In the most recent installments of the never-ending rumors on Lincoln’s long march to China, Chinese media claimed that the Lincolns would be built at a new Ford plant in Hangzhou. Dearborn denied everything. Yesterday , Ford confirmed for the first time that Lincoln would be coming to China. Today, Ford broke ground at the Hangzhou plant, while someone says that Lincoln had been in China on the say, and that it did not work out.

There have been many rumors of an impending launch of the Lincoln brand in China, and so far, they had been rumors. Now, the rumor becomes reality. Ford will launch its Lincoln brand in China within two years, says Reuters. Ford is not banking on big iron alone. Ford, says Reuters, “is also developing a low-cost car under the mainstream brand to appeal to more price-sensitive consumers in the fast-growing cities in western China. This vehicle will compete with GM’s Sail car.”

Part of Saab’s presumptive “quirky” image is a serious lack of funds. Saab “bled red like a stuck pig” as Car & Driver so delicately put it. Saab was sold when GM ran out of money. Victor Muller didn’t have the funds, and Saab’s future owner, Made-in-China Swede Jiang Dalong also seems to suffer the cash flow problem that is so familiar to all who touch Saab. The presumptive buyer has received an ultimatum by the bankruptcy administrators: Pay in full until Friday, or the deal is off.

Divorces can be messy and expensive (ask me how I know) and take longer than thought (ask Frau Schmitto-san how she knows). Or ask Ford and Mazda. When Ford’s love affair with Mazda unraveled because Ford needed the cash, there was the case of their Chinese three-way joint venture with Changan. Two years ago, a deal was struck. It supposedly received the all-important Chinese government approval. Supposedly. Today, the threesome still isn’t dissolved. But it won’t be much longer.

Victor Muller managed to sell out to China after all. Today it was announced (full press release here) that Muller’s Spyker and former Saab suitor Youngman will form two companies. Spyker calls them “joint ventures,” but they look more like companies owned mostly by Youngman, with Spyker holding a token share.

The silly season continues unabated. A video of a wind-powered car, invented by a Chinese farmer suddenly goes demi-viral. “When the blue hornet hits 40 miles an hour, a turbine on its nose kicks in and starts to generate electricity,” it says in the video. “It’s pollution-free horsepower.”

It’s not quite the bursting bubble that had been prognosticated by many through the last decade, but there is no doubt that “the world’s largest auto market sputters in a slowing economy,” as Reuters writes.

“Be careful what you wish for” is not the Chinese proverb it often is made up to be, but it applies: The red menace of Chinese car exports, longer predicted than the bursting bubble and likewise for long a chimera, finally appears to get going. The sputtering Chinese home market provides the push to find better fortunes abroad, but General Motors broke the dam that held Chinese exports back.

BYD’s F3 received worldwide acclaim for being a Corolla ripoff. When the new F3 was announced at the Beijing Auto Show, Carnewschina wrote: “The new F3 is design-wise slightly better than the old BYD F3 which was a copy of the old Toyota Corolla, the new F3 is a copy of the new Corolla but slightly less obvious. For BYD, we call that a huge improvement!” Come on, Carnewschina, the new BYD F3 has something the Corolla does not have: A remote control. Not a remote control for doors. You can drive the car remotely like a toy.

Black taxis are a menace, in China and elsewhere. The criminal taxi element and Chinese rip-off artists joined forces and created a whole fleet of fake taxis, Carnewschina reports.

Brazil was once VW’s home away from home. Here, it felt loved and welcome. It controlled 50 percent of the market. Time passed. An Italian upstart arrived and eventually robbed it of first place by being more agile. VW meanwhile grew bigger appetites and found a new home in China. Brazil, the ex-favorite, the dark, mysterious, tropical, big bosomed former love affair relies on the crumbs that fall off the table of the slanted-eye enchantress.

Some thirty years later, China will finally get a new Santana. Here it is, brought to you by our friends at Carnewschina. In case it looks familiar, Carnewschina tells us that the new Santana is basically the new Jetta. The current models, holdovers from the stone age, finally can go to the junkyard of history.

