The violent anti-Japanese demonstrations in China appear to be over, and intestinal complications aside, it seems to be safe again to eat sushi in Beijing or Shanghai. State-owned media however is trying its utmost to keep the matter on the front burner, so to speak, in a very insidious way.

Chinese upstart carmaker BYD isn’t as lucky as it used to be. Its sales and stock price are deep in the Chinese squat toilet. However, it is outdoing itself in the gadget dept. BYD, the company that brought us the remote controlled car, now brings us the watch that opens your car’s doors and starts it. Call it keyless entry that goes with the times.

The first American automobile built as a joint venture in China could soon be built at a China joint venture again. Fiat plans to bring Jeep production back to the Middle Kingdom, Bloomberg says.

Hong Kong, and I speak from experience, is a great place to incorporate, to save taxes, and to throw a cloak of secrecy over financial operations which otherwise would be out in the open. In the case of GM, it is also a great place to save their Korean behinds. In December 2009, GM sold a 1% stake in its Shanghai-GM (SGM) joint venture to the Hong Kong part of its Chinese partner SAIC for the paltry sum of $85m. GM also put its India business into a Hong Kong based joint venture (HKJV). GM provided the India business, SAIC provided cash. As it turned out later, unearthed in Ed Niedermeyer’s seminal oeuvre about the mystery golden share, SAIC also underwrote a $400 million loan. In its darkest hour at the end of 2009, GM was kept afloat by the Chinese. Now, history seems to repeat itself in some convoluted way.

Chinese traffic jams are great equalizers: They slow down all cars (except black A6 with flashing lights and a police escort.) Our reader and commenter Daveinchina spotted this car with an odd paintjob on the Hukun Expressway in Songjiang, on the outskirts of Shanghai.

Chinese products have dominated almost every industry – except of course the automobile industry. But this could easily change. Chinese made cars are improving at a rapid pace and could soon challenge more established car makers. The Chinese invasion will soon start in India, with General Motors launching the Sail hatchback. The Sail is the brainchild of GM’s joint venture with SAIC (Shanghai Automotive Industry Corporation), which is by far the largest Chinese car maker, and which also happens to be GM’s joint venture partner for India.

Further on the news that Stefan Jacoby is out at Volvo and that Hakan Samuelsson is in, the parties decided to forgo the face-saving explanation that the change was due to medical reasons. They confirmed that is was a boardroom brawl which Jacoby lost. In a press conference today, Volvo Vice-Chairman Hans-Olov Olsson said “that Jacoby’s illness had nothing to do with the decision to remove Jacoby,” Reuters says.

Europe’s auto market implosion has led BMW to shift units earmarked for the continent over to the United States and China, where demand remains strong.

Toyota may be cutting back its global group production by 200,000 units in the 2012 calendar year, writes Reuters, as a reaction to sharply reduced sales in China after the island row. Toyota’s China sales were down 49 percent in September.

When we reported that battery maker A123 had filed for bankruptcy, a lot of people thought that Johnson Controls is in control, and that Chinese Wanxiang is out. No and no, writes Reuters star car reporter Norihiko Shirouzu. Wanxiang still wants A123, and Johnson Controls is just one bidder in a Chapter 11 process, says Reuters.

“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.

The Chinese Army was a great admirer of Benzes, so much that they built their own. Bamin State Automobile Works, or Bamin Automobile for short, was based in Minhou in Fujian Province. The company was owned by the Chinese army, it was also called the ‘PLA 7427 Works’. Bamin Automobile started business in the late 1980′s with a local licensed variant of the Beijing 212; the Bamin BM212A/BM213A.

Was your airbag replaced within the past three years? Did you buy a used car that sustained air bag deployment before you bought it? Did you buy a car with a salvage, rebuilt, or reconstructed title? Did you get a great deal on an air bag? In that case, be suspicious of your airbag, because it could kill you.

Vehicle sales in China were down 1.75 percent compared to the same month last year, says the China Association of Automobile Manufacturers (CAAM). An official of the CAAM blamed it on the Japanese.

