Christmas is over so we go back to war. This is the newest kill-machine of the Chinese army. It is a 4×4 armored vehicle based on the Dongfeng EQ2050 ( thank you America!). The new car seems designed as a hit-and-run fast attack vehicle with a big turret on the roof for a big fat machine gun or rocket-propelled grenade launcher.

If you are worried that you may have to live without daily episodes of the Saab Soap, now that the company is bankrupt, worry no more. Or in the words of Saabsunited: “never ever give up!” The show will go on.

Today, Automotive news China [sub] reports:

“Zhejiang Youngman Lotus Automobile Co. says it has purchased Saab Automobile’s Phoenix architecture despite its failure to acquire the automaker itself. Youngman already has set up a company in Sweden to develop new models based on the architecture, said Rachel Pang, Youngman’s spokeswoman and daughter of Youngman President Pang Qingnian.”

The trouble is, nobody in Sweden or elsewhere has heard about it.

A while ago, we showed you a video of an angry Shanghainese woman, towing a tow-truck away. Alas, the video was staged. This time, it’s serious. Or so they swear over at Carnewschina, and at the TV station in Liaoning Province that showed on the evening news what happened when the police wanted to tow a Buick Excelle. The Buick’s driver, a resolute woman, had different ideas.

Germany’s luxobarge makers aren’t just happy selling their luxobarges to China. Now they want Chinese money straight up. Daimler is flirting with the Chinese sovereign wealth fund China Investment Corporation (CIC), which may want to buy 5 or 10 percent of Daimler.

Carnewschina has another indicator that the Chinese bubble must be bursting somewhere, somehow. I mean, didn’t we just got used to a Bling Dynasty, where any self-respecting supercar owner had his Lamborghini Gallardo covered in gold? If Chinese must economize, then they choose a gold-plated Infiniti G37?

Those heady days appear to be coming to an end. Instead of gold-plated Gallardos, now there are – silver-plated Ferrari 458 Italias.

If, a few years ago, I would have suggested that the Chinese would buy more Mercedes, BMW and Audi than the Autobahn-addicted Germans, you would have suggested an increase in dosage. But the condition is incurable. China may overtake Germany as the world’s second-largest market for luxury cars, says Bloomberg. The largest market for upscale units remains the U.S. — until further notice.

One question that Bertel and I find ourselves returning to again and again in our regular conversations is “what will be the first Chinese-made car sold in North America?” We’ve agreed for some time that the groundbreaking first Chinese-made import would come from an established non-Chinese brand, rather than one of the many newer Chinese brands, but our usual suspects typically ranged from GM to Volvo (EV maker Coda builds what are essentially “knock down” Chinese made-cars, but technically they qualify as US assembled, as does Wheego). I don’t think the name “Honda” ever came up in these discussions, but sure enough, the NY Times reports

the Japanese automaker Honda is crossing the threshold by importing subcompact cars into Canada from one of its plants in China. This month, Honda Canada began receiving its smallest model, the Fit, from China instead of Japan, as part of a strategy to produce more vehicles outside its home country.

The decision allows Honda to eke out higher profit in a segment of the auto market where margins are extremely thin, especially since the high value of the yen cuts into all Japanese automakers’ overseas operations.

“The yen has been getting stronger and stronger,” Jerry Chenkin, executive vice president of Honda Canada, said on Tuesday.

Of course, Honda has yet to bring a Chinese-made Fit to the US, where antipathy towards Chinese products is greater and automotive diversity is lesser than in the Great White North. Also, the importation of Chinese Fits is seen as a temporary response to the high Yen, while Honda builds a new plant in Mexico for Fit production, scheduled to open in 2014. Still, this is a significant development, presaging the inevitable importation to the US of Chinese-built vehicles.

Quick: Where is the largest plant in the Renault/Nissan empire? France? Japan? Tennessee? Nope. It’s in China. At least since today it is.

Today, Nissan’s joint venture with China’s Dongfeng officially opened phase II of its plant in Huadu, near Guangzhou, the former Canton. Across the street from the current plant, a new factory was erected that adds capacity of 200,000 units to the current 400,000 unit per year facilities.

