Engine production capacity in China by Japanese, US, European and Korean automakers planned to reach 12 million

Transcription

1 Engine production capacity in China by Japanese, US, European and Korean automakers planned to reach 12 million VW 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 accompanied by an engine, 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 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 s in Beijing and Shandong province, while... Executive Summary Among the million engines produced in 2009, the production volume of passenger car engines by major Japanese, US, European and Korean auto manufacturers reached 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 million. In comparison to a former survey made in mid 2007, which gave a total of 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 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 s by Japanese, US, European, and Korean auto manufacturers and 2009 production results in China Annual Production Capacity Production Volumes (unit) Engine manufacturer, Plant Location of main (in 1,000 units) as of Expansion March plan /13

2 2010 total total gasoline diesel Shanghai VW Existing , , ,191 line The production system for Shanghai EA888 line ,000 engines will be arranged by March Shanghai VW Powertrain , , ,916 EA FAW VW Changchun Existing VW FAW Engine Dalian The started operations in February , , ,255 18,671 VW, Audi total 1,640 2, ,094 1,370,033 1,351,362 18,671 Dongfeng Peugeot Citroen Xiangfan Xiangfan , , ,680 PSA total , , ,680 BMW Brilliance Automotive GAC Fiat The second Shenyang BMW total Changsha Changsha Fiat total An engine will be attached to the second passenger car in Shenyang. The construction will begin in 2010, and the new is planned to start operations in The construction started in November It is planned to start operations with an annual production capacity of 220,000 in September 2011 at the earliest. *SAIC GM Wuling Liuzhou main Qingdao Liuzhou Qingdao , , ,622 Liuzhou new Liuzhou The construction started in March 2010, and will be completed by the end of the same year. Shanghai GM Dong Yue Powetrain Yantai , , ,010 Shanghai GM Jinqiao Shanghai , , ,105 GM total 1,615 2, ,666 1,222,737 1,222,737 Changan Ford Mazda Engine Nanjing , , ,290 Main of 2/13

3 Changan Chongqing , , ,769 Ford Mazda New Chongqing The will be built and attached to the new passenger car of in Chongqing which has a Chongqing maximum annual production capacity of 300,000 cars. *FAW Car The second engine Changchun , , ,652 Ford, Mazda total 700 1,050 1, , , ,711 FAW Toyota (Changchun) Engine Changchun ,026 75,651 75,651 Tianjin FAW Toyota Engine The first The second Tianjin , , ,739 GAC Toyota Engine (Guangqi Toyota Engine) Guangzhou , , ,407 Toyota total 1,000 1, , , ,797 Harbin Dong'an Automotive Engine Shenyang Aerospace Mitsubishi Motors Engine Harbin , , ,090 Shenyang , , ,095 Mitsubishi Motors total 1,050 1, , , ,185 Dongfeng Honda Wuhan , , ,131 Dongfeng Honda Engine Honda (China) Guangzhou , , , n.a. n.a. n.a. Honda total , , ,961 Dongfeng Nissan Passenger Car Guangzhou , , ,986 Dongfeng Yulon Hangzhou The is planned to start operations in 2011 at the earliest. Nissan, Yulon total , , ,986 *Changhe Suzuki, etc. Changan Suzuki Jiujiang ,176 69,431 69,431 Chongqing , , ,391 Suzuki total , , ,822 Beijing Hyundai Motor The first The second Beijing , , ,098 Dongfeng Yueda Kia Yancheng Over 200 Over 200 n.a. n.a. Details have yet 3/13

