Chang'an Automobile Group

For other uses, see Chang'an (disambiguation).

Chang'an Automobile (Group) Co., Ltd.
重庆长安汽车股份有限公司

Type	State-owned
Industry	Automotive
Founded	1862
Headquarters	Chongqing, People's Republic of China
Products	Motor vehicles
Website	www.changan.com.cn/ (Chinese)

Chang'an Automobile (Group) Co Ltd^[1] (simplified Chinese: 重庆长安汽车股份有限公司; traditional Chinese: 重慶長安汽車股份有限公司; pinyin: Chóngqìng Cháng'ān Qìchē Gǔfèn Yǒuxiàn Gōngsī) is an automobile manufacturer in Chongqing, China, and a state-owned enterprise^[2] with China Weaponry Equipment as parent.^[3]

Its production is primarily composed of no frills passenger cars and mini-vehicles,^[4] microvans and microtrucks that see commercial use.

Also known as Chana,^[5] the company is currently one of the "top 4" Chinese automakers along with Dongfeng Motor, FAW Group, and Shanghai Automotive Industry Corporation.^[6] In 2010 it became the fourth most-productive automaker in the Chinese automobile industry^[7][8] by selling 2.38 million units–a little more than 13% market share.^[9]

A subsidiary, Chongqing Changan Automobile Company (SZSE: 000625), is listed on the Shenzhen Stock Exchange (but, as of 2007, it is also state controlled).^[2]

Foreign automakers that have joined joint ventures with Chang'an include Ford, Suzuki, and PSA Peugeot Citroen.

The company recently released a new logo for its consumer offerings; commercial production retains the red one.^[4]

History

Chang'an claims its early origins can be traced back to 1862^[10] when Hongzhang Li set up the Shanghai Foreign Gun Bureau.^[11] How this company and today's Chang'an are linked is not clear, however.

Chang'an Factory

In the late 1950s its predecessor company, Chang'an Factory, assembled a jeep sold under the brand name Yangtze River.^[11] By the end of the 1980s the company was also producing mini vehicles,^[12] small trucks and vans that see commercial use.

Domestic acquisitions

Chang'an acquired two smaller, domestic automakers in 2009–Hafei^[7] and Changhe.^[13]

Suzuki

Chang'an Suzuki SC7080 Alto

Main article: Chang'an Suzuki

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.^[14] The two companies formed Chongqing Chang'an Suzuki Automobile Co in 1993,^[15] 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 continues to build mini-vehicles, microvans and microtrucks that see commercial use, based on the 1999 Suzuki Carry license but independently developed vehicles are quickly replacing them.^[14] These small cars carry the Chang'an brand name, although Suzuki technology is used in their design and manufacture.

In 2010 production capacity at Chang'an Suzuki was estimated at 180,000 units/year and the number of showrooms, 1000.^[16] Production capacity figures may consider engines and vehicles as discrete.

In 2010 Chang'an was supposed to merge its Suzuki joint venture with that of Changhe, another automaker that participates in a JV with this Japanese company.^[3] This plan, supported by Suzuki, did not see fruition.^[13]

Ford

Main article: Chang'an Ford

a Chinese police Ford Focus, 2007

In 2001 Chana Ford Automobile Co was formed.^[15] It initially built Ford-branded passenger vehicles from complete knock down kits.^{[citation needed]}

Making Chinese-market versions of the Fiesta,^[4] Focus,^[4] Edge,^[17] and Mondeo,^[18] etc. its 2010 dealer network was estimated to include nearly 350 showrooms, many in second and third-tier Chinese cities.^[19]

Alongside many other Sino-western joint ventures seeking to sell cheaper models to inland cities,^[20] Chang'an Ford may soon sell cars under a newly created brand name,^[18] which will be neither Chang'an nor Ford. Ford-branded Chang'an Ford products currently compete in inland cities against cheaper products made by indigenous manufacturers.^[18]

Volvo models

As a result of cooperation with Ford, the company has also produced Volvo-branded cars.^[21] Production of the Volvo S40 and S80, begun in 2007, will continue although this Swedish automaker was recently purchased from Ford by another Chinese auto-maker, Geely.^[22]

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.^[23] 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.^[24] Initial production capacity is estimated to be 200,000 units/year.^[25] Production capacity figures may consider engines and vehicles as discrete.

