In the saga that is the potential sale of the Chrysler Group, another automaker is said that it is not interested in acquiring the troubled American arm of DaimlerChrysler. Last week, China’s SAIC said it does not have any current plans for any overseas acquisitions. This announcement came in response to a Hong Kong newspaper report that China’s largest automaker carmaker had begun talks with DaimlerChrysler AG about buying Chrysler.

“We have no plans for acquisitions at the moment,” said SAIC spokeswoman Zhu Xianjun.

The potential sale of the Chrysler Group has lead to speculation that Chinese automakers, including FAW, SAIC and Chery Automobile, may be interested in Chrysler as an easy way of the entering the U.S. market.

However, it looks like SAIC is another automaker is in expanding list of automakers that is not interested in the Chrysler Group. Volkswagen, Fiat, Nissan-Renault, Hyundai, and now SAIC have all said they were not interested in Chrysler.

## Source: Reuters ##

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The DaimlerChrysler Supervisory Board today finally signed off on the limited partnership between the Chrysler Group and Chery to develop small vehicles. Under the agreement, Chery would build vehicles to be distributed under the Chrysler brands, primarily in North America and Western Europe. While DaimlerChrysler’s press release says “the Chrysler brands,” we assume it is talking about Dodge, as it is the only Chrysler brand that makes sense for a small car.

Back in December, Chrysler announced a preliminary agreement with Chery to build a new small car in China for worldwide export. At that time, Chrysler Group CEO Tom LaSorda said the automaker was not considering a production version of the Dodge Hornet concept, but rather it would a Dodge-branded Chery model. Word on the street is that Chrysler is now considering a production version of the Hornet, because of quality concerns of Chery vehicles.

While DaimlerChrysler has signed off on the deal, it’s still contingent upon approval of the Chinese government.

Full press release after the jump.

## Source: DaimlerChrysler ##

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General Motors is developing an ultra low-cost family car, which it will sell in emerging markets. The low-cost family car would compete with Renault’s Logan sedan and the planned low-cost car by Toyota. Renault’s current Logan sedan sells for less than $10,000, but Renault is rumored to be working on a cheaper variant, and the planned low-cost car by Toyota could be priced below $5,000 US.

Automotive News reports that the project is still in the proposal stage, the new car would be sold as a Chevrolet starting in 2010 or 2011. The low-cost vehicle would only be sold in emerging markets such as Russia, India, eastern Europe, South America and possibly China.

## Source: Automotive News ##

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Chrysler is considering having Chery Automobile build a new Chrysler-designed vehicle, not a car based on a Chery design, due to quality concerns. Back in December, Chrysler and Chery announced plans for Chery to build a new small car in China for worldwide export. Originally, Chrysler was considering a Chery model and not a car based on the Dodge Hornet concept, but it’s now considering building the production version of the Hornet, according to AutoWeek.

The likely reason for the change would be due to quality concerns. Chery is known for low-cost production, including the low price of components, and the cheap components often come at the expense of quality. Under the new plan, Chery would be responsible for purchasing of car parts, but Chrysler will oversee supplier selection.

Chery spokesman Wang Wei would not confirm whether or not the Hornet was being considered, but said, “we will definitely cooperate with DaimlerChrysler, but the specifics of the agreement are still under discussion.”

“We don’t even have a signed contract with Chery yet. Product-specific announcements are still out in the future,” said Chrysler spokesman Dave Elshoff.

When the original announcement was made, we assumed that Chery would build the Hornet for Chrysler. While it didn’t look like it at the time, it now appears to be more likely that the Hornet will see production.

## Source: AutoWeek ##

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China’s Nanjing Automobile Group continues it plans to relaunch the MG brand will the assembly of its first two preproduction MG TF roadsters at the MG Rover Longbridge plant in Birmingham, England. Nanjing will build about 80 preproduction TFs to validate manufacturing and for emissions and safety testing before beginning production of cars based on the old MG TF roadster as soon as this March.

Nanjing Automobile Group said plans for launching the TF roadster and hardtop in the United States are still on track for next year.

## Source: Automotive News ##

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General Motors is cutting prices on two of its Chinese-built models by up to 10 percent in an effort to drive sales. GM’s price cuts could force its competitors to make similar cuts. Shanghai GM, General Motors venture with Shanghai Automotive Co., has cut prices on the Chevrolet Lova and Aveo by up to $1,268 (9,900 yuan).

“Automakers here tend to slash prices at the beginning of the year to attract buyers,” said Xie Shuguang, senior analyst with Shanghai Securities. “Now that Shanghai GM has taken the lead, more will follow soon.”

At the start of 2006, Shanghai GM cut prices on its Regal and Espica models by as much as 10 percent, wh

General Motors sales in China in 2006 were up by 32 percent in 2006.

