Motor Authority - blog Tag: China

Volvo may be a step closer to new Chinese owners this morning, as Ford Motor Company says China's Geely is the lead bidder for the Swedish car brand.

In a press release this morning, Ford named Geely and said it thought the Chinese company "has the potential to be a responsible future owner of Volvo and to take the business forward while preserving its core values and the independence of the Swedish brand."

Ford's been trying to sell Volvo for more than a year. The latest piece in its global empire to go, Volvo would follow Aston Martin, Jaguar and Land Rover in the exodus from Ford. The American automaker is selling the brands to re-focus...

Volvo may be a step closer to new Chinese owners this morning, as Ford Motor Company says China's Geely is the lead bidder for the Swedish car brand. In a press release this morning, Ford named Geely and said it thought the Chinese company "has the potential to be a responsible future owner of Volvo and to take the business forward while preserving its core values and the independence of the Swedish brand." Ford's been trying to sell Volvo for more than a year. The latest piece in its global empire to go, Volvo would follow Aston Martin, Jaguar and Land Rover in the exodus from Ford. The American automaker is selling the brands to re-focus its business on the core Ford, Lincoln and Mercury nameplates. Ford has been negotiating with Geely for most of the year. Given China's emerging influence in global car design and marketing, Ford has expressed concern about intellectual property from Volvo and Ford going directly to China's auto industry--everything from safety equipment to plug-in hybrid technology. Nevertheless, the company seems to be lining up a future cooperation with Geely/Volvo, including sharing components and possibly even car platforms, though it points out in the release that it's not interested in keeping a stake in the Swedish carmaker. Sources at Volvo have told TheCarConnection that a future relationship with China would leave Sweden as the center of product planning, marketing and some initial engineering. Geely's China-based engineers would execute mid-level engineering and manufacturing development at a savings of up to 30 percent from high-cost Sweden. Volvo would also produce a model in a Geely factory in China to expand the brand's global presence, but the goal would be to leverage Volvo's reputation and brand value, teamed with lower-cost Chinese manufacturing. According to a previous report, Geely hopes to start production of Volvo cars in a new factory in the Guangdong Province of China. As part of the deal, Geely will reportedly invest up to $10 billion in building the Volvo brand and the first model to be fully designed under the guidance of the Chinese automaker will be the next-generation XC90 due in 2011. From here, Ford and Geely will enter "more detailed and focused negotiations" over Volvo. Ford suggests in the release that it may decide not to sell Volvo at all. However, in the months since Ford put Volvo on the market, it's moved to separate the company as a business unit, and it's begun to split product development away from the Swedish company. New Ford models for North America, such as the 2012 Ford Focus, will share platforms with European Fords--and not with future vehicles like the replacement for the Volvo S40 / V50 sedan and wagon, which share a platform with the current European Focus. Where the Geely sale would leave Volvo's future lineup is uncertain. The company recently unveiled its 2010 XC60 crossover and a refreshed C70 Convertible, with a new S60 sedan to come early next year. A delay in any other model programs of six to 12 months is likely during a transition in ownership. Ford gave no timeline to complete a sale. Incidentally, Ford bought Volvo for $6.45 billion back in 1999 and has since written down its value to less than $2.4 billion. With the state of the industry and the economy in general, however, the final sale price could be substantially lower. [Ford] Read More

Back in June we brought you the lowdown on HUMMER's talks with Chinese firm Sichuan Tengzhong Heavy Industrial Machinery Co., and since then the updates on the deal's progress have been steady. Yesterday a report from a source briefed on the deal said Sichuan Tengzhong and GM could sign a deal by today, and now the sale has been officially announced by GM.

"General Motors (GM) and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong), today announced that the companies have entered into a definitive agreement that will allow Tengzhong to acquire GM's premium all-terrain HUMMER brand," GM said today in a statement.

"HUMMER is a...

