Current Car Producers in Taiwan

The automobile industry has been a representation of many nations’

manufacturing industry. The number of consumers who owns a vehicle is a common indicator of the national economic level. 2012 global automobile market total sales amount is about 84,100,167 units, compared to the previous year of growth, it is more than 5.1%; summarize, the majority of the country's automobile market scenery close, but the European automobile market due to the European debt crisis and faltering. In the global ranking, 19,271,808 units in China's automobile market sales champion, followed by the U.S. 10,328,884 units, the third is Japan 9,942,771 units.

In Taiwan, there are now seven automobile firms, named Kuozui Motors, Ford Lio Ho Motor Company, China Motor Corporation, Yulon Motors, Sanyang Industry Company, Honda Motor Company and Formosa automobile corporation, Formosa, which is totally manufacture the trucks, it does not fit our study’s need, so we will only introduce the others, expect Formosa.

Kuozui

In early 1984, Toyota, Hino and Hotai, joint venture with China Development Trust, established Kuozui Motors, Ltd, and Toyota and Hino has 56.6% of the shares.

Under the expectations of the country's economic development, Kuozui Motors started to produce locally cars. ome of Toyota’s cars manufactured by uozui like CAMRY, CAMRY HYBRID, COROLLA ALTIS, WISH, VIOS, YARIS, and INNOVA. And some

of ino’s also manufactured by uozui, such as INO small / medium / large truck, bus. In 2009, started to export to Middle East country.

Table 4.1: The Units of Passenger Cars

Year/Unit Passenger Cars (Including the exported cars)

Export

2000 81,500 0

2005 139,700 0

2008 65,600 0

2009 90,900 7,020

2010 117,700 30,450

2011 152,000 50,630

2012 167,000 66,950

Source: Official website of Kuozui

Ford Lio Ho

Taiwanese car firm named Lio Ho signed the contract with Ford of joint venture on November 20, 1972. And, founded the Ford Lio Ho Motor Company on December 1 in the same year, and Ford has 70% of the shares. In 1973, Ford Lio Ho promoted the first locally made car called Cortina, after that here comes the Fiera the second, now there are three types of locally made passenger car, one is FOCUS, another is MONDEO, the third is FIESTA. Besides, the first one Taiwanese car manufacturer got the certification of ISO9001 in 1996. Ford, the experienced car manufacturer, now owns the fifth market share in the world, with 3,123,340 units in 2012. Mazda Motor Corporation they have arrangement with Ford sine 1979, at that time Ford had 25%

shares of Mazda, now so there are two kinds of cars locally made by Ford Lio Ho, one is MAZDA 3, and the other is MAZDA 5.

China Motor Corporation

CMC (China Motor Corporation) was founded in June of 1969 and signed a technical collaboration with Mitsubishi Motors Corporation in the following year, and Mitsubishi Motors Corporation has 22.8% of shares, now there are four types locally made cars, one is COLT, another is LANCER FORTIS, other is SAVIN, the last is OUTLANDER. In 1993, the company garnered both ISO 9002 certification and the National Quality Award of Taiwan. In 1997, the company also obtained ISO 14001 Environmental Management certification.

Sanyang Industry Company

Sanyang Industry Co., Ltd., founded in 1954, is the sole international enterprise in Taiwan that manufactures both motorcycles and automobiles. In the automobile business, Sanyang allies with Hyundai and successfully makes it a household auto brand in Taiwan, there are three kinds if cars locally made, one is I30, another is ELANTRA, and the other is ANTA. trengthening yundai’s brand, selling yundai products through anyang’s marketing channels and providing yundai worldwide with great quality components and parts have made Sanyang an important partner to Hyundai in its global strategy.

Honda Motor Company

In October 1946, Soichiro Honda established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike

engines. Two years later, Honda Motor Company, Ltd. was born, and in 2002 established the Honda Motor Company in Taiwan, and was divided to Taiwan Honda Motor Company Ltd. There are three types of locally made cars by Honda, one is ACCORD, another is CIVIC, and the last is FIT. It is a foreign direct investment company of Japan, auto parts was imported from Japan either.

