Made In China: More Hybrids On The Way?

Made In China: More Hybrids On The Way?

First Auto Works Group (FAW), a Chinese automaker, says that it will produce about 1,600 hybrid cars and half as many hybrid buses by 2012. At that point, the company plans to ramp up production of its hybrid vehicles to 11,000 annually, with another 1,000 hybrid buses. The company also says that it will spend more than $600 million on hybrid vehicle research and development.

FAW Group has been testing a fleet of 12 hybrid buses in Liaoning province, and expects to add another 88 buses to the City of Dalian's fleet following the test period. The Chinese government has also said that it will subsidize the purchase of hybrid vehicles. FAW joins SAIC Motor Corp, one of China's premier automakers, and BYD in producing hybrid vehicles for the domestic market. BYD and SAIC have already said that they want to export vehicles to other markets, particularly those in Europe and North America.

Last year, FAW Group and GS Motors of Mexico announced a partnership that will enable FAW to manufacture its hybrid vehicles at GS Motors' Michoacan, Mexico factory, with the ultimate goal of exporting the cars to the US. GS Motors' president Kathleen Ligocki predicts that Mexican-made Chinese hybrids will hit the US in five years or less. She also believes that the vehicles may be sold at discount retailers like Wal-Mart or Costco for less than $10,000 per unit.

Earlier this month, Chery Automobile launched a new plug-in hybrid electric vehicle that can travel nearly 100 miles between recharges. The S18 has a top speed of 74 miles per hour and offers a recharge cycle of less than six hours. China's largest automaker will offer the hybrid vehicle to government agencies on a trial basis for about a year. Afterward, the vehicle will be sold to the public for about USD $15,000.

Chery Automobile established partnerships with General Motors and Volkswagen, but Chery's plan to distribute its vehicles in North America ran afoul of General Motors' intellectual property rights when Chery allegedly copied designs that GM had licensed to the now-defunct Daewoo Motors Corporation. GM dropped its lawsuit in China, but reserves the right to sue Chery if the company tries to market the copied vehicles in North America or Europe. Currently, Daimler holds the exclusive distribution rights to Chery's products in North America.

Photo Credit: Marc van der Chijs