Beijing
Motor Show Index
Whose show
is this, anyway?

Beijing Motor Show cheesecake 3
There were plenty of news conferences at Auto China 2004’s
opening media day. The challenge was finding them. That wasn’t easy at an event
that has two competing organizers (or was it four? Or five?) Some
carmakers decided to skip the slots they were given and stage their events
whenever they had a large enough crowd.

Beijing Motor Show cheesecake 2
But despite the confusion, there was plenty of news. And lots of cheesecake.
There were far more 2-legged models than the 4-wheeled kind, and they were
wearing a lot less than Mao suits at a show that despite the nation’s communist
government, was anything but politically correct. Blaring rock music filled the
ten halls of the China International Exposition Center, competing carmakers
often drowning out each other’s news conferences. But the fact was, that
everyone had something to say. In 2003, an estimated 70 new vehicles were
introduced in China. While hard data is as difficult to find as the auto show’s
organizers, it appears that a new record will be set in 2004, as manufacturers
chase the world’s fastest growing car market.
Old is new
for Jeep

Jeep 2500 Beijing show
The
rule of thumb in China these days is that the nation’s demanding consumers want
nothing but the newest, hottest products. Jeep seems to be the exception to that
rule. DaimlerChrysler’s Chinese joint venture continues to produce a version of
the old Cherokee sport-utility vehicle — though this year’s old-is-new Jeep 2500
gets an assortment of modern features, including ABS brakes, electronic brake
force distribution and a rear obstacle-detection system. One rule Jeep was
forced to live by has become a fact of life for automakers in China, where
vehicle prices are being cut on a seemingly daily basis. “Even with the
additional features, we decided to maintain the (old) price,” said Paul Alcala,
head of Beijing Jeep, the oldest Western automaking venture in
China.
Spreading
the wealth
So
far, China’s auto mania has been limited to the Pacific coast crescent that
includes such cities as Shanghai and Beijing. There, annual income levels are as
much as five times the national average of just US$1000. But the wealth is
beginning to spread, according to Chen Qingtai, a government vice minister who
oversees automotive operations in the country. And that means manufacturers are
beginning to follow the money. DaimlerChrysler currently has 40 dealers, mostly
along the eastern seaboard, but it’s in the midst of adding 20 more and
eventually hopes to boost the numbers to as many as 200 showrooms. “You go into
the smaller cities — but in China, that mean places with two million to three
million people, noted Roman Fischer, CEO of DaimlerChrysler (China) Ltd.
Breathless in Beijing
Spend a few days in the Beijing boomtown and one comes
to recognize the dark side of China’s rapid development. Cars and construction
crews are everywhere. So

Beijing smog
is the sulfurous haze of pollution. “Sustainability” is a word that is
creeping into the vocabulary here, and not just among government bureaucrats. At
an industry gala on Wednesday night, Chen Qingtai, a ranking government vice
minister, said automobiles are quickly becoming one of the major sources of
pollution, outpacing coal-fired power plants. He signaled that tighter
regulations will likely be on the way. Recently-announced rules for the auto
industry also indicated the government’s interest in boosting fuel economy to
reduce dependence on foreign petroleum– the country is now the world’s
second-largest importer. “Oil security has become a very important factor in
national security,” said Vice Minister Qingtai. How far the government will go
is unclear, but he declared “unbearable” the idea of following the U.S.
automotive model, with its heavy emphasis on SUVs. That wasn’t good news for
automakers, who have seen sales of utes and crossovers surge. Even so, “every
one of us has a duty to act, and act with a sense of urgency,” declared Phil
Murtaugh, the night’s second speaker, and General Motors’ top executive in
China. “It’s imperative the environment be factored into our daily business
objectives.” Murtaugh cautioned that automakers need government help to clean up
their act. China’s outdated, Soviet-era refineries produce some of the world’s
worst gasoline and diesel fuel, and will need to remove sulfur and other
impurities that would disable modern emissions control technology.
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