Ailing Swedish car manufacturer Saab will not be producing new vehicles for at least two more weeks until it resolves the problems with its suppliers, the company said on Monday. "There will be no normal production during weeks 25 and 26 (June 20th-July 3rd)," Saab spokeswoman Gunilla Gustavs told Reuters. "We are still negotiating with all suppliers and we need to get everyone on board at the same time. The weeks of 27-29 (July 4th-24th) are planned to be normal working weeks".
Global vehicle sales by the Volkswagen passenger car brand rose 12.2 percent to a record-high of 2.09 million units in the first five months of the year, compared to 1.86 million the same period in 2010. More than a third of those vehicles were delivered in China, which has become the Volkswagen brand’s largest single market. In the period from January to the end of May, VW sold 714,200 cars in the country, recording a 15.3 percent increase.
Lately, it seems whenever there’s a problem with production at Saab’s Trollhattan plant, the Swedish automaker’s parent company Spyker Cars N.V. announces a new deal with a Chinese company. Today, Spyker signed a non-binding memorandum of understanding (MOU) with two Chinese firms, Pang Da Automobile Trade Co., Ltd (Pang Da) and Zhejiang Youngman Lotus Automobile Co., Ltd. (Youngman), which if approved by regulators, could see the company falling into the control of Chinese hands. We'll remind you that Saab had previously signed a deal Chinese firm Hawtai but it failed to go through Chinese regulators.
German car magazine Auto Bild and weekly Der Spiegel reported Thursday that General Motors is once again considering the sale of its Opel and Vauxhall units. The reports were dismissed as pure speculation by the Detroit automaker as well as a German state with an Opel factory, which called the news “nonsense”. 
According to the news reports, GM allegedly was no longer in need of Opel’s know-how in manufacturing small cars as well as low emission and fuel efficient powerplants and that it could replace the German brand with its South Korean GM Chevrolet unit, formerly known as Daewoo.
BMW isn't the only automaker releasing limited-edition models unique to the Chinese auto market. This week, Porsche took the wraps off the new 911 Turbo S Anniversary Edition to celebrate 10 years in China. Only 10 cars will be built and all of them are destined for the Chinese market.
Chinese customers love a good limited edition model and BMW tries its best to keep them happy. Not long ago, BMW had released the China market-only M3 Matte Edition and M3 Tiger Edition. During the BMW M Legendary Experience event held in China last week, the Bavarian automaker lifted the covers off yet another special M3, the Carbon Fiber Limited Edition of which only 111 examples will be built at a price of 1.23 million yuan (approximately US$189,800 at today’s exchange rates) a piece.
SAIC Motor Corporation, the owner of MG Motors, plans to develop several new models for the British brand in order to boost sales outside its home market in China. The Chinese owner of MG Motors has already spent £1 billion ($1.64 billion) to re-launch the MG and Roewe brands (former Rover) and intends to invest another £2.2 billion ($3.6 billion) to achieve annual sales of 700,000 by 2015. In 2010, the two brands sold 160,397 cars, most of which were delivered in China, with only 2,000 units exported to other markets. This past April, MG launched its new mid-size MG6 in the UK, the first new car to be assembled at the British firm’s Longbridge plant in 16 years. The company said that when it completes the development of a diesel version, it will offer the car to rest of Europe. "We will not go into mainland Europe without a diesel," UK managing director, William Wong, told Autonews.
Chinese distributor Pang Da Automobile is pumping more cash into Spyker NV's ailing Swedish unit Saab by placing a new order for 630 vehicles valued at €15 million or US$21.5 million. This latest order comes after an earlier one last week for 1,300 cars worth €30 million (US$43.2 million) and is part of a broader deal in which Pang Da agreed to buy a 24 percent stake in Saab’s parent company Spyker for €65 million (US$93.5 million). The Swedish automaker said that as with the first order, Pang Da will pay the additional €15 million order up front with the funds expected to be received by the end of this week. Delivery of the vehicles ordered by Pang Da will start in the fall of this year.
