Next Ford Focus Styling Revealed

The Iosis MAX concept first shown at the Geneva auto salon is the first external clue as to the Ford’s global C-car—the nextgeneration Focus. Due for 2011, it will replace the two very different models currently sold in North America and Europe and provide the basis for Mazdas and Volvos,even though Ford has sold its equity stake in Mazda and might well be out of Volvo in the next year.

The Iosis MAX is a tallish hatchback. Ignore the insanely complex and expensive parallelogram-hinged door frippery, which is strictly concept; the car does provide some design clues. Its height is about halfway between the hatchback and the current C-Max, which sells in the very large compact minivan class in Europe. Ford insiders claim the Iosis MAX is neither a concept version of the next Focus nor the next C-Max. But the strong lower grille, with three horizontal bars, the graphics of the front and rear lights that stretch far along the sides of the car, and the rising beltline and tapering side glass DLO are all elements that will feature on the next Focus.

So too is the form of the body surfacing, which is less angular than on recent Euro-designed Fords such as the Fiesta. This is how Ford’s new-generation C-cars can share some design character with the U.S.-designed cars like the new Taurus. A key element of the new platform is powertrain adaptability. The concept has a production-intent 180-horse, 1.6-liter four-cylinder Ecoboost engine. It features an idle-stop system with intelligent alternator (charges aggresively when coasting and minimally under acceleration) and mates to a six-speed dual-clutch automated manual transmission. Ford will progressively roll out this powertrain to replace its larger-displacement gasoline fourcylinder versions from 2010 and claims it will post a 20-percent economy improvement. Besides Ecoboost, the platform has been engineered for diesel, gasoline-hybrid, plug-in hybrid, and pure electric powertrains.

GM CEO Wagoner out at Obama's request

Tom Krisher of the Associated Press reports that General Motors CEO Rick Wagoner will step down from his post immediately, based on information given to him from an unnamed source. The news comes on the eve of President Obama's expected announcement of a deadline for General Motors and Chrysler to finalize their restructuring terms or enter government-backed, pre-packaged Chapter 11 bankruptcy. There's no official confirmation from GM at this time. The only announcement the automaker made today was a brief, two-sentence statement in response to the anticipated Obama announcement, saying that they continue to work with the President's automotive Task Force.

The Detroit Free Press reports that the move was specifically requested by the Obama administration as part of the rescue plan that will be announced tomorrow. Wagoner reportedly agreed, and COO Fritz Henderson would appear to be in line to be the new top guy at the RenCen. No official word on that so far, either.

Get ready a big week of auto news, kids. The NY Auto Show just got a whole lot more interesting, too. Stay tuned.

UPDATE: Official message from Rick Wagoner and GM's announcement of Board restructuring after the jump.

[Source: Associated Press, Freep]


GM Message from Rick Wagoner

On Friday I was in Washington for a meeting with Administration officials. In the course of that meeting, they requested that I "step aside" as CEO of GM, and so I have.

Fritz Henderson is an excellent choice to be the next CEO of GM. Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts. His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM'ers worldwide to succeed. I wish him well, and I stand ready to support him, and interim Non-Executive Chairman Kent Kresa, in every way possible.

I also want to extend my sincerest thanks to everyone who supported GM and me during my time as CEO. I deeply appreciate the excellent counsel and commitment of the GM Board and the strong support of our many partners including our terrific dealers, suppliers, and community leaders. I am grateful as well to the union leaders with whom I have had the chance to work closely to implement numerous tough but necessary restructuring agreements.

Most important of all I want to express my deepest appreciation to the extraordinary team of GM employees around the world. You have been a tremendous source of inspiration and pride to me, and I will be forever grateful for the courage and commitment you have shown as we have confronted the unprecedented challenges of the past few years. GM is a great company with a storied history. Ignore the doubters because I know it is also a company with a great future.


GM Statement on Officer and Board Announcements

GM is announcing the following changes in the corporate officers and the board of directors:

Rick Wagoner is stepping down as chairman and CEO, effective immediately. Wagoner, 56, was named president and CEO in 2000, and assumed the role of chairman in 2003. Fritz Henderson, GM president and chief operating officer, will serve as CEO. Henderson, 50, was named to his current position in 2008. He was previously vice chairman and chief financial officer. Kent Kresa, chairman emeritus, Northrop Grumman Corporation, has been named interim non-executive chairman of the board of directors. Kresa became a GM director in 2003 GM is awaiting further announcements by the President and the Task Force on Automotive Reconstruction, and we will have additional comments at that time. GM Board of Directors statement, attributable to Kent Kresa, Chairman

"The Board has recognized for some time that the Company's restructuring will likely cause a significant change in the stockholders of the Company and create the need for new directors with additional skills and experience. The Board intends to work to nominate a slate of directors for the next annual meeting that will include a majority of new directors taking into account the addition of new directors, retirement, and decisions by individual directors not to stand for re-election, although the specific individuals who will be nominated or choose not to run or leave the board are not yet known."

REPORT: Obama OKs more short-term aid for GM and Chrysler, Henderson to replace Wagoner

President Barack Obama has been busy this weekend when it comes to the auto industry. Following reports that General Motors CEO Rick Wagoner is stepping down at the President's request comes news that the Commander in Chief has decided to grant both GM and Chrysler additional short-term aid.

The Detroit News is reporting that the President told four members of Congress from Michigan in a conference call Sunday night that the government would give GM additional aid for 60 days to complete its restructuring and Chrysler gets 30 days to finalize its partnership with Fiat. The exact amounts were not specified, but will likely be revealed early this week as the deadline for each automaker to update the government on its restructuring plan arrives on Tuesday, March 31.

An unnamed source familiar with the call also confirmed that GM's current Chief Operating Officer, will replace Wagoner as the automaker's CEO.

