Chinacartimes did protracted research, quite literally into the dark underbelly of the Chinese car culture. As it turns out, the Chinese have not only eclipsed America as the world’s largest car market. They also found out that the car can be used for other things than driving. The know-how developed by us eons ago on lover’s lane, and in drive-ins, has been unabashedly ripped off by the Chinese who are getting at it in their cars.
Our patent-pending China sales oracle has spoken, and it says. The only bubbles in China are in the heads of some self-styled experts.
Looking at the June and half year results of GM China, one can only conclude that all is well in the Middle Kingdom. What’s good for GM China is good for America: China is GM’s largest market. GM’s sales in China are up 9.9 percent in June and 5.3 percent for the half year. But there is a much more important lesson: Read More >
[Editor’s note: the initial draft of this piece misunderstood the structure of the deal. Youngman and PangDa have paid over $350m for a 51% of Swedish Automobile, Saab’s parent company (which has a market cap of $68m). Funding for the New Product Joint Venture (50% owned by Youngman, 50% owned by Swedish Automobile) has not been disclosed. See comments for more background.]
Just when the lights seem to be going out all around Saab, with employees calling for bankruptcy, suppliers in revolt and even the Swedish government pretending like nothing was happening, Saab always seems to find away to prolong the agony. Selling, then leasing back the factory was one step that’s been approved by the EIB. Getting the suppliers to take ten percent down on deliveries? Well, it turns out that management has some time to sort that one out, as the factory’s annual vacation starts in a week, and Saab is letting its employees go a week early rather than starting up and then shutting down the line. And the company is certainly hoping that it won’t have to restart the line simply to restore confidence, as it’s announcing the “final agreement” with China’s Youngman Auto and the dealer group PangDa for €245m (about $365m) which it hopes will clear up the perception that Saab is a sneeze away from death. Needless to say, this agreement fits squarely into the “stringing along” category rather than the “game changing” category…
If you are stuck in traffic and no legal way to turn around, what do you do? Ignore the “no U-turn” sign? Say “hey, I have an SUV” and take the median? A driver in China’s Kumming, a city famous for ake Lamborghinis and illicit substances, took another route: A pedestrian bridge. Read More >
What’s a Wingle? It’s Great Wall’s Chinese-made entry in the “World Pickup” segment, taking on Ford’s Global Ranger, Toyota’s HiLux, Nissan’s Navara, Mahindra’s Scorpio Pik-Up and more. Having been limited to sales in Iraq, Australia, Chile, South Africa, Algeria, Syria, Uruguay, Russia and Saudi Arabia, Automotive News [sub] reports that Great Wall has wangled the Wingle into the European market by establishing a beachhead in Italy with a 2.0 diesel version. Obligatory crash-test video after the jump… Read More >
With a population approaching that of Australia and car sales of 700,000 new cars, or 890,000 new cars (depending on which issue of China Daily you rely more), Beijing used to be one of the most important car markets in the world’s largest car markets, China. As amply documented by TTAC, the car market in Beijing collapsed completely after city fathers ruled that new registrations have to try their luck in a license plate lottery first.
China’ top economic planners at the National Development and Reform Commission NDRC see their economic plans threatened, and are “appealing” to Beijing to change its policy. Read More >
It is 7:00 am on a Friday morning in Shanghai, where an obviously insomnia-suffering Carmen Lee posted the following two hours ago (says Google) at Gasgoo. Gasgoo’s reporting quality had slacked a bit recently, but here is hoping they still can translate alright:
“Pang Qinghua, CEO of the Pangda Automobile Trade Corporation, the company hailed as Saab’s savior, had a short interview with the Beijing Times where he answered questions regarding Pangda’s proposed partnership: Read More >
The Chinese quest to own a large Chinese automaker with global reach fell on sympathetic ears with someone who should be scared of the yellow peril: Carlos Ghosn. After all,Ghosn is in charge of two automakers. Nissan is the largest Japanese brand in China. Renault is trying to get traction in China. At the Thomson Reuters Newsmaker event in Tokyo today, Ghosn said he does not only expect one or two large Chinese automakers to emerge on the global market, he also understands why.
First, Ghosn had interesting news for those who think there is no money to be made in China: Read More >
Nearly two months ago, American senators complained that China is continuing its “long history of breaking international trade rules” and that there is a “trade barrier that is designed to prevent U.S. automakers from accessing the Chinese market” for electric vehicles.
As Ed Niedermeyer said it back when, there were no new rules. There still aren’t any. If there is one man who should be up to date on rules on electric vehicles around the world and especially in China, then it’s Carlos Ghosn. After all, he did bet the future of two companies, Renault and Nissan on the future of the EV. Also, Nissan is the largest Japanese brand in China, and Nissan’s joint venture partner is Dongfeng, a company owned by China’s central government. So he should know what the rules are.
The trouble is: Carlos Ghosn has no idea. Read More >
A month ago, our friends at Carnewschina spotted an odd creation in Kumming, a Chinese city that is famous for other products than cars. The owner of a hair salon (we don’t know what kind of a hair salon, some hair salons in China are famous for other services than hair cutting) was infatuated with the new Lamborghini Aventador. What he didn’t like was the $968,426 sticker price (MSRP, landed in China, taxes included, and yes, you did read right.) So the hairdresser called on the local roadside sheet metal fabricator, showed him a picture and said: “Can you make that?” Read More >
A group of businesses that are owed anywhere between $198 and $744,083 could force ailing Saab to declare bankruptcy. They have turned to the Swedish Enforcement Agency, better known (and feared) in Sweden as the “Kronofogden.”That agency introduces itself as follows:
“Is there a bill you cannot pay? Or are you not getting paid by someone who owes you money? In both cases, it will be Kronofogden that you come into contact with. A debt that is not paid ends up in Kronofogden´s register. This register is open for all to consult. As a result, anyone wishing to find out how someone else manages their finances can check the register. If a person´s name appears in the register, he/she can find it difficult to buy on hire purchase, borrow money or rent an apartment.”
Currently, there are 48 entries on that list that claim that Saab owes them. Lots of suppliers. A few bill collectors. A patent attorney. One of the world’s largest CPA firms, Pricewaterhouse-Coopers, demands $104,904.
Swedish online newspaper GT published a list of all the claims allegedly reported up to Tuesday. Here it is: Read More >
Japanese carmakers are battling the power shortages after the March 11 tsunami. Often, they are asked why they didn’t move more of their production abroad, like to China. A lot of them did, only to face bigger power problems in China. China is heading for what Reuters calls “its worst power shortage since 2004.” While the lights stay on in Japan, cities in Southern and Eastern China have regular blackouts. Read More >
China’s Gasgoo says that “Dongfeng Nissan has already begun preparations for domestic production of the Nissan Leaf pure electric hatchback.” Domestic as in Made-in-China. They quote Dongfeng Nissan CEO Fumiaki Matsumoto, who allegedly said: “We have already finished preparatory work for the Leaf. We hope that we can cooperate with the government and suppliers to bring over the Leaf as soon as possible.” That of course piqued our interest. After some calls, we can say with certainty: Instead of millions of Leafs roaming the streets of China tomorrow, we have a case of Lost In Translation with a French-Japanese-Chinese cast. Read More >
So what are they saying in China about the Pangda/Youngman/Saab threeway? The blogs and message boards are full, of course. Cars are of high importance in CCC (car crazed China.) Much more important, what does China’s government say? Multiple agencies of the government will have to approve a deal with Saab. However, officials won’t utter a word before, often even after a deal is done or has been denied. But then, the government owns newspapers. Analysis of state media is a refined science in China. Let’s see some of it in action. Read More >
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