Archive for the ‘China’ Category

China Phasing Out JV Rule Limiting Foreign Auto Plant Ownership

Rule has been major chafing point with foreign manufacturers – also helped build up domestic Chinese auto industry.

by on Apr.17, 2018

China is phasing out the rules requiring foreign automakers to adopt a Chinese company for a joint venture to do business.

China announced plans to phase out rules requiring foreign automakers to partner with domestic Chinese companies if they want to open an assembly plant in the booming market. The announcement comes barely a week after President Xi Jinping indicated the country would begin rolling back its 25% tariff on foreign-made autos.

The rule required companies like General Motors, Volkswagen and Toyota to give local companies like GAC and SAIC a 50% stake in their Chinese operations. That approach not only limited their profits but effectively also helped fund the development of the domestic Chinese auto industry, a number of those manufacturers now setting up brands of their own that they hope to turn into worldwide competitors.

Breaking News!

“Following a five-year transition period, all ownership restrictions will be lifted,” the National Development and Reform Commission said in a statement. (more…)

Geely’s Li Shufu Says Partnerships Key to Auto Success

Team up or get swallowed up.

by on Apr.17, 2018

Geely Chairman Li Khufu purchased 9.7% of Daimler AG for $9.2 billion.

Geely owner Li Shufu urged Daimler AG, in which he recently became one of the largest shareholders, to consider further strategic partnerships.

Global News!

Li Shufu, who is also the owner of Volvo, recently became a major shareholder of Daimler after acquiring a 9.69 % stake in the Stuttgart-based company. (more…)

Mustang: World’s Best-Selling Sports Car for Third Year in a Row

Exports to Asia and Europe pushing pony car to the top.

by on Apr.17, 2018

The Ford Mustang is the world's best-selling sports car three years running.

When the Ford Mustang turned 50, the automaker decided it was time to see just how popular the pony car was, and it began selling one of America’s first muscle cars globally.

Turned out to be a fine idea.

Industry News!

Now that the Mustang is about to turn the big Five-Four, it is also celebrating its third consecutive year as the best-selling sports car in the world, according to IHS Markit. Global Mustang registrations in 2017 totaled 125,809 cars, according to Ford. (more…)

Sagging Diesel Sales Pushes Jaguar Land Rover to Lay Off 1K Workers

Company cutting production at two plants in England.

by on Apr.16, 2018

Jaguar Land Rover plans to lay off about 1,000 workers this year as diesel sales have declined.

Many tout the rise of the electric vehicle as a way to create new opportunities and new jobs, but one would be hard pressed to convince the 1,000 employees that Jaguar Land Rover plans to lay off due to the decline of diesel.

JLR, which is owned by parent company Tata Motors, is not only cutting jobs, but is also reducing production at two of its English factories as demand for diesel cars slumps due to higher taxes and regulatory changes related to Britain’s exit from the European Union.

News You Can Trust!

British new car registrations have been falling during the past year which the industry has blamed, in part, on weakening consumer confidence in the wake of the Brexit vote, after record demand in 2015 and 2016. (more…)

Caddy Triggers Battle of the Behemoths with $10,000 Escalade Discounts

Fighting off the new Lincoln Navigator.

by on Apr.16, 2018

A Cadillac Escalade Platinum can top $100,000.

If you’re looking for one of the biggest, baddest luxury utes on the market, Cadillac is hoping to lure you into one of its U.S. showrooms. Aiming to shore itself up against an assault by Lincoln’s newly updated Navigator SUV, Caddy is firing back with discounts of up to $10,000 on its own Escalade model.

GM has traditionally dominated the full-size SUV segment, both mainstream and luxury, and it gained significant traction when it introduced an all-new version of the ‘Slade for the 2014 model-year. But that’s a lifetime ago in today’s hotly competitive market and Lincoln has been building momentum fast with the all-new version of the Navigator it launched last year.

News You Can Trust!

While the two models don’t generate a lot of volume they serve up substantial profits for their respective manufacturers, providing plenty of room to load up the incentives. The question is whether Lincoln will now fire back with big givebacks of its own.

(more…)

First Drive: 2019 Volkswagen Jetta

No, VW hasn't gone all-SUV, at least not yet.

by on Apr.13, 2018

The R-Line version of the 2019 VW Jetta.

Volkswagen officials have been talking a lot about SUVs, such as the new Atlas, these days. And when they change the subject, they’re as likely as not to focus on battery-electric vehicles like the upcoming I.D. Buzz microbus.

