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Chinese battery supplier plans Gigafactory in Germany – after BMW, Daimler is now also considering to purchase cells from CATL

What the German industry has long considered unrealizable, the Chinese manufacturer Contemporary Amperex Technology (CATL) now dares to set up a factory for the production of battery cells for electric vehicles in the middle of Germany. As late as May 2017, Continental CEO Elmar Degenhart and former VW CEO Matthias Müller declared a clear rejection of political demands for the construction of such factories in Europe. Bosch CEO Volkmar Denner even sees research in Germany on batteries as no longer economical in the future. CATL now wants to prove the opposite with its modern Gigafactory, which will be highly automated and, like all other energy-intensive businesses, will benefit from discounted electricity tariffs.

In the framework of German-Chinese government negotiations at the beginning of July 2018, the investment in Germany by Contemporary Amperex Technology (CATL) was finally announced. With BMW, they could already conclude a contract for the purchase of battery cells for electrically powered luxury class sedan “iNext”, which is to be released in 2021. The contract volume amounts to several billion euros. After BMW, Daimler is now interested in purchasing cells from CATL for its production in Europe. The two manufacturers already keep a purchasing pool for so-called “non-branded parts” with several global automotive suppliers.

 

CATL plans Gigafactory in Germany

 

At Daimler there is a need for battery cells, because it is planning to bring ten new electric cars on the market by 2022. So far, Daimler relies on the South Korean companies LG Chem, Samsung and SK Innovations. Chinese companies have no locations for battery production in Europe yet. By means of the new partnership with CATL, Daimler expects a lower dependence and falling prices due to more competition.

One of the reasons for the decision of Contemporary Amperex Technology (CATL) to settle in Germany is the central location in Europe and easy accessibility of their customers through a good transport connection with the Erfurt autobahn interchange. In order to make the production and logistics of battery cells economical, they have to be manufactured close to the automobile manufacturers and delivered on a just-in-time basis. Because of their labeling as dangerous goods, batteries may only be transported by ship and not by airfreight. Currently, nine out of ten electric cars are equipped with battery technology from the Far East.

Electronic vehicles and many components must be China CCC certified for approval in China.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

Nissan has sold its battery production to the Chinese energy company Envision Group

One month earlier, the sale of Nissan’s Automotive Energy Supply Corp. (AESC) business to a Chinese financial investor failed to accomplish. Finally, a successful deal was signed with the Chinese energy company Envision Group. For the purchase price no more details were given, insiders speak of about one billion dollars.

The corporate structure of Automotive Energy Supply Corp. (AESC) is complex. Japanese NEC Corporation and its subsidiary, NEC Energy Devices, hold a 49 percent equity minority in AESC. Originally, the company was founded by Nissan and NEC in 2007 to develop and produce lithium-ion batteries. To complete the sale of AESC, Nissan must first buy back all of NEC’s shares. However, following the acquisition by the Chinese Envision Group, they will continue to own 25 percent of the shares. The sale includes production facilities in the US and UK as well as battery development and production technology at three locations in Japan, all the workforce will be taken over as well.

 

Electric vehicle battery

 

Nissan, on the other hand, has been part of a global strategic alliance of car manufacturers since 1999, the Renault-Nissan-Mitsubishi alliance. The batteries for its electric vehicles have been sourced from LG Chem in South Korea by Nissan for some years now and no longer from the subsidiary AESC. For the production of the Chinese model of the Nissan Sylphy electric car, they have also concluded a supply contract with the Chinese battery manufacturer CATL. Therefore, it was only a matter of time before one would part with the battery section AESC. According to a Nissan spokesman, the split will help them to focus on the development and production of electric vehicles.

The purchase makes Envision a major producer of electric vehicle batteries. So far, they have been involved in the manufacturing of wind turbines and the development of software for the energy industry. Leo Zhang, founder and chairman of Envision, said by buying AESC, both companies could further expand their position in the field of smart energy systems.

