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China's influence grows in global auto market

(Agencies)
Updated: 2010-04-26 11:22
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In the mass market, China-inspired cars mix smaller size and lower price with bigger vehicles' more sober styling and focus on interior room. That is aimed at first-time buyers who might be middle-aged with children or a business and care about practical transportation, not sporty looks.

Nissan's Teana is priced at 177,000 to 366,000 yuan ($25,900 to $53,600) -- several times China's average annual income of about $3,000 per person but much less than a similar-size car costs abroad. Nissan sold 35,400 Teanas in China from January to March, up 88 percent from the same time last year, according to J.D. Power.

GM's compact Sail, designed for China and made with a local partner, Shanghai Automotive Industries Corp, is priced at 57,000 to 69,000 yuan ($8,300 to $10,100). GM's compact Wuling Zhiguang minivan, also made with SAIC, costs 37,000 to 46,000 yuan ($5,400 to $6,700).

Chrysler LLC linked up with a Chinese partner, Chery Automobile Co, to turn one of its low-priced models into a compact for the US market but the alliance was called off after the global crisis hit.

China's influence extends to products marketed by global automakers in other developing markets.

GM and SAIC announced in December they will expand their partnership to India to make and sell Wuling minivans and flatbed trucks. Last year, Wuling became the first brand in China to top 1 million units in annual sales.

"We are currently exporting Wuling products to a number of markets in Africa and in South America very successfully," Lee said. "We know we will be successful in India as well."

Ford is following a different strategy, using Chinese market research to help design global vehicle platforms rather than creating a China model, said Joe Hindrichs, the company's president for Asia-Pacific and Africa.

"What's most important to us is that we have Chinese input from consumer research and Chinese employees into the design process of our products so we get Chinese desires and perspectives," Hindrichs said. "We are doing that on all our global products because we know how important the Chinese market is."

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At the Beijing auto show, Ford displayed a micro-compact concept car, the Start, with a three-cylinder engine. Its chief designer, J Mays, said Ford had crowded Chinese cities in mind when it created the car.

Automakers also are turning to China for design talent.

Nissan plans to open a Beijing design center in 2011. It would be the first in China for a Japanese automaker and add to Nissan studios in Japan, Britain and the United States.

"We are going to hire a lot of Chinese designers," said Ghosn, the Nissan CEO.

GM launched a Shanghai design center with partner SAIC in 1997 that Lee said has grown into a "fully capable engineering center where we can do cars from bumper to bumper and from tires to roof." It designed the interior of the latest Buick LaCrosse sold in the United States and created the new Sail sedan and hatchback.

For now, Sails are sold only in China. But, Lee said, "We could easily use those designs and that product in other markets."

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