Chinese firm BYD (better known as an industry leader in NiCad and Lithium Ion batteries) unveiled its second plug-in hybrid at the Geneva Auto Show. Green Car Congress says its unique three-mode hybrid drivetrain starts in full-electric mode, switches to range-extending serial hybrid mode, and finally to Prius-style parallel hybrid setting (with gas and electric motor operating together). Scheduled for 2010 (isn't everything?), the new F3DM is aimed at the European market. BYD is not shy about its chances for success in the hybrid and electric car markets. "Battery technology is our core competency," Chairman Wang Chaunfu boasts. "And we think we are well-placed against GM and Toyota." No surprise then, that the company's 20kWh lithium-iron phosphate battery pack can go 70 miles on a single (long-ish) nine-hour 220 VAC charge… with a gas engine ready to kick in to extend range or increase power at any time. With a BYD test-fleet of taxis preparing to take to the streets of Shenzhen, the first automaker to sell an out-of-the-box, plug-in hybrid could well be Chinese. 

China wouldn't try anything like product dumping, would they? In a word, yes. Gasgoo reports the U.S. Commerce Department is imposing an anti-dumping duty on Chinese-made off-road tires. It seems Commerce determined that producers and exporters have been selling new tires at 10.98 to 210.48 percent below fair market value on this side of the Pacific. Now four tire manufacturers will have to pay an anti-dumping duty of 10.98 to 51.81 percent on a set of four tires. Twenty-three other off-road tire makers will have to pay an average 24.75 percent duty. They didn't say if Commerce would expand this to on-road tires, but if the manufacturers have been doing it for one type of tire, you can just about bet they've been doing it for the rest.

Ford was late breaking into China's red-hot car market, and it's paying the price. Detroit News reports that Ford's share of the of the Chinese pie grew from two percent to 2.1 percent last year– falling well short of FoMoCo's internal 2.4 percent target. This in a year where car sales spiked 20 percent. Ford was late developing manufacturing infrastructure in China; it opened its first factory some 18 years after longtime China sales leader VW, five years after GM. Ford's only top-ten hit in The People's Republic: the Focus. Due to the large number of Focus parts sourced from outside China, the model still generates less profit than its competitors. Perhaps more worrisome for Fords long-term efforts: its inability to put together an attractive, coherent brand for the Chinese market. Ford's Asia/Pacific division chief John Parker blames Ford's "big car" image. Meanwhile, Mazda is taking up the slack. Of Ford's $244m pre-tax profit in the Asia/Pacific region, Mazda accounts for $204m. Ouch.

According to CHINAdaily, China's auto industry is booming, and the city of Guangzhou is feeling the pinch. "We will increase the total number of parking spaces in the city by 150k between now and 2010, with 50k coming this year," says Wang Dong, director of the Guangzhou urban planning bureau. Last year, Guangzhou had more than 1m cars on its roads; officials licensed 600 new cars per day. In an effort to increase total parking capacity by 50k, the city's OKed five large car parks at a cost of 1b Yuan ($140m). Meanwhile, China's National Development and Reform Commission (NDRC) have approved a group of "new" domestic vehicles. In a riff on Detroit badge-engineering, only a few are completely new models. The majority are comprised of "upgraded products from existing models." Chinese carmakers have released some 90 models a year for the past five years, including 20 "completely new ones." Finally, in an effort to curb "resource-intensive sectors and promote energy efficiency," the government is increasing the consumption tax for diesel fuel by about 70 percent (to the "full" tax rate of 0.10 Yuan per liter). We reckon even that won't slow the industry's growth. In just a single generation, the PRC has transformed from a nation of bicycle riders into a population of car-crazed consumers– and there ain't no goin' back.

Even though GM says they have customers lined-up waiting for Enclaves because demand far outstrips production capability, Gasgoo reports they're going to export them to China later this year. It looks like GM's figured out how to expand their production capacity by at least 5k Enclaves, because that's how many they plan to ship to the PRC to sell through their partnership with Shanghai Automotive Industry Corporation (SAIC). When the Lambda-platformed CUV goes on sale in China in October, it will join the Park Avenue, LaCrosse, Regal, Excelle and GL8 models in Buick's Chinese showrooms. Last year, Buick racked up over 332k sales in China, almost twice the units they moved in the U.S. Oh, and if I was on the U.S. waiting list for an Enclave, I'd have a royal conniption fit over this news. Just sayin'…

The China Banking Regulatory Commission wants to make it easier for you… yes YOU… to get into a new car. Gasgoo reports they've released new regulations on auto leasing companies that will allow them to lease cars to Chinese consumers. The new regulations allow finance companies to lease cars to individuals or fleets; previously they were only allowed to loan money for purchases to individual buyers or auto companies. With the vast majority of Chinese auto purchasers paying cash for their new cars and buying only what they can afford, it's going to be interesting to see if the new regulations will entice consumers to lease a more expensive vehicle than they could buy. It leaves one to wonder, though, what the penalty for going over the mileage limit will be in The People's Republic.

BusinessWeek describes the experience: When you arrive at the dealership, you're checked in at the gate. You're escorted into the showroom, where you're greeted by name. Gentle tunes waft from a baby grand piano in the corner. In the service department, you find leather couches, coffee, snacks and internet access. When your new car is delivered, it's wrapped in a red ribbon and presented in a ceremony with friends and family present. Rolls? Bentley? Maybach? Nope. Toyota. In China, the Toyota Camry is a high-end car, and the dealerships treat customers accordingly. The salesmen don't pressure the customers because that'll make them think there's something wrong with the car, and they're available to take care of customers' needs 24/7. The down side? Even the top salesmen make only about $14 commission per car, and that's only if they manage to sell extras like GPS and backup sensors; otherwise they clear about $7. Perhaps they could make a bit more money running seminars on how to treat customers like customers instead of victims for their American counterparts. 