Many Components of electronic vehicles require a China CCC certificate for the Chinese market.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

Engine maker Deutz starts new partnership in China

The engine and tractor manufacturer Deutz is trying to gain a foothold in China with two new partnerships. It is currently in the process of divesting itself of the shares of the joint venture Deutz Dalian, which was founded in 2007, and selling the shares to the former Chinese partner FAW. As one of the new partners in China, the tractor manufacturer YTO was named. YTO is China’s largest tractor manufacturer and could need around 100,000 engines a year from Deutz. The second company involved is engaged in the production of engines for excavators and tractors, but a specific name has not yet been mentioned.

In the first week of June, Deutz announced its quarterly figures. The sale of the company shares is expected to earn around ten million euros. Depreciation on the joint venture, on the other hand, will burden the result of the first half of the year with approx. 14 million euros. For the current year, CEO Hiller expects a return on sales of 4.5 percent, an increase on the previous year with 2.9 percent.

For Deutz, the investment means opportunities to gain leverage globally and in China, the world’s largest engine market. It is hoped that the share of sales in Asia will triple with ten percent at present, according to chief executive Frank Hiller. Furthermore, in addition to the cooperation with the two partners they want to serve other customers as well. That is why Deutz is planning to set up its own production site in China.

Special opportunities in the Chinese market arise for Deutz and its new partner companies in the field of clean diesel engines for vehicles in the construction industry and agriculture. For these so-called off-highway applications, the introduction of the China 4 emission level was recently brought forward to 2020 by the government. Since Deutz already has the necessary technology, it expects rising market shares and promising opportunities for cooperation with Chinese vehicle and engine manufacturers.

Commercial vehicles such tractors and construction machinery often require a CCC certification in the Chinese market.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.

Tesla signs contract to build a new factory in Shanghai

Tesla announced it would build a new factory in Shanghai for the production of electric vehicles. The factory is Tesla’s first non-US manufacturing facility and the largest investment by a foreign company in Shanghai. The Shanghai region is considered one of the centers of the Chinese automotive industry. Also new is the ownership structure of the company. After a change in the law, foreign companies may now own one hundred percent of the shares. Previously, the establishment of a company in China was only possible as a joint venture and the foreign partner company could own a maximum of fifty percent of the company shares.

Tesla founder Elon Musk called several reasons for the investment in China at the announcement and signing of the contract. On the one hand, Tesla wants to benefit from the rapidly growing market for electric vehicles. Last year, more than 28 million vehicles were sold in China, and by 2025, analysts expect 35 million vehicles annually. Compared to the US with about 17 million small vehicles sold that is more than twice as much. Sales of electric vehicles in China are also being intensively promoted by the government, for example with the aim of having only electric vehicles on the roads in 2030.

Another reason for the construction of the production facility are the increasing trade barriers and tariffs between the US, Europe and China. For vehicles imported to China, until shortly 25 percent penalty tariffs have been charged. As a result, in the past many automakers have also built factories in the markets where they sell a reasonable amount of vehicles to avoid currency fluctuations and trade policy discrepancies.

Electric vehicles require China CCC certification in the Chinese market and for export.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.

New GB 4660-2016 Mandatory from January 2019 for All Front Fog Lamps

The new GB standard, GB 4660-2016, for the light distribution of front fog lamps for motor vehicles was implemented on January 1, 2017, and replaced the old standard GB 4660-2007. In order to ensure the effective implementation of the CCC certification system, the TC11 Technical Group has issued “Technical Decisions Adapting the Standards for CCC Certification of Vehicles and Vehicle Components” (TC11-2017-02). In accordance with the “Notice on CCC certification issues at the time of the standard revision” (CNCA Announcement No. 18, 2015) and the “Notice of Relevant Requirements for Revision of the CCC Certification” (CNCA Announcement No. 4, 2012), the following implementation plan has been formulated for the new GB standard:

