In September, formerly red-hot sales of Japanese cars in China began to crater after cars were turned over and dealerships torched as fallout of a diplomatic row between Japan and China. Sales were down by about a half in October, and a little less than a third in November. At TTAC, we were skeptical that sales will be back to their old glory in a few months. A high ranking Toyota executive said for the first time that it will take long to recover.

In the bankruptcy auction for EV battery maker A123 that begins today, Reuters is reporting that NEC of Japan and Siemens of Germany are going to join China’s Wangxiang and Wisconsin’s Johnson Controls in bidding for the entire company.

In its darkest hour, GM handed China-partner SAIC half of GM’s India business in return for some cash. Recently, GM injected cash (which it has again) into the joint venture, which resulted in GM owning 91 percent of the India business, and SAIC nine. That was widely lauded as GM regaining its independence. Some even said GM and SAIC don’t get along anymore. The opposite is true: GM and SAIC are expected to march hand in hand all over Southeast Asia. SAIC’s influence on GM is spreading.

The (not really) silent bidding for British sports car maker Aston Martin still is undecided. The current favorite appears to be the Mahindra Brothers in India, with an Italian private equity group also interested. Allegedly, there is another courtier, and that is China’s Geely.

Usually, China gets accused of copying from America. This time, U.S. lawmakers will itch to copy a new Chinese law that comes in effect on January 1. Stealing this idea could help solve the current cash flow problems in Washington, and could provide a happy ending to the DC fiscal cliff-hanger. It also could provide an elegant way to eliminate disagreeable competitors. Car companies would not like it at all.

GM had a better November in China than at home in America. Back home, sales rose only 3.3 percent to 186,505 units in November. In China, the world’s and GM’s largest market, GM sold a total of 260,018 units across all joint ventures, up 9.7 percent compared to November 2011.

Buried In the depths of General Motor’s quarterly results is a routine litany of negative factors that could severely hamper the company’s future. One of them is “Significant changes in economic, political and market conditions in China.” GM intently monitors what is happening to Japanese brands in China, and it has more reason to watch with worries than with glee. What is happening to Toyota, Honda, and Nissan right now could just as easily happen to GM. The Japanese might shake off the troubles – Japanese makers have seen worse in the very recent past. GM would be brought to its knees by a boycott of American cars in China. Quite possibly, one of the reasons behind the whole anti-Japanese exercise is to say “look what could happen to you.” Government Motors finds itself at the mercy of China.

In the end, the money that towns across America gave General Motors did not matter… G.M. walked away and, thanks to a federal bailout, is once again profitable. The towns have not been so fortunate, having spent scarce funds in exchange for thousands of jobs that no longer exist.

Two years ago, China’s Geely bought Sweden’s (and Ford’s) Volvo lock, stock, and barrel. Among the assets: A few good Volvo platforms, along with a fair technology licensing contract from Ford. However, the platforms are not getting younger, and from what I heard back then, the licenses with Ford also have their limits. Geely has to invest into the future if Volvo is supposed to have one. Price of admission to the future: Many times the purchase price of the car company.

Today is a sad day for TTAC’s French car fans – the last Citroen C6 rolled off the assembly line, ending a proud tradition of French luxury cars that fought a losing battle with the Germans for segment supremacy.

Chinese sales of Japanese makes continue to suffer from the fallout of the islands row. Toyota told Reuters that Chinese sales were down 22.1 percent YoY in November. Mazda’s China sales were down 29.7 percent compared to November last year, Reuters says. The severity of the drops has lessened, but it will be a while until Japanese brands return to their regular growth pattern in China.

A Detroit court found a former GM engineer and her husband guilty of conspiring to steal hybrid car trade secrets. Their lawyers unsuccessfully argued that there were no secrets to steal. Ed Niedermeyer had said that for years.

Ford and Mazda have been divorced ever since Ford cashed in its shares to finance a survival. Everywhere, except in China. In China, nothing goes without government approval, and because there was none, both Ford and Mazda had to continue their threesome with joint joint-venture partner Changan. An impending dissolution was announced several times. In August, Ford CEO Alan Mulally told reporters in Chongqing: “Ford and Mazda and their local Chinese partner Chongqing Changan have received approval from China’s central government to split their three-way, manufacturing and sales joint venture into two.” Got you! Not true. Now, it finally is.

