While bumbling GM so far hasn’t closed any of their cast-off brands deals, Ford’s  Volvo sale to Geely appears to progress quietly, but steadily. The usually well informed and reliable  China Car Times says that Geely is “feeling secure about the Volvo purchase.”

Ford has enlisted JP Morgan and Citigroup to assist with the sale, Geely has employed Rothschild. The deal is expected to close soon, “before the start of 2010.”

According to CCT, Geely is working off a seven point checklist:
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No wonder GM decided it couldn’t give up Opel… it would have lost Buick as well! Expect this Buick Excelle (a rebadged Opel Astra in the style of the new Regal) to arrive in the US under a different name (and probably in sedan form only) around the 2012 model year.

It’s been year since we blogged Chinese press reports that China’s SAIC might buy GM. It turned out to be one of many Chinese rumors that followed. We became the target of hate mongering—some idiots even accused us of driving down GM’s and Chrysler’s stock price. Duh, buyout rumors usually drive prices up. At the time, the GM stock was worth at least a little money: the market cap of GM was less than Mattel.  Months later, the stock was worthless. GM and Chrysler went bankrupt. Instead of the Chinese owning GM and Chrysler, the American taxpayer ended up holding the barf bag.

It took a year and six days to dawn on CNN Money that a Chinese-owned GM might not be such an outlandish idea after all. “A Chinese-owned GM, it could happen,” headlines CNN Money today.
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Think the US is drowning in cheap Chinese goods? Think again. Production is rapidly going South. According to corporate consultant AlixPartners, Mexico has leapfrogged China to be ranked as the cheapest country in the world for companies looking to manufacture products for the U.S. market. India is now No. 2, followed by China and then Brazil.

A number of Chinese car manufacturers have tried to use NAFTA’s soft underbelly as an entry into North America. Zhongxing, FAW, Geely, ChangAn and more announced plans to Hecho en México. One by one, they have been shelving the plans. Cheap production is one thing. Lack of customers another. This summer, FAW cancelled plans for a Mexican manufacturing plant. Before, Geely and Zhongxing had said “bu hao” and packed up.

China’s ChangAn was thought to have the most robust stomach for Mexican food. Looks like they also lost their appetite.
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China’s car sales can’t go on forever growing at a 50 percent to sometimes 100 percent clip, auto execs agree at the Guangzhou auto show. All are convinced that the growth will continue next year at a more – what’s the buzzword?- sustainable rate.

The Guangzhou auto show opened today. In case you’ve never heard of Guangzhou, it is a city of around 10m (nobody knows for sure,) and the main manufacturing hub of the Pearl River delta. Formerly known as Canton. About 30 percent of China’s GDP is produced in the South. The opening of the show prompted some major announcements. Here are some of them:
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“Rolls-Royce said Friday the market for its super-luxury cars was picking up dramatically across Asia as the effects of the global financial crisis recede,” says AFP.

“We’re fast coming out of the financial crisis and China and India look like they will lead the way out in 2010 on a feel-good factor,” quoth Rolls-Royce Asia-Pacific regional chief Colin Kelly.

Rolls-Royce expects sales in the alleged poorhouses of China and India to grow to three-quarters of its total business in the Asia-Pacific region.
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We got a good giggle (and several excellent limericks) out of Chery’s Bentley-aping Riich brand logo back in March, so we thought we’d show off a peek at what qualifies as upmarket for Chery. Priced at about $8,165, the Riich X1 makes do with an 84 hp, 1.3 liter engine which motivates the tiny crossover to 60 mph in a very un-upmarket 16 seconds. Which is no big deal, considering top speed is rated at about 93 mph. The X1 does offer alloy wheels, climate control, parking sensors and mp3 connectivity though. As tempting as it is to simply laugh off at the Chinese version of upmarket branding, a look at this advertisement for the X1’s sibling, the Riich M1, shows a young professional-oriented vibrancy that’s become rare in US-market auto advertising. What the Chinese market clearly lacks in technology and expectation, it makes up for with an enthusiasm born of seemingly limitless potential. [via Automotorundsport.de]

The long-rumored Chinese invasion may be coming sooner than we expected. Automotive World reports that Chinese automaker Brilliance has signed letters of intent with 36 US dealers in preparation for a US market launch. According to the report, Brilliance intends to launch products in the US as soon as it acquires 100 dealers. Apparently Brilliance’s US distributor is targeting former Saturn dealers, Roger Penske’s US network, Hummer dealers and the Galpin group. Rumors are even swirling that Brilliance could buy the Saturn name to re-brand its US-market products.

