Chang'an Automobile Group
|Headquarters||Chongqing, People's Republic of China|
|Chang'an Automobile Group|
Considered to be one of the "big 4" Chinese automakers, manufacture of 2.69 million units in 2012 saw the company rank 5th among China's largest automakers by production volume. The company is also known as Chana.
- 1 History
- 2 Joint ventures
- 3 Joint ventures
- 4 Production bases and facilities
- 5 References
- 6 External links
Chang'an claims its early origins can be traced back to 1862 when Li Hongzhang set up the Shanghai Foreign Gun Bureau. How this company and today's Chang'an are linked is not clear, but the firm may be alluding to the fact that, like this famous historical figure, it seeks Western techniques to achieve its goals.
In the late 1950s a predecessor company, Chang'an Factory, assembled a jeep sold under the brand name Yangtze River. By the end of the 1980s the company was producing pint-sized trucks and vans for commercial purposes.
As of 2010 China Weaponry Equipment is the parent company of this state-owned automaker, and that year Chang'an became the fourth most-productive car manufacturer in the Chinese automobile industry by selling 2.38 million units. The company also released a new logo for its consumer offerings in 2010 while commercial production retains the former red-arch brand.
Although it only allowed the company to achieve fourth place among domestic automakers in terms of production, Chang'an made over 2 million whole vehicles in 2011.
In 2012 it was reported that 72% of production was dedicated to passenger vehicles, but this count likely conflates consumer offerings and microvans, tiny commercial trucks and vans that are popular in China.
Like most major Chinese automakers, Chang'an partners with Western and Japanese companies to produce and sell the products of these foreign firms in China. Such joint ventures include: Changan Suzuki (1993), Changan Ford Auto (2001), and Chang'an Ford Nanjing Co Ltd (2004). In 2005 Chang'an Ford Mazda Engine was established, and the newest joint venture, finalized in 2010, has PSA Peugeot Citroen as co-owner.
Technical and commercial cooperation with Suzuki Motors, beginning in 1983, saw Chang'an assembling inexpensive commercial trucks (originally the Suzuki Carry ST90) under license into the 2000s. The two companies formed Chongqing Chang'an Suzuki Automobile Co in 1993, which built licensed versions of the Suzuki Alto, Suzuki Cultus, and more recently the Swift.
In parallel with its Suzuki joint venture, Chang'an also continued to build small trucks and vans for commercial use based on the 1999 Suzuki Carry license, but independently developed vehicles are quickly replacing them. These small cars carry the Chang'an brand name although Suzuki technology is used in their design and manufacture.
In 2010 Chang'an was supposed to merge its Suzuki joint venture with that of Changhe, another automaker that participates in a project with the Japanese company. This plan, supported by Suzuki, did not see fruition, and this Japanese company may currently be unhappy with its Chinese partners. Despite being an early entrant in the Chinese auto market, it has lackluster sales in the country. Suzuki's efforts to change the situation by merging its two joint ventures—since Chinese business law does not allow any foreign company more than two—have so far been stymied by its Chinese partners, who instead hope Suzuki will improve their situation. The Chinese State may also not want new foreign-Chinese joint auto-making ventures at this time. An effort to sell the entire Suzuki model range at unified dealerships fell through in 2008. (This may have been tried again in 2010.)
Changan Ford Mazda
Making Chinese-market versions of Ford consumer offerings, its 2010 dealer network was thought to include many showrooms in second- and third-tier Chinese cities such as Chongqing. So-called second- and third-tier cities are large and medium sized cities not among the top four in terms of population and contribution to GDP.
PSA Peugeot Citroën
Chang'an and this French automaker agreed in 2010 to set up a 50/50 passenger car and light commercial vehicle-making joint venture. Named CAPSA, it is the PSA Group's second joint venture company in China, after Dongfeng Peugeot-Citroën Automobile, and its first with Chang'an. Centering around a newly built production base in Shenzhen, it is estimated that initial production capacity for the project will be 200,000 units/year. Production capacity figures may consider engines and vehicles as discrete.
After six years of R&D, Chang'an debuted a hybrid automobile in 2007. China subsidies oil (an incentive for the State to encourage use and manufacture of electric cars), and Chinese automakers see opportunities in less mature electric vehicles because Western companies have yet to develop much of a lead in the technology.
In 2010, the company released a new logo for its consumer offerings; commercial production retained the red arch brand.
Chang'an has part ownership in number of joint venture companies with both foreign and domestic partners.
- Changan Suzuki - 1993–present - With Suzuki Motors
- Changan Ford Mazda - 2001–present - With Ford Motor Company
- Chang'an Ford Nanjing Co Ltd - 2001–present - With Ford Motor Company
- Chang'an Ford Mazda Engine - 2005–present - Produces engines with Mazda
- Jiangxi Jiangling Co Ltd - 2004–present - With Jiangling Motors - Produces the Jiangling Landwind
- Chang'an PSA (CAPSA) - Finalised on 9 July 2010, it will see PSA Peugeot Citroen build cars in China.
Production bases and facilities
Chang'an has four major production bases (in the City of Chongqing, Hebei province, Jiangsu province, and Jiangxi province), eleven automobile production bases and two engine production bases in mainland China for a more-current total of 21 vehicle-making bases including newer sites in Anhui province, Guangdong province, Heilongjiang province, Shandong province, and Shanxi province.
A planned 300,000 units/year capacity mini-vehicle production base in Hefei, Anhui province, should see completion in 2011. Production capacity figures may consider engines and vehicles as discrete.
Chang'an has numerous sites in the City of Chongqing. A Chang'an-Ford plant and another, planned Chang'an-Ford plant (which may produce engines) are joined by a Chongqing-based R&D center and an industrial park in Yubei, Chongqing.
