The rest of the world is becoming just as crossover obsessed as North America, and in the premium segment, a crossover is an absolute must for any car maker. PSA’s most recent round of efforts have been pretty poor, using the Mitsubishi Outlander as a starting point, but for their upscale DS brand, PSA is starting from scratch.

Auto sales in China rose 10.88 percent in March to 2,035,100 units, data of the China Association of Automobile Manufacturers show. Analysts expected a more robust rise after sales grew 15 percent in the January-February period.

Chinese state TV claims that the air in German cars is dangerous to people’s health. In a report, the station said that insulating materials used in cars made by Audi, BMW and Daimler create noxious odors, Der Spiegel reports.

Geely-owned Volvo has uncovered what Reuters calls “widespread cheating by its car dealers in China.” Dealers inflated sales to win cash rebates for meeting targets. An investigation found thousands of fake sales booked in 2011. In order to make books balance, 2012 sales were under reported.

They may not have western-style unions in China, but workers sure do strike. Workers at Honda’s transmission plant in Foshan, Guangdong Province, walked off the job on Monday after their pay increases weren’t as large as they had hoped.

Chinese carmakers are worried about new fuel economy standards handed down by the Chinese government today. The rules are intended to lower average fuel consumption to 6.9 liters per 100 kilometers by 2015 and then to 5.0 liters by 2020, Reuters says.

Fong’s Taxi looked just like this.

The container yard stretched out into the distance as far as the eye could see. Next to the ship, three giant cranes worked at a feverish pace, plucking the 40 foot long containers from their racks, lifting them high into the air and depositing them onto one of an endless stream of flat-bed trucks below at a rate of around one every minute. The loaded trucks raced their engines and sped off into the yard where they were met by other machines, immense forklifts, that removed the containers and piled them in stacks six or seven units high. The stacks, numbering in the tens of thousands, merged with one another to form great flat topped mesas of multicolored steel cut by valleys of cement and the industrial landscape rivaled anything that nature could create with stone and water. It was a scene I had looked upon many times and it could have been a container port anywhere in the world. Only the stench of told me it was Kaohsiung Taiwan.

Fisker is still likely to be rescued by a Chinese savior, but it won’t be Geely. Reuters is reporting that Fisker’s outstanding obligations to the Department of Energy have scared off the Chinese auto maker, leaving Dongfeng as the sole suitor for the beleagured EV maker.

No overcapacity problems at Volkswagen – at least not globally, and especially not in China. “Within the coming years, we will build at least ten more plants – seven of those in China,” Volkswagen chief Martin Winterkorn said today in Wolfsburg, with Automobilwoche taking notes. By 2016, Volkswagen will have capacity for more than four million units in China, that’s about half of VW’s current worldwide output.

Attentive readers of TTAC have known it since the Beijing Auto Show last year that Toyota will launch a separate brand for its “new energy” (read plug-in hybrid and EV) that are produced in China. A not quite officially announced, but de facto policy wants it that way. Now we have the brand. It’s called Ranz.

A fiery red car, seen in Beijing. An aggressive bumper sticker, showing the owner is very angry with Japan. Or, judging from the sticker, maybe it’s hot love? It’s all about those islands, which happen to sit on top of oil, and straight in one of the busiest shipping lanes in the world. What is this motherland-loving man driving?

Audi showed its A3 Sedan in concept form at the 2011 Geneva Auto Show. The real thing will be shown in Audi’s most important market, at the Shanghai Auto Show, end of April. The car will be sold in early 2014 in the United States and China, Reuters says.

I am coming back to China after having been away for months. My trusted sidekick of many years, a lady surnamed Zhang, seeks my advice. “Bertel, we have car problems.” Uh-oh, I think, and I mentally do a review of my accounts. This smells expensive. As it turns out, the problem is bigger than what money can solve.

Ms. Zhang explains that her mother won the lottery. The Beijing license plate lottery.

As a Chinese New Year expert, you most likely know where February auto sales in China headed: Down. Knowing how our patent-pending Chinese sales oracle, GM, did, you could also predict that there is a silver lining. And so it happened.

Hyundai and Buick are feeling the heat in China, and the industry might rethink past practices of freewheeling Twitter snark. Hyundai and a Buick dealer made remarks about the quality of their products after a 2-month-old baby was abducted along with the RAV4 it was in. Chinese commenters did not like it at all.

