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JAC Motors

Jianghuai Automobile Co., Ltd.
Trading name JAC Motors
Type Public company
Traded as SSE: 600418
Industry Automotive
Founded 1964 (as Hefei Jianghuai Automobile)
Headquarters Hefei, Anhui, China
Products Passenger cars
Website jac.com.cn
JAC Motors
Chinese 安徽江淮汽车股份有限公司

JAC Motors (officially Jianghuai Automobile Co Ltd)[1] is a Chinese state-owned automobile and commercial vehicle manufacturer.[2] The company is based in Hefei, Anhui Province, China.

The company produced about 445,000 units in 2012.[3]

JAC J3 EV History

Established in 1964 as Hefei Jianghuai Automobile Factory, its name was changed to Anhui Jianghuai Automobile Co., Ltd. in 1997.[4] The company made an IPO on the Shanghai Stock Exchange in 2001.[1]

JAC has historically only produced commercial trucks (under the brand name Jianghui), but MPVs and SUVs appeared in the 2000s. By 2007 the company had gained government approval for passenger car production but, nonetheless, continued to be referred to as a truck maker.[5] When it was known as a commercial vehicle manufacturer, JAC cooperated with Hyundai Motors. Beginning in 2003,[6] it assembled Hyundai MPVs although this stopped sometime prior to 2007.[7] At least two models based on Hyundai technology continued to be made by JAC after the cooperation was cancelled–a MPV[7] and a SUV.[8] Hyundai explored setting up a joint venture with the company in 2004,[6] but the plan was soon discarded.[9]

In 2009 the Chinese government indicated that it supported consolidation in the Chinese auto industry, leading analysts to predict the possibility of JAC joining with Chery since they are both located in Anhui province.[10] On the surface such a merger would make sense: Chery mainly built passenger cars, and JAC was almost entirely focused on trucks at the time. Since then, however, JAC has made it clear that they are not interested in consolidation under the aegis of the larger Chery.[11] JAC has begun to concentrate more on passenger cars, and a 2010 announcement of a new electric vehicle program may at least partially have been an effort to stave off the rumored merger.[11]

Sales reached more than 300,000 units in 2009 including 12,100 sold overseas.[12]

In 2010 it was one of the top ten most-productive vehicle manufacturers in China selling 458,500 units for 2.5% market share and reaching eighth place.[13] JAC dropped one spot to ninth in 2011 making nearly 500,000 vehicles, and in 2012 a fall in units produced to about 445,000 precipitated the company's moving down one more rung in the rankings.[14] Estimated production capacity is over 500,000 units/year as of 2009.[1]

JAC J3 EV Products

JAC has a wide model line that spans from commercial trucks to small city cars. Some of its models may be real standouts. In 2009 a Pininfarina-designed city car, the JAC Tojoy, won numerous awards including the J.D. Power China Automotive Performance, Execution and Layout (APEAL) award.[15]

In the 2000s its flagship model was the Refine (Ruifeng in Chinese).[16] The restyled 2004 Ruifeng Gold featured 60% Chinese-made part content.[17]

JAC J3 EV Electric vehicles

As of August 2010, JAC plans to make electric or hybrid-electric vehicles at an as-yet-unbuilt production base.[11] China subsidizes oil (an incentive for the State to encourage use and manufacture of electric cars), and Chinese automakers see opportunities in less mature electric cars as Western companies have yet to develop much of a lead in the technology.[18]

The JAC J3 EV all-electric car was launched in China in 2010. It has a range of 130 km (81 mi). During 2010 and 2011 a total of 1,583 of the first and second generation models were sold in the country. A third generation model, called the JAC J3 iev, was launched in September 2012. Cumulative sales of all generations reached 4,068 units through December 2012. During 2012 the J3 EV was the second best selling pure electric car in China, after the Chery QQ3 EV.[19][20] In 2013 about 2,500 JAC iEV (J3 EV) were sold making it the highest selling pure electric vehicle in China of 2013. [21]

JAC J3 EV Operations

A 40,000 unit/year medium-to-heavy truck production base should become operation in 2012[22] and is probably located in Hefei. Production capacity figures may consider engines and vehicles as discrete.

JAC J3 EV Research and development

Through its R&D division, JAC follows a five-level system. With this strategy, JAC strives to meet future trends and to develop new technological innovations. One of these R&D fields is the electric and hybrid technology, in which JAC aims towards taking the position as pioneer. In 2010, JAC filed nearly 90 patent and utility model applications.[23]

An R&D facility in Hefei, capital of Anhui province, is complemented by two overseas R&D centres in Turin, Italy, and in Tokyo, Japan.[1]

JAC J3 EV Joint ventures

JAC announced a pair of joint ventures with Navistar International Corporation and NC2 Global (itself a Navistar/Caterpillar joint venture) on 16 September 2010.[24] The NC2 joint venture will manufacture heavy duty trucks and parts while the Navistar joint venture will build medium to heavy diesel engines in China with parts and services provisioned by Navistar.[2] The new companies will both be located in Hefei where JAC is also based.[2]

JAC J3 EV Sales outside China

JAC began the export of vehicles in 1990 (to Bolivia), and JAC products have subsequently been sold in over 100 countries.[25] Light trucks are a popular export product.[16]

Some JAC exports are in the form of knock-down kits, which are assembled at overseas factories in countries including Egypt, Ethiopia, and Vietnam.[26] As of 2010 a possible factory in Slovakia is under discussion.[27] Such factories are not necessarily owned by or affiliated with JAC. Knock-down exports are an easy way to gain access to developing markets without added after-sales service costs.