Of course Chinese cars are all craptastic patent violations on wobbly wheels. But then, the same had been said about Japanese and later Korean cars. Can Chinese carmakers repeat what Japan and Korea have done? J.D. Power thinks they are rapidly improving.

Fisker wanted to sell its $100,000-plus Karma plug-in hybrid in China by the end of this year. It’s not happening. Fisker “encountered a slight delay in obtaining final certification to sell cars in China” spokesman Roger Ormisher told Reuters. The company now targets “the first quarter of next year to take advantage of China’s rapidly growing market for luxury cars.” Good luck with that.

Where are Debbie Stabenow and Carl Levin when we need them? The crusaders against China getting its hands on precious American intellectual properties must go bonkers when they hear this: In the olden days, the Chinese had to steal and rob know-how from America. No longer necessary: Americans outsource know-how creation to China. At the forefront: General Motors.

In February 1991, Volkswagen signed its second Chinese joint venture deal with First Automobile Works (FAW) in frigid Changchun in Northern China. This deal, and the older JV with SAIC turned into the cornerstone of Volkswagen’s world domination plans. In no country does Volkswagen sell more cars than in China – and it wants to double the current number in a few years. Written for a 25 year term, the joint venture with FAW would end in 2016. It won’t. It has been extended for another 25 years.

The old contract is still good for a few years, so why the rush? Well, there was that other matter.

A few weeks ago, Toyota’s CFO Satoshi Ozawa told an astounded press corps (and I paraphrase for brevity): “Sure, the riots in China have an effect, but we’ll make it up elsewhere in the world.” Today, we have the data that prove Ozawa-san right. What’s more, he could have spoken for all his Japanese peers. Yes, the boycott of Japanese cars in China caused drastic cutbacks at large Japanese automakers. However, all are doing so gulpingly well elsewhere that a buyer strike in the world’s largest car market turns into nothing more than a hiccup.

A China-made Cadillac XTS was announced and expected for “this fall, just months after the car’s North American launch.” It has not appeared yet. But they are working on it hard, as the picture by Carnewschina attests.

Honda/Acura fansite Temple of VTEC has a series of spy photos of the Acura RLX taken in China, revealing the car’s interior details, and one lone exterior shot.

Ford and TTAC think alike. A few days ago, we told you that “the Chinese government wants its joint ventures to venture into China-only brands, and even a Ford won’t succeed in resisting governmental charms.” And a few days thereafter, Carnewschina reports that Ford has succumbed: No longer One Ford adds a new brand to its stable. It is called ‘Jia yue’, which Carnewschina translates as ‘Good Leap’.

As if it’s not enough that Chinese buyers shy away from Japanese cars due to disputes over some rocks in the East China sea, Japanese cars find themselves under attack from a surprising foe: Chinese cars. Chinese cars were the big winner of the anti-Japanese row, and now The Nikkei [sub] has a downright frightening report from the inside of one of the most successful Chinese automakers, Great Wall:

China Business News has the story (via Reuters) that Renault will start a joint venture with Dongfeng, and that “the two firms plan to invest a combined 6.5 billion yuan ($1.0 billion) in a plant in the central province of Hubei with an initial capacity of 200,000 cars a year.” The story promptly went as viral as a story about a Chinese joint venture can go viral.

Officially, the story elicited a “no comment”at Renault. Privately, after they were done yawning, contacts in Paris said that this is a non-story, but a popular one. News about a joint venture between Renault and Dongfeng appear with regularity, but they overlook the fact that Renault has had a joint venture in China for longer than most people seem to remember.

If the road outside of your house gets a new layer of blacktop, and you forget to move your car before the work crews arrive, what would happen? In America, you’d probably have to look for your vehicle in to impound lot. In China, the car would still be there. But it would wear asphalt shoes.

MG, now owned by Chinese auto maker SAIC, is apparently gunning for Kia and beyond. But despite their lofty ambitions, MG hasn’t made much headway in the automotive world.

Ford will have to deviate from its “One Ford” strategy if it wants to break into the Chinese market in a serious way, says Reuters. Ford is developing what it calls a “Value B” model that is aimed at the increasingly important sub $10,000 market in China. And that’s only the beginning …

The boycott of Japan-branded cars by Chinese customers appears to be abating faster than feared by some, but not as fast as hoped by others. Nissan expects its November sales in China to be down by approximately 25 percent, Hideki Kimata, senior general manager of Nissan’s joint venture with Dongfeng, told Reuters. Yesterday, Mazda’s China chief said he expects sales in China to be down by around 35 percent in November.