Let’s say you want a Fünfer BMW, but you are experiencing cash flow issues.
Mei wen ti, no problem if you are in China. Creative and innovative Chinese companies are here to help.
Here is how it works:

Today, GM did something highly unusual: It abandoned all spin and said that sales in China were down pretty much across the board in February: “General Motors and its joint ventures sold 215,070 vehicles in China during February. Sales were down 10.6 percent from the same month last year due to the week-long Lunar New Year holiday falling in February this year.” We at TTAC understand.

Audi’s global deliveries were “clearly lower” than in January, Audi’s CEO Rupert Stadler told Reuters reporter Andreas Cremer in Geneva. Audi’s global sales were up 16.3 percent in January. There won’t be a minus said Stadler, even while fighting the lunar calendar, Audi will report a single digit plus.

Audi’s numbers won’t be the only ones that won’t look as good as the month before.

As expected, sales of Japanese cars in China took a nosedive to levels not seen since the days after Japanese cars and dealerships were torched last September. Sales of Nissan and Toyota are down a whopping 46 percent. No, it’s not a new flare-up of anti-Japanese riots. This time, it’s the effect of the Chinese Lunar calendar.

American automakers keep complaining about the allegedly closed Japanese market where just about nobody wants their big brutes since … the last world war. The Japanese market is full, it has too much local capacity, and it is getting smaller by the day. At the same time, Detroit does not seem to have its ear on the ground in a much bigger market close-by: China. Despite being in China in full strength, Detroit hasn’t capitalized on a huge trend in the Middle Kingdom: Pickups for urban cowboys. According to Chinacartimes, money is left on the table for Chinese who are ready to cash in.

Max Warburton and his team. Warburton, of Bernstein Research, assembled a team to interview over 40 auto executives in China (both Chinese and foreign-born) and even bought two Chinese vehicles from Geely and Great Wall. Warburton had them shipped to Europe, where they were taken to a test track, driven extensively and then taken apart by engineers and automotive consultants. And it was far from pretty.

Li Shufu, Chairman Geely

Two months ago, we wrote that Geely will pour $11 billion into a development program for the next generation Volvos, and that half of that money would go to Sweden. Our commentariat did not quite buy that and said that the technology will go to China. Right they were.

The Chinese-Israeli co-production Qoros has not sold a single car yet, but it already finds itself in the legal hot seat. Via a temporary injunction of a court in Hamburg, Germany, Audi precluded Qoros from using – the letter Q.

Qoros 3 Sedan

At the Geneva auto show, the long awaited Chinese attack on the embattled European auto market will finally get started in earnest – with the help of German and Austrian engineers, and money from Israel. Qoros is a joint venture partnership between China’s Chery and the Israel Corporation. Qoros wants to be to Chery what Lexus is to Toyota and Acura to Honda. It also wants to be the key that unlocks foreign volume markets.

Not Dongfeng, but China’s Geely currently looks best positioned to profit from U.S. government largesse by buying beleaguered and DOE- funded plug-in car maker Fisker, Reuters reports. According to the report, “Zhejiang Geely Holding Group is favored to secure a majority stake in troubled U.S. electric car maker Fisker Automotive, according to two sources familiar with Fisker’s search for a strategic investor or partner.”

Also according to the report, red flags are sure to flutter over Fisker’s HQ in Anaheim, as Fisker “is currently weighing bids from two Chinese auto makers: Geely, the owner of Sweden’s Volvo, and state-owned Dongfeng Motor Group Co.”

Reports by Bloomberg suggest that Fisker could sell up to an 85 percent stake to Chinese automaker Dongfeng. The automaker apparently bid $350 million for the beleaguered plug-in car maker, according to sources close to the company.

In a month’s time, we’ll have our first look at the new Cadillac CTS, when GM takes the wraps off of its new luxury sedan at the New York Auto Show. The new CTS is merely the first in a wave of new cars for Cadillac, along with the already unveiled ELR plug-in hybrid.

Did you do what we told you and collect bets on China’s auto market in January? Even if you usually disagree with TTAC, even if you only read TTAC ten times a day to see what scandalous biased stuff we write, this time, you should have followed our advice. China’s new cars sales in January were up 46.38 percent as compared to January 2012, says China’s manufacturers association CAAM. How did we see that coming?

