We have documented extensively how Beijing’s license plate lottery mucked-up the car market of China’s capital. Now, Beijingers found a creative way to get their sought-after license play without bothering Lady Luck: They go to court. (Read More…)

There is a Police Equipment Show in Beijing, and it’s a meeting of the minds: Chinese cops want to get out of their Santana wagons (read gen 2 Passat Variant), and Chinese carmakers want a slice of the lucrative government pie. Our friend Tycho of ChinaCarNews (formerly known as TheTycho.com) went to the show and took his camera along. Above a uniformed Shanghai-Volkswagen Passat Lingyu, the logical successor of the ubiquitous Shanghai-Volkswagen Santana. More Chinese police after the jump … (Read More…)

One of Jack Baruth’s many great contributions to modern auto writing is “Mr Euro,” an archetype he first identified in his excellent Ford Fiesta review. According to Jack’s original taxonomy:

Mr. Euro is the guy who, for some reason, wants the cars he cannot have in the United States. He’s the guy who says he would drive a 520i “in a heartbeat” given the chance, the dude who thinks we’re missing out because the Renault Twingo stays on the froggy side of the pond, the fellow who desperately wants a Vauxhall Zafira for child-lugging purposes.

Now, I hope I manage to avoid the most extreme expressions of the stereotype Jack describes here, but yeah, I’ve got some “Mr Euro”-ish tendencies. What can I say, the grass just looks greener on the other side… sue me. In that spirit, follow along as I explain why I’m leaving this dump and moving to China.

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For years now the Chinese automakers have been the bête noir of the global car industry, inspiring equal parts fear and contempt in boardrooms and editorial meetings from Detroit to Stuttgart. In an industry built on scale, China’s huge population and rapid growth can not be ignored as one scans the horizon for dark horse competitors. And yet no Chinese automaker has yet been able to get even a firm toehold in the market China recently passed as the world’s largest: the United States.

Certainly many have tried, as the last decade is littered with companies who have tried to import Chinese vehicles, only to go out of business or radically rethink their strategy (think Zap for the former and Miles/CODA for the latter). Others, like BYD (or India’s Mahindra), have teased America endlessly with big promises of low costs and high efficiency, only to delay launch dates endlessly. In short, a huge gulf has emerged between overblown fears of developing world (particularly Chinese) auto imports and the ability of Chinese automakers to actually deliver anything. No wonder then, that we found what appears to be the first legitimate attempt at importing Chinese cars to the US quite by accident…

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China is getting a double dose of Volkswagen Passat. The new generation B7 Passat will hit China’s streets in a longer wheelbase version, to provide legroom for the boss in the back while the driver up front braves the crazy Chinese traffic. Just like the previous-gen B6, the car will be built by Volkswagen’s northern joint venture with FAW and will be sold under the Magotan name. “Passat” was already taken by Volkswagen’s southern joint venture, more on that below. (Read More…)

As expected, troubled Saab has been thrown a lifeline by China’s Hawtai. Spyker announced today that its Swedish unit Saab has secured €150 million ($222.5 million) in funding from Hawtai. The Chinese company will be able to produce and sell Saab cars in China.

Hawtai will invest €120 million for a 29.9 percent stake in Spyker and provide a €30 million ($44.6 million) convertible loan to Saab. If the convert is exercised (which is pretty much a given – it matures in 6 months with a 7 percent interest rate) it converts at €4.88 a share, says the Wall Street Journal. (Read More…)

Saab and the Chinese automaker Hawtai will announce “an exciting strategic partnership between both parties” at a press conference scheduled for tomorrow, reports MarketWatch. According to Saab/Spyker CEO Victor Muller,

the deal involves “investing in Spyker.”

Hawtai was previously a joint venture partner of Hyundai, and had been approached by Chrysler as a possible partner. The firm reportedly has an annual production capacity of 350k vehicles, 450k automatic transmissions and 300k (Euro IV and V-compliant) diesel engines built under license from VM Motori. The B11 (above) is the firm’s first own-brand sedan, although over the next three years the firm has “plans to launch six more diesel or diesel-electric hybrid passenger cars.” According to chinaautoweb, Hawtai’s gamble on its giant diesel engine plant, the largest and most sophisticated in Asia, may not be panning out as diesel availability has been an issue in the Chinese market, due to high demand from the trucking industry.