The Chinese stock market is way down. Real estate speculation had reached its zenith a while ago, and prices are on a downward trajectory. So are prices of luxury cars. Now is the time to get great deals on a BMW, or a “Benz,” as they call a Mercedes in China. Dealers are killing each other with discounts to move the high-end metal. Says China Daily:

Today, Toyota started Chinese production of its third gen Prius hybrid. The car is being assembled at Toyota’s joint venture plant with FAW in frigid Changchun in China’s northern Jilin Province. Sales of the vehicle will begin in early 2012.

When we last checked in on t he low-level trade war between China and the US, which was sparked by President Obama’s 35% tariff on Chinese tires, the Chinese government had ruled that American large cars and SUVs were being “dumped” on the Chinese market, but wasn’t doing anything about it. Now, Reuters reports that China is doing something about it, namely saying that it plans to impose tariffs of up to 22% on imports of American-built large cars and SUVs. And the “up to” is key: GM and Chrysler are being hit hardest ( unsurprisingly), while American-made BMW, Mercedes and Acuras are receiving considerably lower tariffs.

Still, China only imports $1.1b worth of vehicles in this category, whereas the US imported some $1.8b worth of Chinese tires prior to the Obama tariffs. Like most of the news around Chinese-American relations, this is more saber-rattling than substance. But with economic conditions still shaky in the US, and a Presidential election getting into full swing, small spats can escalate into larger confrontations. And with China surpassing the US as the largest market for cars in the world, it’s probably no coincidence that this simmering conflict largely involves cars and car-related products.

Yesterday was a very tumultuous day in a tumultuous year at Saab. As it has become customary, the hectic became strongest when money was due. On Monday, payroll and social security taxes had to be paid in Sweden, and the government wants to see cash, not idle promises. That’s what created rumors of bankruptcy. It also caused Martin Larsson to step down from the board, in an apparent attempt to avoid liability.

Later in the day, the red knight from China rode to the rescue: The mysterious €3.3 million are now allegedly on their way from China, honestly now. Sweden’s Dagens Industri heard “from an industry source” that the money is now coming, to be used to pay the taxes. According to DI, “The money from Youngman had already been paid on Friday, but was stuck in the Chinese banking system and was therefore delayed.”

We had told you that you better have all your paperwork ready to expedite a bank wire from China.

Fuelled by Nissan’s decision to move the HQ of it’s Infiniti brand to Hong Kong, rumors of an impending Chinese production of the upscale marque would not end. In November, while not denying the story out of hand, spokespeople in Yokohama indicated that announcements of Chinese production of Nissan’s luxury brand were premature. Today, China Daily has an interesting twist on the story: A trucks-for-luxury cars swap.

China has big plans for the electrification of its cars. After spending a whole day at Beijing’s airport a week ago, waiting for the smog (not the “fog” as it was officially called) to clear, all I can say: “Get on with it.” (Unless the electrification results in more smoke-belching coal-fired powerplants.) Better Place, the company that wants to swap the battery in your EV in the same time it would take to pour gas in your car, always wanted to have a piece of the Chinese action. Now, at least there is a first step into China. Today, China’s Southern Power Grid (CSG) and Better Place opened their “Switchable Electric Car Experience Center” in China’s southern city of Guangzhou.

You’ll probably hear that the Chinese car market grew a tiny bit in November. Don’t believe it. Not true. According to data released today by the China Association of Automobile Manufacturers (CAAM) the market for all automobiles dropped 2.42 percent compared to November last year. Not that the sky would be falling:

December 16 is the day Saab’s fate will be decided. Court appointed administrator Guy Lofalk, who yesterday was ready to pull the plug, pulled it today. Currently, Saab is under creditor protection. However, Lofalk asked the Vänersborg District Court to lift the protection, opening the door to final bankruptcy. In a statement cited by Reuters, Lofalk said:

“Since the required funding has not been received and the stated schedule not been kept, the (Saab) companies lack the ability to pay upcoming liabilities.”

Lofalk also named General Motors’ unwillingness to approve proposed deals. GM had driven what looks like the final nail in the coffin, by denying the deal that was proposed a few days ago:

Rumors that the Bank of China would be taking a role in the “rescue” of Saab turn out to have been something of a miscommunication. Saab explains the situation as it currently exists.

China might be going on a deadly brand binge as Bertel prognosticated. Here is a new brand that at least is worth a look: Qoros. It is a joint venture between Chery Automotive and Quantum LLC from Israel. The joint venture had been approved way back in 2007, but things slowed down soon after that – in 2008. Now they are back, with a very first concept car that looks – well, it looks like a cow.

