IP squad, to the front! SinoCast, relying on information from a “top executive of Geely Automobile Holdings Ltd.” says that Geely will buy 100 percent of Volvo, “including the ownership of existing technologies in the fields of safety and environmental protection, as well as technologies of new car models.”

Before, it was reported that Ford could hold back some sensitive technology, namely new environmental and safety gear. Nothing doing, says Geely. Also, Geely seeks to get their hands on advanced hybrid and electric car technologies jointly developed by Volvo and Vattenfall. (Read More…)

China’s Tengzhong is a little-known machinery maker in southwest China’s Sichuan province. They have  been buying GM’s Hummer for what, more than half a year now? Today they said that they and GM have agreed not to rush it and to push back the deadline for the closing  from January 31 to the end of February. Delaying it was a prudent move, because there still is no approval  from Chinese regulators. If they don’t have approval now, then they probably won’t have it by end of February either. Due to the Chinese Lunar New Year festivities, most of China will be closed for most of February, and the really important regulators will not be back from Spring vacation before March. (Read More…)

The Japan Automobile Manufacturers Association today officially conceded defeat and yielded the title “world’s top automobile manufacturer in 2009” to China, reports the Nikkei [sub]. The world had known for quite some time that China made more than 13m cars in 2009, and that Japanese production was a mere shadow of its former self. But it needs some time to sink in and to make it official.

Note: All that follows are production data, as opposed to sales data. In China, production data nearly equal sales data. Couldn’t be more different than in Japan. Here, usually twice as many cars are made than sold. Half of the Made in Japan cars are exported. Usually. Let’s see what happened this time. (Read More…)

Europe has largely shifted towards a CO2-based vehicle taxation regimen. Next in line to tax what comes out of your car may be, wonders of wonders, China.

“Drivers in China may be taxed on the level of emissions produced from their vehicles in the future,” writes China Daily, citing the comments of an official of the Beijing Development and Reform Commission (BDRC). (Read More…)

Chinese automakers may not get government approval to expand their capacities, unless they first agree to take over another Chinese carmaker, says the Shanghai Securities News via Reuters.

China may have the largest auto market in the world, with 13.6m units sold in 2009, but China also has a big problem: Way too many automakers. There are more than 100 automakers in China. The exact number is unknown. China’s top 10 automakers accounted  for 87 percent of total sales, or 11.9m in 2009. The more than 100 small guys built some 1.7m units – together. That’s 17000 units each. (Read More…)

Though Toyota is getting the brunt of the attention for what are apparently faulty gas pedals, the fact that the problem has been traced to supplier CTS means that Toyota isn’t the only OEM that’s shutting down production until a fix for the pedals is found. Bloomberg reports that Ford’s JV with Jiangling Motors in Nanchang, China has halted production of the Ford Transit commercial van, after switching over to CTS-supplied pedals in December. “We think it’s pretty isolated, but we are aggressively running it to ground,” Ford’s Alan Mulally told analysts in today’s financial results conference call. No other Transits are said to be affected, and Jiangling says that they have not received any reports of unintended acceleration for its Transits.

Here is an interesting facet of the “the Chinese car market is bigger than the American car market” meme:

In 2009, Japanese automakers have, for the first time, built more cars in China than in the U.S. reports the Nikkei [sub]. Says the paper: “Of the eight Japanese passenger carmakers, six manufacture vehicles in China. Their aggregate Chinese output came to roughly 2.25 million units in 2009, exceeding the 2.1 million produced in the U.S.”