Back in June we brought you the lowdown on HUMMER's talks with Chinese firm Sichuan Tengzhong Heavy Industrial Machinery Co., and since then the updates on the deal's progress have been steady. Yesterday a report from a source briefed on the deal said Sichuan Tengzhong and GM could sign a deal by today, and now the sale has been officially announced by GM. "General Motors (GM) and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong), today announced that the companies have entered into a definitive agreement that will allow Tengzhong to acquire GM's premium all-terrain HUMMER brand," GM said today in a statement. "HUMMER is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter for both GM and HUMMER," said Fritz Henderson, GM President and CEO. "For HUMMER, the combination of its knowledgeable leadership team, vehicle design expertise and the capital financing of Tengzhong portend a successful future." HUMMER owners who feel morally justified in their choice of the brand due to its American symbolism need not freak out completely: Sichuan Tengzhong plans to put the global brand headquarters near Detroit, thanks in part to a  $20.6 million state tax credit from Michigan. The current management team at HUMMER will also stay in place, including CEO James Taylor, who will keep his role. Manufacturing will be contracted from GM through the existing HUMMER plants, including the H3 and H3T coming out of the Shreveport, Louisiana plant. AM General's plant in Mishawaka where the H2 is made will also continue to build cars for the new ownership through 2011, with a possible one-year extension in 2012. The contracts secure as many as 3,000 jobs in the U.S. "We are excited about some of the initiatives already underway at HUMMER that we believe our investment will be able to accelerate, particularly related to the creation of the next generation of more fuel-efficient vehicles to meet not only future regulations but also customer expectations," said Yang Yi, chief executive officer of Tengzhong. The first plans for the new HUMMER are to extend E85 flex fuel capability to the entire fleet by including the H3 and H3T in the mix, making HUMMER the first manufacturer to do so with its entire lineup--though to be fair, HUMMER's entire lineup consists of essentially two models and their variants at this point. Read More

Ferrari is launching a special edition of its 599 GTB Fiorano equipped with the HGTE (Handling Grand Turismo Evoluzione) package, which will be built in a highly exclusive run of less than a dozen cars. The special edition models go by the name ‘599 GTB Fiorano HGTE China Limited Edition’ and were developed together with Chinese artist Lu Hao.

The models come in a two-tone color scheme, featuring a special Rosso Fuoco red paint scheme and a grey roof. A special touch added by Hao is an ancient Chinese script called "Xiao Zhuan" to engrave a name plaque for each edition as well as mark the car throughout, such as on the engine...

Ferrari is launching a special edition of its 599 GTB Fiorano equipped with the HGTE (Handling Grand Turismo Evoluzione) package, which will be built in a highly exclusive run of less than a dozen cars. The special edition models go by the name ‘599 GTB Fiorano HGTE China Limited Edition’ and were developed together with Chinese artist Lu Hao. The models come in a two-tone color scheme, featuring a special Rosso Fuoco red paint scheme and a grey roof. A special touch added by Hao is an ancient Chinese script called "Xiao Zhuan" to engrave a name plaque for each edition as well as mark the car throughout, such as on the engine starter button and the rev counter. Hao has also created a special one-off model that features a cracked glaze pattern designed to mimic the famed Ge Liln porcelain of the Song Dynasty, of which today there remains only a few hundred pieces. There is also a jade engine starter button as well as Hao’s signature. This one-off 599 GTB Fiorano HGTE China Limited Edition will be auctioned off at a charity gala auction in Beijing that Ferrari will be holding on November 3. For more information on the HGTE package, click here for our story following its launch at March’s Geneva Auto Show. [WorldCarFans] Read More

Accurate crystal balls were in short supply a year ago, but this year predictions of recovery are flying. The latest to join the side of the optimists are Audi and Lamborghini, predicting the market to reach its lowest point this year and start recovery in 2010.

The Volkswagen Group's luxury and super-luxury brands aren't saying all is well, however. "Global markets will bottom out this year," Audi chief financial officer Axel Strotbek said in an interview with Bloomberg. “By and large, we expect a slight recovery in 2010.”

