If anybody will again blather about a “weak yen” that has been “manipulated by the Japanese government,” then I’ll personally come visit, with the intent to insert a sock in the mouth. For reasons explicable only to forex mavens, the currency of the economic basked case Japan keeps on getting stronger. Japan’s car manufacturers think this will continue, and they are taking precautions. More precisely, they are taking production out of Japan. (Read More…)
Thank you, God, or make that Uzume, for keeping me alive long enough so that I can announce this: The Governator himself, that Austrian incarnate of Red, White, Blue, Mom & Apple Pie, has received a starring role in China’s Xinhua newswire:
“California Governor Arnold Schwarzenegger announced on Friday that Chinese manufacturer BYD Auto Company Limited (BYD) will locate its North American headquarters in Los Angeles.” (Read More…)
Expo-nential growth
While (usually foreign) analysts are dead worried about the Chinese car bubble to pop and never to be seen again, Chinese car companies are happily raking it in. Western companies, mortgaged to the hilt, or on government life support, are developing a serious case of China-envy. (Read More…)
Who built this luxury-car concept, shown at the Beijing the Auto Show? It’s not a brand that is well-known in America, but that’s not the only reason you might be left guessing…
We knew Brilliance’s plan to export 158,000 sedans to Europe had taken a bit of a beating when the Chinese automaker’s European export partner folded back in November. Even before then, the ADAC’s now-infamous crash tests of Briliance’s BS6 and BS4 seemed likely to doom the brand’s early attempt at the European market. And now, according to Reuters, it’s official. Brilliance execs admit:
We have stopped exports to Europe. For now, we have no timetable for resuming the business
Anywhere there’s a gold rush, competitors have to worry about getting caught on the bust-end of a boom-bust cycle. With the growth of China’s car market projected to roll all the way to about 20m units annually, automakers hoping to cash in on booming sales have to wonder whether their investments in Chinese capacity will actually be used efficiently. And, as the European market is learning, government consumer incentives can also inflate projections, only to create a collapse in demand after they are phased out. These factors have combined to create a bit of a panic about the possibility of a Chinese-market oversupply, as financial analysts start reigning in automakers’ rampant Sino-optimism.
Here is one sad aspect to the inevitable consolidation of the wild and wooly Chinese car industry: It will reduce the amount of humorous material. Case in point: Zhejiang Gonow Auto, known as the creator of such memorable cars as the „Gonow Aoosed GS” will most likely not grace us with more unforgettable nameplates. True to its name, Gonow is gone. Well, not really. (Read More…)
Shai Agassi’s Better Place possibly clinched a possibly better deal than having three taxis running around in Tokyo. Possibly.
According to the Financial Times, Better Place signed a memorandum of understanding with China’s Chery “to develop prototypes for electric vehicles to be used in regional sate-sponsored pilot projects.” This could give Better Place access to what the FT calls “potentially the biggest future market for battery-powered cars.”
The system remains the same: switchable batteries that will be swapped at charging stations faster than you can swap-in the extra battery of your camera. If you can find it. Israel and Denmark are running tests. But these are tiny countries, and this is China. (Read More…)
Audi and BMW have history of trading shots in their advertising, not only calling out their rival by name, but also targeting each other’s advertising. With China taking on increased importance in the global luxury car game, the battle has moved to Hong Kong where BMW has purchased this giant billboard… immediately over an Audi dealership. Insecure much?
This chair will soon be vacant
Remind me to send a bill to Volkswagen for propaganda services rendered. Maybe I can use my old Lieferantennummer. (Supplier’s Number.) Otherwise, TTAC and your humble BS would be ripped off left and right. (Read More…)
Unlike long-wheelbase luxury, the other major theme emerging from coverage of the Beijing Auto Show was hardly unique to the Chinese market. Electric vehicles and talk of automotive electrification have become a highlight of every auto show, with politicians joining executives to push EVs whether the show is in Detroit, Paris or Beijing. And yet, with a power grid that is said to be upwards of 80 percent coal-powered, China isn’t exactly the ideal candidate for an electric car offensive. China’s BYD F3DM was arguably the world’s first plug-in “on the market,” and yet the Shenzhen-based automaker only found 48 fleet sales last year, and still has yet to report a private sale. Conventional wisdom suggests that most Chinese buy at the lowest end of the market (if they’re lucky enough to afford it), while the “coastal elites” tend to spend their hard-earned profits on vehicles that convey prestige rather than eco-optimism. This is a model the global carmakers know how to work with… so why all the talk of EVs in China?
Yes Howie Long, Honda has managed to sell everything from lawnmowers and mopeds to cars and jets under the same brand name for decades, without ever damaging the value of the Honda brand. In fact, given that Acura is Honda’s only auto branding exercise thus far and it’s hardly the strongest brand in the world, the best branding advice for Honda seems to be stick with the Honda thing. Which might explain why this Everus concept from the Motor Company’s forthcoming China-only brand, Li Nian, is such an Acura-like disappointment [via Paul Tan].
Volkswagen, China’s largest car brand, is undeterred by rumors that the Chinese might lose interest in foreign joint ventures. As someone who has been there since 1984, Volkswagen probably knows better. Volkswagen just said: “I see your 1.3 billion people and raise you by 1.6 billion.” Euros, to be invested into plants in China. (Read More…)
Day two of the Beijing Auto Show. It’s a Saturday morning, traffic is supposed to be light (by Beijing standards) – but boy are we wrong. The roads are clogged. All traffic flows north, towards the fairgrounds. Again, this is the second day for accredited media only. Yesterday, when we left the show, there were lots of traders offering money for the press passes. Which they resold to waiting customers for a hefty mark-up. The take was quickly put in circulation, and all of Beijing is headed to the show. Come along (Read More…)
918 M Spyder at the Beijing Motor Show. Picture courtesy Bertel Schmitt
Media day at the Beijing Auto Show. Had to get up at 6am to get from downtown Beijing to the new fairgrounds. Had to experience my first Beijing rush hour. Usually, I walk to the office. One flight of stairs down. Barely got to the fair on time for the press registration before 9am. Here is Friday’s pictorial. (Read More…)
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