Sweden’s unions are on a hot trail. They think that –ohmygod- the Chinese government could be pulling the strings with Geely and Volvo. China’s Geely won’t say where they get the money for buying Volvo from Ford. Geely says its backers include Chinese banks. Sweden’s union leaders are concerned that the Chinese government may ultimately be behind the takeover. Well duh, most (if not all) Chinese banks are owned by the Chinese government. Kindof. Somehow.
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On Wednesday, German German tire and car parts maker Continental AG joined the long line of multinationals who opened a R&D facility in China. The multinationals are way ahead of popular wisdom that technology is developed in the West and ripped off in the East. In reality, development has long left the building and has taken up shop in China.

Continental’s R&D center in northeast Shanghai will have 900 engineers working away by early next year. They will focus on the design and development of vehicle electronics. Shanghai Daily reports that Continental plans another technical center in the Jiading District if Shanghai which will do vehicle development and system testing. Not the stuff you do with a sledgehammer.
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China is the perfect place to think about the future shape of mobility. It’s my job here to push my staff to push the envelope and think about the global automotive future from Beijing

Mercedes designer Olivier Boulay, explains his inspiration migration from Japan’s chauffeur-car culture to the streets of Beijing. The Wall Street Journal puts the cliches about China’s role in the world of automotive design, pointing out that (among other things) for every Geely GE, there’s a Buick Invicta.  Not only are Chinese designers affecting Western brands, other Western brands like Mercedes are transferring design staff to China to seek out inspiration in the world’s new largest car market. And developing styling to Chinese tastes is about more than gaining market share there. China’s seemingly contradictory love affairs with conspicuous consumption and electric vehicles (mostly bicycles) represent a heady fusion of luxury and futuretech, a combination that already defines the marketing of many Western luxury car brands. As these trends develop, and as the Chinese market grows, auto design will increasingly be shaped by and in the Middle Kingdom.

China has barely received wireless 3G service (a little later than the US, much later than Europe and Japan.)  China has three competing  3G  technologies, one based on the globally accepted WDCMA (UMTS) standard, the other two homegrown. That, and the fact that coverage is still spotty, doesn’t stop them from networking their cars. Chinese love their mobile phones and they love their cars.  In Beijing, nearly one in every inhabitant has a mobile. China counts approximately 700m mobile phones, one for every two people.

Changan Auto has signed a strategic cooperation agreement this week with China Mobile to develop a smart vehicle based on 3G wireless technologies, Xinhua reports via Gasgoo.
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Volkswagen wants to unseat Toyota as number one by 2018. When they announced that strategy, it was widely discounted as Wolfsburg hubris, and as a goal so far out that nobody will recall nine years down the road that the goal has ever been set. Or as the saying goes in Wolfsburg: “In 2018, I’ll be retired.”

A few days ago, The Guardian reported that in the first 9 months of 2009, Volkswagen/Porsche made 4.4 million cars whereas Toyota made 4 million. Which ignited speculations that VeeDub may have reached its elusive goal 9 years early. Then the usual count of apples and oranges ensued, and after the joint ventures with minority stakes were included, Toyota nosed ahead.

Everybody calm down. Volkswagen is years away from overtaking Toyota, reports Das Autohaus. Surprise, surprise, arch rival GM is nipping at Toyota’s heels.
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In January 2009, China surpassed the USA as the world’s largest car market. Since then, the gap had widened month after month. While China is clocking in near triple digit growth rates, US sales are still down. Even GM’s Henderson believes that China will stay ahead of the USA for quite some times. “It’s not a blip,” Henderson said to AFP. Now, eleven months later, the news transpired to the Freep.
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