China Direct

2011-12 British Business Climate Survey in China - Summary

 

[Images courtesy of www.cbbc.org and www.britishchamber.cn]

The CBI would like to thank our partners at the CBBC and British Chamber of Commerce in Beijing for sharing the findings of the 2011-12 British Business Climate Survey in China.

The results of the 2012 Business Climate Survey indicate increasing optimism about the outlook for revenue growth in 2012. The survey clearly demonstrates the growing importance of China to many companies as a driver of corporate growth, evidenced by plans to increase investments in China this year.

However, companies continue to acknowledge the complexity of the operating environment, especially in terms of rising labour costs, increasing local competition and the ongoing challenges of IPR & legal enforcement, protectionism and bureaucracy.

 Despite this, most UK companies remain confident about the outlook for their business in China.

 The key messages that arise from this survey are the following:

 

• Despite worries over the global economic outlook and rising domestic competition, performance in 2011 was generally positive with the majority of respondents seeing an increase in revenue.

 

• China remains a key market, with the majority of respondents planning an increase in investment and remaining positive in their expectations for the coming year.

 

• Human resource issues continue to be a substantial challenge for business, with members tackling increasing labour costs and problems attracting and retaining skilled staff.

 

• Whilst domestic competition still struggles to compete in terms of technical innovation and management expertise, they showed significant improvement in marketing and branding.

 

• The key business challenges facing those in the China market continue to be bureaucracy, securing licences and protecting intellectual property.

 

• Despite intellectual property rights being cited as an important factor in China operations, the number of infringements that actually harmed operations was relatively low.

 

To download the full survey please click below:

Download 2012_china_business_climate_survey

 

 

 

 

 

 

 

GKN driving growth in NE China

 

[Image courtesy of www.gkn.com]

CBI member GKN Driveline has continued to expand its manufacturing footprint in China, highlighted by the recent opening of its seventh production facility in the country.

The new 13,900 square metre plant in Changchun will have the capacity to build one million sideshafts per year, and a new 10,000 square metre expansion of the plant will increase its capacity to four million sideshafts within the next five years.

Forecasting vehicle production in China to reach 15 million units by 2014, GKN Driveline continues to regard China as a key growth market. The company's production capacity for constant velocity joint (CVJ) systems and all-wheel-drive (AWD) systems in China is expected to grow by 50% in the next three years.

GKN is also investing RMB 94 million to expand its research and development centre in Shanghai, which will lead to the development of prototyping facilities, as well as a materials and metrology capability, to allow products to be developed for the Chinese market.

Marc Vuarchex, Managing Director of GKN Driveline Asia Pacific, said, "China is a key market for our overall growth strategy. With our CVJ and AWD systems production along with our industry-leading electric-vehicle technology and plans to produce new, low-cost systems for China's small-car market, we will increase our number of employees by over 30% in China over the next four years."

Please click here to read the full press release by GKN.

Jaguar Land Rover announce highest ever China sales

 

[Image courtesy of www.jaguarlandrover.com]

CBI member Jaguar Land Rover (JLR) recently announced its highest-ever quarterly sales in China, with 17,997 vehicles delivered in the first three months this year, up 110% over the same period last year.

Jaguar delivered 2,098 units in the first quarter, up 156%, while Land Rover delivered 15,899 units, up 105%. The exceptional first quarter sales figures contributed to the conclusion of a successful fiscal year (April 2011—March 2012), which saw deliveries of 52,032 units, up 76% over the fiscal year of 2010/2011.

JLR will be an active participant in the upcoming Beijing Auto Show, which will feature the global debut of a new XJ model and the China debut of the Jaguar C-X16 Concept as well as the world premiere of the Range Rover Evoque Victoria Beckham Edition.

Commenting on JLR's impressive performance in the first quarter, Bob Grace, President of JLR China, said, "This year's promising start has strengthened our resolve to carry our superb sales forward by relentlessly bringing the finest brand experience possible to our Chinese customers. At the upcoming Beijing Auto Show, Jaguar Land Rover will showcase a breathtaking model line-up that further demonstrates the rich brand connotations of our unique British heritage. We will endeavour to continue bringing more smaller-engine models to this highly valuable market—to satisfy the demands of our discerning Chinese customers."