TTAC readers certainly were fascinated with the fascination with white wall tires on the part of the Chinese military (the white is just painted on, don’t worry, and the paint easily comes off.) Now for something REALLY whacky:

What about pink tires under your pink Ferrari California? In China, this is made possible by Double Star Tires from the great city of Qingdao in Shandong province. Double Star developed a patented process to make tires in any color. Fittingly, this new product is called ‘Rainbow.’ The bonbon-colored tires will hit the market soon and likely with great success. At least in China.

A TTAC tipster sent us a Teknikens Värld interview with Saab’s long-suffering would-be rescuer, Victor Muller, in which the eternal Saabtimist seems ready to admit defeat. In essence, he admits that GM is unlikely to ever approve a plan involving Chinese firms, that the Chinese firms are throwing “money into a black hole” and that all the previous plans are off the table. Of course, Muller does seem to think that some kind of rescue may yet be possible, but he admits

If I doze off Saab would disappear in an instant

If Muller is losing faith, and doesn’t even have a hairbrained scenario to hype, it seems that the end may well be near. But then, the whole rescue of Saab is beginning to be eclipsed by questions about Muller’s erstwhile partner, Vladimir Antonov, who was recently bailed out of British jail, where he was being held on charges of embezzlement and document forgery. But first, to the Muller interview…

Wintertime is coming, mama, the windows are filled with frost. So I went over to the nearby strip mall to get some thermal underwear. That doesn’t rhyme even half as well as Dylan’s most forced rhymes, but it’s really what happened. There’s a C.W. Price store in the mall. It used to be a location of the A.J. Wright chain that went under, and from the looks of things, all they needed to change were the signs. C.W. Price carries pretty much the same overstocked and distressed merchandise as A.J. Wright. Not quite as depressing as shopping at Big Lots but definitely not the Somerset Collection. While I was at the store of course I had to check out the cheap R/C cars that they had on sale for $6.99 and $7.99 with the other Christmas toys. At first glance they looked like Ferraris, Lamborghinis, Bugattis and Ford GTs. Actually, at second and third glance they still looked like those cars, scale models accurate down to the Veyron’s distinctive black hood, horseshoe Bugatti grille and exposed mid-mounted W16 engine.

Earlier on, I had written an article at my website about how AM General had helped China develop its Humvee-clone, the Dongfeng EQ 2050. AM General was not the only American company that hand a hand in arming the Chinese army. There was another one: Chrysler.

Beijing-Jeep was a Chinese-American joint venture with Beijing Auto Works (BAW) and Chrysler. The Chrysler-based Beijing-Jeep 2022 shown above later changed its name to Beijing 2022. It now is the most widely used 4×4 in the Chinese army.

How did all this happen?

We have always maintained that what will get exports of Chinese cars in high gear is not Chinese cars, but foreign cars. Foreign cars, made by joint ventures in China. Nevertheless, I admit my high surprise to read, from China Daily to Chinacartimes, that BMW will export Made in China cars. And not their bread and butter 3 series.

BMW will become the first foreign luxury car manufacturer to export China-made cars when it begins shipping locally produced long-wheelbase 5 Series sedans overseas at the end of the year.

In China, a “sub-brand” is a brand under a foreign-Chinese joint venture. Examples: Venucia under Dongfeng-Nissan, or Everus under Guangzhou-Honda. ( Bertel insists that “sub-brand” is a misnomer, but TIC, This Is China, and he better get used to it.)

The Chinese central government ordered the joint ventures to start the sub-brands. “Order” is maybe too harsh a word, let’s call it strong recommendation. Resistance by the foreign partner is futile. If the foreign partner would ignore the wishes of the Chinese government, life would suddenly become very difficult. Applications for new factories, new cars, new permits, new visa for employees, etc etc, would suddenly be delayed or outright refused.

