China is the only country in the world to maintain growth in its auto market, and has become a Noah’s Ark for global auto makers. Those who can board the ark will be more likely to survive the crisis. While a number of companies shunned auto shows in Detroit and Geneva, auto companies are doing their best at the 13
th Shanghai Auto Show, which opened yesterday, seeking market share in their world’s only paradise.
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"This auto show is very important. We have for the first time brought here all the products of our Continental series, and four precious cars that have never been shown in China," said Bentley Global President Dr. Ulrich Eichhorn.
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Toyota expanded its show space from last year’s 2,500 square meters to 4,500 square meters, and brought 50 cars to the show, including 8 new cars and 5 concept cars. Volkswagen’s show space totals 3,000 square meters. Mercedes-Benz, Porsche, and BMW are all expanding their show spaces and bringing more cars to the show.
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"I haven’t got the statistics for the first quarter, but our global sales must be declining," said Dr. Eichhorn. Chinese consumers, however, are still showing purchasing power. In 2008, Bentley’s sales in China reached more than 500 cars, growing 50% over the previous year.
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Bentley’s dealer in Beijing has overtaken rivals in the US and Europe and to become one of the company’s top ten dealers globally in terms of sales volume. Ulrich Eichhorn hopes its Beijing dealer will enter the top five in 2009.
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For GM, the Chinese market is the company’s only bright spot. GM lost $30.9 billion in 2008, and its sales declined by 21% in North America and 6.5% in Europe. In China, GM’s sales reached 1.09 million cars, a growth of 6.1%, year on year. GM has taken 5,000 square meters of show space at the auto show to support its precious highlight.
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Race in New Energy Cars
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"EV" and "Hybrid" banners and logos can be found in every corner of the auto show. New energy vehicles developed by Chinese automakers are attracting as much or more attention as overseas branded new energy cars developed by foreign companies and joint ventures.
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Chery showed several hybrids and electric cars. Its battery technology can support a single trip of 120km to 150km. Other domestic auto makers such as Brilliance, Dongfeng, SAIC, and GAIG are all showing new energy cars at the show.
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Chinese car companies must still depend on overseas battery and drive technology, though, and have a long road ahead before being able to develop new energy cars on their own.
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Zhengzhou Nissan launched its first small-size electric MPV at the show. With battery based on South Korean technology, its duration reaches 260km, the highest among domestic electric cars.
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GM’s new President Fritz Henderson, Ford President and CEO Alan Mulally, Honda President Takanobu Ito, and Nissan President Carlos Ghosn have failed to attend, but European automakers, especially from Germany, are showing great interest in the Shanghai show. Presidents or board members from Volkswagen, Audi, BMW, Daimler, and Buick have graced their own show platforms and explained their new technology and new cars to the media, exhibiting their confidence in China and the future of the global auto market.
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Dropping their caution at the beginning of the year, heads of many joint venture car companies are now more optimistic about the trend in the auto market for the second half of this year and the whole of 2009. "In March, SAIC-Volkswagen’s sales volume reached 55,000 cars, the highest monthly sales volume in the history of the company, and probably in the history of China’s car industry," revealed SAIC-Volkswagen General Manager Hu Yong. He believes it reasonable to be optimistic about the auto market in 2009. "Car makers reached a consensus at the end of last year that growth in China’s auto market in 2009 might be about 6% to 8%. But judging from the situation in the first quarter, I think 2009 may see a double-digit growth."
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With its expansion in car types and sales channels, Mazda China plans to sell 170,000 cars in 2009, up 33% year on year.
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