Geely CEO hypes methanol cars to planners

Shanghai, March 4 Li Shufu, Chairman of Geely Automobile Holdings Ltd and member of the National Committee of Chinese People's Political Consultative Conference (CPPCC), is proposing a motion to the government's industry planning bodies to work out a national standard for production of methanol-powered vehicles.

"Replacing gasoline engine cars with methanol engine cars should be encouraged because methanol engine cars are much cleaner than other types of new energy products and their production costs are lower," Li said in a proposal submitted to CPPCC on Monday.



Li suggested that the National Development and Reform Commission, the Ministry of Industry and Information Technology and Standardization Administration speed up the related policy making procedures and promote the use of methanol-powered vehicles nationwide.

China's central government said in January that it would subsidize purchases of clean-energy vehicles, including electric, hybrid and fuel-cell vehicles, for public fleets in 13 Chinese cities. But no details for the scheme were released.

Nissan NV200 mini-van to be China-made in '09

Shanghai, March 3 Nissan Motor unveiled its NV200 at the 2009 Geneva Auto Show today. The new compact van will also be showcased at next month's 2009 Shanghai Auto Show and will be produced in China by Zhengzhou Nissan within the year, auto.sina.com said, citing Nissan Motor vice president Andy Palmer.

As a commercial domestic vehicle, the NV 200 is quite popular in Europe, but it's still a newborn in China. Andy Palmer said he is confident about the NV200's prospect in the Chinese market as the new model can better meet the consumer demands in safety, comfort, status and price.



Based on the same front-wheel drive platform that underpins the Nissan Cube, the NV200 promises an economical ride. Engine choices will include a 1.6L gas engine producing 108 horsepower and a 1.5L diesel powerplant generating 85 horsepower and about 150 lb-ft of torque.

For its passenger and commercial purposes, the NV200 will come with a number of convenience features, including Nissan's Intelligent Key, power windows, ESP and an available rear-view camera-a first for the segment.

The NV200 will hit the Japanese market by mid-2009, with Europe slated to get the van by this fall. According to Andy Palmer, Zhengzhou Nissan, Nissan Motor's joint venture in China, will start to produce this small van model this year.

Dongfeng, Changan may bid for Volvo in Apr

Shanghai, February 27 (Gasgoo.com) Three interested companies may place indicative bids for Ford's up-for-sale Swedish brand Volvo Cars in April, according to Swedish newspaper Dagens Industri (DI).

Reuters noted that DI quoted unnamed sources as saying that the three bidders include Chinese carmakers Dongfeng Motor Group and Chongqing Changan Automobile Co, and "a European constellation".

"Indicative bids are to be expected around the Easter weekend," the paper said. The expected purchase price for Volvo is believed to range between SEK20bn ($2.29bn) and SEK25bn ($2.86bn), it reported.



The paper also said the European Investment Bank (EIB) was expected to grant Volvo a 5 billion Swedish crowns ($568 million) loan in the near future. Volvo applied for the loan last month.

Volvo Cars is a separate company from Gothenburg, Sweden-based Volvo AB, the world's second-largest truck maker. Dongfeng Motor Corp is China's third-biggest automaker while Changan Auto Group manufactures Volvo cars in China in a partnership with Ford.

VW China to launch four new models every year

Volkswagen Group in China, a joint venture between Volkswagen AG of Germany and Shangai Auto of China, plans to add or revamp four models each year in a bid to double sales and maintain its leading position in China's automobile industry.

"We plan to add or renew at least four models per year and double the number of dealerships to achieve our sales targets and increase our market share," Winfried Vahland, executive vice president of the Volkswagen Group, and president and CEO of Volkswagen Group China, said.

He said the company would strive to combine Volkswagen's cutting-edge and environment-friendly technologies with local R&D capabilities to generate products that perfectly meet customers' needs.

It would also improve customer satisfaction and brand image through enhanced dealer networks and upgraded service, he said.

Shanghai Volkswagen and FAW-Volkswagen as two powerful joint ventures will further cultivate synergies and win-win partnerships to achieve even greater success and move Volkswagen Group China forward, he said.

Volkswagen Group China, he said, is committed to the Chinese consumers, its employees, shareholders, partners and the long-term sustainable development of the Chinese automobile industry.

"The current global economy and automobile markets now face many uncertain factors. However, we recognise that the slowdown presents challenges. We have defined a plan to face these challenges and take all opportunities," Vahland said.

"Over the next two years, we will remain flexible, preparing for several scenarios of the China's total market development. We will continue to invest in building our brand images, customer satisfaction, products and corporate social responsibility and never compromise on quality," he added.

Jilin plans to produce 1 mln vehicles in '09

Shanghai, February 26 (Gasgoo.com) Northeastern China's Jilin province, home to Chinese auto giant FAW Group, has announced a series of auto industry goals for this year, including its plans to produce 1 million vehicles, to achieve auto sales revenue of 240 billion yuan ($35.1 billion) and total profits of 14 billion yuan, xinhuanet.com reported today.

In its effort to reach the target of making 1 million vehicles in 2009, Jilin province will issue favorable policies to support the development of FAW Group, said the auto industry office of the province. Some policies will work together with the auto industry restructuring plans recently released the central government, which would encourage auto giants SAIC and FAW to expand through mergers.

In addition, Jilin province will take measures to boost vehicle output and sales this year by speeding up the development of 100 major auto-related companies and 100 major auto projects. More than half of the 100 auto and auto-parts projects are expected to start operation and deliver products to the market this year.


The list of its auto development projects in 2009 shows that this year Jilin province will promote the production of the Corolla sedan model at newly built Changchun FAW Fengyue Auto Co., the upgrades of FAW-VW joint venture's first factory, the expansion of FAW Car Co.'s Besturn sedan series, the production of FAW Jilin Car Co.'s small cars and mini-cars.

Jilin province will also support auto-parts projects, such as FAW VW's EA111 engine, Qiming auto electronics, Dongguang clutch and brake assembly, Xuyang sedan chair assembly.

