Chinese dually. Picture courtesy transportfool.com

I spent an interesting Saturday with two old friends of mine. They had never met before. One, American, CFO of an insurance company, had been in the finance and banking business all his professional life. The other, born Chinese, naturalized American. Was one of the top mortgage writers in the Silicon Valley before the dotcom crash. Came back to China and heads a Chinese/American bank. The two got along splendidly.

Of course, we talked about money and cars. Recently, there was a discussion on TTAC on how the bursting of the Chinese real estate bubble would destroy the car market just like it had in the USA. I eagerly set out to pick their brains.

Quite oddly, the first one to throw water on the bubble theory was my friend, the staid CFO of the staid insurance company. (Read More…)

Friday’s announcement of mindblowing Chinese sales numbers must have had an effect on the minds of the reporting profession, as evidenced by a quick read of the news. They are all over the landscape. (Read More…)

China’s SAIC is basking in the glow of another bang-up quarter. China’s biggest automaker told Reuters that their first-quarter net profit rose more than four times from the year-ago result. Detailed numbers will be released with SAIC’s full first-quarter earnings report on April 28. Keep in mind that last year’s results already were 9 times those of  2008. In March, SAIC sold 336,387 units, sales for the first quarter were up 64 percent from a year earlier to 891,795 units. To put it into perspective: All of Germany sold 670,410 cars in the first three months of 2010. SAIC singlehandedly outsold Germany by 221,385 units. (Read More…)

Yesterday, we admitted to the sin of a faulty prognosis: More than a week ago, we had forecasted a March growth rate between 50 and 60 percent for the Chinese auto market. Yesterday, the number came in as 63 percent. Shame on us. However, yesterday’s number was passenger vehicles only. Our patent-pending forecasting model covers all cars. Now, the real number is in. (Read More…)

Usually, it’s the car manufacturers who complain about fake parts coming from China. In the man-bites-dog equivalent of the parts industry, a Chinese government agency accuses Toyota of trafficking in highly illegal auto parts. Toyota is in deep doo-doo. (Read More…)

China’s carmakers better get their pure plug-ins ready. The central government is set to spend serious money to electrify development and sales. China Daily reports that “a much-awaited government stimulus plan” is ready for government approval and should be in effect in the next couple of months.

Private buyers in five chosen cities (so far unveiled, but the usual suspects apply) will be able to collect close to $9000 if they buy a pure plug-in. Imports need not apply. (Read More…)

A week ago, we swam against the trend of China analysts who predicted a 30-40 percent rise in March new car sales in the Middle Kingdom. By using our patent-pending TTAC forecasting methodology, we projected China’s sales rising between 50 and 60 percent in March. The numbers are in. We were wrong. (Read More…)

During the courtship stage between Geely and Volvo, and after their recent nuptials in Gothenburg, Sweden, we often raised the matter of Chang’an. Chang’an has had a joint venture with Ford since 2001. Under the JV, they also make Volvos in China, the S40 and S80, to be exact. They don’t make them in large numbers. 22,405 Volvos were sold in China last year, up nearly 80 percent compared to 2008. The S40 has been on the Chinese market since 2006. The S80L, a long version of the S80, was introduced last year. Chang’an had been in play as a suitor for Volvo, but bowed out.

What will happen to Chang’an’s Volvos? (Read More…)

Chinese automaker SAIC has concluded its deal to assume control over its joint venture with GM [via the WSJ [sub]], and to keep its momentum going, it will be releasing its first hybrid vehicle this year. Reuters reports that the Roewe 750 Hybrid will be released this year, making SAIC the second Chinese firm to offer a hybrid drivetrain after BYD. SAIC may even deliver … (Read More…)

A while ago, we predicted that China’s March new car sales might exceed expectations. We came to that conclusion by reading the usually reliable tea-leaves of the March GM sales. They came in at 68 percent above March 2009. Using them as an indicator, growth of overall March sales in China could be in the 50 to 60 percent range. Analysts polled by Reuters think the number will be 30 – 40 percent. It looks like they are wrong. (Read More…)

Nearly everything ever written about BYD in the Western press has focused on the Chinese automaker’s hybrid or electric drivetrains, or the firms and investors who have bought into their future promise. It’s an understandable state of affairs: after all, the firm started life as a cell phone battery maker, providing OEM cells for firms like Nokia. Meanwhile, BYD sold nearly a half-million cars in China last year, all gas powered, doubling both sales and profit over 2008 levels. And with plans for a pure EV now on hold, BYD is going back to basics, readying a range of new, allegedly more upscale, gas-powered cars for the Beijing Auto Show later this month. (Read More…)

Despite rumors of Maybach’s imminent demise, or, even more shocking, a sell-off to China’s BYD (a rumor that had been debunked the next day) Maybach is alive and well. Why, we don’t know. But anyway, Maybach will introduce a facelifted model at the upcoming Beijing Auto Show. The car is already in town. (Read More…)

From the unintended consequences dept. comes yet another humdinger. Some keep saying the recent Toyota spat was intended to put the Japanese competition in its place. Instead, it ups the competitiveness of Korean and Chinese auto makers, says The Nikkei [sub]. (Read More…)

Now that TTAC’s crew has landed in force at NYIAS, Chinese Week-end is no longer in effect. Regular rules apply.  We clear the stage with a look back at the human side of last year’s Shanghai Auto Show. There are two reasons for it: (Read More…)

While everybody is afraid of China flexing its muscles, the Middle Kingdom is stretching its feet. And its cars. Long versions are very popular in the world’s largest auto market, where one can hire a permanent driver for a few hundred $ a month. (Read More…)