Which pours cold water on the often voiced theories that people base their car choices on ethnic prejudice. Japanese people are not necessarily hugely popular in China. Japanese cars are. (Read More…)

GM and VW are the undoubted leaders in the biggest car market in the world, and despite challenges from homegrown upstarts like BYD, analysts say that the two global majors are best positioned to take advantage of their leadership in China. But now strategies they are a-changing. Recently, TTAC reported that VW seemed to be getting cold feet about expanding their capacity, but GM seem to have come to the opposite conclusion. Reuters reports that GM expects that they will need to build a new manufacturing plant to allow the growth of their Chinese division to continue. “We expect to sell more than 2 million units this year,” Kevin Wale, managing director of GM China, said. “We have enough capacity to build the cars we need to sell this year and we need to continue to look for ways of increasing our capacity. That will mean we will have to add a new plant some time in the near future.” The plant won’t be built this year because, according to Mr Wale it would be “physically impossible” to move so quickly, but with current GM China plants adding new shifts and expanding current production lines, it seems like their current facilities are just about tapped out. Maybe they could use some of their excess capacity in the United States? Er, maybe not.

How about this for a world upside down: Instead of producing foreign cars in China, the Chinese will produce a foreign car, developed in China, in a foreign country. Such will be the case for the MG6. In a way.

China’s SAIC will manufacture its self-developed MG6-series sedan at its U.K. plant and sell the sedans across the European Union by the end of the year, SAIC’s  chairman said to Reuters. (Read More…)

Want to move to Shanghai to cash in on the Chinese car boom? Want to drive a car in Shanghai? Better bring a lot of money.

Prices for a license plate in Shanghai rose to at two year high in the year’s first plate auction, Shanghai Daily reports. The average price of a private car license rose to US$5,617. A new QQ goes for as little as $4,100. (Read More…)

On the back of a 45 percent growth that propelled Chinese car sales to 13.6m in 2009, and faced with a shortage of cars that doesn’t allow them to feed China’s ravenous appetite for even more cars, Chinese automakers are racing to build more plants. The combined capacity of the 10 largest players is expected to balloon from around 12 million units in 2009 to a breathtaking 21 million in 2012, today’s Nikkei [sub] reports.

Some examples: (Read More…)

Representatives Kevin Brady (R-Texas) and Dan Boren (D- Oklahoma) are tired of Obama’s punitive tariff on Chinese tires. They called for a government report on the economy-wide effects of the measure, Reuters reports.

“I am concerned that the administration’s tire tax will cost us jobs in the United States and raise prices for tires for hardworking Americans,” Brady said. (Read More…)

A report about the automotive industry in the BRIC countries, released by the Boston Consulting Group, throws cold water on the low cost production story:

“In manufacturing, companies are generally paying a premium of 5 to 15 percent to manufacture in the BRIC countries, mainly because of diseconomies of scale and higher quality-assurance costs than they incur in the more developed markets; only in Brazil do they actually save money on manufacturing.”

Ooops.

Apart from this astounding revelation, the rest of the report is full of platitudes and comes 20 years too late: (Read More…)

The extent to which Honda has lost its mojo has been a hot topic in these pages of late. Though the big H has stumbled with Acura, hybrids, design and other crucial areas, one major positive seems to persist: the strength of the Honda name. Which is why it’s so strange to read Bloomberg report that Honda will launch a new brand in China next year. The new brand, named Li Nian meaning “ideal” or “spirit”, will be used for Honda’s new sub-Fit small car, designed to take advantage of China’s reduced tax on engines smaller than 1.6 liters.
(Read More…)

In September 2009, incoming President Barak Obama slapped a 35 percent punitive tariff on Chinese car and light truck tires exported to the USA. That, in addition to an existing 4 percent duty. No American tire manufacturer had requested the boneheaded move. It was a thank-you to the steelworkers union. Cooper tires openly opposed the action. Ironically, US tire companies were hardest hit by the measure, because they had moved most if not all of their budget segment tire production to low labor cost overseas sites. No job was created in the US. Many were lost. Low cost tire manufacturing simply moved to other overseas countries, which were the only beneficiaries of the useless war.

TTAC warned of a trade war, predicted that China will drag the USA in front of the WTO, and that China would take tit-for-tat measures. All of it became true. (Read More…)