Lincoln Now Sells More Product in China Than U.S.

After years of Ford unsuccessfully trying to court the Chinese market in the same way General Motors did, Blue Oval has finally hit an important milestone. For the first time ever, the Lincoln luxury brand has achieved more sales in China than in the United States.

On Thursday, Lincoln announced that it had delivered more than 91,000 vehicles in China in 2021 – representing an increase of 48 percent increase against 2020. Meanwhile, the brand managed to lose ground in North America with just 86,929 sales for last year. That’s the worst Lincoln has seen in over a decade, though the company has basically witnessed its share of the U.S. market seesawing in the wrong direction since the 1990s.

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Audi Transitioning Solely to EVs Doesn't Include Chinese Market

Volkswagen Group has been prattling on about electrification for years and ultimately decided that Audi would be the tip of its progressive spear. The brand has cachet as both a luxury and performance division, while simultaneously possessing VW’s magical ability to produce vehicles that don’t become an eyesore after you’ve had them in the garage for a decade.

While transitioning toward EVs runs the risk of spoiling that, Audi is clearly the VW property best positioned to come after would-be Tesla customers and is not hesitant to issue reminders that it’s serious about being a global leader when it comes to battery-driven vehicles. On Tuesday, the Ingolstadt-based company announced plans to exclusively launch electrically driven automobiles from 2026 onward — adding that it doesn’t even plan on selling internal-combustion vehicles by 2033.

But these rules won’t apply to the Chinese market, which will be flush with internal-combustion vehicles produced within its borders years after the rest of the world has apparently lost the option to purchase them.

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What Happened To the Chinese Automakers Wanting a Piece of the U.S. Market?

American automakers can usually count on selling just below 3 million vehicle sales in China every year. While that figure includes the caveat that the Chinese Communist Party requires foreign manufacturers to partner up with established local companies, it remains substantially larger than the number of cars Chinese brands manage to move in the United States per annum — which is effectively zero.

From BYD to Zoyte, just about every large Chinese manufacturer has issued a deluge of promises about breaking into our market over the last decade — including most of the names we’ll be mentioning below. Consider this sort of the “Where Are They Now?” of evergreen automotive content about regional disparities. Because very little has moved in regard to China’s involvement with the North American auto market and the current geopolitical climate doesn’t make us think that’s likely to change anytime soon.

But it hasn’t been for a lack of trying.

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China Is Back, Baby! Quarterly Auto Sales up First Time in Two Years

With global economies suffering from pandemic-related lockdowns, there’s been just one question burning in the minds of economists: ‘When will Chinese automotive sales finally rebound so that the industry can once again feel comfortable enough to keep pouring resources into Central Asia?’

Now, apparently.

China’s car market just recorded its first quarter of year-over-year sales growth in two years, with last month’s volume rising 12.8 percent (vs 2019) to 2.57 million units, according to the China Passenger Car Association (CPCA). While its always wise to keep in mind that the nation has a history of obfuscating figures that might paint it in a bad light, CPCA has been slightly more consistent in its reporting than the China Association of Automobile Manufacturers (CAAM). Both outlets also have a tenancy to showcase blind optimism for the local economy, but there appears to have been good reason for that over the last five months.

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More Dealer Drama From Cadillac and the China Connection [Updated: Cadillac Responds]

Cadillac told U.S. and Chinese dealers they will each need to invest at least $200,000 on electric vehicle chargers and staff training to continue selling the brand’s products after 2022. The message was communicated to dealerships on Wednesday via video messages from Rory Harvey, the luxury brand’s vice president of sales, service and marketing. Cadillac is moving on electrification (seriously this time) and plans to launch the Lyriq EV within the next two years, with more battery-driven models to follow. Update: Cadillac PR has responded, saying that what was communicated yesterday is for U.S. dealers only.

The brand says dealers must be ready for the transition, giving us flashbacks to Project Pinnacle — the Johan de Nysschen strategy that forced stores to spend money to provide a more premium sales experience that differentiated Cadillac as special. At the time of its implementation, many dealers wondered why they should bother taking on more overhead under the assumption that they’ll make extra money over time. While luxury-specific outlets don’t have much choice in the matter, those selling GM’s other brands in conjunction with Cadillac seem to be substantially less eager to implement the changes.

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Chinese Auto Market: Inbound Rebound?

