From Reuters to The Nikkei [sub], the world is abuzz with the shocking news that Honda had to shut down assembly lines at all of their four Chinese auto assembly plants after workers at a Honda transmission factory in Foshan in southern China walked off the job. While the job action barely registers in the Chinese press, my phone in Beijing rings off the hook. Common question from abroad: “Are they allowed to do that?” There goes another myth. (Read More…)
Nobody in possession of his or her faculties doubts that China will remain the world’s largest auto market for this year and years to come. In 2009, Chinese bought 13.6m vehicles, up 45 percent. In the U.S.A. 10.4m units changed hands in 2009, down 21.2 percent. This year, the U.S. A. is expected to recover, but not by much: J.D. Power forecasts 11.2m units sold in the U.S. for 2010. How many will be driven off dealers’ lots in China this year? (Read More…)
Further signs that Volkswagen’s SEAT is due for euthanization emanate from China. If there ever were plans to bring SEAT to China, well, the plans are no more, says China Car Times. (Read More…)
Any minute, or at least by the end of the month, the Chinese government will reveal super-secret plans to throw serious subsidy money at clean energy cars. The plans have been so secret that the Chinese market from mild hybrids all the way to full plug-ins came to a standstill with everybody waiting for the government to dole out heavy cash. Of course, GM doesn’t want to stand on the sidelines of this bonanza. (Read More…)
In January, the Chinese government had warned its (mostly government-owned) car companies to go easy on capacity expansion. Car sales in China were expected to show more sedate numbers than last year’s torrid growth rate of 45 percent. Sales did not follow government orders. In the first four months of 2010, Chinese car sales grew 60.51 percent. Now finally, the government can say “we told you so.” China’s car dealers sit on a mountain of unsold cars. (Read More…)
On the strength of Coda Automotive’s plan to launch a $45,000 EV conversion of a Chinese Hafei sedan, our coverage of the EV startup (formed from the ashes of Miles Electric Vehicles) has pretty much been limited to the conclusion that it “make the Volt look good.” And as the competition has moved forward, the venture isn’t looking any better by comparison. With news that Nissan will be able to manufacture its Leaf batteries for the low, low price of under $400 per kWh (if all goes to plan, anyway) rocking the EV community, Coda’s proposition of asking $45,000 for a 33.8 kWh lithium-ion battery with a Chinese compact sedan attached to it has not aged well (conservatively assuming the Hafei costs $15k, that still breaks out to nearly $900 per battery kWh, as crude as the comparison may be). But don’t let a little common sense worry you about Coda’s future: according to a company press release [via PRNewswire] the firm just scored a cool $58m in an oversubscribed fundraising round that leaves it with over $125 in total investments.
You are probably going batty awaiting the American arrival of the all electric Made in China BYD e6. Fret no more: It’s coming! BYD will start selling the plug-in e6 in the U.S. “in 2010,” writes People’s Daily. The price? “Around 40,000 U.S. dollars.” (Read More…)
Whenever the insane growth rates of Chinese car sales come up, there is one inevitable comment: ”Wait until credit tightens. Those sales will come crashing down.” My (in the meantime canned) answer: “China isn’t America. In China, people usually buy their car with cash. Financing is rare. Leasing highly uncommon.” Apart from being smart not to pay interest on a depreciating asset, the Chinese have all reason not to lease. Case in point: An email I received today. (Read More…)
At the Beijing Auto Show, they had a fine-looking and well-appointed Buick MPV, called the “Business Concept” (shown above.) I gave it no mention. After all, who cares about a concept MPV that will never see the light? Big mistake, Schmitt: It will see the light faster that I thought, namely by the end of the year.
You think U.S. car makers suffer from brand confusion? Come to China! China’s Chery for instance is known for their low-cost cars, especially for their ubiquitous el cheapo QQ. In order to venture into more upscale segments, Chery launched a number of brands, amongst them Rely (for SUVs, get it?), Karry (for minivans and pick-ups, get it?) and Riich (for upscale models, get it?) Now, the confusion starts. (Read More…)
5 years ago, disturbing news reached Germany. A Chinese company called Jiangling had the nerve to disturb the peace of the Frankfurt Motor Show IAA by displaying a Chinese SUV, with the intent to sell the vehicle. With dispatch, a crash test was arranged by the ADAC, the German equivalent of the AAA. The car failed miserably, the video became a hit on Youtube, and turned into an example for all that’s wrong with Chinese cars. Landwind was done. Never mind that rumors wouldn’t die that ADAC’s Landwind test had used, shall we say, “enhanced techniques.” Never mind that Germany’s TÜV, the company that officially tests cars for the German government, tested the car later and certified that it met all mandatory safety criteria. Never mind that the ADAC has a sometimes incestuous relationship with German auto makers. Landwind was destroyed, the first attempt to invest European soil with Chinese cars was repulsed. Later, ADAC did the same to Brilliance, again under questionable circumstances, again with the predictable results: Brilliance was dead, had to leave Europe. Well, Brilliance is coming back. And so does Landwind. (Read More…)
A good old friend is coming back to China: The Jeep. Guangzhou Automobile Group Co (GAC) is expected to produce Chrysler’s Jeep at its Changsha-based joint venture with Fiat, Gasgoo reports. (Read More…)
Hunting prototypes for spyshots can be a frustrating and (if done in Finland) frosty affair. Carmakers are taking extreme measures to ward off paparazzi. Carmakers camouflage their prototypes (see video.) This doesn’t faze bloggers. Bloggers found a way to catch future cars in the comfort of their own home or office: From a ragtop Panamera in egmcartech to a similarly topless Mercedes AMG SLS in Topspeed, no future car is safe from bloggers anymore, even before the first prototype is built. Understandably, the Chinese are highly interested in the technique. You can learn it in a few minutes. What is the secret? (Read More…)
While bullets fly in Bangkok, Toyota announced today that production at a Toyota plant near Bangkok will cease by the end of May. Toyota says the plant closure has nothing to do with the public unrest, it should be seen on the context of the reorganization of Toyota’s global operations, says The Nikkei [sub]. (Read More…)
Those Chinese sure are tenacious. After European Brilliance importer HSO went bankrupt last November, after Brilliance wrote a whopping loss for 2009 while the Chinese market went through the roof, after Brilliance announced that they had stopped all exports to Europe (there wasn’t much to stop,) one would have thought that China’s Brilliance thoroughly had it with exporting to Europe or any of the first world countries. But no … (Read More…)
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