China’s Geely denied “its new top-of-the-line car was a copy of a Rolls-Royce, but the world renowned luxury brand said it was keeping its options open about taking legal action,” reports Gasgoo. At the Shanghai Auto Show, Geely showed their Geely GE—an abomination on wheels that looks like a spitting image of a holdover from the stone age, the Rolls Royce Phantom. The story is the talk of blogoville, so we spare you the gory details. Depending on who does the writing and their proficiency in fractional math, the price of the Phantom-twin is either “one sixth lower than” or “one sixth of” the original. Discount Rollers—most likely a reaction to Farago’s article on class warfare.
While “we-are-reviewing-all-our-options” BMW (owner of Roller) is talking to their lawyers, Geely is talking to the press. But not in a smart way.
Daimler’s Zetsche won’t have to worry explaining the T&E for his trip to the Shanghai Motor Show. He might come back with a big chunk of Chinese money. According to the German Handelsblatt, “Daimler is negotiating with the Chinese sovereign wealth fund about selling shares and doesn’t rule out a Chinese engagement in Stuttgart.” Zetsche put on his best poker face: “We have had talks in the past with possible investors in China, and the talks are still on-going.” Looks like there is more to it: On Tuesday, Zetsche will travel to Beijing to meet with representatives of the Chinese government. Asked whether he would also meet representatives of the Chinese government fund CIC, Zetsche gave a definitive “no comment.” If they buy, China will be in good company:
Words of wisdom spoken on the eve of the Shanghai Auto Show: “The longer the crisis lasts, the bigger the chance of failure or a scale-down of some American and European automakers.” Words of wisdom from Xu Liuping, Chairman of Chongqing Changan Auto Co. on the sidelines of a news conference. “And that has provided a chance for entry by Chinese manufacturers.” The Chairman politely omitted to add “for pennies on the dollar,” but why stress the obvious. And guess who the Chairman’s company is coveting? “Changan, Ford Motor’s China partner, is among several Chinese auto makers that have expressed interest in the Volvo car brand, which the Detroit automaker is seeking to sell in an effort to raise cash,” writes Reuters. “Asked about progress on a possible Volvo deal, Xu declined to comment, citing disclosure rules mandated by the Chinese securities regulator.” Changan? Doesn’t that ring a (wedding) bell?
GM China—and by extension SAIC—had already said bu yao (don’t want) in reaction to media reports that GM would sell to its Chinese partner, SAIC, the Buick brand or the exclusive rights to use this brand in China.
“Shanghai car-maker SAIC makes approach for Vauxhall,” headlined London’s Telegraph over the weekend. Of course SAIC doesn’t want just the Vauxhall badge, they are interested in the whole Opel/Vauxhall enterprise. What looks like “Opel” through German eyes looks like “Vauxhall” to the British. It’s one and the same.
According to the Telegraph, “Shanghai-based SAIC has requested a sale document from General Motors (GM), the stricken US car-maker, which has warned that it may file for bankruptcy in an effort to ensure its survival. Commerzbank, the German banking group, is orchestrating the sale process on behalf of GM, which is to establish a new subsidiary comprising Vauxhall and Opel, the German car manufacturer. A new investor would be invited to acquire a controlling stake in the company, with GM potentially retaining a minority interest.” Saab and Chevrolet Europe would not be part of the deal. More Chinese interests are lining up: Read More >
Ah, another wonderful rendition of the Beijing Opera. Always masterfully produced. Always with the same predictable outcome. A few days ago, Shanghai Security News said that China’s SAIC is interested in buying Buick. The scent was picked up by TTAC, and soon it was all over the net. Predictably, a few days later, when the world had turned to other news, GM China sent a nameless executive to the Guangzhou Daily and said it’s all bunk. General Motors selling Buick to its Chinese joint venture partner SAIC? No way Jose (or whatever the Mandarin equivalent may be.) Cross my heart and swear to die, here is the truth, and nothing but, honestly. . .
According to Reuters, GM “is in intense and earnest preparations for a possible bankruptcy filing.” Meanwhile, GM’s joint venture partner in China, SAIC, is making preparations of its own. They might just buy Buick before it goes to hell in the GM hand basket. The matter has received added urgency by a note from Moody’s Investor Service that the agency reckons there’s a 70 percent risk of bankruptcy for Detroit’s three automakers given the difficulty of restructuring out of court.
China’s automobile sales should hit an all-time high in March and help the country to beat the US in automobile sales during the first quarter, a key official from the national planning body said to Gasgoo.
“The 14 major automakers sold 1.026 million vehicles in China last month, which account for 90 to 91 percent of the total market,” said Chen Bin, director general of the Department of Industry at the National Development and Reform Commission.
The total sales will likely overtake the monthly sales record of 1.059 million units in March 2008.