Why does the Chinese government want the sub-brands? Two words:

Ask a Westerner what he or she thinks of Chinese cars, and the answer will be predictable: unsafe. Thanks to China’s slower crash test speeds and low-cost manufacturing, Chinese cars have largely not met global safety standards, and Youtube videos have long cemented the impression that Chinese cars are fundamentally unsafe. But as with any growing industry, the Chinese are stepping their game up. Far from a global embarrassment, the latest Geely Emgrand even earned four stars in Euro-NCAP testing. That’s not enough to erase China’s reputation for unsafe cars, as five star performances are rapidly becoming the standard in Europe. But it is enough to match the achievements of other modern European cars, most notably the updated Fiat Panda. Though the Panda is considerably smaller than the Emgrand, and therefore is at something of a safety disadvantage, the price difference between the two cars is likely to be negligible, making the comparison quite interesting. Meanwhile, there are other four-star (or should we call it “Chinese Quality”?) cars in NCAP’s latest round of testing, including the considerably more expensive Jaguar XF and Jeep Grand Cherokee. Check out the reports for the XF, Panda and Emgrand in the gallery below, or surf on over to Autobild for more details on where these cars came up short on safety…

If GM needed another reason to let Saab die on the vine, it just arrived: Vladimir Antonov, the Russian banking scion, longtime partner with Victor Muller in Spyker, and erstwhile Saab rescuer is wanted in connection with what the UK Press Association [via Google] calls

a pre-trial investigation into an alleged fraud and money laundering case that is threatening to destroy two Baltic banks.

Bertel noted earlier that Snoras, one of Antonov’s banks, had been forced to halt operations, but the issuing of a Europe-wide arrest warrant for Antonov is an even bigger black mark on the Russian financier. And it adds to an already-impressive family resume: Antonov’s father Alexander was shot seven times in a 2009 assassination attempt that has been connected to a Chechen blood feud, and the family has been accused of ties to organized crime by the FBI and Swedish authorities.

Alfa Romeo debuted as a brand on the Guangzhou Auto Show and they brought… only two cars, and a concept car. Those were the MiTo, the Giulietta and the 4C. Sales are said to begin sometime in 2012. Fiat doesn’t have a working joint venture in China, production at the new Guangzhou-Fiat JV is still at least two years away, so all Alfa’s will be imported and therefore expensive. Will the Chinese buy them?

The last attempt at saving Saab failed when GM said it would not supply or license technology to Saab if it were 100% owned by PangDa and Youngman, scuttling the Chinese firms’ bid for outright control of the company. Now the two firms have sent a revised proposal to The General in hopes that they can provide safeguards for intellectual property, allowing them to purchase Saab without losing the link to GM. After all, both the 9-3 and 9-5 rely on GM technology and parts, while the 9-4X is wholly supplied by GM. Rachel Pang of PangDa tells TTELA.se

We have not discussed any changes with regard to ownership structure. We are concentrated on the GM issue… It’s about more commercial terms. We want to meet them and have asked for a meeting. First we must give them time to review our proposal. We are waiting for GM’s response and then we will of course respect it.

Of course, our understanding is that “the GM issue” is the same as the ownership structure issue… and keep in mind, PangDa and Youngman are looking for a meeting, not an agreement from GM. Which means this could drag on a while… and wouldn’t you know it, it’s time for Saab to pay salaries again.

We have been following this phenomenon for a while. Joint ventures in China create faux Chinese brands. Because? Because it’s the right thing to do, at least as far as the Chinese government is concerned. Officially, the reason for those fake Chinese brands is to make cars more affordable. Off the record, automakers roll their (slanted and round) eyes at this reasoning. A new brand doesn’t miraculously make a car more affordable. In the contrary. To establish a brand costs money. To establish dealer networks costs money. To build new cars costs money, even if they are on passé platforms. But you’ve got to do what China’s bureaucrats think you’ve got to do. Possibly, all these joint venture brands, from GM’s BaoJun on out, will end up in nice statistics that prove that homegrown Chinese brands are selling, and that exports are up.

Why the rant? Nissan and Dongfeng show the first production model of the faux Chinese Venucia brand at the Guangzhou auto show.

Hyundai, which has a flourishing and fast-growing joint venture with Beijing’s BAIC, is jumping on the bandwagon of fake Chinese brands. Probably not on Hyundai’s own volition, and probably with a lot of gentle urging by the Chinese government which thinks that the answer to China’s cluttered market is brands, brands, and more brands.

Carnewschina has it that the new brand of the Hyundai/BAIC JV will be called “Shouwang.”

Quite ironically, foreign carmakers, namely GM and now French PSA, help China kick-start its ailing export machine.

Everybody had been hysterical about cheap Chinese cars that would soon flood the market, but it didn’t happen. Quite the opposite is happening: Joint venture brands, led by General Motors, are grabbing a larger and larger share of the Chinese market. And foreigners are gearing up to get China a chunk of the world market.

