China

Local Report Suggests Great Wall Motor Has Encountered Technical Obstacles With Its H8 Model SUV

This article was originally published on June 23, 2014 at 11:37 pm EST

Summary:

  • Internal meeting notes suggest that Great Wall Motor (CH: 601633/HK: 2333) has encountered technical obstacles wit its latest H8 Model SUV, as reported by gemag.com.
  • In May Great Wall Motor announced that it would delay delivery of its latest H8 Model SUV because the transmission system tends to make “percussion sounds” during high speed trials thus reducing user experience.

Why It Matters:

  • A local article suggests that the major technical obstacle with the H8 Model SUV is chassis tuning. According to an automotive industry analyst, chassis tuning is a common technical difficulty for all China’s car manufacturers. Therefore local car producers, including Geely Automobile (HK: 0175), are searching for help from foreign auto makers.
  • The H8 is Great Wall Motor’s initial foray into the high-end SUV market and it has attracted significant investor attention. Great Wall Motor originally planned to launch the H8 SUV model in January, however, the company decided to push the launch back by three months. Great Wall Motor first introduced the model during the Beijing Auto Show on April 20. However, it announced it would would further delay the launch on May 8.