Saab’s got a new short-term lease on life, as Automotive News Europe [sub] reports that the Swedish brand has secured a €30m, six-month convertible loan from Gemini Investment Fund. Saab is also requesting a €29.1 drawdown of its EIB loan, and when that is approved next week, Saab will reach the €59.1m in liquidity it needs to restart production. According to another piece by Automotive News [sub], Saab is still in talks with the Chinese automakers Great Wall Motor Co., China Youngman Automobile Group Co. and Jiangsu Yueda Group Co. in hopes of securing an additional investment in the struggling Swedish automaker, as well as a joint venture for Chinese production of the next-generation 9-3, and a possible Chinese market distribution deal.

Meanwhile, Saabsunited reports that several companies have been told to stop development on that next-gen 9-3 while the company gets back on its feet, meaning it could be delayed into the 2013 timeframe. And while Saab sacrifices long-term development for short-term survival, the recent production shutdown is taking its toll: Swedish sales of the 9-3 are up, but the new 9-5 is falling off (128 sold last month) as stocks dry up. The drama continues…

George Orwell’s warning, that “the first victim of war is the truth,” apparently applies equally to trade wars. On Friday, Senators Carl Levin and Debbie Stabenow (both D-MI) wrote the United States Trade Representative to express their concern over “reported draft regulations” of China’s New Energy Vehicle plan, noting

We are concerned that these draft regulations continue China’s long history of breaking international trade rules.

Given that the ongoing low-level trade war between the US and China, this was a predictable bit of saber-rattling. But if Levin and Stabenow’s political motivations are easy to understand, the logic that leads them to believe China’s New Energy Vehicle plan is a violation of international trade rules is not. Meanwhile, neither the Senators nor the USTR appear not to have heard about another, more serious possible trade issue arising from China’s headlong dash towards electric vehicles. Sounds like a job for The Truth About Cars…

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Saab will either be owned by Russians or Chinese. That’s the way it looks today. Which is no guarantee that it will look the same on Monday. (Read More…)

Things have been a little quiet around Better Place and their battery switching solution. Everybody is waiting for their Denmark and Israel projects to finally take off. The promised land of EVs of course is China: A huge population, a large untapped car market, and a government that gets nervous when thinking about long and perilous supply lines of foreign oil. The Chinese government demands EVs from its automakers, and just about each had a prototype or more at the Shanghai  Auto Show that had a plug and a cord. Just don’t ask when you can buy one. (Read More…)

Ever since Bertel showed us the newest version of the Buick GL8 minivan, with its “Business Concept”-inspired design and executive airport shuttle mission, we’ve been curious about the chances of it coming to the US. After all, GM hasn’t sold a minivan in the US since the Uplander died in 2009, a far cry from the 336,000-odd minivans The General sold in America just ten years before. But when we asked our Best and Brightest if Buick could use a minivan, the response was a fairly resounding “no.” One particularly uncharitable soul even suggested that we were trying to goad GM into making a mistake in order to have something to bash them for. But, as it turns out, GM’s US execs didn’t need to be goaded at all to consider bringing the GL8 to the US market. GM China boss Kevin Wales tells Reuters [via the Baltimore Sun] that

They’ve looked at it on and off as long as I’ve been out here. They’ve made a fundamental decision that says demand for that type of product’s not strong enough. We say that’s fine. We’ll just keep selling out here.”

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Did I say that China is trying to clamp down on displays of conspicuous consumption? A young couple in the city of Zhengzhou in Zhejiang Province did not get the memo. At their wedding, guests arrived in Rolls Royce Phantoms, Rolls Royce Ghosts, Rolls Royce Silver Saraphs, Bentley Continentals, Bentley Arnages, Lamborghini Gallardos, Ferrari 458s and some lesser models. Tip of the hat to Tycho at CarNewsChina.

Lenses at the Shanghai Auto Show definitely test both sides of the envelope. Some photographers came  with lenses long and wide enough to take close-ups of concept cars shown on the moon. (Read More…)

At last year’s Beijing auto show, a man walked up to the Roll Royce booth with a suitcase full of “Red Maos” – as the 100 yuan note is called in China, the largest note equals $15.40 – and walked away as the owner of a Rolls Royce Phantom. At least that’s what AFP heard. Because of taxes and duties, a Rolls-Royce Phantom started at 6.6 million yuan ($1 million) a year ago. That translated into 66,000 red banknotes. (Read More…)