Auto industry is the mainstay industry of Jilin province. Its capital city Changchun now has about 320 auto and auto-parts manufacturers. With an annual output capacity of 1.8 million units scheduled for the next five years, Jilin province will possibly become China's largest auto production base by 2014.

Shanghai VW to launch Tiguan SUV in late '09

Shanghai, February 26 (Gasgoo.com) Shanghai VW is set to launch the Volkswagen SUV Tiguan model as one of its flagship models this year. The China-made Tiguan model is expected to go on sale in late 2009, said Information Times today.

AS Volkswagen's first compact crossover SUV in the real sense, the Tiguan model was introduced to Shanghai VW, one of the German auto giant's Chinese ventures, for local production in China. But its launch was delayed last year due to low sales prediction. The Tiguan SUV is now eagerly anticipated by Chinese buyers and will hit the China market as the first VW SUV here.


The production Tiguan was released at the 2007 Frankfurt Motor Show and made its China debut at the 2008 Beijing auto show. It is the German carmaker's second compact SUV after Touareg to blend the crossover pleasures in the city and country driving. Its name is a hybrid from Tiger and Iguana, an exotic mix of boldness and wildness.

The China-made Tiguan SUV will come with the 1.4TSI, 1.8TSI and 2.0TSI versions, not much different from the imported Tiguan editions. It is based on the fifth-generation Golf's PQ35 platform. Its Chinese name and price are not decided yet, though at the 2008 Beijing auto show it was called "Tuhuan" ("journey happy") and rumored to sell for 500,000 yuan (73,200).

Shanghai VW launched the China-tailored new Volkswagen Lavida to the Chinese market on June 25, 2008. The all-new Lavida model is the first A-Class sedan jointly developed by Chinese and German technicians. The joint venture also released its sedan model Skoda Fabia to market at the end of last year.

Changan Auto: no new reason for share jump

Chongqing Changan Automobile Co, a Chinese partner of Ford Motor, said on Friday that it knew of no undisclosed information that might be responsible for a leap in its share price.

The company's A shares soared 95 percent to 7.15 yuan between Feb. 16 and Tuesday, rising their 10 percent limit every day, after it announced a HK$909 million ($117 million) plan to buy back its own Hong Kong dollar-denominated B shares . The B shares jumped 80 percent to HK$3.03.

That prompted a two-day suspension of trade in the shares while the company investigated the abnormal movement. Trade was expected to resume on Friday.

Changan Auto said neither it nor its parent group had any undisclosed information that might have caused the jump, and that there had been no major change in its operations. It said it had not entered into important new negotiations or agreements.

It also noted that in late January, it had estimated net profit plunged between 50 and 100 percent in 2008, from 666.9 million yuan ($97.6 million) in the previous year, as growth in China's auto market slowed drastically.

The company announced on Feb. 15 that it would buy back up to 70 percent of its B shares, equivalent to 18.1 percent of its total share capital, at a maximum price of HK$3.68 per share. Previously, its A and B shares had been suspended for four months pending a major announcement.

Industry analysts said that in addition to the buy-back, Changan's shares had benefitted from news of government subsidies for rural residents who trade in high-emission vehicles, since the firm is a big domestic producer of light trucks and minivans.

The company, which runs a car venture with Ford and Mazda Motor and produces compact cars developed in-house, also stands to benefit from other state incentives, such as a 50 percent cut in the purchase tax on cars with engine sizes smaller than 1.6 litres.

Mercedes Benz brings vehicle leasing into China

Mercedes Benz Auto Finance (MBAC) will become the first finance company to offer vehicle leasing on the Chinese market after receiving the approval of the Chinese Banking Regulatory Commission. Starting in March, MBAC plans to begin its work by focusing on corporate fleet leasing to companies in Beijing.

"We welcome the government's decision to enable auto finance companies to offer leasing in China, as we believe this will have a positive impact on the Chinese vehicle market,” Ulrich Walker, Daimler Northeast Asia said.

"While leasing is very new in China, we believe it has potential to grow over the mid-term, especially as consumers understand more about the flexible and attractive financing options," stated the official.

Mercedes Benz provides a number of vehicle financing and insurance options for Mercedes-Benz cars, trucks and vans in China. At the end of 2008, the company managed a contract volume of 328 million euros.

"By leasing a vehicle, consumers will be able to drive a Mercedes-Benz, leverage their existing money in other ways, and have the flexibility of changing to a new car more frequently," Wolf Bay, MBAC CEO added.

In the group's overall business, Daimler Financial Services is responsible for a contract volume of 63 billion euros. Worldwide more than every third new group vehicle is financed or leased by Daimler Financial Services.

By the end of 2008, 80 foreign-funded and 37 domestic-funded financial leasing companies were present in China with the approval of the Chinese Ministry of Commerce. Allowing Mercedes Benz to offer vehicle leasing in China is part of the governments stimulus package meant to boost new car sales.

VW to double China sales to 2m cars by '18

Shanghai, February 26 (Gasgoo.com) German auto giant Volkswagen AG announced in Beijing today that it plans to double its annual vehicle sales in China to 2 million units by 2018, sina.com said today.

"We are targeting to sell 2 million vehicles [a year] in China by 2018 with the earliest possible timeframe, from the current annual sales of 1 million," said Winfried Vahland, executive vice-president of Volkswagen Group and president and CEO of Volkswagen's China operations, when releasing the company's new strategy.

The German carmaker's Chinese joint ventures Shanghai Volkswagen and FAW-Volkswagen will contribute, equally and respectively, to the annual sales target of 2 million units, said Vahland.


The top European automaker plans to further increase its market share in China, which currently stands at 19%. The number of Volkswagen dealerships in China will also be doubled to 2,000 by 2018.

Volkswagen will also coordinate with its two Shanghai VW and FAW VW to add four models each year. In addition, Volkswagen, Audi and Skoda will launch more than ten new or updated models in China in 2009 and 2010.

