[size=75:22j5srnt]Sofia echo Tue, Nov 24 2009

Chinese car maker Great Wall to start production in Bulgaria by end-2010

Chinese car manufacturer Great Wall is to commence production of off-road vehicles in the northern Bulgarian town of Lovech by the end of 2010, the Chinese Xinhua reported, cited by Investor.bg

Great Wall Motor signed an agreement with Litex Motors worth 80 million euro on November 15 2009 and the deal was hailed as "
Bulgaria's chance to prove that the current business climate in the country is sound and stable"
, Investor said.

The Chinese car maker will pay $4 million for its stake in the company that is envisioned to manufacture sport utility vehicles that would be sold at a price of less than $15 000.

As China’s first private automobile enterprise listed on the Hong Kong Stock Exchange, the company has more than 30 subsidiaries and more than 22 000 people on its payroll. Great Wall Motor now manufactures sedans and sports utility vehicles and pickups, with an annual capacity of 400 000 complete vehicles.

The company has anticipated on exporting production in Eastern Europe since 2006, and the Litex Motors deal signed in November 2009 can be seen a cornerstone in future expansion in southern Europe. The total output of its Bulgarian joint venture remains as yet undisclosed.

Previously British car manufacturer Rover was contemplating on shifting production of their Maestro and Montego ranges to Varna, an investment which at the time was estimated at $20 million, with an annual output of 10 000 vehicles. Subsequently, Rover Group which owned 51 per cent of the shares and the Bulgarian Daru Group with 49 per cent commenced operation in 1995.

The vehicles manufactured in Bulgaria, however, were perceived to be poorly marketed and overpriced, and the Rover Maestro scheme in Bulgaria eventually collapsed on April 4 1996 with only 2200 vehicles produced.

This all sounds very promising for Bulgaria

It never ceases to amaze me why when everyone can see all the huge company's are moving into Bulgaria that a lot of people seem to be so negative about it I don't mean on this site but some of the others its nothing but doom and gloom I have just left a site that most of you will know fro that reason I just got fed up of the doom and gloom, the back biting and the constant chat about rubbish thank god for this forum

Thank you scott for those kind comments but I feel your right in what you say if its good enough for the big companies and chains then they must know something as they invest Billions in some cases

I also see Bulgaria as a growth market . The people hear are highly intelligent and once motivated by money and taught finishing skills then look out . this is the place to be in twenty years time mark my words .

yes John I do believe you are right its my opinion that all these big companies are getting in early to ensure they have a good foot hold and are prepared for the road ahead this is what you call forthought

Seems like it is only more good news

Well what can I say Yepeeeeeeeeeeeeeee roll on the good times [You must be registered and logged in to see this image.]



Think I said enough now

Oddy

scott wrote:

It never ceases to amaze me why when everyone can see all the huge company's are moving into Bulgaria that a lot of people seem to be so negative about it I don't mean on this site but some of the others its nothing but doom and gloom I have just left a site that most of you will know fro that reason I just got fed up of the doom and gloom, the back biting and the constant chat about rubbish thank god for this forum

I agree with this as well scott why O why is it that some people are so negative when its there for all to see these company's don't spend this kind of money on a wim

sarah

Great news and yes Sarah you are right why do they think like that

[size=75:35xd8v98]novinite 17 December 2009

Update

A New Driving Force for Bulgaria?

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Bulgaria's flagging economy is in need of some good news. It appears that this may have come at last in the shape of an investment by a Chinese car firm in a factory in the country, a deal that may have far-ranging implications for both Bulgaria and the Chinese automotive sector.

Great Wall Motor Company, one of China's biggest automotive manufacturers, signed a joint venture (JV) deal with Bulgarian diversified holding company Litex Commerce in the presence of Chinese Vice President Xi Jinping and Bulgarian Prime Minister Boyko Borisov on October 15.

According to a statement by the Chinese partner, the plant will have an annual production capacity of 50,000 units and assemble four different models – a sports utility vehicle (SUV), a pickup and two passenger car models. The first vehicles are expected to roll off the line in 2011. The total initial investment is around €80m, potentially reaching €300m if the project is successful. The cars are expected to be sold under the Great Wall badge, boosting the firm's output from around 400,000 at present.

If the development is a significant step for Great Wall, it is something of a coup for Bulgaria. The country does not currently produce any passenger vehicles, though it does have a modest but successful automotive components industry. Other Central and Eastern European countries are important vehicle exporters, in some cases building on existing but outdated Communist-era infrastructure. The Czech Republic, Slovakia, Hungary, Slovenia and Romania, amongst others, have substantial automotive sectors, but Bulgaria has been left behind. Lack of a strong automotive tradition (unlike, for example, the Czech Republic) is a factor, as are the relative poverty and small size of the domestic market.