Saab is back in the business of making cars again -at least for now- almost two months after production came to a halt on April 6 when the company’s suppliers stopped deliveries of parts in protest over unpaid bills. The Swedish company was able to restart production after receiving €30 million (US$42.8 million) in advance on a deal it has signed with Chinese car distributor Pang Da Automobile. The China company’s CEO, Mr. Pang Qinghua, visited the Trollhättan factory today together with CEO and Chairman of Saab Automobile, Victor Muller, and witnessed the first vehicle to roll off the assembly line. Saab said around 100 cars were built today but plans to “increase the daily production rate in the coming weeks in parallel with the full re-establishment of the supply chain”.
Here’s an idea: why not simply ask the public what they want in a car? Focus groups are one thing, but Volkswagen is taking this concept to extremes with its newly launched People’s Car Project. The ostensible goal of the project is to solicit advice from some of China’s 450 million internet users; advise that will shape a new model for the Chinese domestic market. Dubbed “mass manufacturing” by Volkswagen, the Orwellian-sounding project will run for one year and gather Chinese consumers’ input in the form of text, images and film through the Zaoche website. There will also be competitions where users can vote for their favourite designs, and prizes will be handed out to the best. If proven successful, the same idea could be implemented in other regions as well.
Bentley Motors sold 396 cars in Mainland China (excluding Hong Kong and Macau) in the first four months of 2011, an all-time record result for the Asian market. With this number, Bentley broke its previous record set just last year, by an amazing 66 percent increase in sales.
Subaru’s American division is taking audience segmentation a step further with the release of a new advertising campaign for the 2011 Legacy that specifically targets the Chinese-American market. The campaign has been produced in Cantonese, Mandarin and English, and can be seen across a wide variety of media placements including TV, print, online and out-of-home running. The television spot is called “Sweet Tomorrow” and it shows a young Chinese American couple preparing for the birth of their first child. The advert is scheduled to air through October 2011.
For the second time this month, and shortly after the break up in talks with the Hawtai Motor Group, Saab’s parent company Spyker Cars N.V. today announced that it has signed a Memorandum of Understanding (MoU) with a new Chinese company to provide fresh funds for the deeply troubled Swedish automaker. This time Spyker signed a tentative finance and import deal with Pang Da Automobile Trade Co., Ltd (Pang Da), said to be China’s largest publicly traded automobile distributor with over 1100 dealerships in the country.
Another day, another deal gone sour for Saab and its parent company Spyker Cars N.V. Today, less than two weeks after Saab announced an agreement with China’s Hawtai Motor Group that would have invested €150 million (US$215 million) into the company in exchange for a 30% stake, Spyker said that the deal has fallen through raising new doubts about the Swedish brand’s future. “Since it became clear that Hawtai was not able to obtain all the necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect,” Spyker said in a statement.
The ink on the deal / partnership between Saab and China’s Hawtai Motor Group has barely dried, but the Swedish automaker's chairman and Spyker CEO, Victor Muller is already making headlines again by hinting at the distribution of cheap Chinese cars in the United States, Europe and elsewhere through Saab’s established global network. 
"We laughed when the Japanese came. We laughed when the Koreans came. But we will not be laughing when the Chinese come. The Chinese are like a steamroller,” said Victor Muller, during a press event in Washington, D.C.Muller said that if an agreement is reached with Hawtai, the Chinese maker could make use of Saab’s distribution network to sell its cars globally. "It took 67 years to build up our dealer network. It is the biggest asset not on our asset sheet, and these guys buy into it for free. If they make the proper cars, can you image how much simpler it will be to push product through the distribution network that is already there? It is like a railway network that is already there," said Muller.
