Taiwan`s China Motor Corp. (CMC), the local producer of Mitsubishi and Chrysler cars, recently shipped its first batch of Mitsubishi Zinger commercial/recreational vans (featuring some local restyling) to the Philippines. The company expects annual exports of the model to the Philippines to reach 2,000 units, plus more to other markets such as Vietnam, the Middle East, and Latin America.

The CMC has long been Taiwan`s biggest exporter of complete cars. This year it expects to export about 6,000 cars (some bearing the Mitsubishi mark, some its own CMC label) plus more than 60,000 sets of auto parts, bringing in revenues of around NT$6 billion (US$181.8 million at NT$33:US$1).

The Zinger is the third model that CMC has sold to the Philippines. The other two were the Space Gear commercial/recreational van, and the Grunder medium sedan. CMC vice president Huang Chung-chou is delighted with his first Zinger exports, especially since sales of automobiles in Taiwan`s domestic market are expected to drop to a 20-year low this year. Thanks to the export orders, he comments, "Our production lines have been working overtime for several weeks, and that`s something that we haven`t seen for a long time."

And that is not the end of the good news for CMC. It also recently received orders from Chrysler of the United States for the production of Mitsubishi`s Delica commercial van, which will be shipped to Mexico bearing the Dodge logo. The first shipment is expected to be made in July, and volume for the whole year should reach 2,000 units.

CMC manager Yen Cheng-huei says that more exports to Mexico are in store, including 9-seat van and mini commercial vehicle models. Ultimately, the CMC expects to sell 8,000 units annually there.

A CMC affiliate in China, the South East (Fujian) Motor Co., also won an export order early this year for the shipment of 8,000 Delica vans to Iran. Including that order, CMC says that its total export volume from both sides of the Taiwan Straits this year should reach about 14,000 units.

Other domestic carmakers have also been enjoying increased exports, thanks to improved quality, competitive manufacturing and cost advantages, and growing participation in the new-model development projects of their foreign technical partners. Industry insiders think that the value of Taiwan`s total complete-car exports will reach NT$20 billion (US$606.06 million) in 2008.

Automotive products have become a major category in Taiwan`s overall exports. According to statistics compiled by the Taiwan Transportation Vehicle Manufacturers` Association (TTVMA), the island`s exports of auto parts reached NT$132.9 billion (US$4.03 billion) in 2006, up 4% from the previous year. At the same time, overseas sales of complete automobiles rose to NT$12.5 billion (US$378.79 million).

Toyota of Japan recently announced that it would help its Taiwan partner, Kuozui Motors, weather the slump in domestic sales by arranging for it to sell the locally made Altis sedan to Southeast Asia. Shipments are expected to start next year, with first-year exports of more than 10,000 units.

A local CMC affiliate, Yulon Nissan Motor, recently won a large export order from its Japanese partner. According to a senior company official, Nissan will begin purchasing Taiwan-made Cabster diesel trucks for export to Mexico at an annual volume of about 8,000 units. Soaring fuel costs in America, he explained, have boosted the demand for fuel-efficient Japanese vehicles.

The official also disclosed that Yulon Nissan may also begin exporting the Serena commercial/recreational van to the Philippines this year, and cars and trucks to other markets, such as the Middle East and North America, in 2008.

The local Ford subsidiary, Ford Lio Ho Motor, expects to ship more than 10,000 locally made Ford Escape sedans and Mazda Tribute sport utility vehicles to Japan, New Zealand, Australia, and other markets in 2007, for the second year in a row. (June 2007)

Complete-vehicle Exports

Source: The companies

CENS, September 19, 2007