Stefan Jacoby, whose most recent job was CEO of Volvo, has been hired by General Motors to head their international operations. Jacoby replaces Tim Lee who is slated to become chairman of GM China as that unit is split off from the rest of GM International. Lee will continue to head global manufacturing for the Detroit based automaker. The business unit that Jacoby will be running will still have operations in more than 100 markets in Africa, Asia Pacific and the Middle East.

Fuji Heavy Industries, the Subaru’s corporate parent, had a 400% increase in operating profit due to strong U.S. sales for that brand. North American sales for Subaru in its largest market were up 30% to 116,000 unites in the quarter just ended. Fuji’s operating profits were 69.64 billion yen ($739.6 million), up from 17.33 billion yen ($184.05 million) last year, a record for quarterly profits for that company.

The Chinese Ministry of Environmental Protection’s rejection of BMW’s application to expand one of their factories is generating concern that global automaker will find it harder to win approval for their own Chinese projects.

According the the China Automobile Dealers Association, despite efforts by car makers to reduce inventories, Chinese domestic brand dealers still had 49 days worth of supply in June, a figure that would be considered decent in North America, where two months is the norm. But it’s a matter of concern in China, where normal dealer inventories are 24 to 36 days. That figure is an improvement over the 61 days of supply at the end of May.

Visionary Vehicles’ envisioned dealership

Malcolm Bricklin’s company, V Cars (formerly Visionary Vehicles), was awarded $2 million by a Detroit jury in U.S. District court. The lawsuit was filed after Bricklin’s failed effort to set up a joint venture with Chery to produce Chinese made cars for the North American market. The jury ruled that KCA Engineering, a company founded by former Visionary executive Dennis Gore while he was still an employee of Bricklin’s startup, had committed fraud as well as a number of other misdeeds. When Gore was first hired by Visionary, Bricklin said it was because of his expertise with Asian car manufacturers.

Bentley Motors today has confirmed that a fourth model will join the Bentley lineup, this one a SUV, and that it will be built at the British luxury car maker’s Crewe plant starting in 2016 after a £800 million ($1.228 B USD) investment in the facility. The automaker says that over 1,000 new jobs will be created to manufacture the unnamed SUV, which is said to look nothing like the widely criticized EXP 9F concept shown last year. A very basic sketch of the planned vehicle was also released. The company said that Bentley customers have responded “extremely” positively to the idea of a SUV that wears the winged B and claims that the car will be “a thoroughbred Bentley” and have styling that sets “it apart from any other SUV on the road”. Like the company’s Continental models which are related to the Audi A8 and Volkswagen Phaeton, though, the new Bentley SUV will likely share a platform and components with other VAG vehicles.

Bentley press release below.

In the spirit of our many posts ( here, here and here) about the Hongqi Red Flag limousines used by the Communist Party elites in China, and our own Murilee Martin’s interest in limos from the former Soviet Bloc ( here), we bring you the winner of a design sponsored by Russia’s Maruissia Motors and the CarDesign.ru website.

During a visit to USA Today‘s editorial offices, CEO Dan Akerson of General Motors clarified the question of a rear wheel drive Cadillac flagship. Akerson confirmed that Cadillac is indeed working on a RWD based model that will likely slot in above Cadillac’s current top of the line XTS sedan and probably go on sale in 2015.

Though handicapped by continued sliding sales in the overall European market, GM announced today that global sales for the first 6 months of 2013 were up 4% over the comparable period last year.

Renault hopes to get going on its foray into China, and to sign a joint venture agreement with Dongfeng, Reuters says. “We are waiting for an official invitation from the Chinese industry ministry,” Reuters heard from an insider. Rumors of an impending JV kept Chinese media guessing and speculating for years.

GM’s ailing Opel hopes to enter the American and Chinese markets, and through that for a speedier recuperation. It wants to do that under cover: Made in Europe Opels, sold abroad as Buicks. This according to a report in Opel’s hometown paper Mainzer Allgemeine Zeitung.

Japanese carmakers are not out of the woods yet in China, and might be in the thick of things again if matters flare up. The other day, 30 right wing Japanese activists had to be kept away by Japanese Coast Guard, while the US and Japan held war games in preparations for a possible Chinese invasion of the Senkaku/Diaoyu Islands.

For many years, U.S. automakers warned against the red menace of millions of cheap Chinese cars flooding a helpless American market. It never happened. What finally got the Chinese export machine going a little bit was GM, which started shipping Made-in-China Chevrolet Sails. The Sails convinced buyers around the world that those Chinese cars aren’t as bad as thought, and now China exports around 5 percent of its production. GM expects to export between 100,000 to 130,000 vehicles from China this year, and wants to more than double the number by 2015.