Lending even more evidence to China’s growing importance for automakers, Volkswagen is planning to develop two new bespoke vehicles, one with each of its partners in the Middle Kingdom, Autonews said in a report today. Shanghai Volkswagen Automotive Co., which is a joint venture between China’s SAIC Motor Co. and Volkswagen AG, will produce a new luxury sedan, while VW’s second joint venture in the country with the China FAW Group Corp., FAW-Volkswagen Automotive Co., will develop a dedicated electric vehicle for the partnership's newly launched Kali brand.
According to Polk, an automotive statistics website, one of the key performance indicators of a maturing auto market is the number of cars per 1,000 people or the nation’s “vehicle density”. Ten years ago in the U.S., for instance, it was 453 vehicles per 1,000 people. What with the global financial crisis and high fuel prices resulting in many people selling their cars, this has now dropped to 419 per 1,000 and is expected to continue its decline to 414 per 1,000 by 2015. 
In the increasingly economically developed BRIC countries, that is Brazil, Russia, India and China, it’s not as dense but it is emerging. In Russia, for example, it’s 235 vehicles per 1,000. In India and China, it’s more like 27 vehicles per 1,000. Though consider this: with populations topping 1.6 and 1.3 billion respectively, 27 vehicles per 1,000 would be more like 100 vehicles or plus per 1,000 if those nations had population numbers equaling the United States.
In his attempt to save Saab- again, and after having secured short-term cash of €30 million (US$44.6 million), Spyker Car N.V. CEO Victor Muller’s next move was to sign a strategic partnership with China’s Hawtai Motor Group. Under the agreement, Saab will receive a €150 million (US$222.5 million) cash injection while the two companies will form joint ventures for manufacturing, technology and distribution. As a part of the deal, China’s Hawtai will invest €120 million (US$178 million) for up to a maximum of a 29.9 percent equity stake in Spyker on a fully diluted basis. Τhe remaining €30 million will be in the form of a convertible loan agreement with a 6 month maturity, an interest rate of 7% per annum and a conversion price of €4.88 per share.
Spyker Cars NV and Saab president Victor Muller is pulling all the strings to kick start the Swedish automaker back into life after the company hit a cash crunch and was forced to halt production last month as suppliers refused to send parts citing lack of payment. After an earlier announcement on the involvement of Russian banker Vladimir Antonov, who plans to invest €30 million in Saab’s parent company Spyker in return for a 29.9 percent stake, Muller hit twice today revealing that the company has secured a €30 million convertible loan from Gemini Investment Fund Ltd, while also announcing a new partnership with China’s relatively unknown, Hawtai Motor Group.
Vehicle accidents happen on the road everywhere and every day. However, some mishaps could be easily avoided if the person behind the wheel has his or her head screwed on the right way. For example, take a look at this video showing a 14-wheeler truck overturning on a busy road in Wenling City in eastern China's Zhejiang Province; this is not the way you are supposed to turn into a corner with such a heavy and long vehicle. As you can see in the closed circuit TV footage that captured the incident as it happened, the driver of the lorry was apparently in a hurry to pass the traffic light and speeded through the crossroad only to overturn and drop the container on its side. According to media reports, officials said by-passers narrowly avoided being hit. Watch the clip right after the break.
According to the news reports, GM allegedly was no longer in need of Opel’s know-how in manufacturing small cars as well as low emission and fuel efficient powerplants and that it could replace the German brand with its South Korean GM Chevrolet unit, formerly known as Daewoo.
"We laughed when the Japanese came. We laughed when the Koreans came. But we will not be laughing when the Chinese come. The Chinese are like a steamroller,” said Victor Muller, during a press event in Washington, D.C.
In the increasingly economically developed BRIC countries, that is Brazil, Russia, India and China, it’s not as dense but it is emerging. In Russia, for example, it’s 235 vehicles per 1,000. In India and China, it’s more like 27 vehicles per 1,000. Though consider this: with populations topping 1.6 and 1.3 billion respectively, 27 vehicles per 1,000 would be more like 100 vehicles or plus per 1,000 if those nations had population numbers equaling the United States.