Yulon

Mr. Ching-Ling Yen established the company on September 10, 1953; in the beginning YULON was named YULON Machinery Co., Ltd. While the first Yulon model was a 1956 jeep, with engine production beginning in September 1956, passenger car assembly only started in 1960 with the Bluebird after an agreement with Nissan was signed in 1957. The first Taiwanese auto brand, Luxgen, was created by Yulon in 2008. Yulon's second brand, Tobe, was established in 2009.

Table 4.2: The Taiwanese Automobile Industry for New Car

Year 2004 2005 2006 2007 2008

Automobile industry 219.7 230.9 160.1 145.1 101.6

Growth rate 12.3% 5.1% -30.7% -9.4% -30%

Year 2009 2010 2011 2012 ‘13/1-6

Automobile industry 118.5 164.9 192.8 189.4 90.6

Growth rate 16.6% 39.2% 16.9% -1.8% -10.3%

Unit: Billion

Source: Taiwan Transportation Vehicle Manufacturers Association

Table 4.3: The Units of Production and the percentage for Each Automobile Firm

Year Sanyang Kuozui China Yulon Ford Honda Formosa Total 2003 7,022 105,713 94,807 70,234 69,065 12,535 8,130 386,686

1.8% 27.3% 24.5% 18.2% 17.9% 3.2% 2.1%

2004 17,812 130,053 96,624 67,168 70,652 18,894 6,845 430,814

4.1% 30.2% 22.4% 15.6% 16.4% 4.4% 1.6%

2005 22,346 142,492 87,656 64,560 79,769 24,812 3,208 446,345

5% 31.9% 19.6% 14.5% 17.9% 5.6% 0.7%

2006 14,227 99,742 56,953 37,563 53,174 20,559 1,292 303,229

4.7% 32.9% 18.8% 12.4% 17.5% 6.8% 0.4%

2007 8,876 100,344 52,031 34,207 45,348 28,660 12 283,439

3.1% 35.4% 18.4% 12.1% 16% 10.1% 0%

2008 4,541 67,896 37,034 24,610 21,399 20,940 80 182,974

2.5% 37.1% 20.2% 13.5% 11.7% 11.4% 0%

2009 5,327 93,303 45,193 28,928 28,150 23,340 67 226,356

2.4% 41.2% 20% 12.8% 12.4% 10.3% 0%

2010 9,904 122,312 52,143 51,570 38,090 28,358 243 303,456

3.3% 40.3% 17.2% 17% 12.6% 9.4% 0.1%

2011 12,384 156,917 60,099 56,371 37,467 19,267 403 343,296

3.6% 45.7% 17.5% 16.4% 10.9% 5.6% 0.1%

2012 15,356 173,619 53,707 46,121 31,199 18,532 504 339,038

4.5% 51.2% 15.8% 13.6% 9.2% 5.5% 0.2%

2013 13,657 173,705 42,833 48,879 33,865 25,145 636 338,720

4% 51.3% 12.7% 14.4 % 10% 7.4% 0.2%

Source: Taiwan Transportation Vehicle Manufacturers Association

Table 4.4: The Units of Taiwanese Locally Made Car (1)

Year 2003 2004 2005 2006 2007

357,285 422,410 444,470 306,388 271,665

Growth

413,914 484,292 514,627 366,316 326,781

Growth rate

3.77% 17% 6.26% -28.82% -10.79%

Throughput 386,686 430,814 446,345 303,229 283,439

Growth rate 15.88% 11.41% 3.63% -32.06% -6.53%

Source: Taiwan Transportation Vehicle Manufacturers Association

Formosa Automobile Corporation

Formosa Automobile Co., Ltd. was set up in 1988 on November 11, the company set up for the Formosa Plastics Group, the main operating items for the wholesale and retail automotive, motorcycle parts with wholesale and retail, auto repair and inspection of large and small vehicles on behalf of other related business.

Nowadays Formosa Automobile Corporation only produces the trucks.

Table 4.5: The Units of Taiwanese Locally Made Car (2)

186,753 233,979 252,722 267,027 281,198 129,766

Growth

229,497 294,423 327,615 365,871 378,288 182,324

Growth rate

-29.77% 28.29% 11.27% -3.28% 15.47% -1.92%

Throughput 182,969 226,356 303,456 343,296 339,038 162,874 Growth rate -35.45% 23.71% 34.06% 13.13% -1.24% -3.58%

Source: Taiwan Transportation Vehicle Manufacturers Association