Ford chief Alan Mulally today joined the ranks of people calling for increased Chinese car exports. He’s ready to export Fords from China.

China’s car restrictions are spreading to the provinces. I always thought Beijing is one of China’s most polluted cities, but no, says the Wall Street Journal, Shijiazhuang is. And it is putting a stop to willy-nilly car buying.

When GM announced last week t hat it wants to increase Cadillac’s share of the global luxury market from 8.5 percent now to 9 percent by 2016, we opined that from “looking at the plan, GM appears to be betting big on the success of its new Chinese assembly plant.” It turns out that Cadillac is betting big on China. Cadillac “aims to quadruple its share of China’s luxury auto market to 10 percent by 2020,” Reuters reports today.

By 2020, GM is “targeting about 250,000 luxury car sales in China,” says Reuters. It will be rough.

Everybody was betting big on electric cars in China. Everybody thought China will be the world’s biggest market for EVs. It was a bluff. At the Shanghai Auto Show in April, the smart money suddenly was on hybrids. Insiders expect that the Chinese government will extend bigger subsidies to buyers of hybrid cars, after the big electric car revolution in China turned out to be a bust. This is good for Japanese carmakers – for some at least.

With all the troubles in Europe, one would expect Volkswagen to hurt, but the Wolfsburg company is doing just fine, thank you. For the first five months, Volkswagen Group sales are up 5.9 percent to 3.87 million units. In May, global deliveries rose 6.9 percent to 816,500.

In China, Volkswagen could edge out perennial numbers leader GM.

GM appears to be less convinced of the second coming of Cadillac than many of its fans. In the Global Business Conference Call, Bob Ferguson, VP of Global Cadillac, did set very cautious goals for Cadillac.

If and when China’s car export machine ever gets going in earnest, the city of Chongqing in Western China could become one of its main export hubs. Chongqing is not a sea port. It is the far eastern terminus of a 7,000 mile railroad line that connects Chongqing with Duisburg in Germany.

The Chinese car market keeps plodding along. Total vehicle sales were 1,761,500 in May, up 9.81 percent. Passenger car sales were up 9.04 percent to 1,419,700 units. Commercial sales were up 12.88 percent to 364,600 units , the Chinese auto manufacturer association CAAM says.

What do People’s Daily, the voice of China’s Communist Party, and Jalopnik have in common? More than you would imagine. Just as a for instance, both are masters of the fine art of pecksniffian outrage. Both are experts when it comes to condemning loose morals, as long as the condemnation can be illustrated with enough graphic, click-generating pictures that show said loose morals in practice. Sanctimonious click-whoring knows no boundaries, and it transcends ideologies: Gawker and CCCP, unite!

A few days ago, Peoples Daily ran an 11 high resolution picture gallery, ostensibly condemning the fact that

“in addition to taking off clothes, some commercial promotions have chosen a more disgusting way to attract public attention. From sexy dress to body painting, public’s moral bottom line has been challenged again and again.”

(Jalopnik, aware of its TL;NR clientele, would have said it with fewer words, and with at least as many pictures.)

With Volvo in Chinese hands, with a new Volvo plant in Chengdu “more or less completed,” and a second assembly plant in Daqing to come online in late 2014, there have been reports in Europe that Volvos may soon come from China instead from Sweden. Not true, Volvo’s production chief Lars Wrebo told Automobilwoche [sub]. However, “other markets” than Europe could get the Made-in-China Volvos.

Fiat might be looking for another Chinese joint venture partner to manufacture Jeeps, Fiat CEo Sergio Marchionne told Reuters. “In China we have a good partner, and we have the possibility to use a second one to develop Jeep,” Marchionne said.

Japanese automakers are a little less worried when they look westwards to China, as their sales appear to slowly recover from a severe drumming during the island crisis.

GM’s sales in GM’s and the world’s largest auto market China were up 9.4 percent in May, the company says. In April, sales had been up 15.3 percent.

A few weeks ago, GM’s spokesman Greg Martin said:

“There will be no exports of these cars built in China. Cars that are built in China are sold in China.”

No true, said GM China head Bob Socia to Reuters today, reiterating former statements that GM’s Chinese export machine is in full swing: “GM plans to export as many as 130,000 China-made vehicles this year, up from 77,000 vehicles in 2012, driven by demand for its Chevrolet Sail in other emerging markets,” Reuters writes.

Volvo’s global sales are on a downward trajectory. The Geely-owned Swedish marker saw its 2012 global sales drop 6%. In the first four months of the year, sales were down 6.4 percent. Two new factories in China are supposed to bring the turn-around, a feature in Reuters says.