That might seem worrisome for fans of traditional VW sedans and hatchbacks. The good news is that the people’s car brand isn’t abandoning its traditional line-up. True, you won’t be able to get a diesel in the U.S. anymore, but there are some solid alternatives under the hood of offerings like the all-new 2019 Volkswagen Jetta that we had a chance to spend some time with in Raleigh-Durham, North Carolina earlier this month.

The Last Word!

“It’s one of our most important products in the U.S.,” said Jan Dickmann, head of the compact car line, before we headed off into a Carolina countryside just starting to burst with spring color. Worldwide, VW has sold 17 million Jettas, including 3 million in the U.S. alone. So, while the automaker might be gaining traction with products like the Atlas and smaller Tiguan, it has a lot riding on the success of the seventh-generation Jetta sedan. (more…)

Trump Reversing Stance on Trans Pacific Partnership

President looks to assuage concerns of farmers, auto industry.

by on Apr.13, 2018

Presiden Trump is reversing course on the Trans Pacific Partnership, investigating the country's re-entry into the pact.

In a surprising about face, President Donald Trump is apparently considering reversing one of his first decisions on trade — scuttling the Trans Pacific Partnership.

Denouncing and walking away from TPP with a sharp dig at former President Barack Obama was one of Trump’s first pronouncements after his inauguration as President in January 2017. While support for TPP was mixed, with some companies supporting and others opposing it, it did include provisions that would have benefited the global auto industry.

Global News!

Trump’s decision on the TPP helped set the stage for the assault on NAFTA. (more…)

Mueller Out, Diess In at VW – And More Shake-Ups Likely

Automaker restructuring into three groups and may be readying spin-off of truck group.

by on Apr.12, 2018

New VW CEO Herbert Diess unveiled two EVs, including the Buzz microbus, at CEO.

Matthias Mueller, the executive often given credit with steering Volkswagen Group through the worst crisis in its post-War history, has been pushed aside, replaced as CEO by Herbert Diess, the head of the flagship VW brand.

The elevation of Diess comes at a time when Volkswagen is charting a path that calls for greater sales and profits, lower costs, and a decreasing dependence on the diesels that had been a foundation, albeit a troubled one, for the company. Diess will also oversee a restructuring that will reform the parent company into three groups and could lead to the eventually spin-off of its truck and bus division.

http://htxurl.info/about/subscribe

Shaking Things Up!

The 64-year-old Mueller was elevated to CEO in 2015, following revelations that VW had rigged its diesel engines to illegally pass emissions tests. He “has done outstanding work for the Volkswagen Group,” the automakers said in a statement, work that included dealing with angry regulators, shareholders and owners and negotiating settlements, fines and buybacks that ultimately are expected to cost VW about $30 billion in the U.S. alone.

(more…)

Lincoln Planning Five New Models for China in Bid to Catch Rivals

China destined to become brand’s top market, said new Lincoln chief.

by on Apr.12, 2018

The Lincoln Aviator made its U.S. debut last month and should reach China by 2019 or 2020.

Struggling to catch up with rivals now dominating the world’s largest luxury car market, Lincoln plans to start building five new models in China by 2022, according to a report by the Reuters news service.

That’s in line with comments made to TheDetroitBureau.com by Lincoln’s new boss, Joy Falotico, who said she expects China to soon become the brand’s largest market, much as has happened for other luxury marques, including Detroit-based rival Cadillac.

http://htxurl.info/about/subscribe

Global News!

It appears that the new models Lincoln will build in China will also be produced and marketed in other countries, including the U.S. During a backgrounder on the new Aviator SUV prior to its debut at the New York International Auto Show late last month, Falotico revealed that Lincoln plans to launch two new SUVs by 2020, “followed closely by four more vehicles.”

(more…)

Tenneco Buys Federal-Mogul for $5.4 Billion

Company will split into two publicly traded entities next year.

by on Apr.11, 2018

Billionaire Carl Icahn sold Federal-Mogul to Tenneco Inc. for $5.4 billion.

Federal-Mogul, a century old supplier of automotive component with a storied past, is being sold to Tenneco Inc. as part of a deal valued at $5.4 billion.

In recent years, Federal-Mogul – owned by Wall Street financier Carl Icahn – has gone through multiple re-organizations but has maintained its core businesses of powertrain products aftermarket parts even as it struggled to pay its debts.

Subscribe Now!

Icahn Enterprises will get $800 million in cash and 29.5 million shares of Tenneco stock. Tenneco will assume Federal-Mogul’s debt. The Lake Forest, Illinois-based auto parts maker said Tuesday that it will split the company into two parts, both to be traded publicly. (more…)