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]

Since it first came to the market in 2000, Ford's Focus has been consistently lauded for its crisp "European handling," and thanks to a Ford of Europe press release yesterday, that bromide sounded like it was about to become truer than ever. The release in question announced that the next all-new Focus is to be sourced from a single location – the Blue Oval's Saarlouis Plant in Germany. Quite understandably, that proclamation caused a bit of consternation here in the States, with some news outlets reporting that North American Focus models will also originate from the German facility. Not so.

Autoblog spoke with Lincoln, Mercury communications manager Mark Schirmer this morning (despite his title, Schirmer has been tasked with preparing for the U.S. launch of the 2010 car) and he has re-confirmed that all North American Focus models will originate from a freshly renovated Wayne Assembly Plant in Michigan (something that Ford officials initially promised back in May).

The intention of FoE's confusingly worded statement was to note that Saarlouis is to be the single point of origin for all European Focus models. In addition to Saarlouis and Wayne, Ford will also likely produce the next Focus at a plant somewhere in Asia, but a location announcement has not yet been made.

The days of Cadillac's big DTS sedan are numbered as the plant that builds it will soon be shut down and re-tooled. The Detroit Hamtramck assembly plant that builds the DTS and Buick Lucerne will switch over to building the Chevy Volt in 2010 and the current products are both long in the tooth.

The National Post is reporting that the new Cadillac flagship will be dubbed XTS and will be produced at the Oshawa assembly plant. It will be built alongside an updated Chevrolet Impala, the new Camaro and the Buick Regal. The DTS is a front-wheel drive car, but the XTS is expected to the share the Epsilon II platform with the Regal and the new Impala. As such, it will likely get all-wheel-drive at least as an option. For its part, the Regal will likely be a re-badged version of the Opel Insignia. The report goes on to say that Oshawa will produce a hybrid version of one of those offerings – a gas-electric Regal model is a reasonable bet.

Earlier reports had pegged the next Cadillac sedan as a model that would supplant both the DTS and the slow-selling STS, and although the NatPost article does not speak to this, it is reasonable to assume that the new XTS will result in the phase-out of both model lines. The new model line was reportedly put on hold back in August of last year, but it apparently has once again been given the go-ahead.

The XTS is scheduled to be launched in December 2011, with the new Impala coming in early 2013. Thanks to Ben for the tip!

[Source: The National Post]

Cars.com has once again published its annual American-Made Index that rates vehicles built within the United States based on their sales and percentage of domestic parts content. This year's list has a number of movers and shakers based mainly on the fact that a troubled economy has torpedoed sales of some models and others are now ineligible because their parent brands are being canceled.

The Ford F-150 has lost its top ranking in the American-Made Index for the first time since Cars.com began producing the list back in 2006. The new No. 1 is – gasp – the Toyota Camry. Assembled in Georgetown, KY and Lafayette, IN, the Camry's upswing in domestic parts content helped it barely edge out the F-150, which has seen both its sales and domestic parts content fall year-over-year. Toyota, in fact, had four models make the American-Made Index this year including the Sienna, Tundra and first-timer Venza.

General Motors placed the Chevrolet Malibu, Silverado and GMC Sierra, while Ford had the aforementioned F-150, and list newcomer Ford Taurus, which enjoys the highest domestic parts content of 90 percent. No Chrysler vehicles made the top ten, although one Honda did: the Lincoln, AL Odyssey has an 80 percent domestic parts content rating and thus sewed up the #10 spot. You can view the full list after the jump and visit Cars.com to read more about how the index was produced.

[Source: Cars.com]

After slipping into receivership this past January, Ssangyong Motor Company's problems have only escalated. A court-ordered restructuring of the Korean automaker earlier this year left 976 employees without work. The displaced workers organized an armed sit-in on the Korean automaker on May 21 that has now turned violent.

According to Ward's Auto, Roughly 4,000 non-union workers and management had been back in the company's Pyongtaek, South Korea, SUV plant attempting to get the assembly line back into operation. After less than 36 hours in the facility, more than 900 pipe and firebomb-wielding strikers surrounded the area and demanded they vacate under increasing threats. As the workers left, they were attacked by striking union workers poised outside (many noted that the national police service had withdrawn their riot squad on Saturday night leaving the 4,000 employees unprotected). All told, more than 70 non-union workers were badly hurt and many of those were hospitalized.

Although the company has offered jobs with affiliated companies, or promised future work to dismissed employees, the union immediately rejected the offer and has demanded to negotiate directly with the Korean government. The future doesn't look good. With no plans for the non-union employees to return and a viable restructuring plan unlikely, the Korean courts are scheduled to make a ruling by Sept. 15 whether to allow Ssangyong Motor Co. to keep operating or to liquidate its assets.

[Source: Ward's Auto]

Rumors that General Motors may get access to Toyota's proprietary hybrid technology just won't go away. Today, Bloomberg cites two unnamed sources in reports that Toyota President Akio Toyoda and GM chief Fritz Henderson will meet this August in Michigan to discuss the possibility of a GM-badged version of the Toyota Prius hybrid hatchback.