If you want to start a business in China, you need a business license. Getting a license to make cars used to be quite hard, but the Chinese government wants to make it harder. China’s industry ministry will hand down standardized rules, which may limit new entrants, Bloomberg reports.

The not yet precisely defined rules don’t sound sinister at first glance. They state that new car companies must meet certain criteria including scale of production and development capacity. They will take effect on January 1, a statement on the ministry website says.

While Saab in Sweden is in the emergency room with wires and drips attached, Saab will be back from the dead at the Guangzhou Auto Show. This is when BAIC will show what they have produced from the Saab tooling that they had bought at fire-sale-prices when Saab had gone bust before.

Say what you want about Saab fans, the guys have some dedication. At a time when most have finally accepted the fact that Saab is at the end of the line, Saab’s hard-core “dead-enders” are taking up their social media arms to rescue their beloved brand. After all they have a perfect opportunity: after months of wading through a quagmire, uncertain whether to support Victor Muller, Vladimir Antonov, or one of Saab’s Chinese suitors, all Saab fans can now rally against their old enemy, GM. Long blamed for Saab’s decline despite the fact that the brand’s peak sales came under its ownership, GM has long been the bête noire for Saabistas. And with GM now taking the wheel of Saab’s fate, Saab’s rabid fans have taken over GM’s Facebook wall, posting images of their favorite Saabs and demanding The General “let Saab go.” Will it be enough to convince GM to go against its carefully-crafted Chinese relationships and interests by giving Saab carte blanche to ship its technology wherever its new Chinese masters want? Don’t count on it. But for the moment GM has to sit through the online equivalent of an “Occupy” protest.

Saab’s Memorandum of Understanding with PangDa and Youngman expired today, returning Saab to what must by now be a rather comforting, familiar state of limbo. Of course, the MoU in question was already dead, as GM had publicly nixed it, saying it wouldn’t supply parts or license technology to a 100% Chinese-owned Saab. But now, without an official agreement to rally around, Swedish Automobile, PangDa and Youngman are desperately pitching new ownership structures to GM in hopes of approval. Swedish Auto’s Victor Muller tells the WSJ [sub]

We are submitting an information package to GM and we will have to await the feedback that GM has on that package and then we’ll know.

Muller says the lesson of the failed MoU is that GM won’t accept Chinese control, and as a result the new proposed ownership structure is “very carefully crafted” so that none of the three partners has complete control. But since the previous deal, in which PangDa and Youngman would split a 54% stake in Saab, is also off the table, it’s tough to say what Muller’s “carefully crafted structure” entails. And while Saab and its Chinese suitors wait for GM approval that may never come (but don’t tell Keith Crain [sub] that!), it seems both time and money are getting tight. Again. Still.

Are you unhappy with the fact that Chinese car sales were down 1.07 percent in October? No problem! All you have to do is to subscribe to the on-line version of the Financial Times. For the price of your subscription, you would be assured that “China’s passenger car sales in October surged 75.8 per cent from a year earlier.” Don’t believe it? The Financial Times will tell you it’s true. (If the link breaks, they woke up.)

The Honda share is edging closer and closer to its 2009 carmageddon lows. And guess who knows a good bargain when they see one? The Chinese. The Nikkei [sub] reports that a “stealth” Chinese fund has emerged as a major shareholder in Honda.

The gilding of China’s supercars continues. Says Carnewschina: ”

“One Chinese owner of a hyper exclusive Bentley Continental Supersport found his vehicle just not cool enough and made it even more exclusive by wrapping it and gold, and some carbon fiber-wrap on the bonnet for good measure. Well, what is taste? I certainly looks striking…”

We have been pointing it out for quite a while: Something counter-intuitive (and counter- conventional wisdom) is happening in China: While the growth of the general market is slowing down, it is at the expense of the Chinese brands. The foreigners are doing fine.

Nothing illustrates this better than the story of the two Gs, Geely and GM. In October, the growth of the Chinese market effectively came to a halt.

How did the two Gs fare during that braking maneuver?

The China Association of Automobile Manufacturers (CAAM) released its October sales, and they confirmed the rumors that they were nothing to write home about. Total automobile sales are down 1.07 percent compared to October 2010. Production rose less than 2 percent. Passenger vehicles still outpace the overall market, up 1.42 percent.

GM’s China chief Kevin Wale poured a huge bucket of ice-cold water over hopes that China’s Pangda and Youngman will rescue Saab. The deal needs to be approved by the Chinese government, the European Investment Bank, the Swedish government and – GM.

