Automakers Unveil New Models to Boost Competitiveness

Although the drastic changes taking place in the global auto market since mid-2008 have sparked unprecedented production cuts, they do not seem to have affected plans to launch new cars. Most automakers continue to unveil new models on schedule.

And most of them expect to continue developing new models in response to an ever-stronger consumer demand for higher fuel efficiency and more eco-friendly cars. In the United States and most European countries, governments are boosting the green trend by requiring automakers to develop such cars as a primary condition for bailout loans.

For some automakers, the development of new models is a means not only of boosting sales but also of image promotion. Ford Motors, which has been actively engaged on new-car development in anticipation of a market turnaround, has been rewarded by having its new F-150 truck named Motor Trend's 2009 Truck of the Year, beating out the Dodge Ram 1500, Suzuki Equator, and Hummer H3T.

The F-150 offers a three-engine lineup that provides excellent power and fuel economy, and its robust 5.4L 3-valve SOHC V8 delivers unsurpassed fuel economy at 21 mpg (miles per gallon), according to the Trend Motor. "In fact," the journal commented, "across the engine lineup, the new F-150 provides greater horsepower and torque while delivering improved fuel economy."

Almost all the new models introduced at international auto shows in 2008 were designed to be energy-efficient and eco-friendly. In general, the Japanese own the cutting edge in this respect, but they are under increasing pressure from rivals in other countries that want to catch up or even surpass them.

In December 2007, the Bush administration approved an energy bill requiring all new cars produced in the U.S. to have an average fuel efficiency of 35 mpg by 2012, around 40% higher than the current level. This will force American carmakers to speed up their introduction of more efficient models. General Motors now plans to launch eight highly fuel-efficient models; Ford promises to produce 500,000 units of models equipped with the EcoBoost engine, which it claims is much more fuel-efficient than any hybrid, within five years.

Meanwhile, the EU, in a bid to cut greenhouse gases, is demanding that CO2 emissions for its cars be reduced to 120 grams per kilometer by 2012, around 25% less than today's 160g.

Despite the sharp contraction of the global auto market, the Guangzhou Auto Show 2008 (held in November) drew a record of more than 600 exhibitors who introduced over 700 car models, 30 of which were seen for the first time. Both Chinese and foreign automakers wanted to promote sales in southern China, where the auto market has been relatively stable compared with other areas of the international auto market.

Brand Promotion

In China, automakers see this as a critical time for the government to help them promote Chinese auto brands, since the authorities want to expand the domestic car market. In a recent government-organized meeting, representatives of the 15 major domestic automakers overwhelmingly agreed that the government should take strong action to help them weather their difficulties by increasing incentives for the purchase of Chinese-made cars.

Most Chinese automakers introduced new models at auto shows in 2008 and early 2009. At the Changsha International Auto Show on December 11-15, for instance, Chinese car manufacturers unveiled around 30 new models to be marketed under Chinese brands.

Chery Automobile, to cite one example, introduced a luxury limousine designed exclusively for carrying the spacemen who will take China's Shenzhou-Mission 7 into space, emphasizing the country's ability to develop and produce sophisticated transportation vehicles. At the same time, an exhibitor whose former core business was motorcycles unveiled an electric vehicle, which, it claimed, is to pioneer the electric car market in China.

Earlier, the Geely Panda, a small sedan named in honor of China's famous giant pandas, made its formal debut at the Beijing auto show in August. In addition to its cute appearance, the small sedan is said to be one of the most fuel-efficient auto models in China.

Southeast Motor, a joint venture between a Fujian automaker and Taiwan-based China Motor, recently launched three new car models bearing the V3, Zinger, and Lancer brands. The V3 compact sedan, offered at a price under 60,000 Chinese yuan (or renminbi), has chalked up sales of over 5,000 units since it was launched last October. The manufacturer claims that the V3 is aimed not at making a profit but at boosting Chinese brands in the auto market.

In mid-December Zhongyu Automobile, a member of the Zhejiang Zhongyu (Holding) Group located in China's central coastal area, held a groundbreaking ceremony for its new subsidiary, the Nazhijie (HangZhou) Automobile Co., a joint venture with Taiwan's Yulon Motor. The new company aims to produce the world's first intelligent electric car, to be launched by the end of 2010. Incorporating IC-controlled functionality, the intelligent vehicle is claimed to offer much safer driving while being far more energy-efficient and eco-friendly than existing cars.

Zhejiang Zhongyu initiated its cooperation with Yulon to take advantage of the IC technological strength of Taiwan, where Yulon operates a research institution engaged in the development of automotive IC-control technology.