The most famous Holden product to ever wear a Buick badge is the Chinese-market Park Avenue, a car that Buick dealers inexplicably rejected. But back in the mid-1990s, GM apparently planned to use the VT Commodore architecture as the basis for a new Buick sedan, previewed in the XP2000 concept above.

Export, ho!

Can’t blame them for having a lack of ambitions: Great Wall’s Chairman and Chinese billionaire Wei Jianjun “has set a target for Great Wall’s Haval marque to surpass Chrysler Group LLC’s Jeep and become the world’s best selling SUV-dedicated brand in three to four years,” Bloomberg writes.

After having been trotted out at car show after car show, and after having been relentlessly covered by occasional TTAC contributor Tycho de Feyter of Carnewschina, China’s “Red Flag” Hongqi H7 Sedan is finally going “on sale to the public tomorrow after a $300 million overhaul, pitting the symbol of Communist privilege against Volkswagen AG’s Audi for China’s elite,” reports Bloomberg from China, where the wire was blocked last year.

When former TTAC Editor-in-Chief and now Editor emeritus Edward “Op-Ed” Niedermeyer wrote an op-ed in the Wall Street Journal and warned that GM’s center of gravity shifts more and more to China, GM’s retired multi-role fighter Bob Lutz reamed Ed via Fortune. Now, Bob Lutz himself appears to be an accessory in a deal that transfers U.S. government-financed technology to China for pennies on the dollar. Says Deepa Seetharaman, in-house alternative drivetrain expert at the Reuters Detroit office, in her in-depth article:

By the end of 2009, China was the world’s largest auto market – something we saw coming nearly a year in advance. When the torrid double digit growth got stuck two years later, a lot of people called a bubble. However, the bubble did not burst. Now, analysts predict a return of the double digit growth.

The Volkswagen CrossBlue and CrossBlue Coupe will be made in China by the Shanghai-Volkswagen joint venture, Carnewschina reports today. According to the report, the car will be built when Volkswagen’s new factory will open in Changsha in China’s Hunan Province.

Scaling back from its former intentions of becoming “China’s No. 1 automaker by 2015 and the world’s leading car maker by 2025,” China’s BYD now wants to become a world-class fish in Hong Kong’s taxi pond.

It’s a thing in China: You don’t get the car service you expect, and instead of waiting for the J.D. Power questionnaire, you hire thugs with sledgehammers. Not to beat the dealer to pulp. No, to smash your car in front of a lot of cameras. It so recently happened to a Maserati Quattroporte. According to Carnewschina, the owner of the car (starting at 423,000 USD in China) disagreed with the dealer over a $390 repair. After a flurry of letters, the car was smashed.

China’s CAAM released April sales today, and as indicated by GM’s good April showing, results are good. Sales of all automobiles are up 13.38 percent to 1,841,700 in April. Treat other reports with caution, many are the usual confusion of passenger vehicles and all cars. In China, there is a huge difference.

Found around the corner from Toyota

It’s not quite the all clear, but Japanese automakers (and their government-owned Chinese joint-venture partners) breathe a bit easier after receiving April sales numbers for China. Numbers had been down severely after last September’s anti-Japan riots. Latest “figures suggest that the firms are closer to recovering their lost sales,” says The Nikkei [sub].

Forward contracts on popcorn skyrocketed at the Chicago Mercantile Exchange as former T TAC Chief Editor Ed Niedermeyer drew massive fire for his recent op-ed in the Wall Street Journal. On Sunday, GM’s PR Chief Selim Bingo blasted Niedermeyer for “stepping through the looking glass” and for “carelessly comparing GM’s spending in China to that in the U.S.”

A day later, Bob Lutz joined the fray.

Chevy Cruze in Beijing

While GM’s head-flack Selim Bingol was swearing at Ed Niedermeyer, and that it’s not true that GM is sending its money to China, GM’s Chinese operation again outsold America. GM China sold 261,870 units in April, up 15.3%. In the U.S., GM sold 237,646 in April. In the first four months of the year, GM sold 821,707 vehicles stateside. Meanwhile in China, it sold 1,078,243.

A terrorist, about to enter the RenCen

Even after Ed Niedermeyer put on coat and tie as proper attire for our Via Dolorosa to GM’s towers, GM’s Über-PR Chief Selim Bingol did not like him. “We don’t negotiate with terrorists,” said Bingol, frustrating my naive attempts at fence-mending. Instead of being sent to Gitmo, one of the terrorists writes frequent op-ed pieces at the Wall Street Journal, causing Bingol to go on the counter-attack.

