The Truth About Cars » China

TTAC Called It, GM Denies It: China Ready to Eat American Automakers’ Assets

Robert Farago — Wed, 03 Dec 2008 16:00:28 +0000

When TTAC’s Bertel Schmitt first blogged the story that China had designs on Chrysler and GM, the resulting traffic melted our server. So we added another one. That one melted too. Our stalwart TTAC technical team tells me they’re now load balancing– and doing something about handling our traffic spikes. The view counter’s disappearance serves [...]

China’s #3 Dongfeng Hungry for GM

Bertel Schmitt — Wed, 03 Dec 2008 07:30:30 +0000

As reported by TTAC weeks ago, Chinese auto makers are seriously looking into buying all or some of General Motors. The story was never officially denied in China. Now, there are fresh and more concrete indications about a possible Chinese move on GM. Hu Xindong, Secretary to the Chairman of China’s third largest auto maker [...]

VeeDub Sells More Cars In China Than Germany

Bertel Schmitt — Sat, 29 Nov 2008 14:04:57 +0000

Beijing’s sizable German community congregated today at the annual Weihnachtsmarkt. At the German Embassy inside the People’s Republic of China, party-goers loaded-up on Bratwurst, Christstollen and got seasonably drunk. Volkswagen China, headquartered ’round the corner, sponsored a stand at the festival. Not to sell cars. No, they were hawking their fabled “VW-Currywurst,” a culinary delight [...]

China Soon To Be The World’s Biggest Car Market. For Bentleys

Bertel Schmitt — Mon, 24 Nov 2008 17:32:44 +0000

Take that, you (formerly) capitalist running dogs: At the Guangzhou auto show, British German luxury car maker Bentley said that the VW-owned brand plans to sell more Bentleys in China than in the US. They said it to Guangzhou Daily (via Gasgoo.) Bentley’s conservative goal is to do this by 2012, but at the rate [...]

Oregon Gears-Up For Chinese Imports

Bertel Schmitt — Sun, 23 Nov 2008 16:43:58 +0000

Last week, Oregon Governor Ted Kulongoski clinched a deal to bring Nissan’s pure-electric cars to his state. Then, he went on to Shenzen, China. “At BYD Auto Co., China’s fast-growing automotive star, a plug-in electric hybrid sedan is just weeks from meeting millions of Chinese consumers” writes the Oregonian. “The F3DM, which runs up to [...]

China to Pick GM’s Bones?

Bertel Schmitt — Fri, 21 Nov 2008 22:26:33 +0000

Seeking Alpha prides itself “the premier financial website for actionable stock market opinion and analysis.” When it comes to what should happen with GM, they are on our side: “Buyout better than bailout,” writes Seeking Alpha. Roger that. We have been picking-up indications that Chinese automakers SAIC and Dongfeng may have plans to buy assets [...]

“SAIC And Dongfeng Intend To Buy GM.” Wu Ke Feng Gao

Bertel Schmitt — Wed, 19 Nov 2008 08:34:06 +0000

The story that Chinese SAIC and Dongfeng are thinking (aloud) about buying GM or Chrysler, or maybe both, created a firestorm on both sides of the no longer so Pacific Ocean. Just in case someone still thinks it’s a fluke, the Chinese media is chockablock full of the story. It’s all in (duh) Chinese, [...]

Chinese Automakers May Buy GM and Chrysler

Bertel Schmitt — Tue, 18 Nov 2008 20:10:20 +0000

Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, China’s 21st Century Business Herald reports today. [A National Enquirer the paper is not. It is one of China's leading business newspapers, with a daily readership over three million.] The paper cites a senior official of China’s Ministry of Industry and Information Technology– [...]

Disgraced Duo: China’s SAIC Soon Bigger Than GM And Ford Together

Bertel Schmitt — Mon, 17 Nov 2008 14:46:08 +0000

Ouch, that hurts, or “tong, tong!” as they say in China. “China’s largest automaker, SAIC Motor Corp, is poised to surpass the combined market value of General Motors Corp. and Ford Motor Co.” Bloomberg followed the market capitalization of the three automakers as far back as the year 2000. Then, Ford and GM were worth [...]

China To Drop Hydrogen Bomb On LA

Bertel Schmitt — Sun, 16 Nov 2008 18:17:39 +0000

Guess who will be at the 2008 Los Angeles auto show, November 21-30? A Volkswagen Passat. But it won’t be just any Passat. It will be a Passat produced by Shanghai VW. As if this is not shocking enough: The thing will be powered by a hydrogen fuel-cell. Shanghai Security News humbly reports that this [...]

China to Harmonize Safety Regs with EU (US, Not So Much)

Bertel Schmitt — Thu, 13 Nov 2008 12:41:54 +0000

A few days ago, we told you that the Chinese government will enact “nine measures” to prop up the ailing auto export sector. In the meantime we got our hands on the nine measures. Turns out (some may say, in typical Chinese fashion) that it’s only eight. 8 is a lucky number in China. Some [...]

Benz And Beemer Start Food Co-op For Chinese Parts

Bertel Schmitt — Thu, 13 Nov 2008 08:46:16 +0000

As reported here, Daimler AG plans to increase its sourcing of automotive components from China nearly eight-fold within four years. The luxury car maker will buy $3.25b worth of car components per year in China. Now, BMW is itching to get in on the act. Not that BMW is new to buying parts in China, [...]

The Year That Got Away: China’s Auto Makers Way Off Target

Bertel Schmitt — Wed, 12 Nov 2008 14:32:16 +0000

With the end of the (Western) year in sight, Chinese auto makers look in their books, roll their eyes, and sigh. One by one they come to the same conclusion: this year’s targets are toast. Bu hao, no good. According to a tally by Gasgoo, five Chinese auto makers have officially written off their old [...]

Chinese Government: Our Car Exports Suck

Bertel Schmitt — Tue, 11 Nov 2008 13:07:09 +0000

The auto industry and auto exports have top billing in China’s current 5 Year Plan. (Yes, for sentimental reasons, they still have one of those.) Yet when it comes to the car export part, China is still light-years away from fulfilling their master plan. The Vice Director General of the Department of Mechanic, Electronic and [...]

GM Buying Into Chinese Venture… But With What?

Edward Niedermeyer — Mon, 10 Nov 2008 16:20:18 +0000

Dig through the dire news about GM floating around this morning’s autoblogosphere, and you just might notice a story that doesn’t quite jive with all the doom and gloom. Bloomberg reports that GM is “in talks with a local partners” to increase its 34 percent stake in GM-SAIC-Wuling, a Chinese light-truck and van maker. As [...]