Press reports have dwelt upon Bulgaria's last post-Communist experiment in the industry, a JV between the UK's Rover and a Bulgarian partner, which closed down in 1996 after barely a year, having produced 2,200 vehicles. And it must be said that, at first glance, this seems an inauspicious time to launch an assault on the European automotive market. Sales have fallen dramatically in 2009, and the diminutive Bulgarian market is no exception, with only 23,700 new cars sold in the first 11 months of the year, down 52% on the same period of 2008. According to the BTA news agency, prices have slumped by 20-25%, seriously affecting dealers' margins.

However, there is some reason to doubt that the outcome will be the same as 13 years ago. The plant will surely be positioned squarely towards export markets – Europe and the Middle East have been cited – and by the time production commences, the automobile market is expected to be experiencing a post-slump upswing.

And Great Wall has chosen Bulgaria with good reason. The country has several competitive advantages, not least EU membership and therefore free trade with the rest of the bloc (tariff barriers having been a central cause of the Rover project’s failure). Labour costs are relatively low, the 10% flat tax on corporate and personal income is one of Europe's lowest, and Bulgaria is located on key developing transport corridors between the Eastern Mediterranean and Central Europe, facilitating exports to growing markets. Therefore the factory will be an important toehold for Great Wall in Europe. Thus far, Chinese manufacturers have largely failed to tap into the European Union market of almost 500m people – China's top five vehicle exporters sold a paltry 745 units to the bloc in the first nine months of 2009, with Great Wall accounting for 675 of those, according to the European Automobile Manufacturers' Association (ACEA).

It is clear that change is afoot, however, and Chinese firms are finally realising their long-term European ambitions. Chery, Changan and Dongfeng are all looking to set up plants in Turkey as a base for exports to the EU. But by establishing a base within the EU's borders, Great Wall may be hoping to steal a march on its rivals. "
The plant would essentially position Bulgaria as a strategic entry point into the EU for low-cost Asian manufacturers who seek proximity to the European markets through new East European member states,"
Paulius Kuncinas of the consultancy Oxford Business Group tells bne.

Indeed, from Bulgaria's point of view, the advantages are equally clear. Having grown at a brisk clip for several years, the economy has crashed, with the International Monetary Fund (IMF) expecting a 6.5% contraction in 2009. With previous growth drivers – particularly construction and real estate – in the doldrums after the bubble burst, and a gaping current account deficit, the IMF has warned that the country "
will need to shift to a new growth pattern relying more on the tradable sectors"
.

Other traditional foreign currency earners, such as steel, tourism and power, also have their own problems, so the hope is that the Lovech plant will create the sort of positive multiplier effect that investments in Romania had which helped it become a regional leader in the automotive industry. Bulgaria's northern neighbour exported 211,318 vehicles in the first 10 months of 2009 – up 50.5% on year. Renault subsidiary Dacia, until recently the country's only passenger car manufacturer, has benefitted greatly from scrappage schemes in its export markets, but this is nonetheless a more than respectable performance in a recession. "
If it goes ahead, the Great Wall plant will be a landmark event in Bulgaria's [foreign direct investment] history,"
Kuncinas says. "
Bulgaria's closeness to Romania, which already has an advanced automobile sector, would essentially create a hub in the Balkans attracting new spare part manufacturers. As we know from investment by Renault in Romania, the automobile sector is all about creating a viable and efficient supply chain. One large investment is usually followed by a number of smaller entries. The impact on the economy would be huge. It would also potentially prop up the flagging fortunes of Bulgaria's steel and electronics sectors, while boosting transport, logistics and services."


It may be too early to open the champagne, however. Chinese companies have displayed a preference for assembling complete knocked-down kits (CKDs) imported from China, rather than using local suppliers. While this won't necessarily be the case in Lovech, it will take time for Bulgaria's automotive sector to grow, let alone reach the size of Romania's. The plant's proposed capacity is moderate, after all.

Great Wall will also face the same challenges as other manufacturers in the country: relatively low labour productivity, patchy infrastructure and the old bugbear, corruption. Nonetheless, the automotive industry should watch with interest.

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This is wonderful news sincerely hope all goes well.

Oddy [You must be registered and logged in to see this image.]