Competing with General Motors and Toyota Motor in the Chinese and global markets, Volkswagen sold 1.02 million vehicles in mainland China, Hong Kong and Macau in 2008, up 12.5% from a year earlier.

images for Auto's Fans

Great Wall to lift sedan sales 800% in '09

Shanghai, February 12 (Gasgoo.com) Chinese automaker Great Wall Motor Co., Ltd. sold 15,000 vehicles in January 2009, hitting a record high in its monthly sales. Building on this beginning success, the company aims to boost its vehicle sales 60% to 200,000 units this year, including 80,000 sedans, up 800% from last year, said China Youth Daily today.

As China's largest maker and exporter of pickups and SUVs, Great Wall Motor saw its vehicle sales rise up 10% to 125,000 vehicles in 2008, including 55,000 pickups, 60,000 SUVs and 10,000 sedans. And in January 2009, the company achieved its record-high monthly sales of 15,000 units, which included 3,600 units of the newly launched Florid sedan model and 5,600 units of its flagship Hover SUV model.

Great Wall Motor is a new comer to the sedan market. Its first sedan model Great Wall Peri (GWPeri) didn't sell well after its launch in March 2008 and caused a lawsuit as it looked like a copycat of Fiat's Panda minicar. Then in November, Great Wall released another sedan model Florid, which achieved huge sales unexpectedly and thus brought great hope to the company's expansion into the sedan market.



The company has planned to launch 13 new vehicle models (including 4 sedan models and 5 SUV models) in 2009 to boost its sales growth. The 1.5L Coolbear, Great Wall's third sedan model, will hit the market in March, and its 1.3L and 1.5L Cross sedans will come to the market in May and August. It will launch another new sedan model codenamed CH031 in October.

The automaker will also vie for the 1.3L, 1.5L, and 2.0L small-sized SUV segments, with a batch of new SUV models designed to hit the market in succession this year. In addition, it plans to debut the 2.0L, 2.4L, and 2.5L Hover H3 in April and June.

While continuing to maintain its growth in the pickup and SUV markets, Great Wall Motor aims to sell 200,000 sedans annually by 2011. The company hopes to become of the top three sellers in China's A0-class sedan market in three years.

Shanghai, February 12 (Gasgoo.com) Chinese automaker Great Wall Motor Co., Ltd. sold 15,000 vehicles in January 2009, hitting a record high in its monthly sales. Building on this beginning success, the company aims to boost its vehicle sales 60% to 200,000 units this year, including 80,000 sedans, up 800% from last year, said China Youth Daily today.

As China's largest maker and exporter of pickups and SUVs, Great Wall Motor saw its vehicle sales rise up 10% to 125,000 vehicles in 2008, including 55,000 pickups, 60,000 SUVs and 10,000 sedans. And in January 2009, the company achieved its record-high monthly sales of 15,000 units, which included 3,600 units of the newly launched Florid sedan model and 5,600 units of its flagship Hover SUV model.

Great Wall Motor is a new comer to the sedan market. Its first sedan model Great Wall Peri (GWPeri) didn't sell well after its launch in March 2008 and caused a lawsuit as it looked like a copycat of Fiat's Panda minicar. Then in November, Great Wall released another sedan model Florid, which achieved huge sales unexpectedly and thus brought great hope to the company's expansion into the sedan market.



The company has planned to launch 13 new vehicle models (including 4 sedan models and 5 SUV models) in 2009 to boost its sales growth. The 1.5L Coolbear, Great Wall's third sedan model, will hit the market in March, and its 1.3L and 1.5L Cross sedans will come to the market in May and August. It will launch another new sedan model codenamed CH031 in October.

The automaker will also vie for the 1.3L, 1.5L, and 2.0L small-sized SUV segments, with a batch of new SUV models designed to hit the market in succession this year. In addition, it plans to debut the 2.0L, 2.4L, and 2.5L Hover H3 in April and June.

While continuing to maintain its growth in the pickup and SUV markets, Great Wall Motor aims to sell 200,000 sedans annually by 2011. The company hopes to become of the top three sellers in China's A0-class sedan market in three years.

China to unveil auto sector stimulus plan details

Shanghai, February 12 (Gasgoo.com) Following last month's release of its auto sector support package, the Chinese government is set to unveil related details of the auto industry stimulus plan by this weekend, Shanghai Securities News reported today, citing an industry official.

Dong Yang, deputy director of the China Association of Automobile Manufacturers (CAAM), said that the full text of the previously released stimulus plan for China's auto sector will be unveiled on Feb 13 or so. The details of the plan will cover five major aspects: cultivating the auto market demand, speeding up auto industry restructuring, boosting carmakers' technological upgrades, carrying out new-energy vehicle strategies, and supporting self-developed brands.

A highlight of the detailed plan will be the government's urging of the auto sector's restructuring and mergers. The CAAM official said that the related details of the plan will give guidelines on solving the various problems that may arise from the auto industry restructuring, mergers and acquisitions, such as fund-raising, tax paying, assets transfer and staff replacement.

The stimulus plan will also encourage consumers to buy low-emission vehicles and will offer some favorable polices, like tax cuts, for purchases of low-emission and energy-efficient cars. In addition, the government will also provide financial aid for domestic automakers and encourage them to develop own-brand, eco-friendly, hybrid vehicle models.

Since the Chinese government issued the auto sector incentives in mid-January, the auto market demand and sales in China have been considerably boosted. Last month, China sold 730,000 vehicles, which exceeded the 656,976 units sold in the U.S., making the Middle Kingdom the world's largest auto market in monthly sales for the first time.

SAIC to pursue normal business with Ssangyong

Shanghai, February 12 (Gasgoo.com) Shanghai Automotive Industry Corp.(SAIC), China's largest automaker, said it would continue to work with its South Korean subsidiary, SsangYong Motor, following the court approval for the company's bankruptcy protection plan, China Daily reported Wednesday.

