When we reported Chinese rumors that Veedub might open a factory in Southern China to make up for its lack of exposure and market share down south, we wondered “which of their two Chinese joint venture partners will get the new plant.” If the latest rumors are true, all options are wide open. It might even be a new joint venture partner. According to Guangzhou Daily (via Gasgoo) Volkswagen could bring its ill-fated SEAT brand to China.

We’ll know more when VW will announce its “South Strategy” at the 2009 Guangzhou auto show next week. If they do.
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Worried about increasingly efficient cars and dwindling tax revenue at the pump, Dutch lawmakers approved the first “pay-as-you-drive” tax system in Europe. Of course, the dwindling revenue is not the official reason given. The official intent is “to protect the climate and to reduce traffic jams,” reports the Deutsche Welle. Now who can be against noble causes such as those?

Nobody even mentions gasoline taxes, the legalized form of highway robbery in Europe. The pay-as-you-drive system will replace the old system that taxes ownership. That will go. The fuel tax remains. Dutch citizens are taxed twice. At the pump and by the kilometer.

Beginning in 2012, Dutch motorists will pay approximately 3 Euro-Cent per driven kilometer, until 2018, the amount will rise to 6.7 Cent. The actual costs vary according to size and engine of the car. A Renault Twingo will cost you 1.4 Cent per km, an Audi A8 will get the Dutch government 16.6 Cent per klick.

And how will the government know?
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When Magna was buying Opel (along with German help and alleged Russian mobsters) Volkswagen made noises about dumping them as a supplier. Vergeben und vergessen.

“If Magna doesn’t act like a competitor, we will continue to do business as usual,” a Veedub spokesman told German tabloid BILD (via Reuters.)

Now is not the time for VW to switch suppliers anyway.
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An uncouth interview, given by GM Chairman Ed Whitacre to the German newspaper Muenchner Merkur at the sidelines of an event at the Texas Lutheran University, has shut the doors on any donations Berlin may make to Opel’s cause. Aus. Vorbei.
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While other brands are busy closing down dealers, Volkswagen is buying them. They buy the big ones, to be exact. The smaller ones have been eliminated ever since yours truly has been working for VW.
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The Opel/GM saga has more twists than New York’s Peppermint Lounge. Yesterday, we reported that GM’s Smith & Reilly went to Berlin to beg money from German Economy Minister Rainer Bruederle. They received the cold shoulder.

Like good salesmen, they didn’t take no for an answer.
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A very strange spy scandal is brewing between (South) Korea and China. Acting on a tip of the (South) Korean National Intelligence Service (the Korean equivalent of  the CIA and FBI rolled into one,)  Korean state prosecutors accused China’s SAIC of stealing sensitive state secrets from Korea.

Then, they indicted seven senior Korean engineers at Korea’s Ssangyong on charges of leaking technology essential to develop hybrid cars.
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GM’s John Smith, and a freshly minted GME CEO Nick Reilly went to Berlin to see German Economy Minister Rainer Bruederle, hat in hand, hoping for some Opel funds. They left empty handed.

“I expressed my expectation that General Motors should basically carry out the financing itself,” Bruederle said after the meeting.
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“China is a global driver of growth in the automotive market,” said Friedrich Eichiner, CFO of the BMW Group. “China will play a major role in the global automotive business, in the development of future technologies.” Then he signed off on a major expansion project. Together with joint venture partner Brilliance, BMW will be able to produce 175,000 Made in China BMWs, up from 30,000 units currently.
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China may be the world’s largest auto market until further notice. Its much feared auto exports however are nothing to write home about. In fact, China’s already measly car exports have declined for 14 consecutive months since August 2008. For the first half of this year, China exported only 191,000 units. This in a market that is expected to be good for 12m units domestically. Other countries, such as Germany and Japan, typically export the same number of cars they consume at home. A good deal of the few vehicles that are exported from China are commercial and utility vehicles, sold to underdeveloped markets.

Two months ago, Zhao Hang, President of the China Automotive Technology and Research Center, blamed quality and after-sale service problems for the underwhelming performance. He also said that Chinese auto exporters lack knowledge of overseas demand, government policies, regulations and certification.

The Chinese government can’t stand it any longer.
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Magna and Sberbank want their money back. Everything they had so far invested into Opel needs to come back from GM, says Das Autohaus in Germany.” We are in negotiations with GM and we hope that we don’t have to go to court “, said Sberbank boss German Gref. “If all else fails, we’ll defend our position in a court of law.“ Gref did not name any sums. Magna also wants their money back. Magna’s Siegfried Wolf said “it is a considerable sum.”

The German government also wants to have their loan back before it will entertain any further discussions. The loan is due by end of November.

After GM announced that they would keep Opel after all, they boasted that “the GM plan entails total restructuring expenses of about €3 billion, significantly lower than all bids submitted as part of the investor solicitation.” After hearing the statement, industry insiders snickered that €3B would be “hardly realistic.”

Now, credit rating agency Moody’s confirms that GM either made that number up, or they lied. Not even close, says Moody’s.
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The Chinese government had announced earlier this year that it wants to “encourage” its more than 100 automakers (nobody is quite sure how many there really are) to consolidate. The goal: Make China’s industry more competitive with foreign rivals. Beijing wants to see four big ones and four smaller ones. Unsaid: the remaining 90-odd carmakers should look for other employment.

To lead by example, the Chinese government just initiated one of the largest merger deals in the Chinese auto industry. Easy for them to do: The government owns both companies.
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At the upcoming 2009 Guangzhou auto show, Volkswagen China is expected to announce that they will build a plant in southern China, Gasgoo writes, citing reports in sohu.com. Not much else is revealed, not even which of their two Chinese joint venture partners will get the new plant.

Volkswagen cooperates with two companies in China: FAW, based in Changchun in the North, and SAIC, based in Shanghai in East China. Both are bitter rivals.
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After scraping by owning Opel together with alleged Russian mobsters, Magna has given up aspirations of being a car company. Magna wants to “focus on its core competencies,” and will continue to be a supplier and contract manufacturer. This is what Magna’s Co-CEO Siegfried Wolf said to Germany’s Handelsblatt.

Magna’s cozying-up with GM continues. “We have contracts from GM, and there is no reason why we should not get new ones,” Wolf said. Then, the ultimate brown-nosing is perpetrated:
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