Daimler’s trials and tribulations should be a warning to those automakers who are too gung-ho about the Chinese market. The market is big, but it can hurt big when there are Chinese constipations. Daimler has been falling behind in China while its Bavarian competition by Audi and BMW racked-up double digit gains in the Middle Kingdom. Promptly, the Chinese flu affected the whole body. Says Reuters:

China’s love affair with crossovers and PSA’s desire to expand in the country has led to a logical conclusion; why not a crossover for the Citroen DS line, one that PSA is trying to push hard as a premium alternative to the usual upscale offerings?

Needs a lift

Three days ago, I showed you how to become a clairvoyant without even trying, or just by reading TTAC. If you followed my simple method of predicting the Chinese market in January and February, you could now collect on your first bet. GM, our patent-pending sales oracle for the Chinese market reports humongous sales, and an “all-time record month in China.” Is that the big turn-around?

BAIC and Daimler announced last Friday they are taking the Beijing-Benz joint venture a giant step further. Daimler takes a 12 percent stake in BAIC and both parties will work closely together to win market share from Audi and BMW. On the ‘grass roots level’ the close cooperation has long begun! Above, a Beijing Auto E-Series with a Mercedes-Benz grille. How did that happen?

Toyota, along with its Japanese peers, has wallowed in double digit minus territory in China, ever since cars were upturned and dealerships torched in September over a few uninhabited rocks in the East China Sea. In January, China sales of Toyota shot up 23.5 percent compared to the same month a year earlier. Are Japanese fortunes in China finally turning to the better?

It was one of the worst-kept secrets: Two weeks ago, Reuters reporters had picked up the scent of Daimler planning a big investment into China’s BAIC. This week, rumors started flying around in Beijing that it is true. Today, Daimler announces, as expected, that “Daimler AG is going to invest in BAIC Motor, the passenger car unit of BAIC Group, one of the leading automotive companies in China.”

Now about those Benz-BAIC rumors: While Beijing is going gaga, Reuters has been suspiciously quiet about an upcoming deal between Daimler and its Chinese partner BAIC. Reuters, which has good ears and feet on the ground in China, had reported two weeks ago that something might be happening. Today, Reuters breaks its silence and says:

How do you beat the Dow? Occasionally, by reading TTAC. Yesterday, we wrote about Beijing rumors that Daimler and China’s BAIC are planning a big tie-up.

While we at TTAC are busy looking for the appropriate tie-up pictures, in case the rumor should prove true, the Dow Jones Newswire reports today:

There are rumors ricocheting around Beijing about a possible big tie-up between China’s BAIC and Daimler. BAIC is Daimler’s joint venture partner in China, where the joint venture handles Chinese production of the long version of the E-Class, the C-Class and the GLK.

U.S. government funded and nonetheless bankrupt battery maker A123 will be Chinese. China’s Wanxiang emerged as the successful bidder in December. All the deal needed was U.S. government approval. The deal has been approved, says Reuters.

Guangzhou Autos is reporting that 2012 profits are down as much as 80 percent, thanks to the dispute with Japan over a few islands in some godforsaken corner of the world.

Word from Germany is that Opel’s head of sales and marketing, Alfred Rieck, is departing Opel after just 7 months on the job.

A low-cost Volkswagen, selling for between 5,000 and 10,000 euros, might be earmarked for China, and the range could include – brace yourselves – a station wagon!

GM China had a near-miss with Volkswagen this year. It scraped by being relegated into second place in China by reporting 26,128 units more than Volkswagen. VW’s 2.81 million cars sold in China were rounded, GM’s 2,836,128 were reported to the last unit.

Volkswagen has ended the year on a strong note. Shrugging off the troubles at home in Europe, Volkswagen increased its global group sales by a respectable 20.7 percent in December of 2012, bringing its global group sales for the year above the 9 million mark at an 11.2% increase compared to 2011.

“Sources close to Porsche” told Tycho de Feyter at Carnewschina that the new 991 Porsche 911 Turbo will get a start-stop system for the Chinese market. This explains why the new 911 Turbo was seen testing in Beijing. The sources, who also provided the new spy shots in this article, said the system is necessary because the Chinese government is working on new very strict emission rules for 2015. If a car maker fails to meet the new regulations, China will impose a quota on the number of cars this car maker can import.

