Space Industry and Business News  
CAR TECH
Chrysler hopes iconic Jeep will boost global sales

China's 2010 auto sales top 18 mn units
Beijing (AFP) Jan 10, 2011 - Auto sales in China rose more than 32 percent in 2010 to 18.06 million units, an industry group said Monday -- a new record for the world's largest car market. Sales in December rose 17.9 percent from a year earlier to 1.67 million units, the China Association of Automobile Manufacturers (CAAM) said in a statement. China overtook the United States in 2009 to become the world's largest car market and is a key market for foreign manufacturers. GM, Ford and Volkswagen all posted record sales in the country last year. "The strong growth... was due to both policy incentives and frontloaded consumption as consumers were concerned about the withdrawal of policies," CAAM said.

Beijing introduced stimulus policies aimed at supporting the auto market during the global financial crisis. Consumers worried authorities would scrap these measures this year snapped up cars in 2010. CAAM forecast sales and production would grow at a steadier pace in 2011, by between 10 and 15 percent, after the government raised the purchase tax for small cars to 10 percent and Beijing slashed the number of new registrations allowed in the capital this year. But analysts said the policy changes would have a limited impact on overall car sales, with demand in second and third-tier cities expected to continue growing strongly. "Car ownership per 100 families is around 30 to 40 in Beijing but the national average is only around 12," said Chen Yin, a Shanghai-based analyst with investment consulting firm CEBM Group.

"That is not going to change the trend of growing demand for cars in China given the low ratio of car ownership... and increasing income level. The growth rate for 2011 will reach 10 percent." US auto giant General Motors said its sales in China increased 28.8 percent year-on-year in 2010 to a new annual record of 2.35 million vehicles. Its manufacturing joint ventures and major brands all set new annual sales marks, the company said earlier this month. Volkswagen said its sales soared 37 percent year-on-year in 2010 to an annual record of more than 1.9 million cars.

Beijing announced last month that only 240,000 new number plates will be issued in the capital this year, compared with the record 800,000 automobiles that took to the streets of the city last year. The new system is aimed at easing pollution and chronic gridlock that often turns parts of the capital into parking lots. But Chen remained optimistic about the Beijing market, saying: "We do not see the new policy eliminating people's intention to buy new cars." Other major cities are introducing measures to deal with worsening traffic snarls as a growing number of people buy their slice of the middle-class dream. In the southern city of Guangzhou, authorities are trying to reduce traffic by ordering cars off the roads based on the last digit of the licence plate.
by Staff Writers
Detroit, Michigan (AFP) Jan 9, 2011
Chrysler has its eye on China and is counting on its iconic Jeep brand to boost global sales and help return the US automaker to profitability after a government-backed bankruptcy.

The first boatload of the new Jeep Grand Cherokee exported from Detroit is expected to reach China soon and Chrysler is also preparing to expand sales in South America, Eastern Europe and Russia, officials said.

The push coincides with the brand's 70th anniversary, which Chrysler will be celebrating Monday at the Detroit auto show.

"Jeep is one of the best known brands in world - it's as recognizable as Coca Cola," said Mike Manley, president of the Jeep brand who noted that in many parts of the world, driving a Jeep is a status symbol.

"Since they were first produced in 1941, Jeep vehicles have been the authentic benchmark for off-road capability, having mastered more terrain, led more adventures and provided drivers more freedom than any other vehicle before or since."

Part of Jeep's fame reaches back to the legendary vehicles built exclusively for the American military during World War II.

Relatively few of the original Jeeps, which remained in production for more than 40 years, ever came back to the United States and wound up on roads and rugged trails across the globe.

"We left free samples all over the world," Manley said recently.

In fact, Jeep has become so synonymous with four-wheel-drive vehicles that Chrysler's lawyers regularly file suit against companies misappropriating the trademarked name.

The new Grand Cherokee has earned a host of honors from the automotive press and the Jeep brand led Chrysler'S recovery in its home market.

Overall, Jeep sale increased 26 percent in 2010 to 291,138 units, and accounted for a quarter Chrysler's US sales, even though the Grand Cherokee was available for only half the year.