Shock! Horror! Chinese Auto Sales Slow to 11%

Bertel Schmitt — Mon, 10 Nov 2008 15:57:26 +0000

China’s closely-watched auto sales stats are in. During the first month after the start of the worldwide auto industry meltdown, the first month after China awoke from the self-inflicted paralysis (a.k.a. the Olympics), sales are growing, but slowing. Compared to last year, China’s vehicle output and sales both grew 11 percent from January through October. [...]

11% Rise in Chinese Car Sales Triggers Government Bailout

Bertel Schmitt — Mon, 10 Nov 2008 04:18:58 +0000

According to the officious, English-language China Daily, “Chinese automakers are facing their toughest challenge in three years as demand is falling and profitability is plunging amid rising costs.” And that’s because “China’s car sales rose 11 percent in the first nine months, compared with a 22 percent increase for the whole of last year.” So, [...]

Ford Taiwan: Emigrants Cause Car Malaise

Bertel Schmitt — Thu, 06 Nov 2008 10:46:00 +0000

Memo to Ford: recall your Taiwanese head honcho and put him in charge of Detroit’s pimp-machine. Jeffery Nemeth, Prez. Of Ford Taiwan, a.k.a. Lio Ho Motor Co., found an ingenious rationale for sagging sales: too many people are leaving the country. The Taipei Times reports that Nemetz is pissed that 1.3m Taiwanese have moved to [...]

WSJ: China Won’t Save U.S. Automakers. Duh!

Bertel Schmitt — Wed, 05 Nov 2008 15:03:35 +0000

Ever since it lost its new hotness, TTAC has been reporting that the Chinese car market has lost its new hotness. TTAC also gave its readers a heads-up that China won’t save U.S. carmakers’ butts, as the Middle Kingdom had done in the past, when skyrocketing sales in China buttressed anorexic auto sales elsewhere on [...]

Chinese Cabbies Riot over Fuel, Tickets

Bertel Schmitt — Tue, 04 Nov 2008 12:56:07 +0000

Things must be really, really, really bad if someone goes on strike in China. But striking cabbies striking policemen? Unheard of. Speaking of which: Ever heard of China’s largest municipality? It’s Chongqing, population 31,442,300 (as of 2005, Buddha knows how many today). Yesterday, in Chongqing, the doomsday scenario unfolded. Hundreds of perturbed taxi drivers took [...]

Going down? VeeDub China VP Gets Worried

Bertel Schmitt — Tue, 04 Nov 2008 02:07:36 +0000

How about this for tell me how you really feel: Volkswagen AG, China’s biggest car maker, told Bloomberg (of all people) that “the worst may yet to come” for China’s car market. This cheerful prediction was uttered by Soh Weiming, Volkswagen Group China’s Executive Vice President. Soh Weiming is no stranger to an [...]

Chinese High-Rollers High On Rollers

Bertel Schmitt — Sun, 02 Nov 2008 14:01:08 +0000

Chinese mothers don’t admonish their one-and-only child to “eat up, there are children starving back in America.” But we’re getting there. Case in point: This weekend, another Rolls-Royce showroom opened in Shenzen, Gasgoo reports. It’s the seventh Rolls Royce retail location in China. Another one, located in China’s industrial center Ningbo, [...]

VW Profits Up 15%; China’s Automakers Also Doing Well

Bertel Schmitt — Fri, 31 Oct 2008 12:22:50 +0000

VeeDub in Germany has just issued their numbers for the past nine months of 2008. Viewed through the prevailing “the world is coming to an end” perspective, VW’s financial results are financial pornography, performing better than the male lead in a Russ Meyer movie. We’re talking a 15 percent gain, a money shot of more [...]

Buick To China

Edward Niedermeyer — Thu, 30 Oct 2008 18:16:11 +0000

GM’s overseas operations have long been touted as the only part of the General that is worth actual money. But might it make sense for GM to sell of profitable foreign operations? Though it’s doubtful that GM would ever voluntarily spin off, say, Buick and sell it to a Chinese firm, Charles Child has a [...]

VW’s Martin Winterkorn To World: “Don’t Panic!”

Bertel Schmitt — Thu, 30 Oct 2008 17:49:42 +0000

“Was uns nicht umbringt, macht uns härter.” Martin Winterkorn’s may not have quoted Freddy in his speech at the International Zulieferer Börse (IZB), related to us via Automobilwoche [sub]. But the CEO of Volkswagen’s theme was clear. “Don’t panic!” Winterkorn said (in German). VW will emerge from the crisis “stronger than ever.” Winterkorn pointed to [...]

China’s BYD EVs Headed to Europe. Then Stateside. Allegedly.

Bertel Schmitt — Wed, 29 Oct 2008 13:53:29 +0000

While TTAC has Tesla on a Death Watch, aspiring Chinese EV-automaker BYD is getting massive street cred in The People’s Republic. In case you’ve got something called a life, BYD stands for “Build Your Dreams.” Since late September, “BYD” also stands for “Buffet’s Yankee Dollars.” Omaha’s Oracle liked the company so much he wrote a [...]

Chinese Car Exports Retreat, Return Under Cover

Bertel Schmitt — Tue, 28 Oct 2008 14:56:23 +0000

For the few past years, European and American automakers looked to Chinese carmakers with hope and trepidation. They hoped the booming Chinese market would lift their worldwide sales. It did. They feared the Chinese would export cars en masse, swamping Europe and the U.S. with cheap vehicles. They did not. For various reasons (crash tests, [...]

China’s New Deal: Next Time, Take The Train

Bertel Schmitt — Mon, 27 Oct 2008 15:23:35 +0000

The People’s Republic of China has decided to drop some serious money on digging the country out of a hole. We’re not talking namby-pamby bailout money for distressed banks and auto companies that may actually go up in price (yeah, sure.) We’re talking real hard asset investment. China’s State Council has approved $300b for large [...]

They Are Starving In China - For Gas Guzzlers

Bertel Schmitt — Sat, 25 Oct 2008 18:46:35 +0000

Last Thursday, the cargo ship CSCC Shanghai left Ventura County’s Port Hueneme with a load of near-extinct species bound for Shanghai, China: 2,100 GM big bore Buicks and Cadillacs. A lot of cargo space was also taken-up by gas-gulping Cadillac Escalades. China’s importing the American behemoths like they are going out of style (which, of [...]

