Press release

August 6, 2007

China cars: "We are inundated with inquiries!"

Good response to Chinese cars - already 90 dealer inquiries - BMW and Toyota react calmly - new low-cost small car at the IAA

Würzburg, August 7, 2007


After announcing the launch of two Chinese SUVs at the IAA, the Munich-based importer China Automobile GmbH has reported a great response. "We are being inundated with inquiries," said Managing Director Karl Schlössl in an interview with "Automobil Industrie". A total of 90 applications have already been received. "We receive four to five dealers every day and show them our cars," says Schlössl.


The strong interest from large dealer groups and multi-brand dealers in urban centers is surprising. "We had expected to start mainly in rural areas," says Schlössl. VW/Audi and BMW dealers are also among the interested parties.


China Automobile GmbH plans to launch both models on the German market shortly after the IAA:

- with the CEO from Shuanghuan, which incorporates design elements from BMW and Toyota and is expected to cost around 25,000 euros,

- and the UFO from Zhejiang Jonway, which is similar to the predecessor model of the Toyota RAV4 and is expected to cost around 15,000 euros.

In addition, a small car will be presented at the IAA, which will cost around 7,000 euros.


BMW and Toyota remain calm in the face of the Chinese challenge. "There has not yet been a genuine counterfeit of a BMW car. This also applies to the CEO, which, although superficially similar in form to a BMW, has a noticeably different design and technology," says BMW spokesman Rudolf-Andreas Probst. "In principle, we would use all legal means to take action against a counterfeit of one of our products," he adds. However, the BMW Group is reportedly keeping a close eye on the CEO's market positioning.


Toyota does not officially comment on the UFO. "We do not comment on competitor products," said a Toyota spokeswoman in response to an inquiry from "Automobil Industrie".


VDA President Matthias Wissmann said in an interview with "Automobil Industrie" that it was up to the rights holders to intervene against possible plagiarism. He welcomes new exhibitors from China: "The Chinese are important players on the world market and we very much welcome them using the IAA as a platform. Incidentally, one should have respect for the enormous development work of the Chinese automotive industry. Sweeping judgments based on a failed crash test are not appropriate." Wissmann is alluding to the Brilliance BS6 saloon, which failed an ADAC crash test.


Karl Schlössl from China Automobile GmbH does not fear any difficulties. "The CEO is already running in 600 units in Italy without any complaints, and Toyota was informed about the UFO well in advance."


The Chinese models are far more affordable than their established counterparts. The CEO from Shuanghuan will cost around 25,000 euros, while the price list for the BMW X3 starts at 34,600 euros. The gap is even greater for Toyota: while the UFO from Zhejiang Jonway will only cost around 15,000 euros, customers will have to put at least 26,370 euros on the table for a RAV4.


Two weeks ago, "Automobil Industrie" reported exclusively on the imminent market entry of China Automobile GmbH.


When publishing, please cite the source "Automobil Industrie".


"Automobil Industrie" is a monthly trade magazine published by Vogel Business Media, Würzburg, with a circulation of around 15,000 copies. "Automobil Industrie" is aimed at the managers of car manufacturers, suppliers, equipment suppliers and service providers. The trade magazine has been a must-read in the industry for over 50 years. Daily news from the entire automotive industry is available at www.automobilindustrie.de and in the regular newsletter.


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