General Motors will invest $5 billion to build a global line of cars with Shanghai-based SAIC Motors that will be sold in Brazil, China and other emerging markets, the automaker announced Tuesday.
The cars won’t be sold in the United States, according to the statement.
The global vehicles will go on sale starting in 2019 and the automaker expects the line to eventually produce roughly 2 million cars annually.
Renault will be returning to the United States, but not with Meganes or Kangoos sold under the diamond brand. Instead, the Renault-derived products will be variants of jointly-developed Renault Samsung cars sold under the Mitsubishi brand, as part of a new alliance between Renault-Nissan and Mitsubishi.
Ahead of their crucial announcement outlining the future of Proton, parent company DRB-Hicom (also of Lotus fame) has announced that they will partner with Honda, after a long courtship process that involved numerous auto makers.
“It’s too early to say for sure whether GM will purchase the controlling stake in HKJV, and thereby regain full control of its India business. It is unlikely that SAIC will relinquish its grip on India, just because it suddenly can’t service the capital requirements of the HKJV. Possibly, more information will become available when GM files its Q3 paperwork, or possibly later.”
As it turns out, they did.
Ratings firm Fitch released a memo Tuesday outlining some possible problems relating to the proposed GM-PSA merger.
Chery has asked the Chinese government for its blessing regarding a joint venture with Jaguar Land Rover worth $1.9 billion.
Renault-Nissan is buying a majority stake in Russian automaker AvtoVaz. For those not in the Russian Car Appreciation Society, AvtoVaz is the maker of Lada cars.
Much to my own surprise I read in China Daily that Volkswagen only holds 40 percent in its partnership with its Chinese joint venture partner FAW. I always thought they had the usual 50:50. Well, it looks like my beliefs will become reality. (Read More…)
Both Toyota and the remains of its joint venture known as NUMMI have sued the remains of “Old GM” for breach of contract according to two separate reports in the Wall Street Journal [sub]. NUMMI is seeking $365m, claiming GM caused the collapse of the joint venture by unilaterally pulling out as it collapsed into bankruptcy, sticking Toyota and NUMMI with the bill.
Those decisions breached … commitments to Nummi and sounded its death knell,” said the lawsuit, filed last week. And unlike Toyota, GM’s bankruptcy estate “has refused to contribute to Nummi’s deficit during the wind down”
Toyota, meanwhile, is suing for some $73m in development costs for the Pontiac Vibe, a vehicle that GM was supposed to sell for another two years.
China’s Chery is one of the few big car companies that is not wedded to a foreigner. All the big ones are in bed with one or more Western (or Eastern) manufacturer. Finally, it looks like Chery might be losing its virginity. (Read More…)
Most likely filled with a certain degree of foreboding, Volkswagen signed today contracts with their joint venture partner FAW to build a new plant in the south of China, we hear from a Volkswagen press release. That VW has designs on building cars in the South of China is no news to the avid TTAC reader. But why the anxiety? (Read More…)
There is an interesting analysis on Chinacarforums: China-produced Western cars tend to come out bigger than their Western siblings. Especially at the higher end. A made-in-China Cadillac STS is 124mm longer than the U.S. sister model. The wheelbase grew by 100mm. A Chinese Audi A6 L has gained 97 mm in length over the Made-in-Ingolstadt relative. A BMW 5-series, made at the Chinese joint venture with Brilliance, has gained a whopping 140 mm in length and wheelbase over the Bavarian model.