Beijing’s 30% New Car Sales Surge Explained

Bertel Schmitt — Sat, 25 Oct 2008 00:31:54 +0000

“Brakes come off auto sales” the semi-official, English-writing Chinese newspaper China Daily headlines today. “Beijing car sales, which account for about a tenth of the national tally, are surging this month after the end of Olympic traffic controls and because of rumors about new caps on vehicle numbers, ” reports the newspaper, citing the head [...]

GM Still in the Hunt in China

Bertel Schmitt — Fri, 24 Oct 2008 23:59:13 +0000

There are a lot of confusing numbers coming out of China. They get spun a thousand different ways. In the Pictures-Speak-Louder-Than-Words Dept., here is the January-September hit parade of sedans that sell in China. And to give you the current snapshot, right underneath are September only sales. Data are straight from the China Passenger Car [...]

Better luck next year: China Postpones Car Launches En Masse

Bertel Schmitt — Fri, 24 Oct 2008 01:17:31 +0000

Shocked by growth rates below the usual double digits, Chinese automakers are postponing plans for new car launches. China’s National Business Daily reports that Great Wall Motor has put off the rollout date for its Coolbear sedan to ‘09. (The Coolbear made headlines for being a more or less exact copy of Toyota’s Scion xB.) [...]

China to Foreign Automakers: Yankee Go Home!

Bertel Schmitt — Thu, 23 Oct 2008 12:54:08 +0000

It’s an open secret in Chinese industry circles: within the next six to eight years, the domestic auto industry wants to stand on its own technological feet, instead of relying on U.S., European and Japanese joint venture partners. At after-work hangouts, such as “Schindler’s Anlegestelle” around the corner from Volkswagen Group China’s headquarters in Beijing’s [...]

GM Promotes Hydrogen Fuel Cell Chevy Equinox in China

Bertel Schmitt — Wed, 22 Oct 2008 21:53:23 +0000

China’s official news agency Xinhua reports that General Motors has kicked-off their “2009 promotional tour” of China for their Chevrolet Equinox hydrogen fuel cell car. Starting in China’s capital Beijing, GM will send the Equinox across the world’s fourth largest country to drum-up interest for the mid-size crossover SUV that uses the same alt propl [...]

Chinese Contaminated Milk Worries Fuel New Car Sales

Bertel Schmitt — Wed, 22 Oct 2008 13:41:02 +0000

In the wake of the milk worries, affluent Chinese parents of babies more and more turn to ‘milk mothers’ or ‘Nai Ma’ who breast feed their new-borns if the real mother doesn’t want or can. Baby formula? No, thank you. (Or “bu, xie, xie,” as they say.) They want the real thing for their one [...]

Toyota Tops GM in Chinese New Car Sales

Edward Niedermeyer — Tue, 21 Oct 2008 18:31:16 +0000

Bloomberg reports that Toyota has sold more cars in China than GM over the first nine months of this year. Sales at GM’s biggest Chinese venture, Shanghai GM, have been down two years in a row, while Toyota sales have grown at about triple the market average since opening a new Chinese [...]

Chrysler’s China Syndrome

Edward Niedermeyer — Mon, 20 Oct 2008 19:30:44 +0000

While Buick has helped GM become one of the top-selling firms in China, Chrysler is struggling to sell its own brand of Americana in the Middle Kingdom. Automotive News [sub] paints a dreary picture of Chrysler’s China operations, describing dealerships in glamorous Shanghai with “a sun-faded advertisement for the 300C peeling off the glass,” and [...]

GM Sucking Profits From China To Keep GM NA Alive

Robert Farago — Sun, 19 Oct 2008 13:31:17 +0000

No surprise there. But it’s nice to see someone else noticing that GM’s repatriating profits from foreign ops to keep the corporate mothership alive. [Note to GM's BOD: we'd love to see some hard numbers on that.] That someone is Bertel Schmitt. I’m not sure where Berty gets his info, but the CEO Sinamotive [...]

Buffett Bucks Boosts BYD Chinese Hybrid

Edward Niedermeyer — Thu, 16 Oct 2008 18:28:29 +0000

Battery maker and hybrid powertrain dark horse BYD got quite a legitimacy boost when the Oracle of Omaha (and possible Obama cabinet member) Warren Buffett dropped $230m on ten percent of its stock. And that boost seems to be translating into accelerated plans to bring BYD cars to market. China Car [...]

GM Fire Sale Gathers Pace: Everyone Must Go!

Robert Farago — Wed, 01 Oct 2008 14:47:43 +0000

Automotive News [sub] reports that GM is beginning its promised cutback in contract workers. “We are in the process of advising several temporary agencies that we are continuing to eliminate some contract jobs,” GM spokesman Dan Flores told Automotive News. He declined to say how many workers or the GM sites that are affected.” TTAC [...]

Is Warren Buffett Building His EV Dreams?

Edward Niedermeyer — Tue, 30 Sep 2008 13:40:30 +0000

China’s Build Your Dreams (BYD) is something of a dark horse in the hybrid/EV game. BYD has leveraged its status as a major manufacturer of NiCad and Li-Ion batteries to create what it calls a unique hybrid drivetrain, shown in a number of derivative concept vehicles, The system purports to offer [...]

TTAC Called It: China a Damp Squib for Toyota– Never Mind GM

Robert Farago — Sun, 28 Sep 2008 03:17:47 +0000

For more than two years, TTAC’s been calling attention to the fallacy of GM’s claims that foreign ops will save the company from bankruptcy. Last week The Wall Street Journal highlighted a fact that caught our eye many moons ago: GM’s much-ballyhooed sales increases in China are relatively unimpressive. “In the first six months of [...]

GM Begins Construction of $250m Tech Center in Shanghai

Justin Berkowitz — Mon, 22 Sep 2008 15:12:55 +0000

GM’s burning its way through a reported $1b per month. So shelling-out $250m on a new research and development campus in Shanghai is no biggie. And here’s some PC for your PC: a significant part of the new research facility will focus on developing new green and alternative energy technology (whatever green means). When fully [...]

China Gets Sixth Rolls Royce Showroom

Justin Berkowitz — Thu, 11 Sep 2008 12:40:11 +0000

Because China’s five, huge showrooms just weren’t meeting the market’s demands, Rolls Royce has opened its sixth showroom in The People’s Republic. The new 4300 square foot palace resides in the relatively well-off region of Hangzhou, and should be large enough to shelter Rolls’ expansive, cough, lineup: the Phantom, long-wheelbase Phantom, Phantom Drophead Coupe and [...]

Chinese MG TF Not Coming Stateside. Riots Reported.

