The car industry is slowly getting healthy again (except in Europe.) Worldwide sales are up 6.8 percent so far, and it looks like 81 million units could be sold worldwide this year, as data by LMC Automotive show. This has the Worldwatch Institute up in arms. Basically, it wants us to buy fewer cars and drive them less. (Read More…)
“China’s auto sales growth falls to 3.7 percent” if you read the Associated Press and Bloomberg. If you rather put your trust in Reuters, then “vehicle sales in China rose 8.3 percent in August from a year earlier.” Reuters is correct, AP and Bloomberg just received a new degree in spin doctoring.
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This flag raising on uninhabitable rocks …
A long simmering dispute of islands which both Japan and China claim as theirs has risen in temperature in China. There have been anti-Japanese demonstrations in Chinese cities, and on-line calls for boycotts of Japanese goods. Now the row is officially affecting sales of Japanese cars in China, Dong Yang, secretary general of the China Association of Automobile Manufacturers (CAAM), told Reuters today in Beijing. (Read More…)
The Chinese government reprimanded organizers of the Chengdu Motor Show for showing way too much flesh than what’s appropriate for a harmonious society. The exhibitionist exhibits were all foreign. A finger-wagging received the display of female charms at Citroen and Kia, and a serious finger-wagging was directed at an “almost-naked Ms Yan Yu who briefly posed with a Toyota Camry before things got so mad with ‘journalists’ taking pictures that she was quickly taken back-stage,” as Tycho de Feyter reports at Carnewschina.
The showing of almost naked ladies is standard fare at communist China car shows, but could trigger arrested hearts and mass firing in the allegedly free West. Therefore, the almost naked Camry lady was trafficked below the fold. Don’t click if you are under age, easily offended, or easily fired. Your have been warned. (Read More…)
Ford won’t be following in the footsteps of Renault and other auto makers that have introduced “low cost” brands like Dacia. But the company hasn’t ruled out a model line of cheaper vehicles either.
Rubbing shoulders with industry types displaced to a Chinese city called Chengdu has its good parts. You hear stories you normally don’t see in a press release. An executive who works for the western partner of a large Chinese joint venture told me today that my story about Chinese interests killing the Opel deal between GM and PSA wasn’t true. At least not completely. As so often, in the denial was a much more interesting story. After another drink for encouragement, said executive told me very much off the record that GM is tired of the PSA deal and wants out. If that means leaving Opel for dead, so be it. (Read More…)
The hordes of Chinese and Japanese reporters roaming the halls of the Chengdu Global Automotive Forum in Chengdu were not really interested in exports. They were sniffing blood. There are tensions between China, Japan, and a few other countries over some rocks in the sea. The rocks are called Diaoyu by the Chinese, Senkaku by the Japanese, and choice words by many others. Nissan’s COO Toshiyuki Shiga sat on the podium, next to the always photogenic Atsushi Niimi. The Japanese were flanked by a BAIC president and a Dongfeng CEO. The reporters wanted to know: How bad is it? (Read More…)
There is one thing about the Chinese car industry that can’t be said often enough: It is learning fast. A year ago, the recurring theme at the Chengdu Global Automotive Forum was brands, brands, brands. This year, nobody talks about new brands anymore. The only one who does is the CEO of Dongfeng, one of China’s largest automakers. He says last year’s brand binge was misguided, “irrational, incompetent, and immature.” (Read More…)
Now that we have the August numbers for the world’s second largest car market, attention turns to the world’s largest, China. The Chinese economy is cooling down. Has it hit car sales? Official numbers won’t be here until next week, but our patent=pending China sales oracle has spoken. (Read More…)
When you want to make and sell cars in India, you don’t need a joint venture partner. Except when you are GM. In the dark days of December 2009, GM cut a deal with Chinese partner SAIC, gave them half of its India business and a golden share in China for much needed cash. SAIC underwrote a $400 million loan when GM was out of money. Now, India is flooded with Chinese cars bearing the Chevrolet badge. (Read More…)
A few days ago, an anonymous source told us that Lincolns have been in China for years, and that Ford won’t admit it. Ford said they probably were grey imports. Before the Chengdu Motor Show opened its doors, three Lincolns were seen entering the hall with big grins on their faces, and everybody thought they were brought by Ford. No they were not. (Read More…)
It looks like news of the sacking of Joel Ewanick has not reached China. Or at least not Chengdu. (Read More…)
If you want to make cars in China, you need a joint venture partner. The Chinese joint venture partners have done well. 98 percent of last year’s sales of central government-owned Dongfeng came from joint ventures with Nissan, Honda, and Peugeot. Largest Chinese automaker SAIC derives 60 percent of its sales from made-in-China GM and Volkswagen cars.
That policy “is like opium. Once you’ve had it you will get addicted forever,” said former machinery and industry minister, He Guangyuan. (Read More…)
TTAC’s eulogy on Saab was premature. The Chinese willing, there will be new Saabs in the future. Surprisingly, Swedish defense contractor Saab AB licensed the Saab name to National Electric Vehicle Sweden (NEVS) to be used in future vehicles, a press release of NEVS says. NEVS also “finalized its acquisition of the main assets of Saab Automobile AB, Saab Automobile Powertrain AB and Saab Automobile Tools AB, effective August 31, 2012.”
The ultimatum given to NEVS last week apparently instilled fresh urgency into the parties, and an undisclosed amount changed hands on Friday. For the money, NEVS also received “IP rights for the Saab 9-3, IP rights for the Phoenix platform, tools, the manufacturing plant, and test and laboratory facilities.” There are others who think they also own that Phoenix platform. And the people of Trollhättan better don’t get their hopes up on EV exports to China. (Read More…)
We continue our coverage of the 15th Chengdu Motor Show, brought to you courtesy of China coverer extraordinaire Tycho de Feyter of Carnewschina.
“The BMW M6 Coupe, decked out in China’s national color, was launched today on the China auto market during the Chengdu Auto Show. There is only one, priced at a rather sick 2.33 million yuan, or 367.000 USD. Not cheap indeed and most of da money goes directly to the Chinese tax office. Big engined cars are taxed up to 40% of value in China. But no matter, the M6 Coupe is worth it, just for that brilliant 4.4 twin-turbo V8 with 550hp and 680nm.“
Of course, there are the female product specialists of the Chengdu Motor Show. They bring them out en masse on the second press day. Warning: If you are offended by insufficiently dressed Asian females with garters, DO NOT click the jump. We promise it won’t be a picture of big – ears. (Read More…)
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