  1. For new applications for CCC certification of front fog lamps, tests have to be done according to the new GB standard GB 4660-2016 starting from January 1, 2019.
  2. For fog lights that have been certified before January 1, 2017, there is a transitional period. If the certificate holders wish to update the GB standard on the certificate and the older type approval fog lamp between 2015 and 2017 meets the TC11 Technical Requirements, the change to the certificate may be made without additional difference tests to the new GB 4660-2016. If the type test was carried out according to the old GB standard only, a full type test according GB 4660-2016 is necessary when changing the certificate to the new standard.
  3. From January 1, 2022 newly certified front fog lamps must meet the requirements of class F3.
  4. Certified front fog lamps produced before January 1, 2017, sold on the Chinese market and end of production do not require a certificate update.
  5. After testing is completed in accordance with GB 4660-2016 the results have to be transmitted by the responsible test laboratories immediately to the CNCA and the respective certification authority.

 

 

For all car manufacturers the CCC certification is a challenge when entering the Chinese market.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.

Two new electric vehicle joint ventures established by Magna and BJEV

The German automotive supplier Magna and the Chinese manufacturer of electric vehicles, Beijing Electric Vehicle (BJEV), have founded two joint ventures for the development and production of electric cars. BJEV is a subsidiary of the BAIC Group and the vehicles are to be jointly produced in an existing plant in BAIC in Zhenjiang.

The agreement for the joint venture between the two companies was signed on 18 June 2018, subject to regulatory approvals. The production capacity is estimated at up to 180,000 vehicles per year, in the year 2020 series production should begin. The aim of the new companies is to attract new customers through expanded capacities and new products.

A joint development of a new, intelligent electric vehicle architecture was already presented in April of this year. This should be used as a basis and represent the platform for all future electric vehicles of the two companies.
 
According to Magna, there are also plans to manufacture electric vehicles or components for other automakers in the said factory.
 

For the first time in the history of Magna, complete vehicles are being developed and produced outside Graz, says Don Walker, CEO of Magna International. Until now, Magna Steyr’s Austrian plant has been manufacturing vehicles on behalf of well-known manufacturers such as BMW and Land Rover. The founding of the two joint ventures is also seen by analysts as an advantage for BJEV, which is planning an initial public offering in China in about two months.

 
Joint Venture
 

China’s electric vehicle market has surpassed that of the US since 2015, thanks to generous Chinese government subsidies and stringent environmental laws. An on-site production facility is beneficial for Magna to tap into the local market while being less dependent on any tariffs, especially with regard to the trade dispute between China and the US.

Vehicles manufacturers in China need to obtain the CCC China Certification as well as manufacturers outside of China.

For more information on how CCC certification may affect your company, or for more information about CCC certification in in general, the process, and the associated costs, please visit our website and our news section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.

Jaguar Land Rover plans to produce an electric vehicle in China

Tata Motors-led Jaguar Land Rover wants to benefit from the demand for electric vehicles in China and develop and produce a corresponding vehicle there. The E-Pace, already manufactured in China by the local partner Chery Automobile, is to be supplemented by the electrically driven I-Pace.

With other premium manufacturers such as Audi and Mercedes-Benz already developing or producing electric vehicles in China, Jaguar Land Rover is now also entering this market. Murray Dietsch, president of local joint venture Chery Automobile told the press, over the next three to five years the focus will be on the development of new energy vehicles. The government in China, as well as numerous cities, are promoting the introduction and development of emission-free and environmentally friendly vehicles to improve air quality and be less dependent on oil imports.

The Jaguar Land Rover brand reported sales increase of 23 percent in China last year, with a total of 146,000 vehicles. Only the American manufacturer Cadillac could beat JLR with a growth rate of 45 percent and 175,000 sold vehicles. Other rivals in the Chinese market for JLR are e.g. Tesla, Audi and Mercedes-Benz, which already have local production plants or are planning to build them up in the future.

