Those who have an ideological beef with China should keep one thing in mind: Without China, the car industry (to name just one segment) would be dead. China’s unbridled appetite for cars keeps the whole industry humming. Two examples: (Read More…)

Today, GM broke ground for another R&D Center in China, called the GM China Advanced Technical Center. The new facility is in addition to existing R&D centers in China, including the Pan Asia Technical Automotive Center (PATAC) in Shanghai and the China Automotive Energy Research Center (CAERC) in Beijing. (Read More…)

Shanghai Volkswagen, the joint venture between China’s SAIC and Volkswagen, lost its General Manager and three other people in a road accident  in Jiuquan, southwestern China’s Gansu province, AFP reports. (Read More…)

If you are hoping that the Chinese bubble will burst in no time, putting China back on bicycles, then this story is not for you. If you are worried about little people in Asia using up all the precious hydrocarbons we use for our bigger cars, then we must warn you that reading further could be hazardous to your circulatory system. You have been warned. (Read More…)

Volkswagen is betting big on China. Volkswagen wants to double their production capacity in China to three million vehicles by 2013/14. That is roughly half of their current worldwide production. To do that, Volkswagen will finally build their long rumored, but often denied second new plant in China.  A week ago, Volkswagen had announced that they would build a plant with their northern partner FAW in China’s deep south. (Read More…)

Honda is the Chinese version of Rodney Dangerfield. No respect. After a series of strikes, first at Honda’s parts suppliers, then at Honda itself, things looked liked they are calming down. Until yesterday. (Read More…)

It used to be a common joke in China that makers of refrigerators entered the car business by adding wheels to their refrigerators. (Don’t laugh: GM sold their Frigidaire business in 1979, after 50 years of making refrigerators.) Now, BYD comes full circle. They will enter the home appliance business. (Read More…)

China’s Changan (joint venture partner of Ford, Suzuki and PSA) wants to draw on British engineering know-how and established a research-and-development center in Nottingham, England. (Read More…)

The Tata Nano still hasn’t caught up with its hype and is, 2 years after its introduction, still battling problems of mass production and spontaneous combustion. Meanwhile, in China, Chery is stamping out its low cost QQ by the hundreds of thousands. The QQ is inseparable from China’s popular culture.

Now, QQ could be thinking of entering Europe through its eastern backdoor Poland. (Read More…)

The monthly Chinese car sales number confusion is finally over. The China Association of Automobile Manufacturers CAAM has spoken their official word on June 2010 motor vehicles sales in the Middle Kingdom. We nearly lost confidence, but again, our patent pending sales oracle has been proven right. A week ago, our oracle said “that the Chinese market will come in at a growth in the low 20 percentile range.“ And what says CAAM? (Read More…)

So far, the strikes in China were just small – but effective – sideshows. Strike at a small, but strategically important supplier, and  whole car factories shut down.  That, however, only led to wage increases at the small, but strategically important supplier. Until last Wednesday. (Read More…)

Did someone say that the Chinese are good at – how shall we put it – warming up to foreign ideas? Ray LaHood’s revenue-generating ideas must have impressed the hell out of the Chinese. I can just imagine the discussion: “Come on, the Americans raise the penalty from $16.4m to $200m, so why can’t we? It’s in the name of safety. Ni dong bu dong?” Now therefore, “the Chinese government is set to impose much stricter penalties on automakers if they hide problems with their vehicles to avoid recalls,” reports The Nikkei [sub].

So far, automakers got away with a financial slap on the wrist. Under current rules, introduced in 2004, covering up automotive defects can cost a pittance of $4430, max, no matter how many cars are affected. Under newly proposed rules, hiding a defect could downright wipe out an automaker in China. (Read More…)

In a deal to prop up their books, GM is selling more assets to the Chinese. GM sold its Nexteer Automotive steering-parts unit to China’s Pacific Century Motors, a company formed by China’s Tempo Group and the Beijing government’s investment arm E-Town. (Read More…)

The European Commission concluded that the sale of Volvo to China’s Geely would not significantly impede competition in Europe (well, that would have been a stretch), and approved the transaction, says Reuters. (Read More…)

Last week, we reported some totally discombobulated June sales numbers from China. People’s Daily had reported that “China’s auto sales slumped by 17.4 percent in June from May, to less than 10 million vehicles.” Hooooo-kay. If you say so.

Now, state-run news agency Xinhua reports numbers that make a bit more sense. Still not the official CAAM data, but close enough. (Read More…)