IHS Global Insight Daily Analysis
SAIC Motor's first Maxus Datong V80 van rolled off the assembly lines in Wuxi on 29 June, the company says in a press release sent to IHS Automotive. The V80 is fitted with an Eco-D engine and meets Euro IV emission standards. "With regard to overseas market exploration, so far 72 overseas dealers from 46 countries have expressed their strong intention for cooperation concerning Maxus Datong V80, covering the major overseas markets for commercial MPVs in Europe, South America, Africa and Southeast Asia", said SAIC.
Dealers in the UK, South Africa, and the Association of Southeast Asian Nations (ASEAN) have already placed orders for the van, and products for these markets are among the first batch of vehicles. SAIC Motor vice-president Xiao Guopo is quoted as saying that SAIC aims to sell 400,000 to 500,000 commercial vehicles per year by 2015, reports Reuters, quoting the China Securities Journal.
Wheels Unplugged
New Delhi, July 05 -- Ashok Leyland, country's second-largest commercial vehicle maker from the stables of Hinduja group has reportedly announced that it sold 8,009 vehicles in June, down 4.6 percent from a year ago.
IHS Global Insight Daily Analysis
Chinese state-owned automotive group Chongqing Changan Industry Group will sell its Baoding Changan Bus Manufacturing Company for CNY225.23 million, reports SinoCast quoting an announcement on the Chongqing United Assets and Equity Exchange. Baoding Changan Bus was founded in 2005 and makes buses and vans. Its operating revenue in 2010 reached CNY810.48 million and its net profit amounted to CNY5.78 million, according to the report. Buyers are limited to other state-owned enterprises that have been established for at least 10 years with registered capital of not less than CNY2 billion.
Significance: Changan is strengthening its presence in the light-vehicle sector with the launch of various new models in the A, B, C and D segments as well as light commercial vans. In 2009 Changan and the Aviation Industry Corporation of China (AVIC) joined forces, and Changan then acquired various brands previously under AVIC. The automaker is now strengthening its line-up in the light-vehicle market.
Wall Street Journal
BRUSSELS—The World Trade Organization is set Tuesday to condemn China for limiting its exports of major raw materials, rebuffing Beijing's arguments that curbs are necessary to protect the environment, according to trade diplomats and lawyers.
The decision will help steelmakers and other industrial producers, but, more importantly, will set a precedent for the U.S. and the European Union to file another complaint against China over its quotas on the export of rare-earth materials, 17 minerals used in the high-tech industry.
Ground Vehicles Report
The Army is preparing next month to kick off a big-ticket Pentagon acquisition effort -- a new armored vehicle program to outfit its heavy brigades with a replacement for the Vietnam-era-designed M113 vehicle, setting up a competition to build as many as 5,000 Armored Multipurpose Vehicles (AMPV).
On Aug. 10, according to Army spokesman Matthew Hickman, Pentagon acquisition executive Ashton Carter is scheduled to consider the Army's request for a material development decision to effectively grant the AMPV a place on the Defense Department's roster of major procurement efforts.
Dow Jones Business News
HONG KONG - Caterpillar Inc. is seeking to sell around CNY1 billion to CNY2 billion worth of two-year Yuan-denominated bonds in Hong Kong, a person familiar with the situation said Tuesday, in the U.S. construction-equipment maker's second such issue in the burgeoning offshore market.
The Peoria, Ill.-based company plans to sell the Regulation S bonds through its wholly owned financial arm, Caterpillar Financial Services Corp., which is considering coupon guidance of around 1.0 percent to 1.5 percent for the Yuan bond.
Transport Topics Magazine
The United States and Mexico Wednesday signed a cross-border trucking agreement under which the U.S. will open its roads to Mexican trucks, while Mexico will suspend about $2 billion in tariffs on U.S. goods.
Under the agreement, signed by U.S. Trade Representative Ron Kirk and his Mexican counterpart in Mexico City, Mexico will suspend 50 percent of its tariffs within ten days, according to a statement by the U.S. Department of Transportation.
Dow Jones Chinese Financial Wire
Dana Holding Corp. (DAN) said Tuesday it expanded its control in two emerging-market ventures, saying the deals would enhance growth in China and India.
The auto-parts maker increased its stake in Dongfeng Dana Axle Co., a joint venture with Dongfeng Motor Group Co. Ltd. (DNFGY, 0489.HK), to 50 percent from 6 percent. The deal cost Dana $124 million in cash. A sales-incentive agreement could boost Dana's consideration in the venture by another $20 million if it achieves certain profitability targets.