China's SAIC Considering Buying Stake in General Motors

Industry insiders are reporting that China's SAIC has expressed interest in buying a stake of General Motors come its public offering in November, though it has yet to make a solid commitment. GM has declined to comment on the matter.

The U.S. government is eager to unload its 61% stake in GM after taxpayers bailed out / loaned the iconic automaker to the tune of US$50 billion. This comes despite the political ramifications of selling part of the brand to foreign investors or sovereign-wealth funds.

The government has rejected suggestions that the IPO should be limited to domestic investors, however the Treasury has state that no single investor or investor group would receive, "a disproportionate share or unusual treatment."

The Initial Public Offering (IPO) of GM shares will include those held by the U.S. Treasury, a union-managed retiree trust and the Canadian government. The government's plan is to offload their stake in GM in one month, though GM CEO Dan Akerson believes it could in fact take years. The Treasury will wait until after the November midterms in order to keep politics out of the float.

SAIC's bid is not that farfetched, either. Insiders note that SAIC has been building cars with GM in China since the 1990, with its home market a key source of strength for GM. Year-to-date sales were up 19% in August, for instance, even though the U.S. and Europe are still struggling.

By Tristan Hankins

Source: WSJ

Ford to Export Canadian-Made Edge SUV to China

Now here's something you don't hear very often these days; a North American-made product exported to China. Yes, it's actually true - even though we're not sure how long it will last for... Ford has announced that the recently refreshed in the States Edge sport utility vehicle, which is built in Ontario, Canada, is on its way to the company's dealers in China with sales set to start in October.

Ford Motor China Vice President Nigel Harris told reporters that the automaker expects modest sales of 4,000 to 5,000 examples of the Edge per year.

However, crossover-sport utility sales in China have been doubling every two years and are already up more than 90 percent in the first seven months of this year, according to the Dearborn-based automaker, so there's a good chance Ford may be able to sell more cars in the long-term.

Currently, SUV sales account for about 14 percent of China's passenger car market, but Ford's research shows 25 percent of car owners in the country would consider a crossover / sport utility vehicle for their next purchase.

"It's a market clearly that we've got to be in, and something that we're particularly good at," said Harris.

The new five-seater Edge will join the Fiesta supermini, Focus compact, Mondeo mid-size sedan, S-Max people carrier and the Transit commercial van in Ford's China market lineup. According to Harris, more cars will be added to the company's range in the near future.

Ford currently ranks 11th in brand sales in China, but its sales have grown from 28,000 vehicles in 2003 when it first entered the country to 164,000 unit last year. Still, that's a far cry from GM's 1.5 million vehicles sold in the first eight months of the year.

Source: Businessweek

Saab Signs Deal to Return to China Market in 2011

Maintaining a presence in China is vital for any automaker these days, even more so for a company like Saab that is struggling to make a comeback after almost going down this year. The Swedish automaker signed a memorandum of understanding (MOU) with China Automobile Trading Co. LTD (CATC), which will allow the firm to re-enter the Chinese market after a three-year hiatus, as Saab's previous owner, General Motors, had pulled the brand out of China in 2008.

Under the agreement, the Beijing-based and government-owned CATC will assume responsibility for the import of Saab vehicles and spare parts for the Chinese market. Saab said that a contract sealing the deal is expected to be signed in the first quarter of 2011, with official sales starting in July 2011. The Swedish firm plans to start with a small network initially

Announcing the agreement, Saab Automobile CEO Jan Åke Jonsson said: “This agreement is vital for Saab, as it will be the foundation to develop a stronger presence in what is now the largest car market in the world. I am confident that CATC will prove to be the perfect partner for us as we revamp our sales activities in the Chinese market."

“Saab sees strong sales potential in China and we are confident that our product offering will be attractive to both existing and new customers in the market. We look forward to re-establishing the Saab brand in China next year with exciting new products like the new 9-5 Sedan and the 9-4X crossover vehicle.”

Fiat Group and Guangzhou sign Agreement on China Car and Engine Production

Italy's largest manufacturer, the Fiat Group and China's Guangzhou Automobile Group (GAC) have signed an agreement for the establishment of a 50/50 joint venture that will produce cars and engines for the Chinese market beginning from the second half of 2011. According to the plan, the two parties will invest more than €400 million (about $560 million US) for the construction of a new, 700,000 square metre plant in Changsha, the capital of Hunan province in south-central China.

The Chinese plant will have an initial production capacity of 140,000 cars and 220,000 engines per year but Fiat said that capacity could be increased to a maximum of 250,000 cars and 300,000 engines annually.

The first model to be launched by the joint venture will be Fiat's C-segment Linea sedan while the first engines to come out of the factory will be the Italian firm's 1.4-liter four-cylinder gasoline engine in naturally aspirated and turbocharged forms producing 120HP and 150HP respectively.

Fiat said that the industrial project is qualified to receive support from the development plan recently established by the Chinese government to promote new investment in six provinces in central China.

Transformers Parade in China: Bumblebee Fans Gather in Beijing

It looks like it's going to be the year of the Bumblebee in China. The soon-to-be released Transformers 2 movie 'Revenge of the Fallen' inspired Chinese fans that took to the streets of Beijing over the weekend with a parade of Bumblebee flavored cars of various sorts and types including a VW Santana, a Citroen C4, a Ford Focus and many Chevy Aveo and Cruze models. The somewhat comical parade of random yellow cars with black-stripes was led of course by a 2010 Camaro SS. Follow the jump to check out the pictures.

Source: Autohome , Via: Jalopnik

China Rumors: BMW to Team up with Brilliance and Develop Local Market EV Based on 5-Series

BMW is making plans with its Chinese partner Brilliance China Automotive Holdings Ltd. to develop a new fully electric model designed specifically for the local market, according to Autonews Europe citing a report from the Beijing Youth Daily newspaper.

The report added that the EV will be built on the platform of the current BMW 5-Series, a long-wheel base version of which is assembled at the German firm's plant in Shenyang, China, and that a pre-production concept study will make its world premiere at an auto show in China sometime this year. No other details were given about the electric model.