I’m afraid our friends over at Gasgoo need a little parental oversight. Or the good folks at China’s premiere auto business site shouldn’t been drinking while posting. Today, they report that the Chinese government invested 5 billion yuan ($736m) in the “cash for clunkers” program last year. As of May 31, only 1.7 billion yuan ($250m) were handed out, with 3.3 billon yuan ($486m) left. No surprise to us. We never thought much of the program. In January, we said: “Due to the relatively young fleet in China, the impact of the cash for clunkers program on sales is expected to be small.” So far so good.
Now for a huge leap of logic:
“Therefore, the country’s automobile consumption in the next seven months will certainly be doubled,” say our friends at Gasgoo.
Give it a little while and the snickering about uninspired, or foreign-inspired Chinese car design can end. Carrozzeria Bertone has signed a partnership agreement with the Raffles CU International College, an affiliate of the Changchun University in northeastern China. Next to Shanghai, Changchun is the second-most important auto manufacturing center in China. It is dominated by FAW and its joint ventures with Volkswagen and Toyota. (Read More…)
Toyota was (after Honda) the second Japanese car company that came down with the current Chinese strike bug. Toyota is gladly taking a back seat on this. They solved their problems much quicker than Honda. Toyota said today that their largest plant in China will definitely be open for business on Monday. (Read More…)
A strike at two Toyota-affiliated parts makers brought Toyota’s largest assembly plant in China to a halt. No parts, no cars. Toyota’s factory in the port city of Tianjin near Beijing stopped production on Friday. A day later, it is unclear if production would resume on Monday, Reuters says.
The strike at a small plastic maker stops production at Toyota’s most important plant in China. (Read More…)
Now here is the perfect place for electric vehicles: Hong Kong. Range anxiety? Not here. Hong Kong is a city where no trip is more than 20 miles or so one way. Driving into the hinterlands is blocked by a border and by the necessity for secondary mainland Chinese license plates. Registration taxes on cars are high, they vary from 35% to over 100%, based on the size and value of the car. Gasoline prices are high, about half of the price is tax. Fertile grounds for EVs. (Read More…)
The Honda strikes have been settled – more or less. Now it’s Toyota’s turn. Workers at an auto parts factory in Tianjin, China, run by a Chinese subsidiary of Toyoda Gosei, 42 percent owned by Toyota, went on strike Thursday and had not returned to their jobs today, a Toyoda Gosei spokesman confirmed to the New York Times. The factory makes plastic parts for a FAW-Toyota joint venture assembly plant in Tianjin. It’s not the only strike that affects Toyota. (Read More…)
Toyota is getting out of the carmageddon-caused and recall-related funk and is moving forward with worldwide expansion plans. According to The Nikkei [sub], Toyota has resurrected all key projects planned before the financial crisis. (Read More…)
Taiwan’s Premier Wu Den-proudly announced that a senior executive of Volkswagen met with him last week for a second time on the company’s plans to set up a plant in Taiwan. A little later, Wu Den Said that not one but several foreign carmakers have expressed interest in setting up factories in Taiwan. Why the sudden interest in the tiny island? (Read More…)
Spoiled market watchers were disappointed by China’s less than red-hot May numbers: Passenger vehicles grew just 23.2 percent, the whole market grew 26 percent. Now here’s a number worth waiting for (or to induce a heart attack, if you have green leanings:) (Read More…)
Whenever sales in China come up, there is an echo somewhere: “Sure, but are they making money?” “Name the average transaction cost in China.” “Profits? Everbody know profits can’t be taken out of China.” Thanks for your concern, but Nissan doesn’t have these worries. (Read More…)
I know you are tired of China sales numbers. Just for the record: The final, official tally of all passenger vehicles sold in China in May stands at 1.04m units, up 26 percent from last year, says the China Association of Automobile Manufacturers (CAAM) via Gasgoo. The CAAM has the last word. Total vehicle sales hit 1.44m units, up 28.8 percent, says the Straits Times. With these numbers, we declare the TTAC patent-pending Growth-o-Meter as broken. Wuling’s lousy may numbers did it in. As a make-good, another round of the very best of Chinese traffic accidents. In color!
Most likely filled with a certain degree of foreboding, Volkswagen signed today contracts with their joint venture partner FAW to build a new plant in the south of China, we hear from a Volkswagen press release. That VW has designs on building cars in the South of China is no news to the avid TTAC reader. But why the anxiety? (Read More…)
Now don’t get us wrong: we agree with the principle that there aren’t enough affordable options in the mid-engine sportscar segment. And we certainly admire Mr Chen Jinmiao’s attempt to build his own, despite his apparent lack of engineering education (“I downloaded the drawings from the internet, then bought the materials from the market”). But why, oh why, does the Daily Mail insist on framing the story in terms of Mr Chen’s lifelong love of Lamborghinis? Again, with all due respect to Mr Chen’s accomplishment, his “car” is to Lamborghini what this is to GMC.
Approximately 1 million passenger cars (including MPVs, SUVs, and Minivans) changed hands in China in May, up 23.2 percent from a year earlier, the lowest rate during the past 13 months. That according to the China Passenger Car Association, as reported in China Daily. This is not yet the total vehicle count, which should be reported by the CAAM a few days later. The passenger car number usually is within a few points of the CAAM number. Is that good or bad? (Read More…)
Did we say that the strike at a crucial Chinese parts plant is being closely watched? Last week, a 20 percent pay rise was given at a Honda-owned transmission plant, and slowly, everything went back to normal. Until today. Honda is in trouble again. (Read More…)
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