A said spokesman told the newspaper that "we respect and understand the rule by the court. It is a decision based on all related interested parties in line with the South Korean law."

SAIC confirmed earlier this week that the Seoul Central District Court had approved the bankruptcy protection application from Ssangyong. The decision marks the ending of Shanghai-based SAIC's four-year control of Ssangyong, although it will retain its shareholding.

SAIC also said that it hoped the two executives appointed by the court will map out and execute a "practical business revival plan" to put Ssangyong back on track as soon as possible.

Seperately, S. Korean media reported on Tuesday that all Chinese staff of Ssangyong Motor including about 10 executives has returned to China and all 30 Korean executives resigned on the previous day.

Shanghai VW to launch revamped Passat in Q2

Shanghai, February 12 (Gasgoo.com) Shanghai VW, one of Volkswagen's Chinese ventures, will give a facelift to its middle-sized car Passat to improve the interior space and comfort in the second quarter of this year, Beijing Times reported, citing sources.

The revamped Passat model, code-named B6.5 inside, will share the PQ46 platform with FAW-VW's Magoton. By lengthening the wheelbase and bodywork, the revamped Passat will be longer than Magoton.

Shanghai VW reportedly will launch an all-new B-class car Skoda Superb in the second half of this year. The new Superb, also produced on VW's PQ46 platform, is expected to be longer than its European version.

Shanghai VW officials have not confirmed the news of the two new models yet.

China's bio-fuel industry to see moderate growth

Ecological, energy, and economic concerns urge China to push the bio-fuel industry forward. The Chinese bio-fuel industry is divided into two sub-segments, the bio-ethanol sector and the bio-diesel sector. In terms of market size, China has the third largest bio-fuel market around the globe, only after the U.S. and Brazil.

China was estimated to produce more than 360 kt of bio-diesel and 1,620 kt of bio-ethanol in 2008. During the past eight years, China has primarily established a legal and administrative system for bio-fuel, especially for the bio-ethanol industry.

According to Frank Xie, Frost & Sullivan's China Consultant for Chemicals, Material & Food Practice, the global financial crisis has major impacts on the Chinese bio-fuel industry in the short term.

"Growth slowdown of downstream industries has resulted in the sharp decrease in bio-fuel demand. China's logistics industry experienced a great slump in 2008. Economic uncertainties also brought about stagnated growth in the Chinese passenger vehicle market in the fourth quarter of 2008. The sharp decline in crude oil price also lowers the price of bio-ethanol and bio-diesel products making the situation tougher in China," he said.

Xie says, "For 2009 and 2010, the shortage of feedstock remains the top challenge for the Chinese bio-fuel industry. However, most of these shortages can be resolved as more entrepreneurs join the market in the forecasted period. For bio-ethanol, with feedstock transitions from corn and wheat to non-food celluloses and potatoes, all major bio-ethanol manufacturers are forced to utilize alternative feedstock. For bio-diesel, the unstable supply of waste cooking oil may threaten the continuity of bio-diesel production. Only some leading bio-diesel producers have effectively managed the supply chain to ensure the stable supply of feedstock."

According to Xie, government support is vital for the healthy development of the Chinese bio-fuel industry. Subsidies, tax exemptions, or allowances help increase the competitiveness of producers as well as ensure their continuous development.

US consumer may buy Chinese car at Wal-Mart

For years, we’ve been hearing that Chinese cars are on their way, and despite fair skepticism there have been in-roads. Chinese companies like BYD (Build Your Dreams) have debuted plug-in vehicles at American auto shows, while the Mexican company GS Motors has imported Chinese cars to sell in Mexico.

Now the industry must brace for the next big idea, which is to sell low-cost Chinese vehicles at big-box retailers like Wal-Mart and Costco. This is how GS Motors plans to sell the F1 Hatchback in Mexico (for a bargain price of $5,500).

BYD wants to bring over the plug-in model it showed off at the Detroit auto show as early as next year, and GS CEO Kathleen Ligocki said she believes that within five years consumers will be able to buy a Chinese vehicle at their local Wal-Mart.

The global economic crisis may slow some of this down (and many of China’s 80-plus auto companies are bound to go under), but the plan has been laid as far as many of the major players are concerned.

GM's Hummer said to attract Chinese company

General Motors Corp., working to sell assets to help keep $13.4 billion in U.S. loans, has drawn interest in its Hummer brand from a Chinese company and a private-equity firm, people familiar with the talks said.

The pace of negotiations has intensified in the past few weeks, said the people, who wouldn’t name the suitors and asked not to be identified because the discussions are private. More meetings are scheduled this week, one person said.

"The Hummer review is progressing and an update is due by the end of the first quarter," said GM spokeswoman Joanne Krell, who wouldn’t comment on any bidders.

Unloading the sport-utility vehicle unit would move GM closer to the goal of showing its future viability to the U.S. Treasury by Feb. 17. If the biggest U.S. automaker can’t prove its ability to return to profit, it could be told to give up the loans or use the cash for a government-funded bankruptcy.

"Given the volume of the brand and the economic situation, I don’t really see a tremendous value," said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan. He estimated Hummer might fetch $100 million or less.

Xu Xianping promoted to top executive of FAW

Shanghai, February 10 (Gasgoo.com) Chinese auto giant FAW Group announced yesterday that Xu Xianping, former general manager of Tianjin FAW Xiali Automobile Co., Ltd., and FAW Jiefang Truck Co., Ltd., has been promoted to vice general manager of FAW Group, with a one-year trial period, said sina.com today.

Xu Xianping has a technical background. He was one of the founders of FAW International Automobile Company and FAW Toyota Automobile Company, and then became the vice general manager of Tianjin FAW Xiali Automobile Co., Ltd. and FAW Jiefang Truck Co., Ltd. successively. Xu has been an assistant to the general manger of FAW Group since October 2007.