4 to be announced. Waiya Automotive Engine Existing The second Rizhao n.a. n.a. Production in 2007 counted 50,060. The began operations in July The third 0 n.a. Construction has already began. Hyundai Group total Over 1,100 Over 1, , , ,098 Over 11,990 Over Inclusive sum 4,550,411 6,492,010 6,473,339 18,671 9,065 Over 12,540 (Notes) Figures for manufacturers marked with (*) include engines with the Chinese manufacturer's own 1. brand. 2.The expansion plans are based on each company's announcement or reports from major publishers as of March 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) Disel engine Gasoline engine Others Passenger car 53,405 81,367 2,348,793 3,051,301 Commercial vehicle 2,086,361 2,772,434 Passenger car 6,551,296 10,057,666 6,086,034 9,140,179 Commercial vehicle 472, ,005 Passenger car ,679 6,512 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 133, , , ,550 Commercial vehicle Total (2) 604, , , ,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) Domestic production Import KD engine total Displacement ,000cc or less 700,519 1,284, ,519 1,284,753 1,000cc to 1,600cc 3,491,928 5,975, ,731 3,492,802 5,992,275 1,600cc to 2,000cc 1,590,974 1,875,072 58, ,780 1,649,042 1,985,852 2,000cc to 2,500cc 716, ,612 55, , , ,782 2,500cc to 3,000cc 93, , , , /13

5 3,000cc to 4,000cc 11,027 9,699 13,741 11,888 24,768 21,587 Over 4000cc ,199 2,161 5,644 2,227 Total (Passenger car) 6,604,701 10,139, , ,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 of FAW VW in February 2010, and put the new Shanghai engine line of Shanghai VW into operation in March 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 establishing an annual production capacity of 300,000 engines. FAW VW started operations of the new Changchun 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 of SAIC Motor and VW located in Jiading District, Shanghai, to those produced in house. The new engine has an annual production capacity of 300,000. Combined with existing engine s, the production system expanded to 600,000 a year. The 1.6L MPI engine of EA111 series will be put on the new '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 Shanghai VW completed the first stage modification of the engine attached to the Shanghai 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 s 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 s in China. The annual capacity of Volkswagen FAW Engine, an engine exclusive 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 in Loutang in the surburbs of Shanghai, started second stage construction in 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 s 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 s adjacent to each other, in Guangdong province investing a total of over four billion 5/13

6 Euro. (Shunde city is the leading candidate while Nanhai city and Dongguan city are following.) The passenger car production capacity of both s are planned to be 200,000 each. The construction will begin in 2011 at the earliest and start operations in The branch 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 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 VW started operations of Volkswagen AT (Dalian) Co., Ltd., a 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 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 of Dongfeng Peugeot Citroen, a joint venture with Dongfeng Motor Group. The capacity will be further raised to 650,000 by the end of 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. In addition, the PSA reportedly restarted the negotiation with Changan Group, which had made Hafei Motor a subsidiary, to establish a joint 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 expands to increase the production capacity PSA began the second stage construction to expand its own powertrain of Dongfeng Peugeot Citroen in Xiangfan in January The annual engine production capacity of the increased from 300,000 to 400,000 in March 2008, and to 450,000 at the end of The capacity was 600,000 as of March 2010, and will further expand to 650,000 by the end of /13

7 BMW will build the second passenger car accompanied by an engine, 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 of BMW Brilliance Automotive in November An engine was included in the plan to be attached to the second (new) passenger car which will start operations in BMW is believed to establish an annual engine production capacity of 100,000 by the end of BMW Brilliance Automotive will build the second passenger car with an engine attached, thus structuring the engine production system. BMW agreed with Brilliance Group on the second stage expansion of BMW Brilliance Automotive and signed the conference document in November The second stage expansion covers increasing the annual production capacity of existing in Dadong district of Shenyang, Liaoning province from 41,000 to 75,000 by the end of 2010, and newly constructing a accompanied by an engine in Shenyang Economic & Technical Zone. The annual production capacity of the engine will reportedly be arranged to reach 100,000 by the end of The construction (total investment is worth over five billion RMB) will begin in 2010, and the new is planned to start operations in around The passenger car production capacity of the new 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 (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, the 3/5 series, volume production models of existing s, 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 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 Group (GAC), and started the first stage construction of GAC Fiat which is a joint venture for passenger cars accompanied by an engine at Changsha, Hunan province, in November 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 with an engine attached, as a joint venture with GAC, to establish a production system for 300,000 engines. Fiat started the construction of the s of GAC Fiat, a joint venture equally owned by Fiat and GAC, which has an attached engine and a development center in Changsha Economic & Technical Development zone, Hunan province, in November The first stage construction of the joint s (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 s 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 will be the new 6 speed DDCT transmission (C635) of FPT manufactured at Hangzhou Iveco Automotive Transmission, a joint of Iveco, in Hangzhou, Zhejiang province. (Note) DDCT is an acronym for Dry Dual Clutch Transmission. 7/13