Edward Niedermeyer — Wed, 27 Aug 2008 19:11:55 +0000

MG first introduced its mid-engine F (later TF) roadster way back in 1995, but new owners Nanjing (SAIC) are still trying to sell the damn thing. Production of 500 TFs for the British market began this month at the Longbridge plant, in a run-up to restarting regular production. And until recently the Chinese firm was [...]

Carmakers Fight Anti-Terrorism Import Law

Robert Farago — Wed, 20 Aug 2008 13:50:59 +0000

You'd think "just-in-time" production techniques wouldn't extend to, say, Korea (Aveo) or China (Equinox engine). But you'd be wrong. And The National Association of Automakers view new anti-terrorism legislation– that's been six years in the making– as a threat to their business. "The U.S. Customs and Border Protection Bureau wants shippers to collect 10 new [...]

China’s Changfeng Laughs at HUMMER. Allegedly.

Robert Farago — Mon, 18 Aug 2008 12:39:54 +0000

Reuters quotes a source with "direct knowledge of the matter" (i.e. themselves) that claims Chinese SUV maker Changfeng Motor Co. took at a look at buying GM's Dead Brand Stunting and said "Hahahahaha. No." More journalistically, "Changfeng, partly owned by Mitsubishi Motors Corp decided not to proceed with the talks after a tour of Hummer's [...]

E85 Boondoogle of the Day: “Let Them Eat Rice”

Edward Niedermeyer — Wed, 13 Aug 2008 20:16:17 +0000

In a recent interview with the Weekly Standard, Iowa Senator Charles Grassley weighed-in on the food-for-fuel debate. "If part of our problem is that the Chinese are going to eat meat and you've got to have corn and soybeans to feed the Chinese their meat, then why isn't it just as legitimate [...]

GM CEO Rick Wagoner and Reality Announce Divorce

Frank Williams — Tue, 12 Aug 2008 19:17:30 +0000

Bob Lutz better watch out; his boss is challenging him for the title of Most Delusional Person on Earth. After the Olympic Games' opening ceremonies, Rick Wagoner told Financial Times, "I would say, from an assembly perspective [the pain] is largely behind us." And even though GM has had to cut large chunks of [...]

Chinese Auto Market Hitting the Skids?

Robert Farago — Tue, 05 Aug 2008 14:23:22 +0000

For the last five years or more, GM PR has attempted to put a rosy glow on the latest sad stats from North American by saying, "Yeah, but we're kicking some serious ass in China!" From the beginning, TTAC has warned that A) the People's Republic will eventually game the market to favor 100% domestic [...]

China Considers Banning 90% of All Cars in Beijing for Olympics

Robert Farago — Wed, 30 Jul 2008 15:42:14 +0000

There is no question that China's leaders want the Olympics to showcase/enhance The People's Republic's international prestige and power, in that 1936 Berlin kinda way. There's also no question that Beijing's air quality sucks, Big Style. To rectify that politically intolerable situation, The Powers That Be have relocated the city's major polluter (Oy! Beijing Shougang [...]

Chinese Court Rubber Stamps Fiat Panda Clone

Edward Niedermeyer — Mon, 28 Jul 2008 20:09:39 +0000

Remember how an Italian court recently banned Great Wall's GWPeri from sale in Europe for too closely resembling Fiat's Panda? Well, the Shijiazhuang Intermediate People's Court sees things more… sympathetically. Fiat had sued Great Wall in China as well as Europe. But the legal battle has been lost on the eastern front. Reuters [...]

Automakers Over-Estimate Chinese Car Market

Edward Niedermeyer — Mon, 28 Jul 2008 19:57:50 +0000

Auto Motor und Sport reports on a cautionary study by Bain & Company on the Chinese automotive market. According to the report, automakers estimate that the Chinese market will demand 9.3m new cars in 2010. Nein! "Our study shows that automakers are overestimating the Chinese market and are calling for too much [...]

And While We’re on the Subject of Oil Subsidies…

Robert Farago — Mon, 28 Jul 2008 13:19:15 +0000

Our previous blog post made the connection between China's increasing demand for imported oil, The People's Republic's subsidies for the black gold ($40b p.a.) and the policy's inflationary effect on U.S. gas prices. Common sense (and The New York Times) suggest that other "managed economies" are using the same pro-growth strategy, amplifying the inflationary [...]

U.S. Gas Prices to Remain High; Chinese Oil Imports Rise 11%

Robert Farago — Mon, 28 Jul 2008 11:55:07 +0000

Those who claim that the current price of oil is a supply - demand deal have some new ammo. Industrialinfo.com reports that The People's Republic of China imported 90.53 million tons of crude oil in the first half of 2008, up 11 percent over the same period last year. And you know all those dollars [...]

Bricklin Finds Chery Deal to be the Pits

Edward Niedermeyer — Mon, 21 Jul 2008 19:44:24 +0000

Malcolm Bricklin is deeply regretting his plan to import Chinese Chery cars to the U.S. Automotive News (sub) reports that the man who brought Subaru to America is suing his erstwhile Chinese colleagues for corrupt practices. This after losing $26m (of someone's money) trying to bring Cherys to the [...]

Chinese Panda Clone Banned From Europe

Edward Niedermeyer — Fri, 18 Jul 2008 20:02:39 +0000

Automotive News [sub] reports a Turin [Italy] court has banned the Great Wall GWPeri from European sales. The court agrees with Fiat's assessment that the car "is a (Fiat) Panda with a different front end." The court ordered Great Wall to pay Fiat about $24k for the first imported model, and [...]

Why The Chinese Aren’t Coming

Edward Niedermeyer — Wed, 09 Jul 2008 19:17:46 +0000

Automotive News China [sub] managing editor Yang Jian has a column warning Chinese firms not attempt to buy Volvo anytime soon. Yang considers the Shanghai Automotive Industry Works (SAIC) and First Auto Works (FAW) as the most likely suitors for Ford's Swedish division. They alone have access to the state-controlled bank financing needed to make the deal happen. Never mind that, Yang says, there are a wealth of lessons that China is still not ready to buy-up western car brands. The first-ever Chinese purchase of a western brand, Nanjing Auto Group's takeover of MG, led to an overleveraged NAG being bought up by SAIC. When SAIC bought Korean firm Ssangyong, it had to endure labor walkouts over plans to shift production from Korea to China, followed by a slide into unprofitability. As a friend of Yang's at SAIC puts it "SAIC certainly won't consider buying (Volvo) since we know how much hassle an overseas acquisition could create." So it turns out that a booming market isn't enough for Chinese firms to overcome their unfree-market disadvantages.