With China serving as the flashpoint of the coronavirus outbreak that brought the world down a peg or two, industry and financial analysts have been watching that market like a hawk. The country went into this crisis before any other, which may prove useful for predicting the general path of global recovery efforts.

Unfortunately, specious reports about the number of infected citizens inside that nation have cast a double-quilted blanket of doubt over its official statistics. We don’t actually know if the Chinese government has effectively wrangled the illness or is just hoping to win an international public relations battle. Fortunately, infection rates and death tolls aren’t the only metrics we have to rely on.

According to the China Passenger Car Association, auto sales plummeted by as much as 96 percent since COVID-19 began its relentless spread. This came after months of negative sales growth, leaving the Chinese market in a truly unenviable situation once mandatory quarantines were enacted. Now, circumstances have changed. Showrooms are reopening and many factories have resumed operations, only this time they’re the ones that have to worry about supply chain issues.

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Chinese Auto Market Still Struggling, but There's Good News for Japan

China’s car market, officially the world’s largest, is bracing for its second year of negative growth. November was the fourth consecutive month of declining year-over-year sales, representing an improvement from October despite volume dropping 4.2 per cent below last November’s tally. Unfortunately for China, the downward trend has not been the exception, but the rule.

According to the Hong Kong based South China Morning Post, the China Passenger Car Association (CPCA) was hoping for better. “The market failed to live up to expectations of a strong rebound in November,” said Cui Dongshu, secretary general of the CPCA. “Consumer demand remained weak as people are reluctant to spend on big-ticket items due to worries about a bleak economic outlook.”

This matters in the West because domestic manufacturers have bent over backwards to try and improve sales within the region, expending no small amount of energy or capital in the process. China’s citizenry are also changing their tastes to cope with a weakening economy, and it would be wise to look at the choices they’re making.

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China Making Moves to Improve Its Crippled Auto Market

While you’ve heard the media prophesying a global recession for months now, one that will effectively obliterate the younger generation’s purchasing power for the rest of their lives ( or so they say), the United States is actually in relatively good shape vs other markets. The People’s Republic of China already appears to be in a recession, and it’s no state secret that its automotive market is hurting.

Part of that is due to the ongoing Sino-American trade war, but there are other factors at play. We’ve previously covered how China’s overzealous adoption of increasingly rigid efficiency mandates upset auto sales. As it turned out, the nation’s commitment to zero-emission vehicles and swelling emission rules scared off a subset of buyers. Others simply couldn’t rationalize making such a large purchase during a period of economic uncertainty.

This all resulted in China’s automotive market experiencing more than a full year of consistently negative growth — something the PRC would like to see fixed posthaste. On Tuesday, the Chinese State Council announced a tentative plan to fix its struggling economy.

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Chinese Auto Market Not As Hot As Everyone Thought

China might not be the kind of market everyone thought it was — one without a ceiling, boasting unlimited potential for growth. One by one, automakers find themselves having to confront economic reality.

Despite amassing a network of factories that could theoretically outproduce the rest of the world, the Asian country’s automotive sector only operates at about half its total capacity. That’s disconcerting. Even Europe, site of some serious industrial headwinds of its own, manages to operate around 70 percent capacity.

While the reasons for China’s woes are ludicrously complicated, one of the most pressing issues is that its economy is slowing much earlier than anticipated. Automakers, both foreign and domestic, almost universally believed that The People’s Republic would surpass the United States as the world’s largest automotive market — and they were right. But investments kept pouring in, factories were built, and the market started to cool prematurely. The situation only grew worse as incentives dried up and people began buying fewer cars; now, 2019 is shaping up to be a very bad year for the nation’s automotive sector.

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Ford Launching Cheap, 'Basic' Midsize SUV to Tempt China

Ford hopes to nab the attention of Chinese customers by unveiling a new midsize sport utility vehicle specifically designed for the region, placing an emphasis on more space for less money — a concept which would likely be appreciated worldwide. However, the model isn’t entirely new. The automaker is actually reviving the Ford Territory, an Australian-market crossover based on the defunct Falcon.

It’s a departure from the trend of Western manufacturers focusing on China’s appetite for luxury vehicles. Still, Ford may have missed its opportunity there. Chinese consumers swarmed Buick like flies on a carcass; Ford wasn’t so fortunate. It performed abysmally in The People’s Republic this year, posting 400,443 sales for the first half of 2018. That represents a 25 percent slip compared to last year’s volume and the worst first half since 2001.