JLR remains strongly committed to sustainable development in China, focusing on new technology, environmental protection, humanitarian aid, and education. With a total China fund amounting to nearly £7.75 million, JLR's CO₂ Offset Programme has 17 out of its 50 environmental projects located in China. In support of education, JLR recently established its second "Apprentice Training Programme" in Shanghai following the successful launch of the programme in Beijing last year. In addition, JLR recently sponsored the "Sport for All Programme" in partnership with the Shanghai Rugby Football Club, which promotes the healthy growth and development of children through physical exercise. 

Please click here to read the full press release by JLR

Ford expands auto manufacturing capacity in Chongqing

 

[Image courtesy of www.ford.com]

CBI member Ford Motor Company recently announced that it will expand its manufacturing facilities in Chongqing in southwestern China.

Ford and its joint venture Changan Ford Mazda Automobile (CFMA) will invest approximately US$600 million to expand capacity in Chongqing by 350,000 passenger vehicles, raising total capacity in China to 950,000 vehicles annually.

The new investment will increase Ford's total investment in China to approximately US$4.1 billion.

Ford plans to introduce 15 new vehicles and 20 new engines and transmissions in China by 2015 as part of its plan to broaden its product portfolio and powertrain offering in China.

Joe Hinrichs, President of Ford Asia Pacific and Africa, said, "We are going further in China and across Africa. This expansion is an investment in Ford's long-term future globally, and will help us to achieve our goal of increasing worldwide sales by nearly 50% by mid-decade to about 8 million vehicles per year. With this additional investment and capacity expansion, Ford continues to lay the foundation for long-term growth in the world's largest automotive market."

Dave Schoch, Chairman and CEO of Ford China, said, "With a current growth rate of about 5%, the Chinese auto industry remains the biggest growth market in the world. Expanding our production capacity in Chongqing is a key part of our aggressive growth plans in China and Asia, and will allow us to bring more high quality, safe, fuel efficient, fun-to-drive vehicles from our global portfolio to Chinese customers."

Please click here to read the full press release by Ford.

CBI Member Success Stories March 2012

 

[Image courtesy of www.cbi.org.uk]

A number of CBI members were busy raising their profile in China in March, engaging in many exciting activities across a wide range of industries.

Members covered include: 

• 3i
• ABB
• Atkins
• Bentley
• Boeing
• BNY Mellon
• BP
• Burson-Marsteller
• Clifford Chance
• Diageo
• Freshfields Bruckhaus Deringer
• Fuji Xerox
• GKN
• HSBC
• INEOS
• InterContinental Hotels Group (IHG)
• Jaguar Land Rover (JLR)
• Jones Lang LaSalle
• J.P. Morgan
• Nike
• Pearson
• Penguin
• Pinsent Masons
• Procter & Gamble
• Research in Motion (RIM)
• Shell
• Siemens
• Simmons & Simmons
• Thales
• Unilever
• University of Nottingham
• Willis

Please click here to access our latest briefing, which highlights the recent successes of 32 CBI members.

The briefing can also be accessed below:

Download CBI China, Celebrating CBI member success in China, March 2012

UK Company GKN performs strongly in China in Q3 of 2012

 

[Image courtesy of www.gkn.com]

CBI member GKN recently announced its results for 2011, reporting Group sales up £683 million to £6.1 billion, an underlying increase of 10%.

In China, GKN continued to perform strongly throughout the year, with GKN Driveline opening a new Constant Velocity Jointed (CVJ) Systems plant in Changchun and expanding production in Wuhan and GKN Driveline AWD Systems launching a power transfer unit (PTU) in the country.

In addition, GKN Sinter Metals achieved strong growth in China in 2011, and GKN Aerospace signed a Memorandum of Understanding (MOU) with Commercial Aerospace of China (COMAC) to form a joint venture for the composite structures manufacture of the horizontal tailplane for the C919 aircraft.

Please click here to read GKN's full results for 2011.

Jaguar Land Rover's journey of discovery - from Birmingham to Beijing!

 

[Image courtesy of www.jaguarlandrover.com]

Three Land Rover Discovery vehicles will undertake the 50-day, 8,000 mile adventure through more than a dozen countries across Europe and Central Asia. The expedition will arrive in time for the Beijing motor show on 23 April.

The Journey of Discovery was launched with help from a number of renowned explorers who have all used the Land Rover Discovery in their adventures, including Bear Grylls, Sir Ranulph Fiennes, Ray Mears, Monty Halls, and Ben Saunders.

Land Rover has also started its most ambitious fund-raising project to date as part of the expedition, aiming to raise £1 million for the company's Global Humanitarian Partner, The International Federation of Red Cross and Red Crescent Societies (IFRC). The money will be used to support a water sanitation project in Uganda.