This will be the third consecutive month that China has sold more vehicles than the US. It also puts the Middle Kingdom well on its way to become the worldwide king of auto sales in 2009, toppling the US from its threadbare throne. It will also help Volkswagen in its race to the #2 spot behind Toyota. VW is underexposed in the US, but very strong in China.
While other companies, from the Michelin man to Fiat, Renault and Daihatsu, say bu hao (no good) to the Shanghai Auto Show in late April and stay at home, Chrysler is obstinate. They’ll be there, come hell or the PTFOA (Presidential Task Force on Automobiles). Chrysler has no plans to quit the Chinese market and it will join the upcoming Auto Shanghai 2009 late April despite the great pressure it is facing in the U.S., Gasgoo writes. Today’s distinguished BS medal with oak leaf cluster-NSFW goes to this fine example of Chinese chutzpa:
Our Ed Niedermeyer wrote that China may have a design deficit. Daimler thinks otherwise. Daimler’s Mercedes cars are already produced in China under a joint venture agreement with Beijing Auto. Now, the car with the star will be designed in China as well. Or at least some of it. Daimler is planning to open their Mercedes-Benz Advanced Design Center in China’s capital Beijing, Gasgoo writes.
Delphi is the former GM parts division. It had been spun off, only to go into bankruptcy not much later. Delphi also was amongst the first to embark on an aggressive “source in China” policy. Large chunks of Delphi’s production were moved to China. Large chunks of Made-in-America cars were actually Made-in-China. Now, China buys large chunks of Delphi. Possibly all of it.
According to the Freep, two Chinese companies and the Beijing government banded together to buy Delphi Corp.’s brakes and suspension business. The Chinese auto supplier Tempo Group will acquire a 24 percent stake, China’s Capital Iron & Steel Co. will purchase a 51 percent stake, and the Beijing government will own the remaining 25 percent. They will form a new Chinese company called Beijing West Industries Co. Ltd., based in Beijing. Delphi needs the money: Read More >
On hearing that Rick Wagoner is outta here, Asia-Pacific shares nosedived on Monday, which wiped out most of the gains they had made last week. It’s not that anyone is missing Red Ink Rick. Traders at the Asian exchanges see the departure as a sign that “the US government might allow one of the world’s biggest car makers, General Motors, to go bust,” writes the Financial Times [sub].
As Wagoner’s defenestration hit the wires, the Nikkei in Japan dropped 4.5 percent to record its worst day for two and a half months. Hong Kong’s Hang Seng lost 4.7 percent—its biggest fall in three weeks. Taiwan shares were down 3.4 percent and in South Korea the market dropped 3.2 percent.
A person close to General Motorstold the Financial Times said that the resignation of Rick Wagoner at the weekend made it likely the company would file for bankruptcy protection sometime in the next few weeks.
In January and February 2009, China sold more cars than the US. From all indications, the same will happen in March: The US is preparing for a REALLY bad month, whereas China reports brisk sales. If this continues, China will be the world’s biggest auto market in 2009—with nearly unlimited growth potential.
If the stars align just right, China may even end up as the world’s biggest auto producer in 2009. China surpassed the United States in 2008 as the world’s second-largest auto maker and could overtake Japan as the top global car manufacturer in 2009.
The reason is not China’s phenomenal growth; it’s the dismal performance of Japan and the US. Read More >
A few years ago, Hans-Ulrich Sachs, a former Volkswagen board member, had a brilliant idea: He wanted to import Chinese Brilliance cars. Brilliance is BMW’s joint venture partner in China. Brilliance also makes their homegrown cars—which kind of look like a Bimmer, if you don’t look closely enough. The plan: Import them to Germany, and sell them for half of what a real Bimmer costs. A plan that couldn’t fail except that it failed miserably: A few months before the launch of the car at the Frankfurt Motor Show, the ADAC (the German equivalent of the AAA) crash tested the car supposedly under EURO-NCAP conditions. The car received one measly star. The video landed on YouTube, and Brilliance was done. Thousands of Brilliance cars already were in Bremerhaven, ready for sale. A marketing consultant, asked what to do, recommended: “Load them back on the boat and head for the biggest hurricane you can find.” A few days ago, ADAC tested a new Brilliance car. Now, all Brilliance can hope for is an earthquake. Or a sympathetic judge. This test could go to the courts. Read More >
You think only in America will someone be crazy enough to pour coffee in her crotch and then sue McDonalds for selling hot coffee? Come to China for some real crazy. Chinese businessman Yuan Jiguang bought himself a Cadillac. If that wasn’t crazy enough, Mr. Yuang drove his Caddy into a truck. The airbags didn’t deem the collision severe enough to deserve deployment. Yuan Jiguang banged his nose on the windshield and ended up with a doctor’s bill of 989.89 yuan ($144.80). China’s doctors are cheap. Then Yuan Jiguang went to the local court in Jiangxi province. And whom did he sue? Read More >
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