Ltd., and at Harbin Light Vehicle Co. Ltd. in the northeastern city of Harbin, GM said. It said the two companies will conduct research and development, exports and after-sales support as well as vehicle production. "Our new joint venture combines the expertise of two industry leaders in a partnership that benefits both," Nick Reilly, GM executive vice president, said in a statement. "It will address demand in China and other markets for high-quality, affordable products in one of the industry's most robust segments, while complementing the portfolio of products that GM and FAW currently offer," Reilly said. Discussions on the venture began in early 2007 and it obtained regulatory approval in July, GM said. FAW, originally known as First Auto Works, was founded in 1953 and began production in 1956. It sold 1.53 million vehicles, including sedans, vans and trucks, in 2008. GM's sales in China jumped 38 percent in the first half of this year, helped by strong demand for its minivans and other small vehicles. The automaker sold more than 100,000 vehicles a month in China from January to June for a total of 814,442, a record for any half year, the company said. That compares with sales of 1,094,561 GM vehicles in China for all of 2008. Adding truck production will help expand the company's exposure in one of the few major markets that continues to grow. "These are quite different customers and quite different products," Wale said. He said he expected GM's commercial vehicle sales to reach 80,000 to 90,000 this year and to rise further next year. Buzz up! 1 Back to top imba1328 Joined: 06 Aug 2009 Posts: 35 Posted: Sun Aug 30, 2009 4:30 pm    Post subject: And both FAW and GM are customers of China Auto Elec. China Auto Electronics Group Limited Formerly known as China Transcom Technologies Limited. The Group's principal activity is manufacturing automobile wire harness and connectors. It has 8 manufacturing facilities in China and one in Central America. The Group is the OEM supplier for automakers such as Dongfeng Motor Corporation, Shanghai Volkswagen Automotive Company Ltd, FAW-Volkswagen Automobile Company Ltd, General Motors Corporation, Chery Automobile Company Ltd and Changan Automobile Group Ltd. The Group also manufactures crimping machines and moulds. In 2007, the Group disposed its telecommunication, data network products and transportation communication products division. Back to top imba1328 Joined: 06 Aug 2009 Posts: 35 Posted: Sun Aug 30, 2009 4:33 pm    Post subject: Thats a 2 billion RMB JV!