U.S. Senators long have warned of an exodus of American know-how to China. Last year, Michigan Senators Debbie Stabenow and Carl Levin complained to United States Trade Representative Ron Kirk about another attempt by China ”to illegally gain an unfair advantage over the U.S. automobile industry that will cost our country jobs. The United States must respond strongly to stand up for American businesses and working families.”

A year later, the exodus is in full swing, and it starts to hurt. This time, it pains automakers to see how Chinese companies are getting their hands on taxpayer-funded secrets.

In what just-auto calls “ a hammer-blow to the proposed takeover,” Scania told Saab-buyer NEVS that it won’t allow the use of Saab’s heraldic animal, the griffin. Scania (owned by Volkswagen) says no because the buyers are Chinese.

Tycho of Beijing’s Carnewschina is onto a rapidly trending phenomenon among the big boys of China: Heavy trucks with convertible tops. It appears to be an aftermarket mod that is not always strictly voluntary: Trucks sometimes roll. Due to the amazing build quality of Chinese trucks and the help of a few hundred migrant workers, a rolled truck quickly is back on its many wheels. With parts essential for a repair safely secured, the chop-top truck is back on its merry way.

Channel stuffing is taking its toll on China. Customers fight back against “increased sales pressure and an insufficient supply of experienced staff, driven by a disconnect between the dealership network expansion and the market slowdown, “ and punish car manufacturers where it hurts second most: On the J.D.Power Sales Satisfaction Survey. The survey, published today, notices “a notable deterioration in overall sales satisfaction among new-vehicle owners in China.”

Remember the DIY Lamborghini? In a garage somewhere in the less picturesque parts of Beijing, a man built a Lamborghini Diablo replica, fiberglass on hand-welded frame. No industrious Chinese will allow something like that to be forgotten as a one-off lunatic hobby project. Half a year later …

China’s auto market keeps puttering along. In July, total automobile sales in China rose 8.2 percent to 1.38 million, says the China Association of Automobile Manufacturers (CAAM). For the year, the market has gone basically sideways with a slight 3.6 percent upward bias. The Chinese bubble refuses to burst, likewise, the market does not want to go back to its red-hot former glory.

Troubled battery maker A123 is getting another lifeline. This time, from China. Wanxiang Group will invest as much as $450 million in the company, says Reuters. Wanxiang, one of the largest Chinese auto component makers. A123 will soon be Chinese.

China is the world’s largest market for heavy trucks. People who are suicidal enough to have personal experience with Chinese highways will readily agree. Nearly 1 million units of the heavy (and usually blue) units were sold last year, more than in North America, Europe and South America combined. Ford wants a chunk of this interesting market.

GM’s U.S. sales get the headlines, GM’s volume is a Chinese import: In the first seven months of the year, GM sold 1.6 million cars in China, versus 1.5 million back home. GM’s Chinese sales data deserve more than a cursory look. Let’s look.

China’s most popular color

Forget the ATS. Now you can show that you are fiscally prudent and still project the Cadillac look. All you need is a ticket to China and $6,700 in pocket money. This will buy you the Guizhou Hangtian Chenggong (never mind) GHT6400. Says Carnewschina (buy Tycho a beer as a thank you for finding this Asian beauty):

Forget Mao suits: “Chinese youngsters know Justin Bieber, hamburgers and Middle East warfare,” reports the culturally clued-in Carnewschina. “They also know this thing called ‘Bikini Car Wash’, many Chinese websites are full with big-breasted American babes bikini washing big engined American cars.”

A car wash in Shanghai made it reality. Except, well, the babes are Chinese.

What do you do if you lose market share and can’t stand it anymore? You deliver what the market wants. Hyundai is trying to make up for losses in China with a (so far) China only car that slot between the Elantra and the Sonata, says Reuters.

With China being the world’s largest car market, and the largest market of many of our carmakers, getting good and timely data is essential for stock analysts and journalists alike. Bloomberg has an exasperated story that cries about the absolute mess in China when it comes to hard data. It also describes the great lengths analysts go to when gauging Chinese car sales. No wonder the analyst reports are often messier than even the messiest Chinese data:

A few months ago, Volkswagen extended its joint venture contract with Chinese partner FAW for another 25 years, with appropriate pomp and circumstance: Chinese Prime Minister Wen Jiabao and German Chancellor Angela Merkel witnessed the signature. Now, Volkswagen takes the unusual step of going semi-public with the theft of intellectual property. According to reports in German media, FAW has “systematically and repeatedly” stolen designs of important components such as engines and transmissions. Volkswagen’s hands are tied.