Question of the Day: Does National Ownership Matter?

Jonny Lieberman — Wed, 09 Jul 2008 19:15:38 +0000

I'm not talking about Hugo Chavez-style ownership. My question was inspired by the rumor that China's Chery might be buying Volvo. Is this a big deal? Despite Ford's worst efforts, Volvo didn't lose too much of its Volvoness when Ford CEO Jac the Knife won the Swedish automaker in a game of bondtolva. Volvos are still [presumably] safe, boxy and not intended for hoons. Of course, Ford almost bought Ferrari, which surely would have strangled the fabled Italian marque in Dearborn's corporate tentacles. And Saab lost its soul the moment GM breathed on it. But how about Rolls-Royce? I say the company is better than ever under Bimmer's tutelage. Audi's done a bang-up job with Bentley and Lamborghini, too. The world didn't stop turning when India's Tata Motors bought Land Rover and Jaguar. And the fact that a group of Saudi businessmen own Aston is no impediment to the brand, apparently. So what's the big deal about a Chinese automaker buying Volvo? Anything? Everything?

Ford Ignores Volvo Sales Rumors. Again. Still.

Edward Niedermeyer — Tue, 08 Jul 2008 19:40:09 +0000

Forbes reports that China's Chery Automobile is looking into a purchase of Ford's struggling Volvo division. According to Chinese media reports, Chery is shopping for some $4.4b in financing to make the purchase, although observers are skeptical that the purchase could actually take place. Chery (which is owned by the city of Wuhan) can not simply buy Volvo outright, as it has not yet been able to raise funds on Chinese capital markets. Having failed to meet the Hong Kong stock index's capital structure requirements, and with the Shanghai stock exchange taking a beating, Chery must rely on outside financing to make a play for Volvo. And as Zhang Xin, an auto analyst with Guotai Jun'an Securities points out, Chery's entire asset value is less than the rumored price tag for Volvo. Furthermore, Ford has already set up a joint venture with Changan Motors to build the Volvo S40 in China, while Chery has entered an alliance with Chrysler. And Ford is letting the considerable barriers to the deal do all the talking, as the International Herald Tribune reports that Ford once again refuses to comment on the possible deal. Still, with a new suitor for Volvo being hinted at each of the last few weeks, Ford's insistence that it is "committed" to Volvo seems just a tad disingenuous.

Toyota Taking On Top China Sales Spot

Edward Niedermeyer — Tue, 08 Jul 2008 16:34:21 +0000

With mature markets under-performing spectacularly, Toyota continues to invest in supplying China's endless thirst for cars. Shangha i Daily reports that ToMoCo is about to drop some $529m on increased production capacity in the Middle Kingdom. With volume leaders GM and VW in its sights, Toyota hopes to snag ten percent market share (1m vehicles). Sales are already headed for 700k this year. Toyota is scrambling to meet demand with a production capacity of only 640k units annually. And so its joint-venture plants are getting more money for more cars; Guangzhou Auto Group will double production to 400k units, while Sichuan FAW Toyota will hit 30k and Changchun FAW Toyota will build up to 10k Priora and Land Cruisers. Of course tooling-up takes time; ToMoCo won't be finished until 2010. By which time steel and fuel prices may have taken some of the zest from the Chinese market. Still, in its pursuit/maintenance of world domination, Toyota can't afford not to build more cars in China.

GM’s Chinese Déjà Vu Moment

Frank Williams — Wed, 02 Jul 2008 13:54:28 +0000

While GM's North American operation has been hemorrhaging money like a hemophiliac having heart surgery, its overseas operations have managed to turn enough profit to keep them from the bankruptcy court. Chinese sales are still growing, but the boom may go bust. In 2007, sales increased 19 percent. So far this year, sales are up 14 percent. Although China's still the world's fastest-growing auto market, raw material costs are soaring, and The People's Republic is easing off fuel price subsidies. Through their "joint venture" (i.e. shotgun wedding) with Shanghai Automotive Industry Corporation (SAIC), GM is the Republic's largest carmaker. But they're beginning to face stiff[er] competition from Toyota and Volkswagen. Joseph Lau, vice president for GM China, told Bloomberg "Shanghai GM has been facing difficulties by relying on existing models to compete with rivals that have added new ones." Sound familiar? Lau added that GM/SAIC has only one new model in the pipeline for this year: a locally-made hybrid version of the Buick LaCrosse. They're adding one new model next year, a Buick sedan to compete with the rapidly-growing Camry and Corolla. Does anyone know the Chinese translation for "Those who do not learn from history are doomed to repeat it"?

Bailout Watch 4: McCain on Detroit Bailout– “I’m afraid not”

Robert Farago — Sat, 28 Jun 2008 12:30:07 +0000

Whatever else you can say about White House hopeful John McCain-- and you're going to say lots-- the guy's got a set. Followers of our E85 coverage will recall that McCain was the only candidate to come out against ethanol-related subsidies for corn farmers before the Iowa primary. While in Iowa. Yesterday, the Arizona senator toured Lordstown (home of "high mileage Chevrolet Cobalt and Pontiac G5 economy cars"), and then came out against a federal 911 for any of Detroit's ailing automakers. Speaking at a town hall meeting, McCain was all about putting government dollars into "research" into alt propulsion (a $300m prize for anyone who can guess how much money he'd send Motown's way). But a bailout? Automotive News [sub] provides the money shot: "A bailout, I don't think works." In fact, The Detroit News quotes McCain's antipathy to bailouts in general. "Frankly I just don't see a scenario where the federal government would come in and bail out any industry in America today." Over to you, Barack.

In Communist China, People Buy Ten Million Cars

Edward Niedermeyer — Fri, 27 Jun 2008 23:22:51 +0000

OK, OK, enough with the Yakov Smirnov references. China is no more communist than, say, California. And its vehicle sales prove it. With already-strong demand for passenger vehicles growing by 15 percent this year, Xinhua reports that Chinese automakers are set to sell 10m cars during 2008. According to information from the China Association of Automobile Manufacturers (CAAM), the demand is partly a product of falling car prices; a trend under threat from high steel costs. Moreover, as its car market matures, the Chinese government is poised to "move forward the industry restructuring by detailing standards on security, environment protection and energy saving," according to CAAM vice-chair Dong Yang. "We should keep a clear mind of the overall industry competence lagged behind that of the multi-national companies." Bringing domestically-produced Chinese cars up to international snuff will doubtless prove difficult. As the Chinese market matures and regulatory barriers to ownership increase, sales growth should level off. At some point, the People will bias the market towards home-grown products. Until then, it's double-digit growth as usual.