Chinese Plant in Bulgaria to Roll off First Vehicles 2011

Great Wall Motor signed an agreement with Litex Motors worth 80 million euro on November 15 2009, under which the Chinese car maker will pay $4 million for its stake in the joint venture that will make sport utility vehicles that would be sold at a price of less than $15 000.

The plant in northern Bulgarian will have an annual production capacity of 50 000 units and assemble four different models – a sports utility vehicle (SUV), a pickup and two sedan models.

As China’s first private automobile enterprise listed on the Hong Kong Stock Exchange, the company has more than 30 subsidiaries and more than 22 000 people on its payroll. Great Wall Motor now manufactures sedans and sports utility vehicles and pickups, with an annual capacity of 400 000 complete vehicles.

The company has anticipated on exporting production in Eastern Europe since 2006, and the Litex Motors deal signed in November 2009 can be seen a cornerstone in future expansion in southern Europe.

Previously British car manufacturer Rover was contemplating on shifting production of their Maestro and Montego ranges to Varna, an investment which at the time was estimated at $20 million, with an annual output of 10 000 vehicles. Subsequently, Rover Group which owned 51 per cent of the shares and the Bulgarian Daru Group with 49 per cent commenced operation in 1995.

The vehicles manufactured in Bulgaria, however, were perceived to be poorly marketed and overpriced, and the Rover Maestro scheme in Bulgaria eventually collapsed on April 4 1996 with only 2200 vehicles produced.

Bulgaria-Made Chinese Cars Hit EU Market in February 2011



China's car maker Great Wall Motor Co and Bulgaria's Litex Motors will roll off their first vehicles in the plant in the town of Lovech, Northern Bulgaria, in February 2011.

Great Wall Motor Company, one of China's biggest automotive manufacturers, signed a joint venture (JV) deal with Bulgarian diversified holding company Litex Commerce in the presence of Chinese Vice President Xi Jinping and Bulgarian Prime Minister Boyko Borisov on October 15 last year.

The plant will have an annual production capacity of 50,000 units and assemble four different models – a sports utility vehicle (SUV), a pickup and two passenger car models, which are expected to be sold in European Union countries.

The total initial investment is around EUR 80 M, potentially reaching EUR 300 M if the project is successful. The cars are expected to be sold under the Great Wall badge, boosting the firm's output from around 400,000 at present.

The project is considered to be nothing short of a coup for Bulgaria, which does not currently produce any passenger vehicles, though it does have a modest but successful automotive components industry.

The plant will surely be positioned squarely towards export market and by the time production commences, the auto-mobile market is expected to be experiencing a post-slump upswing.

This may also be the last chance for the revival of the local auto-mobile industry after in mid 1990s Rover set up a joint venture with the Bulgarian Daru Group in Varna, which failed because of a weak market strategy, high prices, and a stronger competitor in the face of Skoda.

The factory in Varna operated in 1995-1996, and produced a total of 2 200 Rover Maestro cars.

Great Wall JV to Produce Florid, Coolbear, Hover 5, Wingle in Bulgaria



Florid and Coolbear sedans, the Hover 5 SUV and the Wingle pick-up are the four different vehicle models, which Chinese car maker Great Wall Motor Co and Bulgarian company Litex Motors will produce in the town of Lovech, Northern Bulgaria, reports say.

The companies are expected to roll off their first vehicles in February 2011.

Great Wall Motor Company, one of China's biggest automotive manufacturers, signed a joint venture (JV) deal with Bulgarian diversified holding company Litex Commerce in the presence of Chinese Vice President Xi Jinping and Bulgarian Prime Minister Boyko Borisov on October 15 last year.

The plant will have an annual production capacity of 50,000 units and assemble four different models – a sports utility vehicle (SUV), a pickup and two passenger car models, which are expected to be sold in European Union countries.

The total initial investment is around EUR 80 M, potentially reaching EUR 300 M if the project is successful. The cars are expected to be sold under the Great Wall badge, boosting the firm's output from around 400,000 at present.

The project is considered to be nothing short of a coup for Bulgaria, which does not currently produce any passenger vehicles, though it does have a modest but successful automotive components industry.

The plant will surely be positioned squarely towards export market and by the time production commences, the auto-mobile market is expected to be experiencing a post-slump upswing.

This may also be the last chance for the revival of the local auto-mobile industry after in mid 1990s Rover set up a joint venture with the Bulgarian Daru Group in Varna, which failed because of a weak market strategy, high prices, and a stronger competitor in the face of Skoda.

This is looking good the Bulgarian economy lets hope that the cars are better than the rest of the type of work most Bulgarians produce mind you the Chinese aren't much better