General Motors boasted in April that it would double sales in China by 2013 with the introduction of 30 new or upgraded models over the next five years.

Last month, GM forecasted that its vehicle sales in China would grow 10% this year alone and now it seems those numbers may have been a bit conservative. Kevin Wale, GM's China Group President, has just announced that the company expects vehicle sales in the region to grow by a little more than 20% in 2009.

While the rest of the global automotive industry is stuck in a rut, the emerging Chinese market seems largely unaffected by stagnant North American sales or GM's bankruptcy filing in early June. As of now, China is the company's second largest market (thanks in part to their insatiable appetite for Buicks).

[Source: Automotive News - Sub. Req.]

Most of the world has been knee deep in a wicked recession for quite a while, and auto sales have been hit especially hard. Here in the U.S., the numbers have been abysmal, as the first half of the year saw only 4.8 million sales through June. China, on the other hand, is running away with the overall sales lead, as the emerging emerged market has added 6.1 million cars and trucks to its still developing roadways. According to The Associated Press, June sales were up 36% over the same period in 2008, and they're up 17% on the year.

The big winner in the market so far this year appears to be General Motors. The struggling Detroit, MI-based automaker has seen its China sales jump by 38% this year; while its U.S. sales have tanked. Industry analysts are predicting that the overall market for passenger cars in China will be between 10 and 11 million units.

Most experts weren't expecting China to pass the U.S. in overall sales for another decade, but the crumbling American auto industry has expedited the power shift, at least for the short term. With 1.3 billion people and a healthy economy, this day was destined to come.

[Source: The Associated Press via Google]

Episode #135 of the Autoblog Podcast is here. Chris, Sam and Dan took time out to chat about GM's fast-moving reorganization, Smart's dubious $99/month deal, raising gas taxes as a better way to increase fuel economy, and Shunk's new car dilemma. To wrap up, we hit a question, and that's it – a nice, tidy 65-minute affair. Tell us how we're doing by filling out our survey, if you haven't already, and we'll see you next week. In the meantime, you can drop us a note at Podcast at Autoblog dot com. Thanks for listening!

With new sheetmetal, more power and an upgraded chassis, the new Ford Mustang GT500 was destined to be a hot for the 2010 model year. The pony king may have just just gotten a whole lot more exclusive, too, as production has reportedly been limited to only 2,000 units. Team Shelby forum member 06VistaBlueGT posted a PDF with important ordering information for dealers that explains the production cut.

Production cut on Shelby GT500. To date, 1,700 GT500s have not been scheduled and the plant only had the capacity to build 2,000 for the 2010 MY (model year). If you signed the agreement, you are guaranteed 1 Shelby GT500 for the model year.

The move figures to severely limit the amount of GT500s a dealer can order, with many likely receiving either zero or one model for the year. The good news for the 2,000 lucky owners of the GT500 is that the lower production totals could make the 2010 model the most collectible (and valuable) model since the 2007 was introduced. If you haven't already signed up for a new GT500, though, dealers may now jack up the price even higher over MSRP to capitalize on the newfound shortfall of 540 horsepower pony cars. Hat tip to Murray!

*UPDATE: We reached out to Ford to ascertain the veracity of this Team Shelby document, and they have categorically denied the website users' claims. 2010 Mustang GT500 production has NOT been limited to 2,000 units, and the report is inaccurate. Ford does not report volume figures for the GT500.



[Source: Team Shelby]

When Chrysler was in Chapter 11, the U.S. bankruptcy court decided that the new Pentastar would be free of any liability for accidents that involve Chrysler-branded products sold prior the bankruptcy. Automotive News is reporting that five consumer groups are looking to get the word out that used Chrysler products will not be eligible for such liability claims by putting a warning sticker on each and every used Dodge, Chrysler, and Jeep that is for sale.

The Federal Trade Commission is reviewing the petition, which states that consumers who purchase a used Chrysler vehicle risk "being held responsible for millions of dollars in medical expenses, hundreds of thousands of dollars in lost income and other losses – with no possibility of recompense – even if their injury was clearly Chrysler's fault." Under the current plan, customers looking to sue Chrysler for defective product concerns will have to go after old Chrysler, which is broke, bankrupt, and doomed.

Chrysler, of course, is against the petition, as the warning may harm a dealer's ability to sell used Chrysler-branded products. In an email to Automotive News, Chrysler spokesman Michael Palese wrote "In Chrysler's bankruptcy, the ability to form a new company free from the product liability burden of the old company was essential to the new company's survival." Palese also mentions that the petition has also uncovered no new defects or safety issues.