In 2009 JAC started a partnership with a distributor in Brazil, the SHC group. As of early 2011, it had more than 10,000 firm orders from its Brazilian partner.[28] In 2009 JAC also had plans to build a production base in the country.[29] As of 2011, the plant will be located in Bahia state and built in cooperation with the SHC group, which is providing 80% of the initial investment.[30]

JAC J3 EV Corporate social responsibility

JAC's corporate social responsibility activities include donations to support forest preservation as well as to educational opportunities for the poor.[31]

JAC J3 EV References

  1. ^ a b c d "Introduction: JAC Motors - Coordinate Balance and Pursue Excellence". JAC Motors. Retrieved 2011-03-20. 
  2. ^ a b c U.S.-China Commercial Relations: Navistar Inc.-- JAC Truck and Engine Joint Ventures ustr.gov, January 2011
  3. ^ "2012年前11月前十家汽车生产企业销量排名". China Association of Automobile Manufacturers (CAAM). 21 December 2012. Retrieved January 11, 2013. 
  4. ^ For year established, see Introduction: JAC Motors-- Coordinate Balance and Pursue Excellence JAC Official Site
  5. ^ For historical production of trucks and 2000s introduction of MPVs and SUVs, see History JAC Official Site
  6. ^ a b "Hyundai Motor sets up China truck JV". MarketWatch. Sep 8, 2004. Retrieved July 14, 2012. 
  7. ^ a b Ash (December 19, 2007). "Uhh oh! Two Korean Hyundai employees arrested for leaking info to JAC JAC MOTORS". chinacartimes.com. Retrieved July 14, 2012. 
  8. ^ "JAC Eagle SUV gains Audi style grill for 2011 JAC MOTORS". chinacartimes.com. January 27, 2011. Retrieved July 14, 2012. 
  9. ^ "Hyundai to set up US$1.2b China truck venture". China Daily. 2005-06-21. Retrieved July 14, 2012. 
  10. ^ Big China carmakers, on government cue, woo small rivals (page 2/2) reuters.com, Mon Mar 9, 2009 9:03am EDT
  11. ^ a b c A Chinese Truck Maker’s Electric Dreams blogs.wsj.com/chinarealtime, August 10, 2010, 4:51 PM HKT
  12. ^ "JAC (Jianghuai) Teams up with Brazilian Dealer SHC". ChinaAutoWeb.com. 
  13. ^ China Car Market 101: Who Makes All Those 18 Million Cars? thetruthaboutcars.com, January 19, 2011
  14. ^ For 2011 production figures, see "2011年1-11月前十家汽车生产企业销量排名". China Association of Automobile Manufacturers (CAAM). 2011-12-16. Retrieved January 7, 2012. 
  15. ^ For Pininfarina design, see Automaker ratchets up quality and sales Anhui province official site, 11/17/2008
  16. ^ a b Chery on top (Chinadaily) Anhui province Official Site
  17. ^ World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o. 2006. p. 235. 
  18. ^ For oil subsidy, see Wei Gu (2008-06-04). "China's Fuel Subsidy Costs the World". Reuters. Retrieved 2011-03-10. 
    • For Chinese carmakers seeing EV opportunities, see Dyer, Stephen W. (2011-01-03). "Big bet on Better Battery-run Cars". China Daily, US Edition. China Daily Information Co. (CDIC). 
  19. ^ China Auto Web (2013-03-25). "Chinese EV Sales Ranking for 2012". China Auto Web. Retrieved 2013-04-19.  2,485 units were sold in 2012.
  20. ^ China Auto Web (2012-09-30). "JAC Delivers 500 J3 EVs ("ievs")". China Auto Web. Retrieved 2013-04-19.  A total of 1,583 of the first and second generation models were sold during 2010 and 2011..
  21. ^ China Auto Web (2014-01-10). "Plug-in EV Sales in China Rose 37.9% to 17,600 in 2013". China Auto Web. Retrieved 2014-01-28. 
  22. ^ China Jianghuai gets OK for $133 mln truck project reuters.com, Thu Nov 29, 2007 12:52am EST
  23. ^ http://www.chinese-champions.com/jac/
  24. ^ "JAC Partners with NC2, Navistar". ChinaAutoWeb.com. 
  25. ^ "Worldwide: Where there is a road, there is a JAC". JAC Motors. Retrieved 2011-03-07. 
  26. ^ For knock-down factory in Egypt, see The first JAC CKD SRV rolls off in Egypt JAC Official Site
  27. ^ China's JAC eyes car assembly plant in Slovakia reuters.com, Tue May 4, 2010 7:46am EDT
  28. ^ 46 JAC Brazil Outlets Opened at the Same Time, JAC Plans to Export More than 300,000 Units in 2015 JAC Official Site, 2011-3-23
  29. ^ China's JAC Motors to build vehicle plant in Brazil gasgoo.com, July 03, 2009
  30. ^ "China's JAC Motors to build plant in Brazil". reuters.com. Thompson Reuters. Oct 7, 2011. Retrieved July 14, 2012. 
  31. ^ Social Responsibility and Commonwealth Activities JAC Official Site

JAC J3 EV External links

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