The local joint venture Chery Jaguar Land Rover Automotive intends to test new models first on the Chinese market before they will be exported worldwide. The company plans derivatives and slightly modified versions of existing models as electric vehicles. Investments in research and development are to be further increased and Chery JLR is planning to introduce one new model in China every year for the next three to five years. In addition, the joint venture is working with battery maker CATL (Contemporary Amperex Technology) to develop new technologies and cost-cutting strategies to make the production of electric vehicles more economical.

 

 

Many parts of an electric vehicle need to obtain CCC certificates before the parts or vehicle can be exported to China or sold on the Chinese market.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.

Daimler receives approval for the test of self-driving vehicles in Beijing

As first international automaker Daimler receives clearance to test self-driving vehicles on public roads by the government in Beijing. The Group was granted the permission to test self-driving vehicles of the so-called Level 4 (without driver intervention).

The permission was issued after a detailed test on a closed off testing area. The Chinese authorities have already issued permissions for three Chinese companies in Shanghai and Beijing this year, SAIC Motors, electric vehicle startup NIO and technology company Baidu Inc. In order to apply for a license, Mercedes-Benz equipped its vehicles with additional technical equipment from Baidu Apollo. The latter were tested already in advance in Beijing and Hebei province road traffic for their functionality and performance.

Urban traffic is one of the biggest challenges for self-driving vehicles. With the approval for testing in Beijing, Mercedes-Benz can now refine and optimize its technology. The traffic conditions in Beijing are worldwide known for its complexity and uniqueness and offer the best conditions for autonomous cars to be tested under real circumstances.

Prior to the introduction and the test run, Daimler intensified its research activities in the field of autonomous cars and expanded its cooperation with local partners. These efforts would now be rewarded, said Prof. Dr. med. Hans Georg Engel, Research and Development Manager at Daimler China. He also said that, supported by the excellent local partners, the carmaker will be able to provide solid and innovative research in China in the future.

Together with its local partner Baidu and their open source technology platform Apollo, Daimler is working on the development of self-driving vehicles in China. In addition, a joint research center for sustainable transportation solutions was founded in 2012 together with the renowned Tsinghua University.

 

 

For all car manufacturers the CCC certification is a challenge when entering the Chinese market.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.

Automakers in the US are increasing their prices due to punitive tariffs for export to China

The trade dispute between the US and China now also affects German automakers that produce in the United States and export the vehicles or components to China. The penalty duty can be up to 40 percent, BMW plans to export more than 70,000 SUVs to China per year. Tesla has already announced that it will increase the price of its S and X models because of the extra tariffs.

The German automakers in the US expect difficult times after punitive tariffs for their locally manufactured vehicles were introduced on export to China last Friday. Analysts estimate that BMW and Daimler will be hardest hit. Both companies export luxury models from the USA to China. In addition, many German automakers are already suffering from the decline in sales due to the diesel scandal both in the USA and in Europe.

 

punitive tariffs for export to China

 

Other manufacturers are also affected by the punitive tariffs, including Tesla and Ford. Tesla had to increase its sales prices in China because of the changed tariffs already. Ford and Tesla had recently lowered their car prices in China by 15 percent to make their vehicles more attractive to customers. This initiative was now destroyed by the trade war.

On the other hand, China has now lowered import tariffs for non-US vehicles from 25 to 15 percent. This benefits Mercedes and BMW, as they sell more than a third of their vehicle production in China. Porsche, with no plants in China, is also a winner of this scheme.

In addition, the German car manufacturers are trying to increase their sales in China through innovation and clean engines. Volkswagen is investing more than 20 billion euros in the development of electric cars, including the new “I.D.” brand. Daimler plans to introduce 10 new models by 2022 with its passenger car brand Mercedes-Benz. BMW has to develop 12 new, exclusively battery-powered vehicles by the year 2025. The market for electric vehicles in China is growing rapidly and is considered one of the most promising in the world.

All vehicles produced in the USA that are exported to China have obtained the Chinese CCC certification.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.