Industry analysts noted that FAW Group now has three auto manufacturing bases (in Changchun, Tianjin, and Chengdu) and China's leading sedan R&D center. The automaker needs a top executive not only with high calibers of competition, R&D, management and sales, but also with expertise in strategy, technology and decision-making. Xu Xianping is a talent to meet these needs.

FAW Group saw its sales volume and revenue both reach record highs in 2008. The auto giant sold more than 1.53 million vehicles last year, a 6.75% increase from 2007. Sales revenue totaled a record high of 218.4 billion yuan ($32.12 billion), up 8.8% from the previous year.

Beijing to buy 910 eco-friendly buses this year

Shanghai, February 10 (Gasgoo.com) Beijing Public Transport Corporation (BPTC) said it would purchase 910 new energy buses this year for green public transportation, Xinhua News Agency reported Monday.

"All of the buses, including 50 all-electric and 860 hybrid vehicles, will come into service on major routes of Beijing city this year," said Zhong Qianghua, Deputy Technical Director of BPTC.

These buses will added to the current fleet of 50 electric buses and 10 hybrid buses that are in trial operation in Beijing now, according to Zhong.

The company had announced a $2 million investment this year in new energy vehicle purchase aimed at reducing environmental and financial costs incurred by gasoline- and diesel-fueled buses.

BPTC is a large state-owned enterprise operating mainly the ground passenger transportation of the capital city. Beijing will buy 940 new-energy vehicles this year, including 910 buses and 30 sanitary vehicles. By the end of 2009, the city will have at least 1,000 new-energy vehicles.

Great Wall builds new auto parts plant in Tianjin

Shanghai, February 10 (Gasgoo.com) Chinese automaker Great Wall Motor broke ground on a new auto part plant in North China's port city of Tianjin, Asia Pulse reported Tuesday.

The plant is located in the west part of Tianjin Economic-Technological Development Area, covering a land area of 1.3 million square meters. Total investment in the plant is 3 billion yuan ($439 million).

Major projects at the plant include the annual assembly of 150,000 sets of KDs, production of 150,000 sets of auto parts and a logistics center.

Beijing Auto aims to earn $14.7 bln in '09 sales

Shanghai, February 10 (Gasgoo.com) Beijing Automotive Industry Holding Company has announced that it aims to achieve 100 billion yuan ($14.7 billion) in sales revenue this year, up 34.3% from 2008, said Beijing Times today. This ambititious target can undoubtedly inject much confidence into the Chinese auto market.

The top management of Beijing Auto seem to be sure of generating more than 100 billion yuan in this year's auto sales: both the central government has released a series of auto industry incentives and Beijing municipality will also issue its local policies to support the auto market, which may see a double-digit growth this year.

If the sales of Beijing auto grow 10% in 2009, the sales revenu will reach 83 billion yuan; if all the "yellow-labeled" polluting vehicles are replaced by cleaner new ones this year, about 5-billion-yuan will be generated and added to the sales revenue. The restructuring of the company's product lineup will also create 10 billion yuan.

In addition, the auto-parts projects, auto services and others are also expected to generate 3 billion yuan for Beijing Auto.

China passes U.S. to be No.1 auto market in Jan

Shanghai, February 10 (Gasgoo.com) Largely due to the plunge in American car sales, China overtook the U.S. in monthly vehicle sales in January 2009 for the first time to be the world's No.1 auto market for the month, according to data released by China Association of Automobile Manufacturers (CAAM) today, state media reported.

The Chinese auto industry association CAAM said Tuesday that 735,000 vehicles were sold in China in January. That surpasses the 656,976 vehicles sold in the U.S. the same month. If China can outpace the United States in sales for all of 2009, it will become the world's largest vehicle market.

China passed Japan to become the world's second-biggest auto market in 2006. As the world's most populous nation of more than 1.3 billion people, China is expected to climb to the top position inevitably in the global industry. The recent plunge in U.S. auto market seems to have accelerated China's ascent to this throne.

While car sales have also slowed in China, but less dramatically, amid the economic downturn, U.S. sales tumbled 37% in January to a 26-year low. In China, January vehicle sales fell 14.4% from the monthly record 860,000 units in January 2008, CAAM statistics show. January sales were 0.8% down from December, and below the 790,000 units anticipated by some analysts.

Last week, Mike DiGiovanni, General Motors Corp.'s executive director of global market and industry analysis, projected that Chinese auto sales could hit 10.7 million vehicles in 2009, more than his estimate of 9.8 million unit sales in the U.S. this year. Autodata Corp. forecasts 2009 U.S. sales at 9.57 million.

With its growing middle class and vast potential as a consumer market, China is vital for global automakers such as General Motors, Volkswagen and Toyota as they count on demand here to offset the auto sales slump in the U.S. and elsewhere.

Chinese staff, executives quit Ssangyong Motor

All Chinese staff of Ssangyong Motor including CEO Lan Qingsong have gone home. The Korean automaker on Tuesday said all Chinese staff from owner Shanghai Automotive Industry Corp.(SAIC) have returned to China, with the last Chinese staffer, the accounting manager, leaving on Monday. About 30 Chinese staff, including about 10 executives, had worked in Korea.

That suggests SAIC is indeed washing its hands off the court receivership process. In a statement issued after filing for receivership earlier, SAIC had pledged to "do its best" in the court receivership process.

All 30 Korean executives resigned on Monday. A Ssangyong executive said they resigned en bloc to give the court receivers as much leeway as possible.

Ssangyong is trying to normalize operations by rolling out the C200, a new crossover vehicle, earlier than the original date at the end of this year. But recovering sales will not be easy and the automaker has not enough funds to maintain its plant and pay subcontractors.

China's Jan passenger car sales down 7.8% y/y

China's passenger car sales in January fell 7.76% from a year earlier, official data showed on Tuesday, as the country's economy slowed, but month-on-month sales improved bolstered by the government's policy incentives.