A planned Chang'an commercial vehicle production base in Nanchang, capital of Jiangxi province, will produce JMC and Ford-branded vehicles and join an R&D center as a second facility in this province. The latter facility may be a former Changhe asset.
Chang'an has an R&D center in this coastal city.
Chang'an has an assembly plant in Poteau, Oklahoma under the name Tiger Truck.
Overseas R&D centers
Possessing valuable IP, some R&D facilities are more-valuable if located in secure, overseas locations. Chang'an has R&D centers in Turin, Italy and Yokohama, Japan. It set up two more in 2011. These are located in Nottingham, England, and Detroit, MI, US. The Detroit center opened in early 2011, and the Nottingham facility is still in operation as of 2013.
- Chana > Contact Us > Dealer Application Chana Official Site (Web Archive)
- China rolls out own hybrid car reuters.com, Sat December 15, 2007 1:44am EST
- China's Changan unveils new car logo in brand drive reuters.com, Sun October 31, 2010 11:55am EDT
- New policy to encourage China's carmaker consolidation xinhuanet.com, 2010-02-22 10:27:20
- "2012年12月分车型前十家生产企业销量排名". China Association of Automobile Manufacturers (CAAM). 14 January 2013. Retrieved January 15, 2013.
- "About Chana". CHANA International Corporation. Archived from the original on 12 June 2008. Retrieved 21 September 2013.
- "Chana History". CHANA International Corporation. Archived from the original on 8 April 2010. Retrieved 21 September 2013.
- For purchase of Hafei, see New policy to encourage China's carmaker consolidation xinhuanet.com, 2010-02-22 10:27:20
- For purchase of Changhe, see Year in review: A memorable 2009 saw China's ascent to top of global vehicle market chinadaily.com.cn, 2010-04-24
- Milestone merger reshapes Suzuki chinadaily.com.cn, 2010-03-29 09:26
- China Car Market 101: Who Makes All Those 18 Million Cars? thetruthaboutcars.com, January 19, 2011
- "2011年前十家乘用车生产企业销量排名". China Association of Automobile Manufacturers (CAAM). 2012-01-20.
- For Chang'an Ford Mazda Engine, see "Changan Ford Mazda Engine Celebrates One Millionth Engine Milestone". @FordOnline. Ford Motor Company. Mar-06-2013. Retrieved 22 September 2013.
- For 2010 PSA Peugeot Citroen JV, see Peugeot and Changan Automotive finalise joint venture bbc.co.uk, 11:04 GMT, Friday, 9 July 2010
- "Chana JMC". CHANA International Corporation. Archived from the original on 5 Oct. 2008. Retrieved 21 September 2013.
- World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o. 2006. pp. 226–227.
- Chana History Chana Official Site
- Suzuki, VW, SAIC likely to create three-way JV in China globaltimes.cn, July/26/2010
- "Suzuki seeks new venture in China". Global Times. 2010-07-08.
- Why the Saab-Hawtai deal is likely to fail chinacartimes.com, May 9, 2011 at 5:23 pm
- Suzuki meets setback in merging its China sales gasgoo.com, November 03, 2008
- Milestone merger reshapes Suzuki Yu Qiao (China Daily), 2010-03-2
- Naughton, K. (Apr 21, 2013). "Automakers Go West in China to Thin Margins, Fat Growth". bloomberg.com. Bloomberg LP. Retrieved 22 September 2013.
- Mullich, Joe. "China’s "Second-Tier" Cities Take Off". The Wall Street Journal. Dow Jones and Company, Inc. Retrieved June 4, 2012.
- China Chang’an Automobile Group and PSA in Joint Venture discussion PSA Peugeot Citroën Official Site, 5/06/2010
- CAPSA – Chang’an-PSA’s new joint venture company chinacartimes.com, June 15, 2011
- For Shenzhen production base, see "About CAPSA: Changan PSA Automobiles Co., Ltd Profile". capsa.com.cn. Changan Automobiles Co Ltd. Retrieved 27 September 2013.
- For production capacity estimate, see A review of China's auto industry chinadaily.com,cn, 2010-12-27
- For fuel subsidy, see China's fuel subsidy costs the world reuters.com, Wed Jun 4, 2008 8:08am EDT
- For Chinese automakers seeing EV opportunities, see Big bet on better battery-run cars chinadaily.com.cn, 2011-01-03
- Chana JMC Chana Official Site
- Peugeot and Changan Automotive finalise joint venture bbc.co.uk, 11:04 GMT, Friday, 9 July 2010
- "Company Portrait". CHANA International Corporation. Archived from the original on 21 May 2010. Retrieved 21 September 2013.
- "Changan Auto Group opens three new R&D centers". Gasgoo Automotive News. Gasgoo.com. April 20, 2010. Retrieved 21 September 2013.
- Ford posts 40% sales increase in 2010 chinacartimes.com, January 7, 2011
- For Nottingham center, see "Chinese car maker to create 200 new jobs in Nottingham". East Midlands Development Agency. Retrieved 2011-02-02.
- For Detroit center, see "China's Changan Auto to set up Detroit R&D centre -Xinhua". reuters.com. Thomson Reuters. 2010-06-30. Retrieved 21 September 2013.
- For opening of Detroit R&D center, see "Changan USA R&D Center Set Up in Detroit". changanus.com. Changan US R&D Center, Inc. 18 Jan. 2011. Retrieved 27 September 2013.
- For continued operation of Nottingham R&D park, see "TENANTS". nottinghamsciencepark.co.uk. Blueprint (General Partner) Ltd. Retrieved 21 September 2013.
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