Automotive News is also reporting that General Motors has worked out a deal with state attorneys general to consider claims as long as they were submitted after the automaker's bankruptcy.

[Source: Automotive News - subs req'd | Image: Robyn Beck/AFP/Getty]

In these dark days of bankruptcy proceedings, ever-dwindling sales figures and decades of receding market share, General Motors' base of dealerships certainly has plenty of things to keep it up at night. You may be surprised to hear, though, that a dwindling supply of available inventory is one of the major problems some dealerships are currently reporting. We're not shocked to hear there's only a six-day supply of Chevrolet Camaro models on hand, but dealers are also seeking remedies for shortages of Buick Enclaves, GMC Yukon SUVs and extended-cab Sierra pickups, as well as limited supplies of Chevrolet Silverado trucks. For a company that has historically had an unhealthy attachment to high inventories across their brands, this is an unusual development indeed.

GM is aware of the shortages and Mark LaNeve, vice president of vehicle sales, service and marketing, tells Automotive News that the shortage is a normal part of the adjustment process from the old days of carrying a 120-day supply of vehicles to today's goal of a leaner 75-day supply. The General's messenger further suggests that dealers trade inventory with each other to bolster inventory until the automaker is ready to rekindle its assembly lines beginning on Monday, July 13 after the company's extended summer shutdown.



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

Historically speaking, Canada has gotten the blunt end of the stick when it comes to new car pricing compared to its southern neighbors. Pricing on many vehicles versus an otherwise identical U.S. counterpart has long been comparatively inflated, and America's recently passed Cash-For-Clunkers bill has left many Canadian consumers feeling even more short-changed than normal.

But help may be on the way. The Vancouver Sun reports that Jim Prentice, Canada's environmental minister, is reviewing whether the Great White North should get a Cash-For-Clunkers scrappage incentive program of its own. According to the story, Prentice has met with "a number of auto manufacturers over the past few months" in order to discuss whether the government should issue its own $3,500 incentives to junk old vehicles and purchase new ones.

Interestingly, before a decision is made, Prentice plans to analyze whether a small, existing auto salvage trade-in program in Alberta has had any effect. That program apparently gives eligible owners a comparatively modest sum – $300 – for scrapping their 1995 or older vehicles. Instead of the cash incentive, alternative awards for the current program include up to $490 toward a new bicycle or as much as a year's worth of mass transit passes.

A decision on a Cash-For-Clunkers program for Canada will likely be handed down in the next 60 days.

[Source: The Vancouver Sun | Image: Theo Heimann/Getty]

Cash for Clunkers won't be official for a few weeks, but some automakers are already looking to cash in on the once in a lifetime opportunity to take up to $4,500 off the price of a new car or truck. Smart is offering its quirky little Fortwo runabout for just $99 per month with the trade-in of a 'Clunkers' eligible vehicle.

Even though we were not terribly impressed with the car in our recent review, $99 per month with no money down sounds decidedly tasty, and a payment term of only 36 months sound even better, but closer inspection shows that the promotion is way too good to be true. Here is the stupifying fine print on the promotion:

$99 monthly payment based on customer trade-in of an eligible vehicle qualifying for the CARS $4,500 voucher level and a 36-month balloon loan with $0 cash due at signing and a final balloon payment of $6,667 at the end of the loan term and a $ 13,335 MSRP which includes the destination charge and excludes tax, title and dealer fees.

A $6,667 lump sum is one hell of a payment – more than most of us could reasonably fork over at once – and certainly more money than most people who are seriously considering a $99 lease could afford. The total payment, which doesn't include taxes, title, or destination, comes in at $14,731 on a vehicle with a $13,335 MSRP.

[Source: Smart USA via All Cars All The Time]

Given the state of the market, the Ford Motor Company is on a bit of a roll right now. The Blue Oval posted an 11% decline in volume for June versus the same month in 2008; a far better number than nearly every competitor from Japan or Detroit. Ford also flat-out dominated the market in the Great White North, as the Dearborn, MI-based automaker ranked number one in sales volume for the first time in 50 years.

Ford outpaced perennial market leader General Motors by a substantial (for Canada) 5,000 units. Ford posted 27,408 sales for the month; a 24.6% increase over June 2008. Toyota and Honda also were in the rear view mirror, as the Japanese stalwarts managed sales declines of 17%. Chrysler was a distant fifth place, as bankruptcy and an outdated product lineup conspired to sink sales by 58% verses June 2008. Overall sales in Canada were down 13% on the month.

Ford's increase in sales was due in part to a surprising 41% increase in CUV and SUV sales. The F-150 also posted a healthy 59% increase, with Ford's Edge was up 23%.

[Source: London Free Press]

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]