With air quality so toxic that Olympic athletes plan to train outside the city, with its international reputation for peace, love and harmony on show for the entire world, Beijing knows it has to clean up its act. The Beijing News (via the New York Times) reports that city officials want to de-smog the world's most polluted urban atmos by cutting its motorized traffic in half. (That's up from the one-third target that TTAC's Adrian Imonti reported back in August.) To that end, the government is considering implementing the number plate restrictions trialled last summer. The move should take about 1.65m vehicles off Beijing's roads each day during the Games. As you might expect from a military dictatorship, the Powers that Be in the People's Republic of China (PRC) are contemplating other, equally draconian corrective measures. The Old Gray lady reports that the PRC may also shut down factories throughout northern China during the Games. Paycheck? What paycheck? Gone, in the name of Citius, Altius, Fortius.

Gasgoo reports that China's largest independent auto manufacturer is on the march. They've announced they're going to introduce 38 new models over the next five years: eight in 2008/2009, nine in 2010, 10 in 2011 and another 11 in 2012. When Chery's finished, they will have every major passenger car market segment covered, including minivans and SUVs. That's in addition to the small car they'll be building for Chrysler, and the Fiats and Alfa Romeos they'll assemble under a new agreement with Fiat. With so much development going on, you can bet they're taking American and European safety and emission standards into consideration. Chery has been China's biggest sedan exporter for the past five years; they aren't about to surrender that crown to no one, no how.

China is GM's Golden Child. The General currently holds 34 percent of a ménage à trois with SIAC Motor Corp and Liuzhou Wuling Automobile. Reuters reports that according to the Shanghai Securities News, GM is in talks with SAIC (which holds 50.1 percent of their joint venture) about increasing their stake. The paper didn't say how much more GM wanted; GM's chief in China, Kevin Wale said they were "weighing their options." This deal would certainly bolster GM's bottom line and help cover their North American losses. However, SAIC builds cars under their own name. They are also GM's direct competitors in China, and they've publicly stated they want to expand their lineup. So how receptive they'll be to The General's entreaties is yet to be determined.

What's the French word for chutzpah? Whatever it is, Citroen has it in spades. Following the furor generated by their Spanish ad that featured a less-than-flattering image of Chairman Mao, they've announced they're going to manufacture a new model in China later this year. Which model? The C4 of course, the same model featured in the controversial ad. China Car Times reports it'll be built by the Dongfeng Citroen joint venture which currently builds several other Citroen models for the Chinese market. The Chinese-built C4 will be substantially cheaper than the model imported last year, so it'll probably sell well in spite of its scowling disapproval by the Chairman.

Chinese automaker Geely introduced a new technology today they call BMBS. The system uses tire pressure sensors to tell the brakes when and how much pressure to apply to stop the car safely when a tire blows out. So why introduce it at an auto show where they're one of the smallest fish in the pond? To prove wrong the naysayers who "don't believe that China can innovate" according to Geely chairman Li Shufu. I tried to find out just how innovative the system is. When I asked Dr Frank Zhao, Geely's VP and chief tech officer, how BMBS compares to the active suspension from other companies, he said it didn't because it's unique. When I asked about its merits over active suspension, he didn't want to discuss it and tried his best to dismiss any questions I asked. I did manage to find out he's right about one thing: it's in no way comparable to active suspension. It turns out it has no yaw sensors and can't control a skid unless a tire's circumference is changing. You have to admit that's unique!

Chang Feng Motors one is one of a few Chinese automakers who crossed the Pacific to attend the North American International Auto Show. They did so to unveil their Liebao CS7 cute ute and Kylin mini-minivan today. Chang Feng want to start importing these babies into the U.S. in two to three years time– provided they can form a partnership with an existing distributor or U.S. factory. Chang Feng is already in a joint venture partnership with Mitsubishi, and manufactures a variety of vehicles based on various Mitsu SUVs. So you have to wonder why they don't just latch onto Mitsu here too. After all, anyone who can "manufacture off-road vehicles with world-class technology" using "the top engine of Mitsubishi, six-jar motive force" producing "consummate off-road performance, allocate completely, adorn luxuriously inside, it is comfortable and honourable to enjoy" shouldn't have any problems mastering American culture, right? (Quotes taken from Chang Feng web site.)

A source at GM China has told the China Car Times that the Malibu hybrid will be launched in China on January 22. Not only that, but GM's going to build the Chinese 'Bu in country. Since price is a prime consideration, the 'Bu 'brid will be the "mild" version with its alternator/starter/battery charger thingie, instead of a full-blown two-mode system. However, once GM gears-up their hybrid powertrain production line in the PRC, you can bet they'll offer the whole gas – electric schmeer. Once production begins, I reckon it's only a matter of time before they'll send the Chinese version of The Car You Can't Buy Ignore to American showrooms. Maybe the U.S. market will only receive the Chinese hybrid 'Bu to "test the waters" for wider Chinese exportation. But if GM's planned to build ALL its 'Bu's in China right from the start, it would explain the verrrry slow ramp-up of American Malibu production. It's either that or sheer incompetence. Or both.