FIAT Kowtows to Cockamamie Chinese Clamor

Martin Schwoerer — Thu, 26 Jun 2008 19:08:58 +0000

Does it sound like a good idea to advertise the new Lancia Delta in the U.K. by showing Richard Gere frolicking with some Buddhist monks from Tibet? Odd? Certainly. Cute? Maybe. Problematic? Well yes, if you dislike the kind of lefty vegetarian sanctimonious Hollywood type Gere represents (which I don't). But could this spot really be a reason to apologize? Just-Auto [sub] reports that upon hearing of cockamamie protests from Beijing, Fiat kowtowed to the dictators in the People's Republic. "Fiat Group reiterates its neutrality in connection with any political matter, be it on a national or international basis. To the extent that the Lancia Delta advertising may give rise to misinterpretations of its well established position of neutrality, Fiat Group extends its apologies to the Government of the People's Republic of China and to the Chinese people." Yes, it hurts the Chinese Government's feelings that the pro-Tibet Gere is shown in some vaguely positive way in Tibet, or something. And it dismays us that Fiat, a car maker on the ascent, apparently didn't know what it was doing when it OK'd this ad, and obviously doesn't have a pair.

Chinese to buy Volvo?

Frank Williams — Wed, 25 Jun 2008 15:06:47 +0000

When Kirk Kekorian's mouthpiece Jerry York said Ford should get rid of Volvo,few commentators thought the deal would go down this quickly. Even though a Ford spokesman insists "we have been consistently saying since the end of last year that Volvo is not for sale," Automotive News [sub] reports that Ford is negotiating with Shanghai Automotive Industry Corporation (SAIC) to sell their Swedish division. SAIC currently has joint ventures with GM and VW to build and sell cars in China. They also own the rights to Rover; they're branching out with their own vehicles based on Rover cars under the Roewe brand. Buying Volvo would give SAIC a strong inroad to the European and American markets and/or another brand to play with in China. If this deal falls through, an unnamed Russian investor is rumored to be interested in buying Volvo. A word of caution to the brand's suitors: Gott lära av andras fel, eftersom man inte hinner begå alla själv.

China To Kill Gas Subsidies?

Edward Niedermeyer — Thu, 12 Jun 2008 20:14:25 +0000

Paul Eisenstein of The Car Connection's Industry Insider blog thinks that China's going to cut the fuel subsidies that have insulated the Middle Kingdom from rising gas prices. Prices for gas have risen only nine percent since January 2007, compared to the nearly 80 percent jump suffered by American drivers in the same period. With the Chinese paying about $2.60 per gallon of unleaded (the exception to China's love affair with all things leaded), demand is still rising in China, with 1,300 new cars hitting the road every day in Beijing alone. So when will China make the much-needed subsidy cuts? Eisenstein joins the growing consensus that suggests the bitter medicine will be administered sometime after the Olympics, when China will be basking in global PR afterglow. With neighboring developing economies recently cutting fuel subsidies (Indonesia, Malaysia, Sri Lanka, Taiwan and India), the International Herald Tribune reports that the such cuts are necessary across the board to help keep global oil prices from spiraling out of control. With the International Energy Agency taking up the fight against subsidies, expect pressure to mount on China to end incentives for fuel consumption. Eventually.

American Axle Losing Interest In The “American” Part

Edward Niedermeyer — Tue, 20 May 2008 18:31:52 +0000

With the nastiest auto biz strike of the year (so far) almost, not quite behind it, American Axle is looking away from its eponymous home country for future business. Automotive News (sub) reports that the axle supplier has already established itself in developing markets like Brazil, China, Mexico and Poland, and is looking to expand in Thailand and India. Thailand is the second largest pickup market after the U.S., and American Axle is looking to take over axle supply there for locally produced Chevy Colorado pickups. While company officials declined comment, GM is AA's biggest customer, and as AN points out, "the company does not build foreign plants without the promise of future business." With the Thai pickup market set to increase seven percent this year, and American truck and SUV sales already down 28 percent on the year, this has "inevitability" written all over it. In India, AA's first plant is just coming online, and there's already talk of a second. AAM Sona Axle Private Ltd, the joint venture with Sona Koyo is building a new corporate headquarters in Pune, India and there's talk of building a greenfield plant to supply Tata Motors. With at least two U.S. plants set to shut down in the wake of the the AA-UAW agreement, the American Axle name is beginning to develop a bitterly ironic ring. Is a generic supplier name-change (Visteon, Delphi, etc) in the offing?

Chrysler Sends Unripe Cherys To Mexico

Edward Niedermeyer — Tue, 13 May 2008 01:21:41 +0000

We've known for a quite some time that Chrysler's partnership with Chery is a long ways off from bearing, um, fruit for the U.S. market. Automotive News [sub] reports that Chrysler has sent engineers over to China to ready the A1 for American importation. Again. Still. "We need small cars," says Chrysler CEO Tom LaSorda, offering a piercing glimpse into the obvious while riffing on that old flick "Mars needs women." "Chery's cars are still not ready for that exposure into these markets." Nor will they be until that mythic 2010 debut date. LaSorda said China-built cars probably can't meet U.S. safety and emissions standards for "three years or more." Chrysler can't wait to pop its Chery in the North American market. The company announced it will be selling ~~death traps~~ Cherys in Mexico under a Chrysler nameplate while engineers ready the diminutive Chinese whips for the American market. The Bertone-styled Chery A1 will be imported to Mexico by year's end. While "lucky" Mexicans get to enjoy Chinese-market standards in reliability, build quality and emissions, Yanks will just have to wait before experiencing the joys of Chrysler-branded Chinese personal transportation. Or not. Meanwhile, what?

“Certainly, the lessons of the past, we don’t forget them when we come here”

Robert Farago — Tue, 22 Apr 2008 16:22:19 +0000

Here being China. We being GM. The speaker being GM CEO Rick Wagoner. And yet... Automotive News reports that The General is deploying Ye Olde "A Car for Every Purse and Purpose" strategy developed by Alfred P. Sloan-- and then annihilated by every cash-grabbing, corner-cutting CEO since, sending the former world's largest automaker sliding towards bankruptcy. Never mind; it was implementation that killed the golden goose. "The China market also gives it a rare chance to try to repeat the business past with a happier ending for investors... GM introduced Chevy to China just three years ago after concluding its Buick brand was over-extended by a product line-up that had saddled it with everything from a minivan marketed as a kind of executive taxi to a cheaper hatchback. 'We could see Buick was being stretched,' [GM's head of Asian operations Nick] Reilly said." Uh, hello? Buick still sells the same product line-up in China as before. They've simply added Chevy (i.e. rebadged Daewoos). Oh, and Cadillac's in the People's Republic as well. What are the chances GM will show the same branding discipline in China that they've shown in the U.S.? And if it's good enough for China...