For the record, both General Motors and Toyota have repeatedly denied that any such talks have taken place in the past and have said it's unlikely that they ever will in the future. Many of these rumors indicate that the two automakers are considering building the Prius together at the New United Motor Manufacturing Incorporated (NUMMI) joint venture in California, but GM has today announced that its involvement in NUMMI is over.

It remains a possibility that Toyota will fully take over the reigns at NUMMI to finally build the Prius in America, but even if that's the case, it's extremely unlikely that General Motors will have anything to do with the project in light of its own massive undertaking of readying the Chevrolet Volt for the market in 2011.



[Source: Bloomberg]
Photos copyright ©2009 Sam Abuelsamid / Weblogs, Inc.

As part of its "New GM"/"Old GM" bankruptcy proceedings, General Motors has announced that it will abandon its ownership stake in the New United Motor Manufacturing Incorporated (NUMMI) joint venture with Toyota.

According to an official statement, GM and Toyota worked to find a future product that would work for both automakers, but they were apparently unable to do so. As a result, GM will assign its NUMMI stake to "Old GM," effectively ending a 25-year partnership with the Japanese automaker.

Over the last quarter-century, the Fremont, California plant has produced a number of vehicles for GM, including the current Pontiac Vibe, as well as the Geo/Chevrolet Prizm, and the Bowtie'd Nova that preceded it.

There is no word on what (if any) effect the deal's collapse will have on Toyota's NUMMI-made products which include the Tacoma pickup and Corolla sedan. According to NUMMI's official website, 5,440 workers are employed at the plant. Official press release after the jump. Thanks to everyone for the tips!

[Source: General Motors; NUMMI | Image: Hokubei]

Four 500s by 2011. That is the latest word out of Italy concerning the adorable Fiat 500. While the Chrysler/Fiat merger chugs along, the tiny 500 is the only model that has been officially greenlighted for American consumption under the Fiat banner. To make up for that dearth of models, Fiat will apparently offer the 500 in four different flavors when it reaches these shores: hatchback, convertible, station wagon and sporty hatchback. There's also an outside chance of a micro-CUV according to this Automotive News piece.

The "sporty hatchback" will be the Abarth, Europe's 2008 Car of the Year. Chrysler/Fiat CEO Sergio Marchionne calls it "our iPod." Wonder if it's too late for some co-branding. While it might seem that a sporty wagon and sporty drop-top would be fairly easy to slot into the mix (Abarth Giardiniera SS Corsa, FTW!), we'll have to make due with those four iterations for the time being. The 500 family should be in U.S. dealerships by the first half of 2011. The American-market cars will likely be produced at a Chrysler plant in the United States or in Toluca, Mexico, but there's no official word on U.S. pricing yet.



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

More good news comes from the Blue Oval camp today as Ford CEO Alan Mulally has said that the automaker plans to "[increase] production to support the desirability of Ford products." Despite a downturn in new car sales, Ford – the only member of the Detroit 3 automakers that has not filed for bankruptcy protection in the last two months – has actually managed to gain a few ever-important percentage points of market share from its global rivals, including fellow American automakers General Motors and Chrysler.

In related news, Mulally says that Ford is well on its way to returning to profitability in 2011 as planned. Last year, Ford recorded its worst-ever loss of $14.8 billion and expects to continue posting smaller losses through 2009 and 2010, but Mulally is confident the company has sufficient funds on hand to finance the turnaround plan made possible by the $23 billion the automaker raised in 2006 shortly before the global economy hit the panic button.

A major portion of Ford's turnaround plan is based on "more and more electrification, both hybrids and battery electric vehicles," said Mulally, which is consistent with stated goals set out by the Obama Administration. Earlier this week, Ford accepted $5.9 billion in U.S. Department of Energy loans to retool factories to build more environmentally friendly cars and trucks.



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

Following weeks of speculation, General Motors finally made its decision official this afternoon. Its new small cars will be built in Michigan with final assembly taking place at the Lake Orion plant with stampings coming from the nearby Pontiac Metal Center. As a result of the decision, 1,400 jobs will be preserved in hard-hit Michigan.

The Lake Orion factory was due to be idled in September, when production of the Pontiac G6 ends there. Instead it will be re-tooled to build a new small car that has not yet been announced. The plant will be specified as a B/C plant, meaning it will have flexibility to build both B and C segment cars. The first will be a B car, which will replace the Aveo and may be called the Viva. The plant will also be able to build C cars like the new Cruze and possibly a Buick version of the Opel Astra. The Viva would be a B-segment car similar in size to the new Ford Fiesta. Powertrain components will also be sourced from GM's North American operations although no specifics have been announced yet. GM emphasized that this is the first car of this size to be built in the United States from any major automaker.




[Source: General Motors]