Autoblog

REPORT: Geely's plans to buy Volvo from Ford unravelling over intellectual property concerns?

Chris Shunk — Fri, 23 Oct 2009 16:00:00 EST

Filed under: Ford, Volvo, Earnings/Financials, Geely

Ford has been trying to offload the Volvo brand since December of 2008, but after years of rumors and speculation those 10 months feel more like a decade. China's Geely has been speculated as the number-one bidder for the Blue Oval's Swedish luxury brand, but a report by Bloomberg asserts that the long-awaited accord could be shelved due to concerns over Ford's intellectual property.

Because Volvo is so tightly integrated into Ford's product development, any buyer of the safety-minded car maker would have inside knowledge of the Blue Oval's future product plans and access to its latest and greatest technology. The buyer would also have direct access to Ford's vehicle architectures, since so many are shared between itself and Volvo. If Geely does in fact purchase Volvo, those platforms, which pass both European and U.S. crash test standards with flying colors, it could give China's largest automaker a better chance of entering the coveted U.S. market. And helping Chinese automakers enter the States probably isn't at the top of the list of things Ford wants to do right now.

U.S. and European automakers have had their hands full in attempting to curb China's lax intellectual property rules. Some vehicles built by Chinese automakers and sold in the land of the Great Wall are nothing more than carbon copies of vehicles from American., Japanese and European automakers... save for a new logo. Ford is also dealing with the case of Xiang Dong Yu, an ex Ford engineer who stole 4,000 sensitive and confidential documents from the Dearborn, MI-based automaker. The sticky-fingered engineer reportedly pilfered the documents in an effort to get a job at Shanghai Automotive but he was instead hired by Bejing Automotive.

The other issue Ford could be facing is the bargain-basement price tag Volvo is rumored to be offered at due to years of recessing sales volume and mounting losses. Ford purchased Volvo in 1999 for over $6 billion, but sources familiar with the brand's sale estimate that the Swedish automaker could now fetch as little as $2 billion. While that sum is nothing to sneeze at, Ford could be better off waiting until the automotive market heats back up gain. The new XC60 crossover has helped curb Volvo's sales woes here in the U.S. to the point that the Swedish Automaker realized a 16% sales climb versus last September. Next year's intro redesigned S60 coupled with several mid-cycle face lifts could continue to help Volvo's short-term prospects.

[Source: Bloomberg | Photo: Sven Nackstrand/AFP/Getty Images]

REPORT: Geely's plans to buy Volvo from Ford unravelling over intellectual property concerns? originally appeared on Autoblog on Fri, 23 Oct 2009 16:00:00 EST. Please see our terms for use of feeds.

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China tallies 1.84 million recalls over last four years

Jonathon Ramsey — Wed, 31 Dec 2008 14:59:00 EST

Filed under: China, Recalls, Safety

In 2004, China set up an official government body to regulate the business of automobile recalls. Previous to that, some car companies simply wouldn't recall faulty vehicles due to the lack of regulation. The head of that official body recently announced that in the four years it has been tracking recalls, there have been 1.84 million vehicles that needed a little more work done.

If that number is accurate, it's astoundingly low. China is the world's second largest auto market - in 2006, it was reported to have sold 7.22 million vehicles. By contrast, there were something like 15 million car sales in the US that year, and 10.6 million vehicles recalled. We have a feeling that China is still learning the ins-and-outs of this whole recall business. China's most recalled nameplate over the past four years has been Mercedes-Benz, with 19. Their biggest single recall? 420,000 Honda Accords in 2007.

[Source: Gasgoo]

China tallies 1.84 million recalls over last four years originally appeared on Autoblog on Wed, 31 Dec 2008 14:59:00 EST. Please see our terms for use of feeds.

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Chinese government to reward scrapping your car and buying a new one

Jonathon Ramsey — Sun, 28 Dec 2008 15:31:00 EST

Filed under: China, Government/Legal

China, just like the U.S. of A., is worried about its auto industry. Last year Chinese auto production topped 8.8 million vehicles, and this year the country was on track to reach 10 million sales. Then everything went all pear-shaped, and now Chinese automakers are asking their government for help. Beijing hasn't said exactly what it will do yet, but one plan is to offer incentives for folks to scrap the cars they own and go buy new ones.

The key word in this plan is "scrap." The way it's been presented, the government doesn't want folks to just trade in their cars - that would simply add more cars with much smaller margins to dealer lots. They want car owners to send their cars to the crusher. If that's what is actually being considered, we'd be interested to find out how close the "incentive" will be to the value of the car being junked. If the difference is considerable, that plan sounds like a non-starter.

Thankfully, other tacks are being considered: lowering the vehicle purchase tax, making auto loans easier to get, and relaxing the quotas on how many loans banks can make. China's auto sales haven't yet slid into the crevasse -- November sales were down 14.6% -- but with many other sectors of the economy weak, the government is trying to get ahead of a fall before it actually happens.

[Source: Drive.com.au]

Chinese government to reward scrapping your car and buying a new one originally appeared on Autoblog on Sun, 28 Dec 2008 15:31:00 EST. Please see our terms for use of feeds.