8 GM will boost its annual production capacity to 2.38 million in 2011 by expanding existing s and constructing new s In March 2009, GM started operations of the Qingdao engine, and in May the same year, enhanced the Yantai engine exclusive, to attain a production system for around million engines a year. The company plans construction of a new engine at Liuzhou and reinforcing existing s in the future, to raise the annual production capacity in China to 2.38 million by the end of SAIC GM Wuling plans to establish an annual production system for million engines combining Liuzhou and Qingdao s. SAIC GM Wuling, a joint venture with SAIC Motor and Liuzhou Wuling, funded by GM 34%, started operations of an engine attached to the Qingdao branch in Shandong province in March 2009 to establish an annual production capacity of 350,000 engines. The Qingdao engine 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 began the construction to expand its main at Liuzhou in August The expansion (required total investment of 2.1 billion RMB) includes the expansion of the East (complete vehicle ) in Liuzhou and the second stage construction of the attached engine. Either is planned to complete in Consequently, the engine located in the site of main of SAIC GM Wuling will increase the annual production capacity from ongoing 350,000 to 500,000. (While the complete vehicle production capacity of the East will expand from the ongoing 200,000 to 300,000.) Additionally, in March 2010, SAIC GM Wuling revealed plans to invest around 4.35 billion RMB to construct a complete vehicle and a parts 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 will have an annual production capacity of 525,000, and will be completed by the end of Yantai engine added the production of Ecotec series engines, expanding the production capacity to 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 with SAIC Motor in Yantai in May 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 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 directinjection 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 in Shenyang, and in the new Buick Regal produced at a joint passenger car in Shanghai since August 2009 as an additional engine, as well as in many models which will be sold in China in the future. 8/13

9 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 s Ford Mazda currently has an annual production capacity of 700,000 engines combining the capacities of Changan Ford Mazda Engine, the engine attached to the main in Chongqing and FAW Car. In the future, through the construction of the new s 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 attached to the passenger car in Chongqing Fiat and Changan announced, in May 2009, a plan to construct a new passenger car in the new northern area of Chongqing (Pingchang Industrial Park, Yuanyang town), which will be the third of Changan Ford Mazda. The attached new engine will reportedly have an annual production capacity of 150,000 for the initial operation. The new passenger car 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 will mainly produce Ford brand exclusive luxury cars including SUVs and crossovers. Changan Ford Mazda Engine, an engine exclusive 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 in Changchun of FAW Car (so called the second, FAW Car Co., Ltd.), which undertakes CKD production of Mazda version engines, spent around 1.1 billion RMB in late years in modifying the and accomplished a production system for 150,000 engines a year. The mainly manufactures engines specified by Mazda for the first generation of Mazda 6 and Besturn B50. Further, the plans to increase the production capacity to 200,000 and then to 240,000 gradually through the construction of a new engine 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 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 as a joint venture with FAW Group, Tianjin FAW Toyota Engine which is an engine exclusive in Tianjin and GAC Toyota Engine which is also an engine exclusive in Guangzhou as a joint venture with Guangzhou Group (GAC). A new complete car in Changchun with a production capacity of 200,000 is planned by Sichuan FAW Toyota, a joint venture with FAW Group. And another new 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 started supplying AZ series engines to the passenger car in Tianjin for the RAV4 in /13