After an alleged Swede, Kai Johan Jiang a.k.a. Jiang Dalong bought bankrupt Saab’s remaining assets for cheap, we could not help but reminding the faithful that this will not result in a resurgence of the Trollhättan industrial base. We figured that at the very best, Saab will march off to China. If Saab won’t manage to destroy investor’s dreams and money yet again. Both rise in probability. Saab’s buyer, Chinese-controlled NEVS, has secured an investment deal with the Chinese city of Qingdao, Reuters says.

Three years ago, we reported that the Chinese government was interested in buying some of Daimler’s stock. Now, it looks like it might be finally happening.

Sales of Japanese car in the world’s largest car market, China, continue to be impacted by the war of words (and occasionally sledge hammers) over uninhabited rocks in the East China sea. Sales are inching up a bit after customers dare to come back to the showrooms of Japanese brands.

December sales in GM’s largest market China are likely to be less than exhilarating. The indicator: GM’s Chinese joint venture partner SAIC told Reuters that its December auto sales rose 7.1 percent from a year earlier to 350,380 vehicles.

This is much less than the 16.9 percent growth achieved in November. In the same month, GM’s China sales were up 9.7 percent.

This is the fantastic Shanghai SH761 parade car from the Shanghai Car Museum in Shanghai. It was made in 1970 and was used to show high ranking foreign visitors to the masses. The visiting dignitary would sit rather uncomfortably on a hydraulically lifted rear bench in the back of the vehicle. The ‘royal seat’ was so high that the curious populace could see all, down to the buttocks. The visitor was supposed to wave his hand and smile to the adoring masses…

China is the land where you have a choice of two kinds of Red Bull, both equally fake. The Austrian maker of the stuff has been in court for years, did win, and still can’t sell the original stuff in China, because the other party appealed. Now, Jaguar Land Rover is faced with starting its own arduous battle against the fakers: There is an energy drink called “Land Rover.”

I found this perfect Hongqi CA770 state limousine at the Shanghai Car Museum, and it is definitely one of the best looking examples I have seen in China so far. The Hongqi (Red Flag) CA770 was a giant sedan made exclusively for the Chinese government. Only 847 cars were produced in its long life from 1966 until 1981. Here is its story …

Supposedly, one of the reasons for keeping Manchester United after GM’s chief marketing honcho Joel Ewanick was fired for downright unethical shenanigans was that Man U is extremely popular in the Asian growth markets. Whereas they have a hard time even pronouncing “Ewanick.” So far, so good. However, the secret of a successful marketing program lies in its flawless execution.

Market share by country, passenger vehicles, w/o SUV

The island row does not make headlines anymore in China where people focus on the once in a decade transition of power. Japanese carmakers however still feel the pain. Two countries appear to be the winners: China and Germany.

The world’s largest car market, China, has recovered a bit in November. Automobile sales were up 8.16 percent year-on-year to 1.79 million vehicles, production stood at 1.76 million units, up 3.92 percent, data released by the China Association of Automobile Manufacturers (CAAM) shows.

As predicted a month ago, Daimler did put a board member in charge of its lagging China business. Today, Daimler expanded its Board of Management to eight, and made its new board member and former truck chief Hubertus Troska CEO and Chairman of Daimler Northeast Asia. The job won’t be easy.

Battery maker A123 was sold to China’s Wanxiang Group, but the company won’t come with more government money. The DOE won’t give A123 Systems Inc. the balance of a $249 million grant, a department official tells Reuters. Wanxiang, in the meantime, let it become known that it did not ask for the grant money, and that it did not anticipate receiving it.

Toyota decided to postpone construction of a new plant in Tianjin, China, and is considering the delay of another new plant in Guangzhou, Japan’s Asahi Shimbun writes, quoting unidentified sources. This due to sluggish vehicle sales in the wake of anti-Japan protests over the Senkaku/Diaoyu islands dispute, Asahi Shimbun’s sources said.

Wanxiang Group, China’s largest maker of auto parts won the auction for A123 Systems, Reuters says. The maker of batteries for electric cars was funded partly with U.S. government money, but went bankrupt nonetheless.