Wale told Reuters today:

In China, rumors of empty showrooms during the important Chinese October holidays made the rounds. It must have been different showrooms than GM’s. GM China announced a fresh October sales record of 220,412 units. October sales across all brands of GM China were up 10.4 percent.

The surprising part is that SAIC-GM-Wuling jumped 19.2 percent year on year to a new record for the month of 111,957 units. It was this joint venture that had dragged GM China’s numbers down in the previous months.

While the flagwavers at Saabsunited wallow in the good news that the Swedish king announced at an annual moose hunt near Trollhättan that Victor Muller is a great guy, far away in Detroit, GM spokesman Jim Cain issued to Reuters what sounds like the death sentence to the sale of Saab to China’s Youngman and Pangda:

“GM would not be able to support a change in the ownership of Saab which could negatively impact GM’s existing relationships in China or otherwise adversely affect GM’s interests worldwide.”

The exactly same statement was sent to the Wall Street Journal, and GM will send it to anyone who asks what GM thinks of the deal. If Muller would have asked before announcing the sale, he most likely would have received the same answer.

Translation:

China’s People’s Daily, the newspaper owned by the (alleged) communist party, carries a sobering analysis of the state of the Chinese auto industry. It is not that it will crash in to oblivion as some predicted. But it will not grow as fast as automakers build factories. Serious overcapacity and possibly the long predicted shakeout of China’s chaotic auto industry will be the likely result:

“China’s automotive market has suddenly entered an adjustment period and almost all the automotive enterprises of China were caught unprepared. Since April 2011, the automotive output and sales volume have both been declining for three successive months.

China’s Dongfeng makes a lot of cars with several joint ventures. It also makes its own cars. In a way. It’s ode to the Hummer is legend. Now, Dongfeng found inspiration in another legend: The Unimog. At a show in Shanghai, Carnewschina found the Dongfeng v-Tiger, or EQ2070FQJ, which it says is a spitting image of Daimler’s inconic Unimog workhorse. Well, that’s up to debate. One thing isn’t:

The Nikkei [sub] says that Nissan will move the (or a) headquarters of its Infiniti brand to Hong Kong, and that Nissan “will begin manufacturing Infiniti-brand vehicles in China as early as next year, becoming the first Japanese automaker to produce luxury cars in that nation.”

Not so fast, say close-to-the-matter contacts in Yokohama.

I’m sure you know the stage trick where a woman is sawed in half and lives. Now, try the same with a Volvo and a truck loaded with masses of steel bars. Volvo S40 crashes into truck. Bundles of steel bars crash through the windshield, exit on the other side of the car. What happens to the driver and front seat passenger?

Today, Saab creditors met in a packed-beyond capacity courtroom on Vänersborg. After a short deliberation, the district court approved the reorganization plan, Göteborg’s Posten reports. It will cost 500 jobs in Trollhättan. On Friday, China’s Youngman and Pangda had agreed to take over Saab 100 percent – in a Memorandum of Understanding, which isn’t worth much, and which is littered with caveats.

The reorganization plan, ( full text here), was feted in a lengthy press release. It starts like this:

There may be a deal in the works to return GM’s golden share in the increasingly important joint venture with China’s SAIC. It will be a skewed trade: The joint venture will go back to 50-50. In return, a sales company will be set up, which is majority controlled by SAIC in a 51-49 joint venture. SAIC will be controlling the most important aspect of the car business: The selling of cars.

In 2009, GM sold one percent of the 50-50 partnership.to SAIC for a token sum of $85 million. Officially, this was to allow SAIC to reflect the JV’s earnings on its books. New Chinese accounting rules say that the earnings can only be reflected if there is substantial control of the company. People had scratched their heads back then – if this share is so important, then why was the price so low? In a 10-K filing, GM explained later:

On the last possible day to work out a deal before being forced into bankruptcy, the Victor Muller era has ended at Saab. The Swedish brand will now become a completely Chinese-owned company… if all goes to plan. A press release explains

Swedish Automobile N.V. (Swan) announces that it entered into a memorandum of understanding with Pang Da and Youngman for the sale and purchase of 100% of the shares of Saab Automobile AB (Saab Automobile) and Saab Great Britain Ltd. (Saab GB) for a consideration of EUR 100 million…

…The administrator in Saab Automobile’s voluntary reorganisation, Mr. Guy Lofalk, has withdrawn his application to exit reorganisation. The MOU is valid until November 15 of this year, provided Saab Automobile stays in reorganisation.