Japanese carmakers and their Chinese joint venture partners lost big-time in the spat over the Diaoyu/Senkaku islands. The winners are German carmakers and their Chinese joint venture partners. Oddly enough, the central government ends up with a shot in the foot.

The top three Japanese automakers Toyota, Nissan, and Honda are slashing their production in China in half, says The Nikkei [sub]. The reductions are a response to sales drops triggered by anti-Japanese demonstrations and riots in China.

Some have quietly or openly been hoping the GM could cash-in on the misery of Japanese brands in China. It’s not happening. Sales across all of GM’s Chinese joint ventures were up a marginal 1.7 percent in September while sales of German marques received a boost.

Sales of Japanese cars are getting hammered in China, and Hyundai is one of the chief beneficiaries of their collapse.

Toyota’s sales in China took a big hit in September, reports by the Yomiuri Shimbun and Reuters say. Executives of Japanese carmakers are putting on a brave face when it comes to China, but are worried that their significant China business could become a casualty of the East China Sea troubles.

No official data are available yet, but the Yomiuri says that Toyota’s September sales in China “halved,” after many Chinese customers canceled their orders in September. Reuters talks about a 40 percent reduction. A senior Toyota executive told the usually very reliable Reuters that Toyota sold about 50,000 cars in China in September, down from about 86,000 in September 2011.

Japanese carmakers are worried about their sales in China after Japanese cars were smashed and dealerships torched during large scale anti-Japanese riots in China last month. As a first indicator that Japanese cars may be falling out of favor in China, Mazda reports via Reuters that September sales in China dropped 35 percent.

The seventh generation of Volkswagen’s venerable and best-selling hatch, the Golf, has barely been launched in Europe, and Volkswagen is already looking into producing it abroad. Volkswagen aims at two regions that usually prefer cars with trunks: China and America.

Toyota Chairman Fujio Cho was sitting in his company jet, ready to go to Beijing for talks with the Chinese leadership, but the jet never got off the ground. After Chinese aviation authorities refused landing permission in Beijing, Cho left his plane and went home, NHK reports.

TTAC has written many times about the growing dependency on China, and now there is a voice that says that GM is more enslaved to China than it is to Washington.

CAREFUL, NOISY! Lower volume before playing.

The Paris auto show opens its doors tomorrow to the press (sans TTAC, our suggestion to make a pilgrimage in a Dacia all the way from Rumania to Paris was inexplicably met with an “um, maybe another time,”) but the thoughts of makers of luxury cars are in China, where their party could be over.

The row between China and Japan over a few rocks in the East China Sea, alternately called Senkaku and Diaoyu islands, is threatening to derail production and sales plans of Japanese automakers. Many in the industry say that “Chinese consumers are unlikely to return to Japanese cars anytime soon,” as The Nikkei [sub] says. Already, Japanese automakers have curtailed production in and exports to China. The problem may not be a temporary one.

Today, GM and its Chinese joint venture partner SAIC opened what GM China President Kevin Wale called “China’s largest proving ground.“ The test track west of Shanghai did cost about $252.5 million, Reuters says. Automakers are busy turning China into test track central, but Milford may be passed by a German track.

Being at odds with its number one trading partner Japan at the moment, China shows that it doesn’t have to be the big bully, and that it can make nice with other former enemies if it feels like it. China gave a surprising regulatory nod to a joint venture between Tata-owned Jaguar Land Rover and Chery. If you think they were long married, then you are right. They said yes a while ago. However, in China, a joint venture is not really a joint venture unless the National Development and Reform Commission (and sundry other bureaucracies) have given their nod, and did put their chop on the contract.

China’s Hawtai was quick to cash in on the nationalistic sentiments in China with its Hawtai Baolige Patriotic Edition. According to Carnewschina, the Patriotic Edition “is painted in China-red, with five yellow stars as in the Chinese flag and some waves around the rear wheels that likely refer to the disputed islands.” The trucklet is 100% Nippon-free, as far as we can tell.

