We've been hearing Chinese officials say for quite some time now that there are far too many automakers in the country for a healthy market in the long-term, but we didn't realize until today just how out-of-hand it may be. According to state-run Chinese news agency Xinhua, China has seen an unprecedented 89 new automobile launches so far this year.

That's surely a big number, but it doesn't really hit home until you consider that 89 vehicles in the first half of 2009 averages out to a new or heavily revised vehicle appearing in China once every two days. Of those new designs, 73 were cars, nine were SUVs, six were MPVs and – in contrast to typical American vehicle launches over the same period – only one was a crossover.

As you're surely aware, 2009 is only half over, and there are reportedly some 50 new vehicles still slated for introduction before the end of the year, equaling about 140 new models introduced in 2009. The good news, at least as far the bottom line goes, is that the new releases have translated into sales. The 4.96 million vehicles sold between January and May of this year represent a 14.29-percent increase over the same period in 2008. Still, considering the glut of new models hitting the market, one has to figure that a goodly number of those vehicles will go begging.



[Source: Gasgoo]

General Motors' pending deal to offload its unwanted HUMMER brand may have hit a major snag. Although no official word has come from the Ministry of Commerce or the National Development and Reform Commission, state-run radio organizations are reporting that the Chinese government will indeed block the sale of HUMMER from GM to Sichuan Tengzhong Heavy Industrial Machinery Co. It's impossible to know exactly how this whole mess will play out, but these reports clearly jive with the general sentiments we've been hearing since the deal was first announced.

According to Chinese radio reports (via the BBC), there are two main objections to the HUMMER deal. First, the brand's environmental credentials don't match up with the direction the Chinese government wants its automakers to head. Second, there are questions as to whether Tengzhong has the expertise to properly manage a large automaker as it's business dealings so far have all been in the construction equipment segment.

Not so fast, says Tengzhong. In a newly-released statement regarding these latest reports, the company had this to say:

Some people may have views and speculation, but the Chinese government has a process that we respect... The view expressed on China National Radio's website did not quote or source anyone at NDRC. We do not yet have a definitive agreement, but are developing our proposals with GM and Hummer and we will continue to engage with the appropriate authorities in an appropriate manner.

At this point, it seems equally as possible that a decision could either come down in short order or come only after a long series of protracted negotiations. Stay tuned. Thanks for the tip, Dave S!



[Source: BBC]

Further proof that General Motors is readying a Opel Astra derivative for the Buick brand has just arrived in the form of spy shots showing a mid-size mule testing at Germany's Nürburgring. Somewhat obscured behind the excessive camo is Buick's trademark "waterfall" grille, however, the A-pillar and C-pillar survive the transition from Opel to Buick.

Inside, the badge engineering is markedly more apparent with what looks like an instrument panel, center console, and steering wheel directly ported over from the recently revealed 2010 Opel Astra. In all likelihood, the Buick version will be sold almost exclusively in the Chinese market and, although it would be built along side the Cruze at GM's Lordstown, OH plant, it's doubtful that the compact Buick will ever be sold in the States. But if it does, we'd suggest reviving the Skylark or Somerset moniker, because, hey... we know how well they went over before.

The Renault Laguna, Scenic, Megane and Megane Coupe-Cabriolet were designed by Renault, built by Renault factories in France, and have all earned five stars in European NCAP tests. They have also all been banned by China's General Administration of Quality Supervision Inspection and Quarantine for "serious safety risks" and inadherence to technical regulations.

Renault didn't even sell a thousand cars in China last year, and the GAQSIQ didn't specify what could have been so wrong with those four cars that they deserved a ban. It has only said that Renaults "have many times revealed quality problems" and urged the company to check its Chinese-market cars thoroughly. We have no idea what the technical and safety issues could be, but based on some of the Chinese cars being sold... well, you know the one about glass houses, right?

[Source: Automotive News, sub. req'd]

According to a report from Bloomberg, state-owned Chinese news agency Shanghai Securities News is predicting that it is unlikely the Chinese government will approve the purchase of Hummer from General Motors by Sichuan Tengzhong Heavy Industrial Machinery Co. Why? Apparently, China actually wants to reduce the number of automakers operating within its borders and favors keeping manufacturers with an eye towards fuel efficiency. Of all the labels people have put on the Hummer brand, fuel efficient hasn't exactly been one of them. According to Tim Payne, a spokesman for Tengzhong:

"Some people may have views and speculation but the Chinese government has a process that we respect. We have only just signed an MOU but as we develop our proposals with GM and Hummer we will continue to work with the appropriate authorities."

In other words, it's too early to draw conclusions about whether or not China will approve of the purchase of Hummer. However, it does seem unlikely that Tengzhong would enter into the deal with the belief that the Chinese government would squash it, no?

[Source: Bloomberg]

According to the Detroit Free Press, the 14 plants that General Motors is expected to announce for closure on Monday was going to be 16 plants until the UAW got its way on Capitol Hill. The union charged GM with closing factories, but instead of a commensurate reduction in production, GM was moving some of the manufacturing elsewhere, specifically China and Mexico.