The New York Times carries a long story today that chronicles changes in the Chinese car market. Written by Reuters automotive specialists Norihiko Shirouzu and Fang Yan, it is a story of China where you now get a discount and instant delivery for a BMW instead of having the option to pay 20 percent more, or wait a few month for delivery.

The car market in China, says the article, is becoming more like that in the United States, where most of the money is made in financing, insurance and maintenance. Indeed it is.

Tycho de Feyter, who blogs about Chinese cars in Carnewschina.com, is very much concerned about the well-being of his Chinese compatriots. So much, that he tracks the overlo9ading of vehicles. This “slightly overloaded truck” was seen on China’s tropical island province Hainan. The truck carries big sacks of styrofoam to a recycling facility. Not much weight, but the truck could easily be blown away.

Members of the Chinese car industry are busy hiring foreign engineers and designers. That trend apparently has not reached China’s Shaanxi Province yet. The province is home to state-owned conglomerate Shaanxi Victory. It’s automotive4 division made unremarkable trucks and vans. Very few knew of this venture. Now, Shaanxi is famous all the way to Detroit. The company copied the Cadillac Escalade as the master design for its new S102.

General Motors pensioners should not worry about their underfunded pension plan. Its assets will be in safe hands. Those of the Chinese government. The Chinese government has agreed to buy large chunks of it, says Financial Times. According to the paper, China’s “State Administration of Foreign Exchange, which manages China’s more than $3 trillion in foreign exchange reserves, will pay $1.5bn-$2bn for GM’s positions in blue chip private equity funds.”

From the Only In China blotter: A customer who did not receive the service he expected for his Cayenne used sex to drive home his point in a photogenic way. A Chinese man threw body-painted girls into the battle with his Porsche dealership. Do not click if arty camel toes offend you.

I came across this vehicle in a parking lot in Beijing. It is a Ford Tempo GL. The Tempo was made in the US from 1984 until 1994, the white car in the parking lot was a second generation Tempo, which would put it in the 1988 the 1994 timeframe. How did it get to China? Ford never officially exported the Tempo to China. It is not the first Tempo I had seen in Beijing, I have seen many over the years. One could be a diplomat’s car, two also, but ten? There had to more to this Tempo-invasion of China, and there is…

Growth of the formerly red-hot Chinese auto market is as slow as traffic during the Beijing rush hour. At least, there still is some growth. Sales of all automobiles in China are up 2.9 percent for the first half of the year to 9.59 million vehicles. Sales in June were up 9 percent. This according to data released by the by the China Association of Automobile Manufacturers (CAAM).

Our patent-pending oracle for the Chinese market has spoken and predicts slight June gains for the world’s largest car market. GM China did this by announcing a 10.1 percent gain on 213,495 units sold in June.

The United States will report China to the WTO tomorrow, Reuters says. The contention: China’s decision to impose extra duties on more than $3 billion worth of cars imported from the U.S. According to Reuters, “the complaint comes as President Barack Obama campaigns in Ohio, where auto plants have been affected by the duties.” The Prez goes on a “Betting on America” bus tour.

From London’s Telegraph to Fox News, from Autoblog to Autoguide, gullible media predicted impending doom for foreign carmakers in China. Last February, it was announced that the Chinese government will henceforth only buy Chinese cars. This was seen as a blow especially to Audi. China’s Global Times calls an Audi A6 “Chinese officialdom’s vehicle of choice,” and it was predicted that the officialdom will henceforth have to make do with Roewes and Geelys. Why am I reminded of that story?

Audi’s sales in China are up 37.8 percent for the first six months of the year.

The sprawling city Guangzhou in southern China sprung a nasty surprise on its (pop. 12.7 million citizens: it drastically slashed the number of new cars being registered. Observers predict that this move could have far-reaching consequences on the Chinese car market.