“’Even if China becomes nothing but tombstones, we must exterminate the Japanese; even if we have to destroy our own country, we must take back the Diaoyu Islands.”

With the appropriate attention received, China is ready to ratchet down anti-Japanese sentiment. Beijing public security authorities on Wednesday urged the public not to stage protests against Japan, writes The Nikkei [sub]. Chinese dealers of the Volkswagen Group did not get the memo. They cause major trouble for Volkswagen. Especially in Japan.

BMW visits CH-Auto

History tends to repeat itself – in different ways. One of the secrets of Japanese quality was a shortage of money. Bad quality was seen as waste – known as the detested “muda” to scholars of Kaizen. Lines had to be made more flexible; re-tooling had to be made easier, all because there was no money to waste. Likewise, China is getting better at making cars. One reason: It’s getting better at cutting corners, says a report by Reuters.

Most Japanese carmakers temporarily closed their Chinese factories on the anniversary date of Japan’s pre-war invasion of China.

This follows violent riots across China.

Around 1,000 Chinese fishing boats are bearing down on the Senkaku/Diaoyu islands, while Japanese carmakers in China are buttoning-up their Chinese car factories.

President Barack Obama will carry a familiar gift to election rallies in Ohio today.

“The Obama administration will announce a trade complaint against China today as President Barack Obama campaigns in Ohio, alleging impermissible subsidies of auto- and auto-parts exports that encourage outsourcing to China from the U.S.” an administration official told Bloomberg.

Daimler, or rather one of its Chinese customers, is paying late penance for the ill-fated merger with Chrysler. A Chinese patriot proudly presented this trophy on Weibo, the Chinese version of the (blocked in China) Twitter. He said he took it off a “Japanese Mitsubishi” which he savaged in rage against Japan’s occupation of the Diaoyu islands.

Mitsubishi Motors fell into the hands of Daimler through the merger with Chrysler. After that fell apart. Mitsubishi soon was back on its own.

GM is smarter than Ford when it comes to exploiting rich Chinese, says Tycho de Feyter of Carnewschina. While GM sells is Camaro in China for a whopping $72,000 on up, Ford is leaving money on the table and profits to grey importers.

Anti-Japanese demonstrations grew ugly in China over the weekend, and it were cars that took the brunt. Chinese took to the streets after Tokyo said it would nationalize the Senkaku/Diaoyu Islands. The uninhabited rocks are administered by Japan but claimed by China. Tens of thousands protested this weekend – and vented their rage on cars.

One of the first victims was a Honda CR-V, oddly owned by the police in the southern city of Shenzhen. Shenzhen’s finest were unable to protect their property.

As it becomes increasingly dangerous to own a Japanese car in China, people devise unorthodox ways to protect their cherished car.

The car show in Haikou on the Chinese island of Hainan is small as far as car shows go. Organizers had to try harder to attract visitors. Or, being small, they had to save money, and they decided to spare the garments of their female product specialists. They appeared covered in not much more than flowers.

Caution, the following pictures could be considered as offensive and NSFW in Sharia jurisdictions and parts of America, but have become quite common in officially still communist China.

GM’s China boss Kevin Wale will retire his job on October 31, GM says. His will be replaced by Bob Socia, GM’s VP of Global Purchasing and Supply Chain.

The car industry is slowly getting healthy again (except in Europe.) Worldwide sales are up 6.8 percent so far, and it looks like 81 million units could be sold worldwide this year, as data by LMC Automotive show. This has the Worldwatch Institute up in arms. Basically, it wants us to buy fewer cars and drive them less.

“China’s auto sales growth falls to 3.7 percent ” if you read the Associated Press and Bloomberg. If you rather put your trust in Reuters, then “vehicle sales in China rose 8.3 percent in August from a year earlier.” Reuters is correct, AP and Bloomberg just received a new degree in spin doctoring.

This flag raising on uninhabitable rocks …

A long simmering dispute of islands which both Japan and China claim as theirs has risen in temperature in China. There have been anti-Japanese demonstrations in Chinese cities, and on-line calls for boycotts of Japanese goods. Now the row is officially affecting sales of Japanese cars in China, Dong Yang, secretary general of the China Association of Automobile Manufacturers (CAAM), told Reuters today in Beijing.