Toyota will launch two China-only brands next year, one for each of its two Chinese joint ventures, a Toyota executive told Reuters today. Toyota had been one of the last hold-outs in the China-only business, after most other makers had caved in to the strong suggestions of the Chinese government that China-only brands are good for the Chinese joint venture.

That GM will launch an electrified Sail in China is no secret, at least not to TTAC readers. You won’t be surprised to hear that GM launched one at the Guangzhou auto show. The car is not the interesting part. The interesting part is the brand behind the car.

Earlier this year, Subaru was denied approval for a new factory by the Chinese government. The rationale behind the move was that Fuji Heavy, parent company of Subaru, and Toyota, were already too cozy, and that a Subaru factory would give Toyota one too many joint ventures in China. And then the boycott happened.

A year ago, we wrote about China’s suicidal brand binge:

“If Chinese carmakers will do what they say – and they appear to be utterly committed – then China will soon wallow in a sea of car brands nobody has ever heard of, and nobody will ever be able to remember. Sometimes, it feels as if it is the long-term goal to give each and every of the 1.3 billion Chinese his or her individual car brand.”

A year later, the brand disease claims its first victim, and it is Chery.

Mention China to Daimler managers, and with a pained look, they will quickly change the subject. China is the superpower when it comes to conspicuous consumption, and even more conspicuous choices of cars, and horrors, Mercedes is lagging far behind Audi and BMW, brands that previously had been looked upon with disdain by Daimler managers. Daimler won’t take it anymore, and wants to put a board member in charge of its lagging China business, says Der Spiegel. It will be a demanding job.

GM added more capacity to its Chinese Baojun brand by opening a factory in Liuzhou, southern China. Plant and brand are part of the SAIC GM Wuling joint venture, where GM holds 44 percent, SAIC 50 percent, with 6 percent held by Wuling.

Baojun started with the Baojun 630, a compact sedan based on an older Buick Excelle/Daewoo Lancetti platform, later the Le Chi was added, a rebadged Chevrolet Spark. By 2015, Baojun wants to have a total of five models, Reuters says.

Baojun is one of China’s joint venture brands, which we at TTAC like to call “fake Chinese brands.”

Lately we have traveled to Iraq, Puerto Rico, Poland and Australia. And today we are going to China.

Heard enough about the Middle Kingdom? Fine. You can fly to 170 other countries and territories in my blog, all from the comfort of your home. Or today I can offer you the 264 best-selling models in the USA in October 2012. Every single one of them.

Now back to China. You can discover the Top 280 best-selling locally produced models below the jump and you will see that the impact of the island diplomatic row between China and Japan is extremely hard on the model ranking in China…

Some of you may remember the “No Audi” signs at U.S. parking garages at the height of the unintended acceleration craze of the late 80s. In a garage in China, one can see the reverse: Only Audis, other cars go elsewhere.

Amid flat growth for the ultra-luxury segment, Lamborghini may kill their luxury SUV project to save money.

Our other man in China, (the Dutchman, not Bertel) has some spy shots of a new General Motors EV. It looks like a Chevrolet Sail, but may not be dubbed as such.

We have followed the effects of the Chinese boycott of Japanese products with great interest, especially when it came to cars. Encouraged by very strong sales of German brands, we declared them the winner of the war of words. It looks like we may have made a mistake. At least if we can trust official Chinese statistics.

End of October, China’s formerly white-hot auto industry basically is where it was last year. January through October, production of cars and commercial vehicles is down 0.42 percent, sales are up 0.19 percent, the China Association of Automobile Manufacturers CAAM says.

Talk about bad timing: One day after the elections that were preceded by the time-honored custom of China-bashing ( with a little Japan-bashing mixed in, you never know) China’s largest automaker announced that the long feared attack of the Chinese car on American soil won’t happen anytime soon.

Here is one car company that didn’t profit from Japan’s losses in China: Mercedes sales in China were down 3.9 percent to about 15,900 units in October, Reuters says. Daimler blamed the “very strong” sales of October 2011.

For a number of years, Cadillac has been carefully cultivating its angular look, with cars like the CTS and XLR setting the tone for the brand’s designs. In America, the “Art & Science” look was greeted with enthusiasm. But Chinese consumers aren’t so receptive to it, and that’s bad news for a brand that’s pinning its expansion hopes on China.