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Chasing the Dragon: Lincoln's Plan to Capture the Chinese Market

While both Buick and Cadillac have a healthy lead over Lincoln in terms of domestic deliveries, the space between them is far more pronounced in China. At home, Ford moved 111,159 examples of its premium marque in 2017 against Cadillac’s 156,440. However, China’s Caddy sales clocked in at 175,489 last year — a number Lincoln could only muse about in its wildest fantasies.

That’s because Ford exports all of its luxury vehicles to China, while GM tends to build them locally. But the Lincoln brand shows a lot of promise in Asia. Ford moved roughly 80,000 vehicles in the People’s Republic in 2017 and 54,124 of those models wore the Lincoln cross. In theory, if Ford could localize and bolster its product lineup within the country, a higher volume would be all but assured. It’s a theory the automaker intends to test, too.

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When Will We See Chinese Cars On North American Roads?

It seems like we’ve been hearing about it forever — that fateful day when China surpasses the United States by every single metric imaginable and forces everyone to drive its cars. While that premonition has already come to pass in some respects, there’s still no overtly Chinese automobiles milling around on North American roads.

However, manufacturers from The People’s Republic have been looking westward for a decade. I can recall BYD Auto, along with other Chinese firms, having a booth in the basement of the North American International Auto Show way back in 2008. They weren’t there because they had nothing better to do — they were there to size up the competition and let America know they were coming. Of course, nothing happens overnight and Chinese automakers have been a little busy converting their domestic market into the world’s largest. But the time for westward expansion is fast approaching.

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Chinese Market 2015 VW Passat B8 Caught Unclothed

For European and Chinese customers awaiting the 2015 Volkswagen Passat B8, the following spy photos should hold them until the sedan’s debut at the 2014 Paris Auto Show in October.

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Geely's Grand Plans for Volvo

Reports in the Swedish media have Consortium Jakob AB still in the running to snatch Volvo from Geely. But hiring investment bank Morgan Stanley as collaborators must have spooked Geely — FoMoCo’s “preferred bidder” — and the Chinese automaker has upped the ante with some grand plans for Volvo. Geely is promising to sell no fewer than 1 million Volvos annually within four/five years.

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  • Islander800 That is the best 20-year-on update of the Honda Element that I've ever seen. Strip out the extraneous modern electronic crap that adds tens of thousands to the price and the completely unnecessary 400 pd/ft torque and horse power, and you have a 2022 Honda Element - right down to the neoprene interior "elements" of the Element - minus the very useful rear-hinged rear doors. The proportions and dimensions are identical.Call me biased, but I still drive my west coast 2004 Element, at 65K miles. Properly maintained, it will last another 20 years....Great job, Range Rover!
  • Dennis Howerton Nice article, Cory. Makes me wish I had bought Festivas when they were being produced. Kia made them until the line was discontinued, but Kia evidently used some of the technology to make the Rio. Pictures of the interior look a lot like my Rio's interior, and the 1.5 liter engine is from Mazda while Ford made the automatic transmission in the used 2002 Rio I've been driving since 2006. I might add the Rio is also an excellent subcompact people mover.
  • Sgeffe Bronco looks with JLR “reliability!”What’s not to like?!
  • FreedMike Back in the '70s, the one thing keeping consumers from buying more Datsuns was styling - these guys were bringing over some of the ugliest product imaginable. Remember the F10? As hard as I try to blot that rolling aberration from my memory, it comes back. So the name change to Nissan made sense, and happened right as they started bringing over good-looking product (like the Maxima that will be featured in this series). They made a pretty clean break.
  • Flowerplough Liability - Autonomous vehicles must be programmed to make life-ending decisions, and who wants to risk that? Hit the moose or dive into the steep grassy ditch? Ram the sudden pile up that is occurring mere feet in front of the bumper or scan the oncoming lane and swing left? Ram the rogue machine that suddenly swung into my lane, head on, or hop up onto the sidewalk and maybe bump a pedestrian? With no driver involved, Ford/Volkswagen or GM or whomever will bear full responsibility and, in America, be ambulance-chaser sued into bankruptcy and extinction in well under a decade. Or maybe the yuge corporations will get special, good-faith, immunity laws, nation-wide? Yeah, that's the ticket.