The Chinese government reprimanded organizers of the Chengdu Motor Show for showing way too much flesh than what’s appropriate for a harmonious society. The exhibitionist exhibits were all foreign. A finger-wagging received the display of female charms at Citroen and Kia, and a serious finger-wagging was directed at an “almost-naked Ms Yan Yu who briefly posed with a Toyota Camry before things got so mad with ‘journalists’ taking pictures that she was quickly taken back-stage,” as Tycho de Feyter reports at Carnewschina.

The showing of almost naked ladies is standard fare at communist China car shows, but could trigger arrested hearts and mass firing in the allegedly free West. Therefore, the almost naked Camry lady was trafficked below the fold. Don’t click if you are under age, easily offended, or easily fired. Your have been warned.

Opel must feel like someone who’s on his deathbed, surrounded by relatives who muse how much the organs will fetch. After we ran our piece on Detroit rumors about Opel and PSA, everybody started to weigh in on the issue. The recommendation by a Wall Street analyst that GM should “dump Opel” made headlines around the world. The Economist mused aloud what an “Opel-less future” would be like.

Even here in Chengdu, China, Opel was given up for dead.

Rubbing shoulders with industry types displaced to a Chinese city called Chengdu has its good parts. You hear stories you normally don’t see in a press release. An executive who works for the western partner of a large Chinese joint venture told me today that my story about Chinese interests killing the Opel deal between GM and PSA wasn’t true. At least not completely. As so often, in the denial was a much more interesting story. After another drink for encouragement, said executive told me very much off the record that GM is tired of the PSA deal and wants out. If that means leaving Opel for dead, so be it.

The hordes of Chinese and Japanese reporters roaming the halls of the Chengdu Global Automotive Forum in Chengdu were not really interested in exports. They were sniffing blood. There are tensions between China, Japan, and a few other countries over some rocks in the sea. The rocks are called Diaoyu by the Chinese, Senkaku by the Japanese, and choice words by many others. Nissan’s COO Toshiyuki Shiga sat on the podium, next to the always photogenic Atsushi Niimi. The Japanese were flanked by a BAIC president and a Dongfeng CEO. The reporters wanted to know: How bad is it?

There is one thing about the Chinese car industry that can’t be said often enough: It is learning fast. A year ago, the recurring theme at the Chengdu Global Automotive Forum was brands, brands, brands. This year, nobody talks about new brands anymore. The only one who does is the CEO of Dongfeng, one of China’s largest automakers. He says last year’s brand binge was misguided, “irrational, incompetent, and immature.”

Now that we have the August numbers for the world’s second largest car market, attention turns to the world’s largest, China. The Chinese economy is cooling down. Has it hit car sales? Official numbers won’t be here until next week, but our patent=pending China sales oracle has spoken.

When you want to make and sell cars in India, you don’t need a joint venture partner. Except when you are GM. In the dark days of December 2009, GM cut a deal with Chinese partner SAIC, gave them half of its India business and a golden share in China for much needed cash. SAIC underwrote a $400 million loan when GM was out of money. Now, India is flooded with Chinese cars bearing the Chevrolet badge.

GM is backing out of plans to share the Opel Insignia platform with its partner PSA, says Der Spiegel. It was planned that PSA will build a mid-sized Peugeot and Citroen with next gen Insignia underpinnings. The cars would have been made at Opel’s Rüsselsheim factory. Together with the Opel model, the cars would have filled the available capacity. Scratch that plan. It wasn’t killed because it was a bad idea. It was killed because Buick and especially GM China complained, says the magazine.

A few days ago, an anonymous source told us that Lincolns have been in China for years, and that Ford won’t admit it. Ford said they probably were grey imports. Before the Chengdu Motor Show opened its doors, three Lincolns were seen entering the hall with big grins on their faces, and everybody thought they were brought by Ford. No they were not.

