Shanghai
Automotive Industry plans to export 2,000 Santana and Passat models in 2001, the
Xinhua News Agency reported.
Company president Hu Maoyuan told the agency that Shanghai is the only Chinese
automotive business to have set up joint ventures with two world automotive
leaders – America’s General Motors and Germany’s Volkswagen.
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Over 40 component manufacturers in the Shanghai group have also set up joint
ventures with international makers such as Delphi.
Although it exports components, Shanghai Automotive has never shipped complete
vehicles. Sales in 2000 were a record 85.4 billion yuan ($US10.33 billion) but
exports were only 1.11 billion yuan ($US134 million).
Hu reportedly said that high production costs was a major factor affecting
the export of Shanghai Automotive’s products.
Two of the group’s car manufacturers, Shanghai Volkswagen and Shanghai
General Motors, have an annual capacity of 400,000 sedans but sold only 250,000
Santana, Passat and Buick cars last year. Therefore, a considerable part of
the production capacity has not yet been fully tapped, Hu said.
He added that cars would be exported mainly to Southeast Asia where they would
be priced to compete. Those prices would be lower than Chinese prices.
Shanghai Automotive expects to earn 1.36 billion yuan ($US165 million) from
exports this year and achieve an annual average growth rate of 30 percent in
the next five years.
By 2005, it expects exports to exceed 4.13 billion yuan ($US500 million) with
total sales of around 160 billion yuan ($US19.35 billion).
That would make Shanghai Automotive one of the top 500 companies in the world,
Xinhua News Agency said.
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