Changan Auto Delays US Launch

Changan Auto, who is aiming to establish a new factory in Mexico and expand its offering in North America, is slowing down plans to build the new factory, company representatives said. Changan is still interested in the launch of its cars in North America but investments in local infrastructure is yet to be made, Zhu Huarong, head of Changan's research and development division, told Reuters.

"We are still doing market research there. There won't be any big investment for the time being. We have slowed down the pace of the plant a bit because of the financial crisis, but our plan is unchanged," Zhu added.

Changan, currently the third largest Chinese carmaker, is currently a Ford partner, for whom it builds several models at its domestic production facilities.

Before the official North American launch, Changan continues to focus on its domestic operations and plans to expand its coverage in other sides of the market beside the small car category.

"We have been investing heavily in research and development. We will not stay at the lower end forever. If fact, you can see our first self-made saloon within months," Zhu said.

Back in August, Changan Auto announced plans for the third plan in Chongqing that will build small vehicles and will require an investment of up to $366 million. The new facility will have an estimated annual production goal of 300,000 units, with opening date currently set for 2012. It will help Changan reach an annual capacity of 2.1 million units, chairman of the board at Chongqing Changan Automobile Co. Xu Liuping said.