“At the Nürburgring, there is always a car that passes me. It is a BMW.“ So said Toyota Chairman Akio Toyoda today as he announced a deepening of the relationships between Toyota, and the company that makes those cars that pass Toyoda on the Ring. The surprising part: BMW and Toyota will jointly “develop architecture and components for a future sports vehicle.”

For two years, the world was worried about a possible rare earth shock, triggered by the crafty Chinese. As they are withholding the dirt that is essential for magnets, motors, and generators, an electrified world will go on its knees – or so the theory went.

The opposite happened. Right when everybody was ready to blame the high prices of EVs and hybrids on the Chinese, prices of rare earths crashed. Small miners went belly-up. And now, shockers of shockers, The Nikkei [sub] says that Japan found 200 years’ worth of rare earth near an island. Even bigger shocker: The island is not on the China side of Japan, it’s in the Pacific.

Man on a mission: Tycho at the Beijing Auto Show

Yesterday, we reported about Carbuzz purloining content from Carnewschina, and that it is continuing to do so despite vows of repentance. This morning, Carnewschina proprietor Tycho de Feyter opened his laptop in Beijing in order to visit vengeance on the presumptive “leader in car news and industry information.” He keyed in the Carbuzz URL and looked at an empty screen.

“Carbuzz.com is completely down since this morning (Chinese time),” de Feyter telegraphed from Beijing. “Maybe the owners got word of the mess? I hope they stay down, but sadly I can’t do my other articles on these bastards anymore…”

It turns out that Tycho was mistaken. Instead of taking the site down, Carbuzz erected a firewall that keeps out China.

Italy’s Fiat, late to the Chinese party, finally opened its first plant in China today. Reuters reports that “the plant, based in Hunan province, is the latest development in a 5 billion yuan ($786.73 million) joint-venture between Fiat and GAC, China’s sixth largest auto manufacturer.” The plant also should help improving China’s dismal car export statistics.

Popular wisdom says that China is a bunch of thieves with utter disregard for intellectual property. Any good, or even half good idea gets immediately stolen in China. In a man bites dog twist on the story, an American website is being accused of serial thievery of made-in-China intellectual property. According to Beijing-based Carnewschina, the Rockville, MD, site Carbuzz.com “systematically steals my content for their China-tag. CarBuzz.com steals my pictures, my information, but does not link back to me.”

While other carmakers are treading water or worse, BMW’s global sales were up 9.1 percent for the first five months of the year, mostly on strong gains in China. That party is about to end, claims Citi Investment Research and downgraded BMW AG from “buy” to “neutral,” Reuters reports.

In the euphemistic world of stock analysts, a “neutral” usually means a sell.

Honda is mining for rare earth in unusual places: In cars.

Honda has been extracting rare earth metals from used nickel-metal hydride batteries since April. Today, the company announced it will begin reusing the extracted metals before the end of 2012.

Carnewschina spotted this Panther with a – shall we say – unique paint scheme in Shanghai. Black was not enough for this Town Car. Gold was not enough for this Town Car. It needed to be orange-gold on black. Use eye protection, and don’t stare at the picture for too long.

The previous BYD F3 was known as a more than blatant copy of the Toyota Corolla. Many buyers pay a small extra fee to have (fake) Toyota badges affixed, making the F3 nearly indistinguishable from the real thing. The next generation BYD F3 wants to be known for groundbreaking innovation: The car will be remote controlled.

A hitherto unknown Chinese business man who leads a shadowy “consortium” buys the assets of Saab. The media eats it up. Dalong “Kai Johan” Jiang takes the microphone and says what everybody wants to hear: “Electric cars powered by green electricity is the future and electric cars will be built in Trollhättan.” Jiang says there is a huge market for these made-in-Trollhättan EVs, waiting in China.

Nobody dares to say that it does not make sense at all. We say it.

“An almost 100% perfect copy of the Volkswagen Amarok, which is actually and only made in Argentina” has been spotted in China by Carnewschina. The Hengtian T3 will slot above the Hengtian T1. That one drew its design cues from Chevy trucks, now it’s Volkswagen’s turn to inspire.