GM said it will produce 1.83 million cars in the U.S. 2014 as opposed to 2 million today, and it would get one-third of its production that year from overseas. That one-third would notably be small cars, so much in play lately for every reason. The UAW suggested it would be amenable to "innovative labor agreement provisions" in order to make small car production work for GM domestically.

In that case it isn't Mexico or China that will suffer, but Canada. Our northern neighbor is expected to lose 23% of its GM export production (has anyone told CAW head Ken Lewenza yet?) while Asian importation climbs 98%.

For now, an assembly plant and a stamping plant have been spared from the initial list of U.S. closures. Another four plants have been designated "stand-by locations" that will come on line in case of a steep rebound in auto sales.

[Source: Detroit Free Press]

Although the Volkswagen Quantum never became the institution in the States that its successor, the Passat has, the second-generation model, known as the Santana in China, once again proved that Volkswagen is indeed the "people's car." And now, after being built domestically through a joint-venture with Shanghai Volkswagen Automotive since 1983, word is that the venerable sedan's time is limited. According to new reports, the Santana will leave VW showrooms in 2012, meaning that the Santana will have enjoyed a model run of 29 years in China.

Oh, along the way, the car has received a number of updates (a 1986 China-built model is shown) including an enlarged engine with electronic fuel injection, a fifth speed for the manual gearbox, ABS, etc. – but in its bones, the Santana is still very much the same car that plied American roads back at the turn-of-the-Eighties. Despite China's rapidly evolving market, the elderly VW still all but rules many of the nation's roads, particularly in Shanghai, where livery versions of the Santana rival New York's Ford Crown Victoria for ubiquity.

According to TradingMarkets, fully 3.21 million Santanas have been built in China, with 2009's sales already totalling 56,012 units through April.

[Source: TradingMarkets]

Hot on the heels of Geely's "this is not a Rolls-Royce Phantom" GE, Chinese automaker Hautai is apparently busy working on its own new luxury vehicle, one that would appear to borrow liberally from the Bentley Boys. Huatai Automobile Group, based in Beijing, specializes in SUVs, so this model would represent something of a marked departure for them. HAG reportedly has the capacity to build 200,000 vehicles annually, and they have R&D centers in China, South Korea, and Germany. Last month, the private automaker reported sales up nearly 150 percent from last year.

Still unnamed (allow us to suggest: "This is not a Bentley Continental"), the four-door detailed in these images offers more than a striking resemblance to Bentley's admittedly comely Flying Spur. At the moment, details about the new sedan are about as shallow as the depth of the designers who have penned it, but we'll have more details for you as they become available.



Source: ChinaCarTimes | Images: Che168]

A planning document given to lawmakers by General Motors reportedly shows that the Detroit-based automaker plans to ship 17,335 autos from China for sale in the U.S. in 2011. If GM succeeds in importing vehicles to the U.S. from China, it could be the first automaker to do so.

The document doesn't show which vehicle would be brought over from the land of the Great Wall (we'd take the Buick Regal, above), but it does provide GM's volume plans through 2014. By that time, GM plans to triple its China to U.S. exports to 51,546 units. While 51,546 sounds like a lot of cars, it only represents 1.6% of the planned 3.1 million (perhaps optimistic) sales the General is expecting five years from now.

Regardless of the quantity of vehicles coming in from China, union leaders are none too pleased with the development, says Automotive News. The 12-page document also showed increased production in Mexico, with annual units rising from 317,763 in 2010 to 501,316 in 2014. South Korea, which will likely make new vehicles like the Chevrolet Spark, will increase production from 36,967 in 2010 to 157,126 in 2014. In an open letter, UAW legislative director Alan Reuther has gone on record saying that GM "should not be taking taxpayers' money simply to finance the outsourcing of jobs to other countries."

While many would expect the U.S. to be the big loser here, virtually all of the related production loss occurs in Canada. According to the 12-page document, U.S. production would continue to represent two thirds of the overall sales volume for the next five years, while Canada is slated to lose 101,000 units.



[Source: Automotive News, sub. req'd]

Could the Lotus Exige 270E Tri-Fuel enter production? According to a post on Lotus Enthusiast, that's an entirely real possibility due to interest from Youngman Auto, which is the British automaker's Chinese partner. It seems that the Tri-Fuel was a big hit at the recent Shanghai Motor Show, leading Youngman to submit a formal application to Lotus requesting that the car be built for the Chinese market with the hope that sales could begin sometime before the end of the year.

First unveiled at the Geneva Motor Show in 2008, The Lotus Exige 270E Tri-Fuel is capable of running on gasoline, ethanol or methanol. In 2007, China became both the world's largest producer and consumer of methanol fuel. Last year, nearly one billion gallons of methanol were blended with gasoline in China, and many retail pumps offer various blends of methanol to consumers. Thanks for the tip, Taylor!



[Source: Lotus Enthusiast]