Electric vehicle

After six years of R&D, Chang'an debuted a hybrid automobile in 2007.^[2] The Jiexun, it was brought to market in June, 2010, and may be followed by an all-electric vehicle in 2011.^[26] China subsidies oil^[27] (an incentive for the State to encourage use and manufacture of electric cars), and some Chinese automakers see opportunities in less mature electric vehicles because Western companies have yet to develop much of a lead in the technology.^[28]

Visual identity

On October 31, 2010, Chang'an introduced new vehicle and company logos in a bid to revamp its visual identity.^[4][29]

Joint ventures

Chang'an has part ownership in number of joint venture companies with both foreign and domestic partners.

• Chongqing Chana Suzuki Automobile Co - 1993–present - With Suzuki Motors^[11]
• Chana Ford Automobile Co - 2001–present - With Ford Motor Company^[11]
• Chang'an Ford Nanjing Co Ltd - 2001–present - With Ford Motor Company^[11]
• Chang'an Ford Mazda Engine - 2005–present - Produces engines with Mazda
• Jiangxi Jiangling Co Ltd - 2004–present - With Jiangling Motors^[30] - Produces the Jiangling Landwind
• Chang'an PSA (CAPSA) - Finalised on 9 July 2010, it will see PSA Peugeot Citroen build cars in China.^[31]

Production bases and facilities

Chang'an has four major production bases (in the City of Chongqing, Hebei province, Jiangsu province and Jiangxi province),^[32] eleven automobile production bases and two engine production bases in mainland China^[10] 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.^[32]

Anhui

A planned 300,000 units/year capacity mini-vehicle production base in Hefei, Anhui province, should see completion in 2011.^[32] Production capacity figures may consider engines and vehicles as discrete.

Beijing

An existing R&D centre in Beijing^[33] (as of 2010, its focus was on commercial and crossover vehicles^{[citation needed]}) will soon be joined by a passenger car production base in Fangshan District, Beijing, which will become operational in 2012 and may produce electric vehicles.^[26]

Chongqing

Chang'an has numerous sites in the City of Chongqing. A Chang'an-Ford plant^[34] and another, planned Chang'an-Ford plant^[34] (which may produce engines^[17]) are joined by a Chongqing-based R&D centre^[33] and an industrial park in Yubei, Chongqing.^{[citation needed]}

Hebei

An industrial park in Hebei province may continue to be Chang'an controlled.^{[citation needed]}

Heilongjiang

A Harbin, Heilongjiang province, R&D centre, formerly Hafei-owned,^{[citation needed]} is now a Chang'an asset.^[33]

Jiangsu

A Chang'an-Ford plant^[34] and an industrial park^{[citation needed]} in Nanjing, Jiangsu province, may comprise Chang'an operations in this province.

Jiangxi

A planned Chang'an commercial vehicle production base in Nanchang, capital of Jiangxi province, will produce JMC and Ford-branded vehicles^[17] and join a former Changhe^{[citation needed]} R&D centre^[33] as a second facility in this province.

Shanghai

Chang'an has an R&D center in this coastal city.^[33]

Overseas R&D centres

Possessing valuable IP, some R&D centres are more-valuable if located in secure, overseas locations. Chang'an has R&D centres in Nottingham, England;^[33][35] Turin, Italy;^[33] Yokohama, Japan;^[33] and Detroit, MI.^[33]