Sales of passenger cars came to 610,600 units last month, up 4.44% from December when 584,600 passenger vehicles were sold, the China Association of Automobile Manufacturers said on Tuesday.

Total vehicle sales -- including cars, buses and trucks -- fell 14.35% year-on-year to 735,500 units in that month and was off 0.83 percent month-on-month, it said.

China, the world's fastest growing major auto market, had posted car sales growth above 20% for three years in a row until slowing economic growth began to erode demand last year. Car sales growth slowed to a single-digit rate in 2008 for the first time in at least 10 years.

Below is a breakdown for sales in January.

January sales pct change
Category (on year)
All vehicles 735,500 -14.35
Passenger cars 610,600 - 7.76

January sales*
Car maker
-SAIC-GM-Wuling 69,815
-Shanghai Volkswagen 40,642
-FAW Volkswagen 38,771
-*Chongqing Changan 38,079
-Beijing Hyundai 35,183

* No percentage comparisons were provided.
* Chongqing Changan Automobile Co's 000625.SZ January sales excludes the sales of its affiliates, including its car venture with Ford Motor (F.N) and Mazda Motor (7261.T).
Note: SAIC-GM-Wuling is a joint venture between General Motors Corp (GM.N) and SAIC Motor Corp (600104.SS), China's largest car maker and Liuzhou Wuling Automobile.

Shanghai Volkswagen is a joint venture between Volkswagen AG (VOWG.DE) and SAIC, while FAW Volkswagen is the German automaker's tie-up with FAW Group.

Chongqing Changan Automobile is a mid-sized Chinese automaker.

Beijing Hyundai is a car venture between Beijing Automotive Industry Holding and Hyundai Motor (005380.KS).

New Beijing-brand sedan may use Benz engine

Shanghai, February 11 (Gasgoo.com) Beijing Auto's two newly designed Beijing-brand sedan models displayed at the 2008 Beijing auto show are expected to enter the auto market in 2010, and one of them will be equipped with the Mercedes-Benz engine and power assembly, xinhuanet.com reported today.
The two new sedan models carrying the re-designed Beijing-brand logo were independently developed by Beijing Automotive Design Institute and will be produced on the production line of Beijing Benz Automotive Co., formerly called Beijing Benz-DaimlerChrysler Automotive Co. (BBDC). Chrysler quit the Beijing-based joint venture in late 2008.
One of the all-new Beijing-brand sedan models will target the medium- and high-end market segments of business and commercial sedans. Several power assembly schemes have been drawn up, with one of the sedan models to be equipped with the Mercedes-Benz engine and power assembly.
Mercedes-Benz China Ltd said that sales of Mercedes-Benz brand cars in China soared almost 45% in 2008 to 38,700 units though the market was hurt by the economic crisis. The lengthened version of Mercedes-Benz E-class will be produced in Beijing by 2010.
Beijing's auto industry saw a strong growth in January, with 60,000 vehicles sold, up 17% from a year earlier. Beijing Auto, which has joint ventures with Hyundai and Mercedes-Benz, aims to achieve 100 billion yuan ($14.7 billion) in sales revenue this year, up 34% from 2008.

Shanghai VW leads China's Jan auto sales

Shanghai, February 11 (Gasgoo.com) Shanghai Volkswagen, a joint venture between the Shanghai Automotive Industry Corp (SAIC) and German Volkswagen, replaced FAW VW as the market leader in January with sales hitting 40,000 units, the Xinhua news agency reported Tuesday, citing data released by the China Association of Automobile Manufacturers (CAAM).
The top ten Chinese carmakers in terms of sales in January were Shanghai Volkswagen, FAW Volkswagen, Shanghai GM, Beijing Hyundai, Dongfeng Nissan, Chery, Guangzhou Honda, Geely, FAW Toyota and BYD, with sales of 40,000 units, 38,800 units, 32,700 units, 32,600 units, 26,300 units, 25,300 units, 21,600 units, 20,400 units, 19,200 units and 18,600 units, respectively.
The above ten automakers sold 275,500 cars in total in the month, accounting for 63 percent of China's total car sales.
Beijing Hyundai rose by four notches in the Top 10 rankings to No. 4 from No. 8 of last month, while FAW VW rose two spots to No. 2 from No. 4 last month. BYD replaced Guangzhou Toyota again to enter the Top 10 list.
On a year-on-year basis Guangzhou Honda and BYD replaced Changan Ford and FAW Toyota to become of the ten best-selling automakers in January.
China's passenger car sales came to 610,600 units in January, down 7.76 percent from a year earlier, but up 4.44 percent from December 2008, official data showed on Tuesday.

Dongfeng Peugeot Citroen sales rally in Jan

Shanghai, February 10 (Gasgoo.com) Dongfeng Peugeot Citroen Automobile Company (DPCA), a 50-50 joint venture between Chinese carmaker Dongfeng Motor and French auto giant Peugeot Citroen, saw its auto sales recover in January 2009 when it sold more than 19,000 vehicles, including 12,414 units of the Dongfeng Citroen brand and 6,750 units of Dongfeng Peugeot, sina.com said today.
The joint venture sold 180,800 vehicles last year, down 12.7% compared with 2007. In the second half of 2008, the Chinese market saw a decline particularly in the medium range vehicles segment which represents DPCA's core offer. 2008 was marked by the successful launching of the Citroen C-Elysee, which enabled the brand to double its sales in this market segment.


Last month when the Chinese government issued a slew of support policies to boost its auto market and more consumers came out to buy cars during the Spring Festival week, DPCA seized those golden opportunities and launched sales campaigns of the joint venture's Peugeot and Citroen brands, based on the leading technology and high quality of the two brands' product lineups.
In January, the Dongfeng Citroen series saw its retail sales reach 12,414 units, up 107% year on year; the Dongfeng Peugeot series sold 6,750 units, with the new Peugeot 207 model showing a sign of strong growth.
For better sales growth in the recovering market, Dongfeng Peugeot Citroen has decided to launch three new Citroen models this year: the hatchback C-Elysee, sedan C-Quatre and new C5.