It looks like news of the sacking of Joel Ewanick has not reached China. Or at least not Chengdu.

If you want to make cars in China, you need a joint venture partner. The Chinese joint venture partners have done well. 98 percent of last year’s sales of central government-owned Dongfeng came from joint ventures with Nissan, Honda, and Peugeot. Largest Chinese automaker SAIC derives 60 percent of its sales from made-in-China GM and Volkswagen cars.

That policy “is like opium. Once you’ve had it you will get addicted forever,” said former machinery and industry minister, He Guangyuan.

TTAC’s eulogy on Saab was premature. The Chinese willing, there will be new Saabs in the future. Surprisingly, Swedish defense contractor Saab AB licensed the Saab name to National Electric Vehicle Sweden (NEVS) to be used in future vehicles, a press release of NEVS says. NEVS also “finalized its acquisition of the main assets of Saab Automobile AB, Saab Automobile Powertrain AB and Saab Automobile Tools AB, effective August 31, 2012.”

The ultimatum given to NEVS last week apparently instilled fresh urgency into the parties, and an undisclosed amount changed hands on Friday. For the money, NEVS also received “IP rights for the Saab 9-3, IP rights for the Phoenix platform, tools, the manufacturing plant, and test and laboratory facilities.” There are others who think they also own that Phoenix platform. And the people of Trollhättan better don’t get their hopes up on EV exports to China.

We continue our coverage of the 15th Chengdu Motor Show, brought to you courtesy of China coverer extraordinaire Tycho de Feyter of Carnewschina.

“ The BMW M6 Coupe, decked out in China’s national color, was launched today on the China auto market during the Chengdu Auto Show. There is only one, priced at a rather sick 2.33 million yuan, or 367.000 USD. Not cheap indeed and most of da money goes directly to the Chinese tax office. Big engined cars are taxed up to 40% of value in China. But no matter, the M6 Coupe is worth it, just for that brilliant 4.4 twin-turbo V8 with 550hp and 680nm.“

Of course, there are the female product specialists of the Chengdu Motor Show. They bring them out en masse on the second press day. Warning: If you are offended by insufficiently dressed Asian females with garters, DO NOT click the jump. We promise it won’t be a picture of big – ears.

“A model poses beside a car by Beijing-Hyundai during the 15th Chengdu Motor Show (CDMS) in Chengdu City, southwest China’s Sichuan Province,” writes China’s state-owned Xinhua news agency under a spread that is long on long legged girls and short on cars. Well, we aren’t Xinhua.

Tomorrow, Volkswagen CEO Martin Winterkorn will be at a groundbreaking in the Chinese port city of Tianjin, with German Chancellor Angela Merkel and Chinese dignitaries in attendance. A plant for high tech DSG transmissions is being built there, using technology that is in high demand in China. So high is the demand that joint venture partner FAW has, according to recent media reports, “systematically and repeatedly” stolen designs of important components such as engines and transmissions.

Carnewschina spotted this looooooooooooog Ford F650 streeeeeeeeetch in front of a swank Beijing hotel. This is a good place to spot outrageous cars in China, sometimes, it feels as if they get imported only to be permanently parked in front of a fivestar. As you can see, even the rope wasn’t long enough to completely rope off the monstrosity.

Volvo’s Chinese owners at Geely encounter something in Europe that is unheard of in China: A drop in car sales. Volvo has to cut production in Sweden by about 10 percent, and will let 200-300 contract workers go, Reuters says.

Wolfsburg’s Über-VW, the Phaeton, will be produced in China. At least if the Chinese car site Auto.163 is correct. The news is coming to you via Chinacartimes, which doubts the article’s veracity, not only because the logic behind Auto.163’s reasoning is a bit backwards. Is it really?

Chinacartimes, the website that monitors the Chinese car market, put its finger on a disturbing new trend in China: Cars adorned with Nazi paraphernalia.“Some Chinese like to dress up in period military costumes and stick WW2 era German military insignia all over their motors,” reports Ash Sutcliffe, the owner/operator of the site.