But remember, this is Saab… and its fate rests in the hands of many, many people not named Victor Muller. Despite the air of finality that is surrounding some of the media coverage of this latest announcement, this is not a done deal. The Saab saga rolls on…

If you’ve followed TTAC for the last several, you’ve been able to watch the meteoric rise of Build Your Dreams from humble upstart to Buffett-backed behemoth. Two years ago, BYD seemed poised to launch an unstoppable onslaught of cheap Chinese electric cars that seemed like an attractive proposition at a time when gas price angst was everywhere. Today, however, things have changed considerably. Bloomberg reports that BYD has opened its US headquarters in Los Angeles, a year behind schedule, and with fewer jobs than initially promised. And no wonder: for all intents and purposes, BYD has practically abandoned its charge to leverage its cell phone battery know-how into electric car dominance. According to Bloomberg, BYD

“has delayed plans to sell electric cars to retail buyers, citing limited availability of public chargers. Instead, it’s focusing on solar panels, batteries, LED lighting and rechargeable buses.”

With a Halloween deadline to get its restructuring back on track looming, Swedish Automobile has rejected an offer by Youngman and Pang Da to buy 100% of Saab’s shares. Moreover, the struggling Swedish brand has canceled the existing agreement with Youngman and Pang Da, its erstwhile would-be rescuers. A Saab presser notes:

Today, Swedish Automobile N.V. (Swan) announced that it has given notice of termination with immediate effect of the Subscription Agreement of July, 2011 entered into by Swan, Pang Da and Youngman.

Swan took this step in view of the fact that Pang Da and Youngman failed to confirm their commitment to the Subscription Agreement and the transactions on the agreed terms contemplated thereby as well as to explicit and binding agreements made on October 13, 2011 related to providing bridge funding to Saab Automobile AB (Saab Automobile) while in reorganization under Swedish law.

Pang Da and Youngman have presented Swan on October 19 and 22 with certain conditional offers for an alternative transaction for the purchase of 100 percent of the shares in Saab Automobile which are unacceptable to Swan. However, discussions between the parties are ongoing

With both China’s NRDC and Sweden’s NDO appearing unready to approve the Chinese takeover of Saab before a Halloween bankruptcy deadline, it seemed that Saab was properly borked. Without Vladimir Antonov or Gemini Investment Fund to hit up for yet another “bridge loan,” we fully expected to see Saab placed into bankruptcy a week from Monday. But if Saab’s parent company, Swedish Automobile, had found a private equity fund that was gullible enough to rush in where Antonov feared to tread and drop $44m on Spyker… well, we should have known that North Street Capital would be fool enough to get sucked into the Saab maelstrom. And sure enough, Reuters reports that

The private equity firm of racing car enthusiast Alex Mascioli, which bought the luxury sports car business of the Dutch owner of Saab in September, is to invest $70 million in the cash-strapped car maker as Chinese bridge financing looks uncertain.

Here we go… again.

The exodus of Japanese automakers continues – this time, in the opposite direction. If the sources of The Nikkei [sub] are right, then Mazda will stop making the Mazda6 in the U.S. and move production to Japan and China.

Chinese automakers are delaying exports to Europe and the US until after 2015, largely because they admit their products aren’t “ready for primetime.” And few issues demonstrate that fact as well as the scandalous crash test videos that have defined internet perceptions of Chinese cars for years now. But with even more recent Chinese export-intenders continuing to put up lousy safety results, Autobild reports that, starting in 2012, China will improve its crash test standards to near-European levels.

When you’re fighting a lost cause, no news can be good news. Which is why a media-distracting scandal involving Swedish Social Democrat Party leader Hakan Juholt has been one of the best things to happen to Saab since… the late 1980s or so. But here at TTAC, we’re always ready to remind our Swedish friends of the futility of human endeavor… a trait they apparently appreciate (see above). And what little news there is coming out of Sweden is bad.

The Chinese car market may be a bit tepid these days. It’s slow, because fewer small commercial vehicles are being sold, and because sales of small passenger cars, especially homegrown ones, are not growing as much as they used to. One segment appears to be utterly oblivious to the slowdown in China: Premium cars. Bitter rivals BMW and Audi are selling more cars in China than ever.