Suzuki, Toyota Up Chinese Production

Edward Niedermeyer — Tue, 22 Apr 2008 16:14:43 +0000

Suzuki and Toyota are radically increasing production in China, in an attempt to compensate for faltgering sales in more established markets. Thomson Financial News (via Forbes) reports that Suzuki plans to double production "as early as next year" at its Chonqing-based ChangAn factory. The plant currently churns out 100k Chinese-market Altos. But a recent $144m investment in a new 1.5-liter engine for the ubiquitous (in China) hatchback, and a forthcoming additional $100m + investment in assembly lines, will see production rise to 200k annual units. Toyota is likewise betting long on China; a new factory is under works now in Jilin. Set to open production "some time next decade," the factory will lift ToMoCo's China production to over 1m per year. This will make China the number two manufacturing location for Toyota after the United States, where it builds some 1.5m vehicles annually. This will knock Hyundai out its position of top car manufacturer in China, after the Koreans recently spent nearly $800m to increase output to 600k per year.

Beijing Auto Show Reflects New World Order

Glenn Swanson — Tue, 22 Apr 2008 15:20:36 +0000

"Automakers wage war for market share," reads the headline over at China Daily. The current battlefront of that war can be viewed at the 2008 Beijing International Automotive Exhibition, which runs through April 28th. With 890 vehicles on display in the 1.9m square foot arena, the nine-day event is expected to attract more than 600k visitors. The spoils of war can be lucrative, too, with Chinese vehicle sales up 21.4 percent year-over-year, which translates to 2.58m cars sold in the first quarter. Total sales are predicted to surpass the 8.79m units sold in '07 and reach 10m vehicles in 2008. While the suspected recession in the U.S. has tempered car sales here, the prospects in China offer a respite: Ford's Chinese sales have "rocketed" by 47 percent in the first quarter. GM's Rick Wagoner figures China will account for more than 40 percent of global auto sales growth in the coming decade. Meanwhile, Mercedes-Benz launched its C-Class sedans in China last month and Ulrich Walker, the chairman and CEO of Daimler Northeast Asia Ltd., is amazed at China's transformation. In a single generation, a population simply striving to own a "Flying Pigeon" bicycle now strives to own a "big Benz." "In the history of the world, no country has changed as much as China in the past 30 years," says MB's Walker.

China Hearts Gas-Guzzlers

Frank Williams — Tue, 22 Apr 2008 13:48:28 +0000

The DOT wants to raise CAFE standards even higher. To meet the new standards, automakers will have to downsize and lighten everything they offer. However, their expertise (and profit) is in large trucks/SUVs. Whatever will they do? Well, there's always China. The Associated Press reports China's nouveau riche auto buyers think size does count. They're going for gas guzzlers like large SUVs and luxobarges; they're the fastest-growing market segments in the People's Republic. And the automakers know it. The star of the GM display at the Beijing Auto Show is the Escalade, which they'll introduce to the Chinese market next year. Mercedes says China is the second-largest market for the S-class (the U.S. is the largest), R-class sales are up 110 percent in the first quarter and the M-, G- and GL-class sales are up 100 percent. Remind me again why we're raising our mileage standards to cut fuel consumption here? Oh yeah. We're giving up our gas guzzlers so the most polluted country in the world will have plenty government-subsidized fuel for theirs. Got it.

A-O-Kei: Mitsubishi Targets Emerging Markets

Edward Niedermeyer — Mon, 21 Apr 2008 17:18:22 +0000

Yet another major manufacturer is jumping into the entry-level segment defined by Tata Motors' Nano subcompact. Reuters reports that Mitsubishi is developing a low-cost car for the Chinese and Thai markets, based on its Kei-class city car platform. Mitsu Prez Osamu Masuko announced the project at the Beijing Auto Show. "The mini vehicle business in a sense is a weakness because they are only sold in Japan," Masuko said. "But we can turn this into a strength by building a global car using the platform." The Japanese government-mandated 660cc engine will be replaced by a one-liter unit for export, with the resulting ride priced at just shy of $10k. With North American sales plummeting, Mitsubishi is joining the industry trend of looking to developing markets for sales, both from entry-level models and as a partner to suppliers of engines for Chinese manufacturers. Mitsubishi's Chinese engine factory partners will be increasing capacity to some 900k units per year, up from 470k, as Chinese demand booms.

Lavida Loca? VW Reveals First China-Developed Car

Justin Berkowitz — Mon, 21 Apr 2008 13:41:51 +0000

VW's Lavida Chinese-developed sedan looks about as exciting as a postage stamp (apologies to philatelist pistonheads). Worse, the car's interior lacks VW's trademark style and quality, what with the world's worst fake wood trim (excluding the press-on plastic wood from the '60's). Never mind. Based on the VW MkIV Jetta/Golf platform, the Lavida will be cheap as chips to build. The selling price is a rumored 150k - 190k RMB ($21k to $27k). Talk about product overlap: China's version of the current MkV Jetta sells for 120k - 180k RMB. So, dollar for dollar, yuan for yuan, Lavida or a Jetta? Meanwhile, if VW could bring a lightly-contented version of this car to the US for say $10k - $15k, even if it had only 120 horses, it'd be a huge hit for a company that's abandoned its cheap and cheerful brand reputation stateside. It could happen...

Pixamo gallery includes the press photos and live pictures from the Beijing Auto Show.

Volt Birth Watch 41: GM CEO Seeks Tax Break for Chinese Volt

Frank Williams — Mon, 21 Apr 2008 12:36:48 +0000

After the Chevy Volt makes its U.S. debut, GM plans to sell the gas - electric hybrid worldwide. GM Car Czar Maximum Bob Lutz has already announced Australian Volt sales will begin "one or two years" after the car's U.S. launch. GM also has their corporate eye on the "very important" European market. But just as the rest of the U.S. will have to wait for California to get their Volts, the rest of the world will have to wait for China. Rick Wagoner says his employer's targeting The People's Republic as the Volt's second market-- with one big "if." According to Reuters, GM is "lobbying China's government to provide subsidies for the development and sale" of alternative powerplants. Wagner wants China to provide tax credits and (while they're at it) develop a hydrogen refueling infrastructure for fuel cell vehicles. Of course, much of GM's credibility in such matters (and everything else) depends on a successful Volt launch in 2010, which Rabid Rick admitted is running "down to the wire." God forbid they should release a not-ready-for-prime-time vehicle just to make the deadline...