To the people in the room the buyer of Saab the remaining assets of bankrupt Saab was known before the press conference started today at 1pm at the Saab showroom in Trollhättan. When Dalong “Kai Johan” Jiang takes a seat in the audience, and is joined by his Chairman Karl-Erling Trogen, it is clear what bankruptcy administrator Hans Bergqvist will announce minutes later:

“The buyer is the National Electric Vehicle AB.”

Jiang takes the microphone. He knows his audience and says what everybody wants to hear: “Electric cars powered by green electricity is the future and electric cars will be built in Trollhättan.”

Lotus may not have been sold to the Chinese (yet) but someone else was. And they’ve been making cars for over a year. Supposedly, they’re not bad to drive either.

TTAC’s patent-pending China sales oracle is back to old form again. A few days ago, GM China reported a May sales increase of 21.3 percent. Today, China’s Association of Automobile Manufacturers (CAAM) announced its official numbers, and sales are reported to be up 22.6 percent in May.

Even after its death, Saab is still good for some excitement. Today, the Wall Street Journal breathlessly reported that an “electric-vehicle consortium buys Saab assets.” When you click on the link in Google, you get your assets handed to you via a rude 404: Page not found. The same is happening with many sites that reported a sale of Saab’s assets to a company called National Electric Vehicle Sweden (NEVS), which is as Swedish as chopsticks.

What is behind those missing links? Who is the nice man who goes thumbs up next to China Communist Party Polit Bureau member Li Keqiang? And why has he allegedly just bought Saab?

China’s car dealers’ “backs are broken,” Luo Lei, deputy secretary general of the C hina Automobile Dealers Association told Bloomberg. “Dealers can’t shoulder the burden anymore.” They are overstuffed with cars. Average inventory at Chinese dealerships stands at more than two months of sales at the end of May up from a 45 day inventory by the end of April. It could be worse: In America, inventories are way ahead of China.

Dongfeng-Nissan President Kimiyasu Nakamura watches Yao Bin, Huang Kai Fong, and Ye Lei

Yesterday, Nissan’s affable China president Kimiyasu Nakamura brought a Chinese delegation home to Yokohama, to explain to a largely skeptical Japanese press why Nissan had started a new brand in China with joint venture partner Dongfeng. The brand goes by the name of Venucia. Nissan is not the only one doing that. Nearly every foreign joint venture partner in China either has established a Chinese brand in China, or is intensively thinking about it.

Already pronounced shot by a bursting bubble, the Chinese new car market most likely will be up when the May numbers will be announced later in the month. How do we know? By looking at GM’s China May sales results that were announced today. When we do that, we will do something that TTAC allegedly is incapable of: We will salute and applaud GM. Three times.

A Ferrari 458, followed by a Lamborghini Aventador were on an outing in Shanghai when a local horse riding club crossed their path. The Ferrari driver demanded the right of way with the tool commonly used in China, the horn.

The horse next to the Ferrari did what many Chinese would like to do: The horse kicked the 458 into the shins, hard.

The fact (if you can call it that) that China’s government will bring back a Cash-for-clunkers program caused headlines around the world. It also spurred news writers to new peaks of creativity. At the same time, Chinese farmers could protect GM’s honor. Let’s investigate.

We’re often accused of having an anti-GM bias here at TTAC, but this article will reveal another prejudice, considered ugly by some, but one that I firmly believe in.

Pictures of a burning BYD e6 sent the already beaten down BYD stock on a nose-dive yesterday. The e6 is one of the rare BYD electric cars, used in a taxi test in the Chinese city of Shenzhen. A Nissan GT-R had crashed into two taxis, one a conventional Santana, the other an electric e6. The e6 immediately did burst into flames. Two female passengers and the driver were killed.

A week after Nissan’s Infiniti finally, officially moved into its new digs in Hong Kong’s Citibank Tower, the company finally, officially confirmed that Infiniti cars will be produced in China starting in 2014. If you think you heard that before, you did. Nissan’s worst kept secret had kept the Chinese rumor mill in motion for more than a year.

A (hecho en Mexico) Cadillac SRX costs between $67,700 and $91,000 once it’s sold in China. It doubles its price compared to the U.S. because of a monster tariff in China. Soon, there will be a more affordable version. A much, much, much more affordable version. Except that it won’t be from GM.