10 GAC Toyota Engine at Nansha district in Guangzhou city, an engine exclusive jointly operated with Guangzhou Industry Group, started supplying AZ series engines for RAV4 produced at Tianjin FAW Toyota in March The AZ series engines are also supplied for the Camry produced at GAC Toyota, a joint venture with Guangzhou Group. The accumulated total of AZ series engine production at GAC Toyota Engine reached one million in July 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 in Shenyang Mitsubishi upgraded the joint engine exclusive in Shenyang, Liaoning province, to have an annual capacity of 400,000 engines in June Combined with the joint engine exclusive 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 Incidentally, the joint in Harbin started production of ATs in February 2010, and plans to increase the AT production capacity to 300,000 a year in The joint engine 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 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 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 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 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 has an engine production capacity of 650,000, where AT started operations Harbin Dongan Auto Engine, a joint engine 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 in Harbin, the first stage construction of an automotive AT was completed and started production of 4 speed/5 speed ATs in February 2010 (construction began in May 2008). The new AT has an annual production capacity of 150,000 ATs for the initial stage of operation. Combined with existing MT (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 (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 attached to the passenger car in Wuhan in May 2009 and raised the capacity again to 240,000 at the beginning of Combined with Dongfeng Honda Engine, a joint engine exclusive in Guangzhou, and the engine attached to Honda 10/13

11 (China) Co., Ltd., a joint export exclusive passenger car, 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 in Wuhan to 710,000, and then to 890,000 in the medium term. Honda considers enhancement of production system at Wuhan engine 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 attached to the joint passenger car in Wuhan (Dongfeng Honda ) 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, the company plans a capacity of 300,000 in around 2012, and subsequently to 480,000. Incidentally, the 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 attached to the main of Dongfeng Nissan Passenger Vehicle in February 2006, reinforced the to the capacity of 360,000 as of December 2009 and plans another expansion to 480,000 by the end of On the other hand, Yulon Motor is constructing an engine at Dongfeng Yulon 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 s to 700,000 a year in total. Combined with its new passenger car 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 to 480,000 by the end of 2010 The engine attached to the Guangzhou main 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 Dongfeng Nissan Passenger Vehicle plans to raise the capacity from 360,000 to 480,000 completing the second stage construction by the end of Incidentally, Dongfeng Nissan Passenger Vehicle started volume production of the VQ engine, Nissan's leading engine, in December 2009 at Guangzhou engine 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 in Hangzhou Yulon Motor is constructing a passenger car (construction began in 2008), to which an engine and a development center are attached, at Dongfeng Yulon (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 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 completed in September 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 11/13

12 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 attached to Changan Suzuki 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 attached to the Jiujiang (located in Jiangxi province) of Changhe Suzuki, a joint venture with Changhe which was reorganized under Changan Group, and is considering an increase of annual production capacity in China from 350,000 to 600,000 engines. The engine in Jiangxi province will start supplying the K14B engines to auto manufacturers other than Suzuki in China Suzuki's Juijiang engine 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 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 (a partner of Suzuki) and in the Ideal 2 of Changhe. Hyundai Motor initiated operations at the new s 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 attached to Beijing Hyundai Motor at the end of 2008 and also the second 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 (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 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 s 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 attached to the Beijing joint passenger car 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 (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 s in Beijing as well as 1.8/2.0L Beta series engines at the first. The engines produced at Beijing s are supplied also to Dongfeng Yueda Kia Motors, a joint passenger cars of Kia in Hyundai group in Yancheng, Jiangsu province. In the meantime, the Beijing engine 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 at the engine 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) 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 in October 2009 and boosted the production capacity from 100,000 to 400,000 a year combined with existing first (started operations in March 2007). 12/13

13 The products are supplied to Dongfeng Yueda Kia Motors as well as exported to Russia, India. Turkey and other countries same as the first 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 s 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 construction (already began in January 2010) (details have yet to be revealed.). Copyright(C)MarkLines Co., Ltd. All rights reserved. source: MarkLines Co., Ltd. 13/13