Honda To Take On Scion With New Brand

Jonny Lieberman — Mon, 21 Apr 2008 11:25:11 +0000

If I were Toyota, I'd be shaking in my boots right about now. Sure, Scion seemed like a good idea few years back when ToMoCo realized its buyers' median age was seeping into Buick territory. Being charitable, one could call Toyota's youth brand an interesting experiment. Being honest, Scion is schizophrenic. And the kids ain't buying. And now they have some soon-to-be serious competition. Autoweek is reporting that Honda is launching a new "sub-brand" called Li Nian, which apparently means "subject" in Chinese. You're looking at an unnamed concept built off the global City/Fit platform in conjunction with Honda's Chinese partner Guangzhou Honda. The new brand will launch first in emerging markets (China, India) before eventually showing-up here in the States. Getting back to Toyota being frightened -- kids might actually enjoy driving a sporty, inexpensive Fit-derivative-- as opposed to a de-contented, lousy to drive Corolla hand-me-down. Li Nians should start rolling into dealerships near the guy that took your job in 2010. [There's that date again...]

Chrysler’s Chinese Chery Import Stuck in Development Hell

Robert Farago — Mon, 21 Apr 2008 01:00:04 +0000

Inside baseball-types will recall that erstwhile automotive magnate Malcolm Bricklin's dreams of importing a Chinese-built Chery car into the American market hit the rocks back in December '05. Into the breach (dear Horatio) rushed Chrysler. Last year, the American and Chinese automakers signed an agreement to produce an economy car for U.S. Dodge dealers and world markets. And now... nada. According to the AP , ChryCo's Chief of Asian Ops admits that a Chinese-made U.S. import is "not ready for the U.S. market." How not ready? "We have no progress to report," Phil Murtaugh told reporters at the Beijing auto show. "But we really are satisfied with those discussions." Discussions that lead nowhere being a good thing? Sure! "I don't think we're too far away," Murtagh assured skeptics concerned with the theoretical car's price, safety, performance, quality, reliability, ability to meet U.S. federal regulations and profitability. "But neither one of us are ready to say 'Let's go' yet..'"

BYD Introduction of Electric Vehicles in the Vans Beijing

Edward Niedermeyer — Fri, 18 Apr 2008 12:02:02 +0000

An internet website called Autoblog is reporting (through the hilarious power of Google translate) that Chinese battery firm BYD will unveil a plug-in EV minivan next week. The e6 strikes the Autoblog crew as reminiscent of a J-Market Honda Odyssey. On the whole, you have to admit the comparison reflects pretty well on a company that was building cell phone batteries not so long ago. But enough of my gushing, on to the stats: 186 mile range on full charge (220V), 0-62 in 10 seconds, and a top speed of 99 mph. Details on the recharging process are "dodgy," as Autoblog calls the translated hilarity. "The battery slowly filling civilian 220 V power supply; fast charge for the three C rechargeable battery, about 15 minutes can be a battery 80%," is the official word. But don't worry, the safety is fine. "The car carrying iron batteries at high temperatures, high pressure, impact tests testing, safety performance is very good, will not be explosions." Autoblog gives BYD the benefit of the considerable doubt, by assuming these "iron batteries" which "will not be explosions" are, in fact, lithium ion batteries. Why don't we all just wait until it gets an official launch in Beijing next week? After all, "e6 will be one or two years before the formal launch..."

Chrysler Opens Chinese Design Office

Edward Niedermeyer — Thu, 17 Apr 2008 17:52:47 +0000

Chrysler LLC announced today that it has opened a design office in China, a move the Detroit Free Press calls "part of a much larger expansion by the Auburn Hills automaker to beef up its product design efforts outside the United States." While Chrysler slashes as many as 25k North American jobs this year, it plans on recruiting 1k engineers outside from outside the United States. Chrysler's Chinese operations are expanding to include more local suppliers, in India the local engineering staff is set to double. Arguing that Chrysler is designing models specific to rapidly growing markets abroad, VP for product development Frank Klegon points to the success of its Mexico division (which is set to add 450 new staff). "They're already doing unique product for Mexico that's designed and developed in Santa Fe and for sale in Mexico by themselves," says Klegon. "It's a resource center that we're building upon. They started out as more of a vehicle development and test facility and moved them into design." But something doesn't add up here. If this is all about "unique products for unique markets," then why is Chrysler selling a rebadged (Chinese) Chery A1 in Mexico as a Dodge?

New Chinese Roewe Revealed

Justin Berkowitz — Thu, 17 Apr 2008 15:52:44 +0000

Usually new Chinese cars are either knock-offs or just look horrendous (see Chery's V2). But designs in the PRC have been getting better (how could they not?) And now Roewe-- the company that bought the rights to make the Rover 75 sedan after the British company imploded a few years ago-- has reskinned and updated the 75. And it looks outstanding. In fact, this might be the best-looking Chinese car to date. The Roewe 550 is a midsize sedan, on the scale of a Honda Accord. Much of the design and engineering work was done by boffins from the European engineering firm Ricardo, a subcontracter to Roewe's owner SAIC. The interior cribs some design elements from BMW and Renault. But overall this is a very impressive vehicle for a country known for platypusian vehicles and inelegant knock-offs.

Click here for Pixamo gallery

Springtime Brings a Boost in Chinese Auto Sales

Glenn Swanson — Wed, 09 Apr 2008 15:27:18 +0000

According to China Daily, sales of passenger cars in China rose 23.6 percent in March, compared with the same period last year. That's the largest monthly rise in seven months, attributed (in part) to the arrival of milder springtime weather. The market recovered after "freak winter weather" slowed sales, according to the China Association of Automobile Manufacturers. First-quarter sales rose 20.4 percent to 1.85m vehicles, including 1.37m sedans, 55.3k minivans and 101.8k SUVs. Taking both first and second place in sales for the first three months of the year: Volkswagen AG's two Chinese joint ventures, FAW Volkswagen and Shanghai Volkswagen. Coming in third in the sales race: Shanghai GM, the Detroit-based car maker's JV with Shanghai Automotive Industry Corp. China is the world's second largest car market, with sales of 6.3m vehicles last year.