In lieu of short-term monetary gains over their competitors at Mercedes-Benz and Volkswagen (via Audi), BMW is spending its earnings on building up their i sub-brand through the city-focused i3 and the plug-in hybrid supercar i8.
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Remember the Fiat Viaggio, the Dodge Dart clone that was supposed to be the brand’s breakthrough product in China? The compact sedan has missed its sales targets by as much as 60 percent, and now Fiat is hoping that local production of the Jeep Cherokee can help fill some of their plant’s capacity and capitalize on China’s insatiable demand for crossovers.
When one thinks of General Motors’ relationship with China, Buick flashes into the mind like a brake light in the Beijing smog. Sometimes, Cadillac comes up, as well. However, with Volkswagen preparing to slingshot past them in a manner akin to Danica Patrick being flung toward the front of the pack with help from Tony Stewart, CEO Dan Akerson is planning to aggressively push Chevrolet through the choking air, and into as many Chinese garages as he can find.
The next Citroen C3 and Peugeot 208 will not share a platform with Opel’s Corsa as originally planned
In the wake of news that China’s Dongfeng Motors is going to take an equity stake in PSA/Peugeot Citroen, the French automaker says that it is scaling back its alliance with General Motors, which owns 7% of PSA. PSA said that a planned joint subcompact platform that was seen as the basis of the tie-up with GM will probably be cancelled. “Further analysis showed that the business model just wasn’t there,” a PSA spokesman said. Financial statements released by PSA say that anticipated savings of $1 billion due to synergies with GM will be adjusted downward.
With a few successes under Ford’s strap with the American buckle, the Blue Oval made be known its aspirations to go for the world championship belt in ferrying drunk revelers and harried air travelers with their Transit Connect Taxi in its debut in Hong Kong.
Reuters is reporting that the reason behind PSA/Peugeot Citroen’s financial tie-up with China’s Dongfeng Motors was the decision of General Motors, which owns 7% of the French automaker, to scale back cooperation with Peugeot. GM also apparently rejected a PSA/Opel merger backed by the French government.
Reuters has reported that Chinese automaker Dongfeng and the French government will be taking equity stakes in PSA/Peugeot-Citroen after injecting $4.1 billion into PSA. Under the draft agreement, which is still being negotiated, Dongfeng Motor and the French government will each put 1.5 billion euros into the French automaker, with each of those parties getting a 20 to 30 percent share in the company.
PSA/Peugeot-Citroen is negotiating with China’s Dongfeng Motor to expand their partnership in the world’s largest car market. PSA CEO Philippe Varin told reporters attending the opening of a new factory in Shenzhen, China, on Saturday that the French company is seriously considering selling equity to Dongfeng to fund expansion outside of Europe. The sale could diminish the holdings of the Peugeot family, which holds slightly more than a quarter of PSA shares, below a controlling stake in the French automaker. Earlier this year, Reuters had reported that the Peugeots were willing to relinquish control so that GM could take a larger stake in PSA, though General Motors has since indicated that they don’t plan to increase their holdings in PSA. Read More >
China has renewed government subsidies for three more years for private buyers of electric vehicles and plugin hybrids, but contrary to some observers’ predictions, incentives for the purchasers of conventional gasoline-electric hybrids have not been renewed. Reuters reports that the national government in Beijing said that it would provide up to 60,000 yuan ($9,800) towards the purchase of an all-electric vehicle and as much as 35,000 yuan for each “near all-electric” plug-in vehicle. The purpose is ostensibly to reduce air pollution but the policy is also expected to benefit Chinese car makers like BYD. Read More >
Automotive startup Qoros Auto Company has an interesting business model. Backed with the manufacturing know how of China’s Chery corporation, and the funds of the Israel Corp. holding company, controlled by the Israeli Ofer family, Qoros is designing cars in Europe to be sold in Europe, but built in China.
PSA, parent company of Peugeot and Citroen, is said to be exploring a partnership with China’s Dongfeng, as Peugeot looks for ways to strengthen itself amid weak sales and a perpetually sputtering European car market.
January 2013 NASA satellite image of air pollution near the Chinese capital of Beijing
The municipality of Beijing, China is going to be implementing traffic congestion fees on vehicles by 2017 to address increased air pollution. The plans were revealed as the city government published a five-year plan to deal with that pollution. Parking fees would also be increased and the areas where only locally registered cars and trucks are permitted to be used will be expanded. At the end of last year, Beijing had more than 5.2 million registered vehicles and city officials would like to keep that number below 6 million by 2017. Three other cities in China besides Beijing restrict new car and light truck sales, Shanghai, Gungzhou and Guiyang.
Ford Modifies Mondeo, Will Sell Locally Built Edges In Effort To Double Chinese Market Share by 2015
As part of it’s effort to double its market share in China by 2015, Ford today introduced to Chinese consumers a version of the midsized Mondeo sedan that the company says has been revised specifically for that market. Ford currently has about a 3% market share in china. The Chinese Mondeo starts at 179,800 yuan ($29,400) and the company said that it expects to sell between 70,000 and 110,000 units annually in a segment led by Volkswagen and General Motors (and those companies’ Chinese partners). The Mondeo has never sold more than 70,000 since it went on sale in China in 2008.
After doubling production capacity in China and increasing the number of models it sells, Ford has seen a 50% increase in the number of vehicles they sell in China for the first seven months of 2013, compared to the same period in 2012. Read More >
In remarks with the Detroit News’ Karl Henkel, J Mays, Ford’s chief stylist and a senior vice president of the automaker, acknowledged that the Dearborn automaker’s Lincoln brand has lost cachet as a luxury brand and that it will take years to turn the brand around.
“No, we’re not true luxury. We’re in an investment stage with Lincoln. We’ve probably got a 10-year investment to make.” Read More >
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