What next for Pontiac and Saab?

With Chevrolet, GMC, Buick, and Cadillac named as GM's "core" North American brands, the Internet is rampant with all sorts of speculation about what General Motors plans to do with its "Excitement Division." Fact is, GM isn't there, yet. GM can't develop a plan until its finances are certain enough to take all its projects from being on hold, and then it has future corporate average fuel economy standards to consider. However, GM has said Pontiac is to become a "specialty" brand, while Saturn and Saab are under strategic review and Hummer is up for sale.

For Pontiac, short-term "specialization" will likely mean completing the G8's five-year cycle. The Pontiac Solstice would continue past 2012.

If GM doesn't cancel its Alpha small rear-drive program for a BMW 3 Series-size Cadillac, that platform could support a second-generation Solstice. GM's hope would be to make the Solstice a "world" sports car, like the Mazda Miata, and kind of like the Chevrolet Corvette. If there is a second generation, though, the Solstice is likely to continue in Europe as the Opel GT. This fits in nicely with plans we revealed last month for GM to combine Opel and Buick design.The G6 is older than the Chevy Malibu and Saturn Aura, and its replacement has been put on hold. It's Pontiac's volume car, so simply dropping it from the lineup makes Pontiac a "specialty" brand by definition. Vibe probably has another four years to its lifecycle.

Longer term, Pontiac will need sporty cars on small, lightweight platforms for fuel-efficiency if it's to remain viable. Consider a version of the Chevy Volt with a handling package, a coupe built on the Cruze platform and with more turbo boost, a U.S.-built car off the Delta platform or the Mini-fighter, still apparently in need of a division, that was spotted in late 2007 on GM's drawing boards. Better to update the brand with cars like these.

If GM defines Pontiac's "specialty" as baby-boomer-oriented cars like the G8, the division won't last much longer than that car's lifecycle.

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Meanwhile, at Saab, work continues on new product.

The Swedish government has pledged $3.4 billion in credit guarantees and loans to Saab and Volvo, which are for sale by General Motors and Ford Motor, respectively.

So what about Saab's version of the new Cadillac SRX unveiled at the North American International Auto Show in Detroit last January? It's on the way, says Steve Shannon, Saab's executive director in the U.S. Launch cadence is four or five months behind the Caddy's, which means a late 2009 on-sale date and no plans for a U.S. auto show debut.

And Shannon says Saab continues work on a new version of its 9-5 flagship. "It's about a year-ish away," he says.

2010 Ford Taurus

While the spotlight at this year's North American International Auto Show may be shining on an assortment of futuristic hybrids and battery cars, the Detroit Three are putting their real bets down on a trio of relatively conventional sedans that could help determine the fate of Detroit's troubled manufacturers.

Between them, the 2010 Ford Taurus, Chrysler 300 and Buick LaCrosse could redefine the domestic passenger car. But they could also blur the line between mainstream and luxury products, as each is equipped with the sort of advanced technology normally reserved for significantly more expensive products.

When the Taurus hits showrooms, mid-year, it might evoke a sense of deja vu, for when the original car bearing that name debuted, in 1986, it was arguably one of the most important cars for Ford since the legendary Model T. The automaker was in a financial crisis as challenging as the one it faces today, and the failure of that first Taurus might have capsized the company, according to analyst Joe Phillippi, of AutoTrends Consulting.

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The '86 was a major success, outselling even such vaunted imports as the Toyota Camry and Honda Accord. But over the coming years, Ford seemed to lose interest in its midsize mainstay, and by the beginning of this decade, the bulk of production was earmarked for rental and corporate fleets. Ford finally pulled Taurus from production, then brought the nameplate back on a rebadged version of the unloved Five Hundred.

Now, the company hopes to match the excitement of the original, and with the 2010 sedan, "You wouldn't be stretching the point to call it a make-it-or-break-it car," all over again, said Phillippi.

Unlike the most recent car to bear the Taurus name, the new model is visually dynamic, and it's loaded with an assortment of high-tech features -- from radar-guided cruise control to an automatic parking system -- one might otherwise expect on high-line products like the latest BMW 7-Series.

"We came to the conclusion that being good wasn't good enough," explained Mark Fields, Ford's President of the Americas.

dNaNo - USB R/C Micro Cars by Kyosho

The Japanese R/C model car company KYOSHO is about to release the dNaNo series in USA and Europe. These micro cars are super realistic 1:43 scale replicas and they’ve got the same level of details as the Die-cast models do.

What makes dNaNo really outstanding, beside its impressive performance, is the USB compatible control unit. It allows the user to setup the car via the Kyosho web server.

By registering the car and entering the special circuit, the dedicated ID
assigned to the IC tag on each car during production links to the circuit and
starts measuring lap times. While displaying your data on the circuit display,
all circuits are networked to the dNaNo Server, which automatically gets updated
with your lap times.
You can access this webpage from your PC. This amazing
system made possible with the dNaNo provides you with a deeper involvement with
your racing machine and its performance, bringing you closer to the racing
experience than ever before.

Head on over to the kyosho.com and dnanoshop.com websites for prices and more information about the dNaNo USB R/C micro cars from Kyosho.

Car-Shaped USB Hub

Fans of car-shaped USB mice, flash drives and card readers can now expand their collections with a 4-port USB (1.1 only) hub inspired by the classic Beetle.


Beetle Car USB 4-port Hub allows users to connect USB devices via its wheels. Users also can put their name cards or mobile phone on the stand.

Product Specifications:

4 ports hub
USB 1.1
LED head lights
Name card holder / Mobile phone holder
Plug and play
Size: 148*82*60mm
Weight: 95g

The Beetle Car USB 4-port Hub is yours for $12.50 from the gadget4all.com website.