Phil Popham, Group Sales Operations Director, JLR, said, "Discovery is an extraordinary vehicle, and it deserves to be unleashed on an extraordinary journey. There is no better vehicle to tackle all weather, all terrain than the Discovery 4. This gruelling expedition will be visiting 13 countries and covering 8,000 miles, and it's a fitting initiative to celebrate the one millionth vehicle."

Alan Volkaerts, Operations Director, JLR Solihull Operations, said, "Many people are involved in the production of the Discovery, and many have been here for the whole journey, from car number one to car number one million. I’d like to take this opportunity to thank every one of them. They have done a brilliant job, and have displayed great dedication and service. These are the men and women who have made the Discovery the success story it is today.

"I am very pleased to tell you that their numbers are also growing. The success of the Discovery, and of Jaguar Land Rover, means that we are coming to the final stages of a major recruitment drive to fill more than 1,000 new positions here at Solihull, as Jaguar Land Rover embarks on its most ambitious growth plan for many years."

Please click here to read the full press release by JLR.  

CBI member success stories in China Feb 2012

 

[Image courtesy of www.cbi.org.uk]

February 2012 was a bumper month for CBI members in China with at least 29 (matching the leap day!) confirmed successes that China Direct is aware of.

Member contributions came from:

• ABB
• Accenture
• Alstom
• Arup
• BAA
• BBC
• Benoy
• BMW
• BP
• Burberry
• Clifford Chance
• Devro
• Ernst & Young
• Eversheds
• Freshfields Bruckhaus Deringer
• Herbert Smith
• HSBC
• IHG
• INEOS
• J.P. Morgan
• Pfizer
• McKinsey
• Nike
• RBS
• Standard Chartered
• Thales
• University of Edinburgh
• University of Leeds
• WPP

China Direct would like to say a huge thank you to all of our members for their contributions and also to Ben Cooper at the CBI's Beijing office for patiently collating the information.

Please find our Feb 2012 summary below:

Download CBI China, Celebrating member success in China, February 2012

CBI Member BMW exceeds 250,000 in Greater China sales

 

[Image courtesy of www.bmw.com]

CBI member BMW Group reported that its 2011 sales surpassed 250,000 units for the first time ever in Greater China.

In mainland China, the BMW Group maintained strong growth, delivering a total of 232,586 BMW and MINI vehicles to customers, up 37.6% year-on-year. China strengthened its position as the third largest market of the BMW Group.

The flagship BMW 7 Series solidified its position as segment leader for the third time in a row, with sales increasing 26.2%, reaching 33,500 vehicles last year. The BMW X family also continued to perform well, with a total of 46,042 cars sold, representing an increase of 27.8%.

The all-new BMW 5 Series further extended the huge success since its launch, with sales soaring to 70,850 units, up 68.4%. The phenomenal growth of the BMW 5 Series is reshaping the premium business car market in China.

The BMW Group's MINI brand set another new record after surpassing the 10,000 unit threshold in 2010, with sales increasing 47.7% to reach 15,518 vehicles in 2011.

In the Greater China market, including Hong Kong, Taiwan, and Macao, the BMW Group delivered 250,658 units of BMW and MINI cars, with a year-on-year growth of 37.2% in 2011.

Please click here to read the English-language press release by the BMW Group on its 2011 China sales and here for the Chinese version.

In additional news, the BMW Group also has the MINI E China field project, which is under the Sino-Germany Economy and Technology Forum. The project represents a joint effort by BMW, its Chinese partners, and the Chinese government to understand electric vehicle user habits, the acceptance level of electric cars, and infrastructure requirements.

Please click here to read the English-language press release by the BMW Group on its MINI E China field project and here for the Chinese version.

UK luxury car company Bentley is flying high with 2012 Hurun Award

 

[Image courtesy of www.bentley.com.uk]

 

CBI member Bentley recently received recognition from China's highly influential Hurun Report, with the Bentley Continental GT coupe winning the 'Best Super Luxury Car' and the Bentley Continental Flying Spur saloon receiving the 'Limited Edition Super Luxury Car' title at the Hunrun Report's Best of the Best 2012 awards.

The Hurun Report, widely recognised as the leading authority on the rapid changes taking place amongst China's high net worth individuals, produces 20 magazine issues per year that target the special interests of China's wealth creators.

Bentley also received recognition from The World Luxury Association and The Detroit News as a leading global luxury automotive brand.

Please click here to read the full press release by Bentley.