Sales in China also surged as Chrysler, with Fiat's help, restart Asian sales. In 2010, Jeep sales increased 10 percent at 149,000 vehicles.

"The Jeep brand continues to be the best thing Chrysler has going," said Edmunds.com Senior Analyst Karl Brauer.

Chrysler has yet to come close to tapping Jeep's potential in overseas markets, said Jesse Toprak, senior analyst for TrueCar.com

"It's substantial," he said.

Jeep is also working to boost its reputation among US consumers, who considered the original Grand Cherokee a luxury vehicle when it first appeared in the mid-1990s.

"We want to recapture that and we think we can," Manley said, noting that a significant number of Grand Cherokee customers are now trading in luxury cars like Lexuses and BMWs at dealerships in California.

Jeep's reputation in its home market suffered greatly in recent years as product design and quality were neglected amid the internal turbulence.

It began in 2007 with the Chrysler's divorce from Mercedes, followed by two years of inept management by private equity group Cerberus.

After seeking billions in federal aid after the 2008 financial crisis, Chrysler entered bankruptcy protection in June 2009 and emerged a month later under the management of Fiat's Sergio Marchionne.

Fiat gained a 20 percent stake in Chrysler in exchange for sharing technology, and Marchionne instigated a major product revamp, introducing 16 new or revised vehicles last year.

Chrysler is expected to show a profit on an operating basis in 2010 and return a net profit in 2011. It is expected to launch an initial public stock offering in the second half of 2011.

Marchionne said earlier this month that Fiat may boost its holding to 51 percent before the IPO which will help the US government wind down it eight percent stake in Chrysler.

Marchionne has set ambitious targets for the two companies, saying they should produce six million vehicles combined by 2014.



Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
Car Technology at SpaceMart.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


CAR TECH
Beijing car plates oversubscribed by 10 times
Beijing (AFP) Jan 9, 2011
Over 215,000 people applied for car licences in Beijing this month, but only 20,000 will be issued as the capital seeks to curb its massive traffic jams, state press said Sunday. Under a new system aimed at controlling the number of cars on Beijing streets that began this year, applicants must apply in the first eight days of the month for the 20,000 available plates issued monthly. Acco ... read more







CAR TECH
Direct Observation Of Carbon Monoxide Binding To Metal-Porphyrines

Tablets and smart gadgets ruled at CES

Liquid Pistons Could Drive New Advances In Camera Lenses And Drug Delivery

How Do You Make Lithium Melt In The Cold

CAR TECH
JICO Support System Receives Production Approval

Northrop Grumman Demonstrates MR-TCDL Capabilities

IBCS Completes Warfighter-Centered Design Exercises

Arianespace Will Orbit Sicral 2 Milcomms Satellites

CAR TECH
ISRO To Launch Two Communication Satellites This Year

Arianespace Will Have A Record Year Of Launch Activity In 2011

2011: The Arianespace Family Takes Shape

ISRO To Launch Singapore's First Satellite In Orbit In February

CAR TECH
GPSCaddy Golf App Now Offers Free Course Maps

ISRO To Implement Regional Navigation Satellite System

Networks Of Up To 2 Million Cells Now Supported By GeoLENs Location Platform

Software Will Take Half Of The Total Nav Market By 2016

CAR TECH
Bids in for British flight training system

China completes prototype of stealth fighter: reports

France 'confident' of winning Brazil plane contract

Clariant resumes aircraft de-icer output after winter halt

CAR TECH
Intel to pay NVIDIA billons in patent dispute

Greenpeace ranks 'greenest' electronics

Better Control Of Building Blocks For Quantum Computer

S.Korea's Hynix says chip price slump will hit Q4 profit

CAR TECH
Google illegally gathered data in S.Korea: police

Sat-nav turtles go on trans-ocean trek

Cyclone Tasha Adds To Severe Flooding Over Eastern Australia

Tidal Flats And Channels, Long Island, Bahamas

CAR TECH
UN warns over lead poisoning in northern Nigeria

Kenya bans plastic bags

Oceanic "Garbage Patch" Not Nearly As Big As Portrayed In Media

British local authorities rubbished over trash backlog


The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement