In addition to getting the coolest Buicks which are not available in America, individuals in China are about to get the best vehicle that Buick has to offer in the States. In a deal which was initially inked ten months ago, the attractive Enclave CUV, built at GM's Lansing Delta Township assembly plant, is headed for China. The U.S. assembled 'utes will make their way by means of Shanghai GM. The exportation of the Enclave to China is only surprising in that it took so long for the General to get the model there in the first place. After all, Buick sells more vehicles in China than anywhere else in the world, with the nation consuming over half of all Buicks worldwide. We can only hope that Shanghai GM returns the favor and sends some of its best designs our way... and soon.
Fiat's Panda is the best selling minicar in Europe, and has been for four years. When China's Great Wall Motor -- Chrysler's Chinese partner -- decided to make a minicar called the GWPeri, it borrowed from the best. That is, if by "borrowed" you mean created a car that differs only from the Panda in it's headlamps and bumper details.
Fiat didn't just do a double-take when it saw the GWPeri, it sued Great Wall Motor both in Italy and in China to prevent the car from being sold in Europe and China. A court in Turin recently decided that "the [GWPeri] does not look like a different car but is a Panda with a different front end." Furthermore, if a Peri ever shows up in Europe, GW will have to pay Fiat €15,000, with every GWPeri after that incurring a €50,000 fee.
Great Wall has already said it is going to contest the European verdict. The Chinese ruling hasn't come down yet, where the GWPeri went on sale earlier this year.
While domestic sales continue to slide, the auto market in China is thriving. Both General Motors and Ford have reported double-digit sales growth for the first-half of 2008 in the world's most populace country, with GM moving 590,126 Buick, Chevrolet, and Cadillac vehicles for a total sales increase of 12.7 percent, while Ford sold 172,411 units for 21 percent jump in growth. With China recognized as the second-largest vehicle market outside the United States, and with their economy forecasted to grow by at least nine percent this year, automakers in Europe, Japan, and the U.S. are investing heavily to expand sales and production in the Chinese market. It is worth noting that vehicle sales in China have been nearly immune to the increase in global oil prices as governmental controls keep diesel and gasoline prices among the world's lowest.
Following up on our report last month about Volvo possibly going to the Chinese, state media is now reporting that Chery Automobile, one of the largest independent and fastest growing Chinese auto manufacturers, has its eyes on the Swedish automaker. Although officials at Chery rule out the possibility of buying Volvo, other sources have stated that the Chinese automaker has already negotiated funding for a possible acquisition. If so, that funding will be significant-insiders put Volvo's value at 30 billion yuan (about $4.4 billion dollars). This isn't the first time that Ford has been rumored to be cashing-out on Volvo... however, it was just two months ago that Ford officials reiterated that Volvo was not for sale. We wouldn't bet our yuan on it.
Ford says Volvo's not for sale, and the Blue Oval would be smart to hold on to its remaining vestige of the Premier Auto Group as long as it can, especially since engineering and platforms have become so entwined with Dearborn's product line. For its part, Volvo is angling to take on the high end Germans. Volvos have long been premium products, having built a reputation on exceptional durability, meticulous engineering, and of course, safety. Try as it might, however, Volvo has a hard time competing head on with BMW, Audi and Mercedes. The cachet of the Swedish automaker is diminished compared to the Germans, and dynamically, Volvos tend to get schooled hard despite being good, capable drivers when taken alone.
Operations chief Steven Armstrong tells Automotive News that Volvo is looking to be mentioned in the same breath as its intended targets, even as losses mount and layoffs ensue. Volvos already occupy the same pricing arena as the premium Germans, but that's partly due to a weak dollar and transport costs. The possibility of building its cars in the United States might bring prices down and allow better developed performance versions, versus the outclassed R models of the past. Also hurtful is the model range's appetite for fuel -- we've gotten mileage in the teens from some Volvos in the Autoblog Garage. Armstrong says that the fuel economy issue will be addressed soon as technologies like start-stop, energy recovery from braking, and further down the road, hybrid powertrains are brought to market. Green is a good way for Volvo to go, given the Scandinavian proclivity for low-impact, gentler consumption. What it all means is that soon, we may see a kinder, gentler, meaner, faster Volvo product lineup -- possibly managed by Russian, Chinese, or Swedish owners.
Most automakers are struggling with horrible US market conditions right now, but unlike competitors such as Toyota and Ford, Chrysler doesn't have sales in other areas of the world to fall back on. The Pentastar is looking to improve its fortunes overseas while also benefiting from low labor costs by partnering with the Great Wall Motor Company. The young Chinese automaker doesn't specialize in the small vehicles Chrysler needs here in the States, however, as the company's primary focus is on trucks and SUVs. The goal of the union is to share distribution channels, technology, and components, which should save both companies money in R&D and improve economies of scale. The deal is unrelated to a separate pact with Chery to produce a small, Dodge-branded car for sale in North America.
With sales down in the states by 28% in June, Chrysler appears to be in the most trouble of the Detroit automakers in the near term. Branching out to other markets to drive down costs and add sales could be the automaker's best hope for survival in the future.
From Xinhua via our friends at China Car Times comes the above photo, showing Chinese counter-terrorism forces going through drills as they prepare to crush any dissent terror threat that might arise during next month's Olympic Games. The black ninja suits, fritz helmets, body armor, and submachine pistols all fit the profile of a specialized group like this. But... Segways?
An eternally unanswerable question seems to be whether or not Ford is actively shopping around Volvo for a buyer. Just this week we reported that Chinese automaker SAIC and some Russian investors had expressed interest in purchasing the Swedish carmaker from Ford, but today we learn from a source within SAIC that the company is doing nothing of the sort. The unidentified source said that, as far as he/she knew, the two companies were not in contact about a possible purchase at all. Volvo's staying quiet and licking its wounds after announcing 2,000 layoffs this week, while Ford is singing the same old song with a catchy chorus that insists Volvo is not for sale. Well, the rumor that some Russians are interested in Volvo hasn't been refuted yet, so until someone named Boris says otherwise, let's considerable Volvo on the market despite Ford's protest.
Last month China's Sichuan province was devastated by a massive earthquake that killed as many as 70,000 people. If you've wanted to donate to help the survivors but were waiting for just the right opportunity, this could be it.
Our friends over at China Car Times are holding several auctions with the proceeds going to the British Red Cross. Three of the auctions require a little travel for us Americans, but just might be worth a special trip. One is a private tour of the London Taxi factory with a chance to drive one of the iconic cars and some special merchandise from the factory. The second is for the chance to be one of the first people to tour MG's Longbridge factory in Birmingham, England, since taken over by Shanghai Automotive. Not only that, but the top bidder will get to drive the new MG TF LE500. The third auction is your chance to try out the latest vehicles from Lotus right there on its test track in Hethel Norwich, England.
Can't leave the country? Line up behind a couple of Autoblog staffers to bid on the 1:18 scale models of the Lifan 520. These are usually only given to VIP visitors to the Lifan factory and are produced in exacting detail. They're gonna look good in my collection.
The final auction should appeal to anyone with an international business hoping to break into the Chinese market. China Car Times will give to the winning bidder one month of advertising on its Web site, which is a great opportunity to see what your business could do over there.
According to Olivier Francois, Chief Executive Officer of Lancia, Richard Gere was chosen for a recent ad for the Lancia Delta because he "is not merely a fine actor; not merely one of the most famous men in the world. He is a man with a great difference: the ability to combine talent, fame and style with great character. I'm talking about his commitment to peace." That affinity for peace stretches especially towards the people of Tibet, a people who's autonomy from China Gere supports.
This commercial, which you can watch after the break, features Gere driving a new Lancia Delta from Hollywood to Tibet in just 30 seconds and aired in Italy. After reports of the commercial appeared in Chinese newspapers, China was apparently none too happy about it. Fiat has decided to apologize, with a company spokesman saying, "Fiat Group extends its apologies to the Government of the People's Republic of China and to the Chinese people."
Our opinion? Gere's alright in Pretty Woman, but not much else after that. Apologies are usually pretty lame, but we'd appreciate one for Gere's horrible singing in Chicago as long as they are being handed out so freely. And how 'bout one for that Lancia's front end?
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