All three major Japanese automakers have reported their half year financial results. After Honda last week and Toyota yesterday, Japan’s number two automaker Nissan followed today. The presentations could not have been more different.

China’s SAIC told Reuters today that its October auto sales rose 20.7 percent year-on-year to 414,471 units. This indicates a very strong jump in Volkswagen sales.

GM shows new vigor in its largest market China. October sales across all of GM’s Chinese joint ventures were up 14.3 percent on an annual basis. The Chinese market is of increasing importance for GM. In the first 9 months of the year, 30 percent of GM’s global sales were in China, trailed by the U.S. with 28 percent of GM’s global business.

After a rash of interim-CEOs, Opel may have found a more permanent one. It’s the former Volkswagen manager Karl-Thomas Neumann. The successful recruitment was first published by Financial Times Deutschland, the report was quickly confirmed by wire services and major German newspapers.

Looking back at three catastrophes, the high yen, the tsunami and the Thai flood, a Japanese auto executive said to me last spring: “We’ve gone through hell, and made it. What else would be there, war?” He was close. A war of words over rocks in the East China Sea destroys Japanese car sales in China, while Korea profits.

Pursuant to our continued discrediting of the “ Jeeps built in China” lie, Donald Trump took to Twitter to further propagate that falsehood. And the Donald ended up getting a virtual earful from Ralph Gilles, head of Chrysler’s SRT Division.

The 3-cylinder Ecoboost engine developed by Ford won’t necessarily stay at its current displacement of 1.0L. According to the Blue Oval, there’s a fair bit of power – and displacement – left on the table.

Toyota’s China sales dropped 44.1 percent year-on-year to about 45,600 units in October, The Nikkei [sub] says. Toyota confirmed the number. A territorial dispute over uninhabited rocks in the East China Sea triggered a massive boycotts of Japanese goods, especially of high-profile cars. In September, Toyota’s China sales were down 40 percent in September.

Fiat and Chrysler CEO Sergio Marchionne finds it “most shocking” that the U.S. auto industry is not throwing its might behind natural gas, which has been found in abundance in the United States:

Chinese domestic brands are being outsold by international brands in China. Their quality is suspect even and especially among the Chinese. This may not last. Domestic brands are catching up fast, says J.D. Power.

Yesterday, a car developed (mostly) for and (mostly) in China was presented at a gala event in Wolfsburg. Volkswagen celebrated the new Santana, and Volkswagen’s lucky entry into the Chinese market some 30 years ago. That’s also how long the old Santana lasted. It was time to replace it, and the time was yesterday.

Today was a historic day in my automotive life; I drove my first Chinese car.

The slowdown of Chinese car sales, applauded in some circles that applaud any negative news out of China, could finally unleash the flood of cheap Chinese cars exported to foreign markets, something that had been long predicted, but which has been a bust for even longer. “Battling a slowdown and intense competition in their home market, Chinese carmakers are increasingly looking to exports for growth,” China Daily writes.

A company owned by China’s central government is taking it on the chin as Chinese customers avoid Japan branded cars. Dongfeng reduced production at its joint ventures with Nissan and Honda, the Wall Street Journal reports today. Amount or duration of what the company calls “production adjustments” is unknown.

Poor reporting by unscrupulous bloggers is nothing new – there’s even a book about it. We try and stay above the fray and simply write accurately the first time around. But a story regarding Jeep and Chinese production has been making the rounds with such speed that TTAC readers have been emailing us for clarification. It got so bad that even Mitt Romney got things wrong.

Fiat and Chrysler CEO Sergio Marchionne repeated its pleas that European governments should do something about the overcapacity in the region. Being in Shanghai when he said that, he recommended that the Chinese government does the same. The governments likely won’t be enthusiastic about Sergio’s advice.

Said Sergio while the Wall Street Journal took notes:

The boycott of Japanese goods in China , triggered by a dispute over uninhabited islands in the East China Sea, hit Japanese automakers where it hurts most: In the pocket-book. Honda cut its profit forecast for the fiscal year to March to 375 billion yen ($4.7 billion) from its earlier estimate of 470 billion yen ($5.9 billion), Reuters says.

BYD had made lots of announcements of exporting cars to the free world, but none of them have panned out so far. Remember BYD’s plans to take over America? Now finally we have what Reuters calls BYD’s “first overseas deal.” BYD will ship 50 e6 electric taxis to London in the second quarter of 2013.