See also

Companies portal

• Chang'an Zhixiang

References

1. ^ Chana > Contact Us > Dealer Application Chana Official Site (Web Archive)
2. ^ ^{a b c} China rolls out own hybrid car reuters.com, Sat Dec 15, 2007 1:44am EST
3. ^ ^{a b} Milestone merger reshapes Suzuki chinadaily.com.cn, 2010-03-29 09:26
4. ^ ^{a b c d e} China's Changan unveils new car logo in brand drive reuters.com, Sun Oct 31, 2010 11:55am EDT
5. ^ Global Chana Official Chana Site (Global)
6. ^ New policy to encourage China's carmaker consolidation xinhuanet.com, 2010-02-22 10:27:20
7. ^ ^{a b} New policy to encourage China's carmaker consolidation xinhuanet.com, 2010-02-22 10:27:20
8. ^ Sales surge, but congestion concerns rise people.com.cn, November 15, 2010
9. ^ China Car Market 101: Who Makes All Those 18 Million Cars? thetruthaboutcars.com, January 19, 2011
10. ^ ^{a b} Company Portrait Chana Official Site
11. ^ ^{a b c d e} About Chana Chana Official Site (Web Archive)
12. ^ Chana History Chana Official Site
13. ^ ^{a b} Suzuki seeks new venture in China globaltimes.cn, July 08 2010 (Google Cache)
14. ^ ^{a b} World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o.. 2006. pp. 226–227. 
15. ^ ^{a b} Chana History Chana Official Site
16. ^ Changan Suzuki to raise annual capacity to 180,000 vehicles globaltimes.cn, May 04 2010 (Google Cache)
17. ^ ^{a b c} Ford posts 40% sales increase in 2010 chinacartimes.com, January 7, 2011
18. ^ ^{a b c} Changan reportedly in talks to make Ford car under its own brand globaltimes.cn, January 20 2010 (Google Cache)
19. ^ Changan Ford to open 66 new dealers by year end globaltimes.cn, November 25 2010 (Google Cache)
20. ^ AUTOSHOW-China joint venture brands eye growth in inland cities reuters.com, Mon Dec 20, 2010 5:44am EST
21. ^ Beijing drives car and steel mergers message. Kathrin Hille. Financial Times. London (UK): Mar 23, 2009. pg. 16
22. ^ Li eyes scale, costs in revival of Volvo globaltimes.cn, March 31 2010 (Google Cache)
23. ^ China Chang’an Automobile Group and PSA in Joint Venture discussion PSA Peugeot Citroën Official Site, 5/06/2010
24. ^ CAPSA – Chang’an-PSA’s new joint venture company chinacartimes.com, June 15, 2011
25. ^ A review of China's auto industry chinadaily.com,cn, 2010-12-27
26. ^ ^{a b} Beijing on Changan Auto's path globaltimes.cn, November 24 2010 (Google Cache)
27. ^
    • China's fuel subsidy costs the world reuters.com, Wed Jun 4, 2008 8:08am EDT
    • A rounder world threatens Asia's economies reuters.com, Fri Jul 4, 2008 7:13am EDT
    • China to raise the price of fuel bbc.co.uk, 18:04 GMT, Thursday, 19 June 2008
28. ^
    • Mr. Heyi Xu，the president of Beijing Automotive Industry Holding Co., Ltd. delivered a speech at the 2009 China (Changchun) International Automobile Forum BAIC Official Site, 2009-07-20
    • Big bet on better battery-run cars chinadaily.com.cn, 2011-01-03
29. ^ "Abandoning "Chana," Changan Revamps Visual Identify". ChinaAutoWeb.com. http://chinaautoweb.com/2010/10/abandoning-chana-changan-revamps-visual-identify/. 
30. ^ Chana JMC Chana Official Site
31. ^ Peugeot and Changan Automotive finalise joint venture bbc.co.uk, 11:04 GMT, Friday, 9 July 2010
32. ^ ^{a b c} Changan Auto plans mini-van production base in Hefei globaltimes.cn, June 30 2010 (Google Cache)
33. ^ ^{a b c d e f g h i} Changan Auto Group opens three new R&D centers globaltimes.cn, January 19 2011 (Google Cache)
34. ^ ^{a b c} Ford, Changan Motor To Setup Third Plant In China automotive-business-review.com, 21-September-2009
35. ^ "Chinese car maker to create 200 new jobs in Nottingham". East Midlands Development Agency. http://www.emda.org.uk/projects/details.asp?filevar=543. Retrieved 2011-02-02. 

External links

• Chang'an Official site (Chinese)
• Chana Auto Official site (English)