Daimler’s new China chief Hubertus Troska committed a possibly deadly mistake. According to Germany’s Automobilwoche [sub], Troska and his lieutenant Nicholas Speeks “accuse their Chinese dealers of laziness and incompetence.”

Thousands of Chinese have to say zai jian (good bye) to a cherished symbol of wealth and power: Their white military license plate. “China’s new leadership is seeking to dismantle a system of privilege which has allowed the drivers of military vehicles to do as they please on the road,” writes Reuters. “On Sunday the Chinese military began replacing license plates on its cars and trucks to crack down on legions of vehicles, many of them plush luxury brands, which routinely break traffic laws and fill up with free gas.”

Don’t think these “military vehicles” were all drab and green.

News of GM potentially exporting cars from China to the United States in the near future has some wondering if the General will be the first OEM to sell Chinese made cars in the United States. One can have a diverse array of opinions on the political, social and economic impact of such a move, but from a product standpoint, it may not be such a bad thing.

American consumers may have been robbed of a chance to buy the Mahindra pickup, but how about one from Great Wall?

Meet Brad, Sheena, and Nacho! They are in “the midst of a life-defining campaign to travel around the world”. But they’re afraid to enter Pakistan. Apparently they thought they could travel around the world without visiting any scary places, presumably because their parents didn’t buy them any Jules Verne books. They’d rather drive through China and maybe hang with our Editor-in-chief a little bit, who knows. The cost for that little unplanned detour is nearly twenty thousand dollars. That’s where you come in — helping them make their life-defining campaign as safe and easy as possible.

What? You’re not eager to do this?

The 2014 Cherokee could be the first Jeep produced in China in nearly 6 years. Jeep CEO Mike Manley said that the Cherokee was an “obvious choice” for local production, as Jeep looks to expand its customer base in China.

And here the part you have been waiting for (especially those of our readers who suffer from Yellow Fever): This year’s round-up of the show’s product specialists. After last year’s excesses at Chinese auto shows, the calls for a more family-oriented posture show disappointing results: This year, the racy part is mostly left to the choice of cars on display.

BMW Mini’s former chief designer Gert Hildebrand and Volkswagen’s former North America vice chief Volker Steinwascher enjoyed the adolations of the adoring masses when they unveiled their new Qoros brand at the Shanghai Auto Show.

FAW evokes the bad old times when China’s leaders, tired of the Long March, ordered hand-made parade limousines. The originals had been chronicled by Tycho de Feyter. Now they are re-lived as the Red Flag L5, L7, and L9.

In the past, Toyota had tried to resist the urges of the Chinese government to establish new joint-venture brands. The company also had been highly skeptical of the viability of the electric vehicle. All doubts have been tossed over board. Toyota launched two new brands and two new EVs in China.

BYD, the company we visited in yesterday’s story might ditch conventional gasoline-powered cars and focus on electrics, Reuters says in an exclusive story,

At the Shanghai Auto Show, which opens to the public on April 21, and to tens of thousands of alleged members of the media the day before, the child of one of the auto industry’s oddest couples will be shown – at least in prototype form. It is the Denza EV, the product of a mésalliance between the world’s oldest and proudest automaker, Daimler, and a company that entered the annals of contemporary automotive history as the most brazen rip-off artist.

Of course we are talking of BYD, the Shenzhen, China, based maker of half the world’s cellphone batteries and a dwindling number of cars. A while ago, I visited an intrepid team of German engineers, shacked up at BYD, to jointly develop an electric car. They were friendly, hospitable, and as forthcoming as possible under the strange circumstances. For months, I could not bring it over me to put my fellow countrymen and expats in the dim light this story would project. Their job is tough enough. But in the interest of timeliness and journalistic duty, here it goes.

Despite strong pushes from the government and auto makers, hybrid and plug-in cars aren’t gaining much ground in China. A report by La Tribune pegs registrations for these vehicles at a mere 0.17 percent of all registrations in Q1 2013.

Ford has big plans for the Chinese market. It wants to double its share to 6 percent of the Chinese passenger vehicle market over the next three years, Asia chief Dave Schoch told Reuters reporter Bernie Woodall in Shanghai.

More than 100 senior managers of China’s FAW have been questioned and some have been detained over and unfolding scandal that involves more than 10 billion yuan ($1.61 billion) in assets that went missing.

Well, we were wrong. Turns out the 1.5L Ecoboost engine is a four-cylinder engine, but the intent remains the same. According to Reuters, it offers a way for Chinese buyers of the Ford Mondeo to get a tax break due to displacement.