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U.S. insurer AIG buys stake in Chinese carmaker Lifan

Chris Tutor — Tue, 05 Feb 2008 18:03:00 EST

Filed under: China, Safety, Motorcycle

One of the main concerns that Autoblog readers have about Chinese cars is their safety. We've seen some fairly horrific crash tests of Chinese-made cars recently, but some improvements, as well. You just gotta know American insurance companies are not looking forward to these things being on U.S. roads.

That's why we find it quite ironic that U.S. insurance company AIG has bought a sizable stake in Chinese car and motorcycle-maker Lifan. We haven't seen any Lifan crash tests, so their cars could beat even Volvo at the safety game for all we know. But so far, Chinese cars in general aren't exactly known for their safety.

While one report says AIG's piece of Lifan could be as big as 25%, Lifan's Chairman Yin Mingshan said last year his company would not sell more than 20% to any one investment company. The deal awaits approval from the Chinese government, which is expected to come later this month or in early March.

AIG apparently sees lots of potential in China having also announced in July that it had received permission to begin selling insurance in China.

[Source: Reuters and Market Watch via China Car Times]

U.S. insurer AIG buys stake in Chinese carmaker Lifan originally appeared on Autoblog on Tue, 05 Feb 2008 18:03:00 EST. Please see our terms for use of feeds.

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Chinese coming on strong at 2008 Detroit Auto Show

John Neff — Fri, 05 Oct 2007 09:29:00 EST

Filed under: Detroit Auto Show, China

We remember back in ~~2005~~ 2006 when the first Chinese automaker to exhibit at the Detroit Auto Show made history just by attending. That would be Geely, and though its display was relegated to the front lobby, the motoring press was impressed by its mere presence in the Motor City. Fast Forward to 2008 and the largest ever contingent of Chinese automakers has just been announced as confirmed for this year's Detroit Auto Show. They include Changfeng Motor Group, BYD Auto Co., China America Automotive Inc./ZXNA, Ls Shi Guang Ming Auto Design Co. and, of course, Geely International Group.

But where's the Nanjing Automobile Corporation, Shanghai Automotive Industry Corp. (SAIC), Brilliance Auto and Chery Automobile? We seem to hear more about those companies and their aspirations to enter the U.S. market than the ones attending the Detroit Auto Show this year, save for Geely. We'll of course be on hand to see what each has to offer, but while the number of Chinese automakers attending is a record this year, we still think a few of the more promising ones are missing.

[Source: The Detroit News]

Chinese coming on strong at 2008 Detroit Auto Show originally appeared on Autoblog on Fri, 05 Oct 2007 09:29:00 EST. Please see our terms for use of feeds.

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Chinese government puts brakes on automakers

Chris Tutor — Wed, 27 Dec 2006 10:04:00 EST

Filed under: China, Plants/Manufacturing

Not so long ago, the Chinese government was encouraging automotive manufacturers as a way to stimulate the country's economy. Now, however, the National Development and Reform Commission has hit the brakes with new rules dictating how China's burgeoning automotive industry can expand. "Signs of overcapacity have already appeared, and could worsen," read a statement from the commission.

The commission's rules will dictate minimum sales targets for SUVs, trucks, vans and buses. Foreign automakers looking to invest in China must show a need for increased production capacity by proving it has exceeded 80% of its previous years' capacity.

At first glance it looks like Chinese economic planners are trying to ensure their newly found automotive gold mine doesn't run dry any time soon, leaving empty factories and unemployed workers across China. A BizChina report seems to address the issue from another angle. BizChina says the intent is to "curb vicious competition through price cuts." So maybe it's not over capacity China is trying to avoid, but instead cutthroat business practices practiced by its domestic industry.

[Source: Reuters via The Auto Channel, and BizChina]

Chinese government puts brakes on automakers originally appeared on Autoblog on Wed, 27 Dec 2006 10:04:00 EST. Please see our terms for use of feeds.

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ChangFeng bringing Chinese SUVs to NAIAS

Chris Tutor — Sun, 05 Nov 2006 15:50:00 EST

Filed under: Detroit Auto Show, China, Misc. Auto Shows

With China's Geely out of the picture for now, it looks like Chang Feng will be the Chinese representative in Detroit next year. Dow Jones reports that Chang Feng will bring four vehicles to NAIAS 2007. Chang Feng is expected to show up with two Liebao (Chinese for Cheetah) branded pickup trucks and two SUVs. Photos and details are scarce, as you might expect from China. The above photo is Chang Feng's Cheetah concept, unveiled at the 2005 Shanghai Auto Show. Currently, Chang Feng produces licensed Mitsubishi designs.

Chang Feng chairman JianXin Li says his company plans to begin selling cars stateside sometime within the next decade.

Formerly known as No. 7319 Factory of Chinese People's Liberation Army Chang Feng Co. Ltd., Chang Feng reorganized in 1996 and says it is on track to produce 200,000 vehicles by next year, which would be twice its current output.

[Source: Dow Jones via Canadian Driver]

ChangFeng bringing Chinese SUVs to NAIAS originally appeared on Autoblog on Sun, 05 Nov 2006 15:50:00 EST. Please see our terms for use of feeds.

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