Automakers unveil China-focused models in Beijing

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BEIJING (AP) — Ford Motor Co. on Sunday unveiled a new
Escort sedan designed in China for global sale at a Beijing auto show
that highlighted the growing influence of Chinese tastes on the
industry.
Automakers are looking to China’s biggest auto show this
year to help boost sales in this huge but cooling market. Total sales
last year reached 17.9 million vehicles, but growth is expected to slow
from 15.7 percent to as low as 8 percent, even as newcomers including
Lincoln and Tesla enter the market.
The new Escort, a compact
sedan with a 1.4-liter, four-cylinder engine, was designed at Ford’s
development center in China with features to appeal to local tastes.
They include a bigger back seat for children and grandparents, lighter
colors and cup holders made to fit iced tea bottles.
The Escort goes on sale in China this year, expanding later to other markets, said CEO Alan Mulally.
"I think it will sell around the world," Mulally said. "But the real focus was led by the
Chinese and what they wanted."
Ford
joins a trend led by brands including GM’s Cadillac unit that include
features intended to appeal to Chinese tastes in models sold globally.
Others such as Daimler Benz AG’s Mercedes Benz are breaking from the
industry trend of selling the same vehicles everywhere and are reworking
models for sale in China with added back seat room and other features.
That
is squeezing ambitious but inexperienced Chinese independent brands.
Their first-quarter sales shrank 2.6 percent from a year earlier, while
the overall market grew 7.9 percent.
Also this weekend, GM debuted
a new version of the Chevrolet Cruze and displayed its Trax SUV,
targeting China’s booming sport utility market. Chinese SUV maker Great
Wall Motors Co. unveiled its latest model, the Haval 8.
China’s
annual auto shows, held in Beijing and Shanghai in alternating years,
have grown into some of the industry’s most important commercial events.
Relatively
strong Chinese sales helped to support the global industry while the
United States and Europe slumped following the 2008 financial crisis.
Foreign
brands are still piling into China, adding to already intense
competition. Last week, Ford launched its luxury Lincoln brand in the
country. Lincoln says it plans to woo younger buyers with a service to
allow them to make customized versions of any of its models.
On
Saturday, Fiat SpA and its Chrysler Group LLC arm announced that their
Jeep brand would begin manufacturing in China next year with Fiat’s
local partner, Guangzhou Automobile Group Co. That will allow Jeep to
avoid steep import taxes.
At the auto show, Jeep displayed its
Renegade model aimed at China’s booming market for sport utility
vehicles. Jeep CEO Mike Manley said the company plans to add about 50
dealerships this year to a network of about 250.
"It’s clearly
going to be the biggest market for SUVs in the world. And the good news
is, that’s all we do," Manley said. "China is going to continue to grow
even if it may slow down in the short term."
Automakers in China
face challenges including curbs imposed by Beijing, Shanghai and other
cities on the number of new registrations they allow in an effort to
reduce eye-searing smog. That has prompted manufacturers to shift
emphasis to smaller cities and the countryside, promoting smaller and
lower-cost vehicles.
"We will see more cities with restrictive
regulations," said Dietmar Voggentreiter, president of Audi China. "This
we are reflecting in our planning."
Luxury manufacturers also are expanding their range to include more small vehicles for younger,
well-heeled buyers.
On Sunday, Mercedes unveiled an extended version of its smaller C-series sedan.
"The
new model is sure to be one of our growth drivers in China," said
Hubertus Troska, chairman and CEO of Daimler Greater China.
Other
global automakers also showed vehicles that highlighted the role of
Chinese creative talent at their design centers in China as well as
consumer demand.
Nissan Motor Co. debuted a concept sedan, the
Lannia, created by the Chinese staff of its Beijing design center. The
company says China is a major element in its global turnaround plan.
"We’re
open to using Chinese people to design and shape the future of our
cars, not just for China but for the world," said the company’s chief
planning officer, Andy Palmer.
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