The uptick is already being seen in Germany, where Audi scored a record 27,700 sales in June. The larger... Accurate crystal balls were in short supply a year ago, but this year predictions of recovery are flying. The latest to join the side of the optimists are Audi and Lamborghini, predicting the market to reach its lowest point this year and start recovery in 2010. The Volkswagen Group's luxury and super-luxury brands aren't saying all is well, however. "Global markets will bottom out this year," Audi chief financial officer Axel Strotbek said in an interview with Bloomberg. “By and large, we expect a slight recovery in 2010.” The uptick is already being seen in Germany, where Audi scored a record 27,700 sales in June. The larger U.S. market will take longer to respond, and is the basis for the 2010 recovery statement. Interestingly, it may be luxury brands that lead the way out of the slumped economy. China, Australia and India are also helping to boost things back up, especially for Lamborghini. China in particular is a strong market for the Raging Bull according to the report. What does this mean for the present? If you're in the market to buy a car and you can afford one now, it may be time to take advantage of low interest rates, cash-back incentives and dealer willingness to bargain, because once the market is back on its feet, such deals won't likely stick around. Read More

Holding company RHJ International has emerged this week as a strong challenger to Magna International in the bidding war for General Motors' Opel division. The Belgium-based industrial holding firm, which is linked to the U.S. buyout company Ripplewood, confirmed that it was in advanced talks to buy a majority stake in Opel and hopes to reach an agreement with GM by the end of this week.

Automotive parts supplier Magna International had long been seen as the front-runner for Opel and had aimed to sign a deal with GM by July 15, but with talks between the two companies suffering a hold up, newcomers like RHJ and China's Beijing Automotive... Holding company RHJ International has emerged this week as a strong challenger to Magna International in the bidding war for General Motors' Opel division. The Belgium-based industrial holding firm, which is linked to the U.S. buyout company Ripplewood, confirmed that it was in advanced talks to buy a majority stake in Opel and hopes to reach an agreement with GM by the end of this week. Automotive parts supplier Magna International had long been seen as the front-runner for Opel and had aimed to sign a deal with GM by July 15, but with talks between the two companies suffering a hold up, newcomers like RHJ and China's Beijing Automotive Industry Corporation (BAIC) are also vying for a piece of the Opel pie. RHJ waited until this week to confirm its interest in Opel because only now did it feel it was close enough to its goal to go public, spokesman Arnaud Denis explained to Automotive News. While Magna was seeking roughly $6.5 billion from the German government to secure the deal with Opel, RHJ only needs $5.3 billion, potentially making it the better suitor for Opel. Other groups still in the bidding for Opel include Fiat and Magna’s consortium partner Sherbank. Read More

China is now the single biggest market in the world for new cars but that doesn’t mean the government is slowing down on the purchase of cars for its official fleets. While this usually would not be worthy of reporting, the fact that the Chinese government has approved luxurious Mercedes Benz and BMW vehicles for its fleets has started to cause a stir among local citizens.

The announcement was made last month and has since lead to an outpouring of criticism from people like 50-year old chauffeur Yang Jun, who stated to state-controlled newspaper People’s Daily: “Why should they enjoy such luxury? It’s a waste of... China is now the single biggest market in the world for new cars but that doesn’t mean the government is slowing down on the purchase of cars for its official fleets. While this usually would not be worthy of reporting, the fact that the Chinese government has approved luxurious Mercedes Benz and BMW vehicles for its fleets has started to cause a stir among local citizens. The announcement was made last month and has since lead to an outpouring of criticism from people like 50-year old chauffeur Yang Jun, who stated to state-controlled newspaper People’s Daily: “Why should they enjoy such luxury? It’s a waste of public money.” Adding to the anger is the hypocrisy of the government, which has been calling for people to buy domestic products in an effort to help boost the economy. In fairness, no cars have actually been bought as the Mercedes Benz and BMW brands have only been added to a list of approved vehicles for government purchase. Furthermore, the approved cars must be manufactured in China. Both Mercedes Benz and BMW build cars in China together with their respective local partners Beijing Automobile and Brilliance, and much of the government’s fleets are already filled up with Volkswagen and Audi vehicles.2010 Mercedes Benz S-Class facelift2010 BMW 7-series Read More