## Source: Automotive News ##

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Audi announced that its sales in China, including Hong Kong, were up by 38.8 percent in 2006, maintaining the automaker’s lead in the premium segment.

Audi said in a statement that its Chinese-built “Audi A6L made a major contribution to this success” with production up up 36.5 percent. Sales of the Audi A4 rose 44.3 percent. Imports were up by nearly two-thirds, with sales of its top-line Audi A8 up 33.4 percent and the new Audi Q7 SUV adding 808 units.

China is the third-largest foreign market for Audi.

Full press release after the jump.

## Source: Audi ##

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When Chrysler first confirmed that it was seeking a partner to build a small B-segment car for the United States, consensus was that the vehicle would be a production version of the well received Dodge Hornet concept that was unveiled at the 2006 Geneva Motor Show. Following the news of the preliminary agreement between Chrysler and China’s Chery, it looked like the Hornet was a go.

Not so fast, according to Chrysler Group President and Chief Executive Officer Tom LaSorda. Turns out that while the Chery deal is for a B-segment car, it is not for the Dodge Hornet. “The Hornet is a great statement of our design. It is also a statement that it’s something that we’re going to continue to take a look at, and depending on the business case going, we’ll look at that independently from this particular project,” said LaSorda.

So Chrysler and Chery will work on a B-segment compact car that will be sold in North America and other markets. While Chery will build a new compact for Chrysler, the automaker will continue to review the business case of the Hornet. Seems like the Hornet would be a shoe in for production.

Full interview from Chrysler’s media-only Firehouse blog after the jump.

## Source: Chrysler Group ##

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Mazda announced that it would restart Chinese market sales of its China-built Mazda3 in January. In April, Mazda halted assembly of the Mazda3 at Changan Ford Mazda Automobile Co. due to a flaw in the process of acquiring government approval for production and sales.

Production restarted in October but Mazda was awaiting state approval to resume sales. Mazda had been planning to sell the vehicles through an exclusive sales company, and formed a sales joint venture, FAW Mazda Motor Sales Co., with the FAW group, which would sell all Mazda-branded cars in China. Most foreign automakers have two joint venture partners in China, and vehicles produced by the joint ventures must be sold through their own sales channels.

Mazda3 sales will restart under a revised framework, with distribution rights held by Changan Ford Mazda, which produces the car, and retail activities assigned to FAW Mazda Motor Sales.

## Source: Reuters via Automotive News ##

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Honda’s joint venture in China will recall 49,500 CR-Vs due to a potential problem with the rear suspension. The affected models were produced by Honda’s joint venture with Dongfeng Motor Group between March 10, 2005, and Dec. 18, 2006.

There were no reports of any accidents, injuries, or deaths linked to the defect.

## Source: Reuters via Automotive News ##

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Tom LaSorda, CEO Chrysler Group has signed a preliminary agreement with China’s Chery Automobile to build a small car the U.S. automaker, according to Automotive News. The two companies have long been rumored to be in talks about a compact car collaboration.

Chrysler spokesman Jason Vines didn’t confirm the brand that would sell the new car, but it is widely expected to be a Dodge branded B-segment vehicle inspired by the Hornet concept (shown). Chrysler says it needs a partner for the car because it cannot profitably produce a small car in the United States. The new car would be sold in the United States, Canada, Mexico, and Europe.

The deal still requires approval from DaimlerChrysler’s supervisory board, which meets in January, as well as the Chinese government.

## Source: Automotive News ##

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With 2006 coming to a close, Buick looks set to sell more vehicles in China than it will in the United States during the past year, according to Automotive News. Buick sold 206,582 vehicles in the U.S. during the first 10 months of the year — down 15.4 percent. During the same period, it sold 218,603 cars in China — an increase of 27.4 percent.

While the Buick brand has lost status in the U.S., the brand has maintained a reputation in China. GM is working to reverse the old-fashioned aura surrounding its Buick brand as part of its restructuring campaign to make Buick a more upscale brand.

## Source: MSNBC ##

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Starting in 1970, The Peninsula Hong Kong has used Rolls-Royce cars exclusively for its guests, with the hotel’s first order for seven Silver Shadows. The Peninsula Hong Kong today unveiled a fleet of 14 new Rolls-Royce Phantoms — the largest single order ever for the car. The latest purchase is The Peninsula’s eighth record-breaking order.

Each of the special Extended Wheelbase Phantoms built to custom specifications as part of Rolls-Royce’s “Bespoke” program, and includes unique features like custom Peninsula Hotel sill plates, a larger trunk, and a cool box for chilled hand towels. The Phantom’s are finished in a unique color named Peninsula Green.

“For more than 35 years The Peninsula Hong Kong has used Rolls-Royce cars, and this new fleet of Phantoms is the most impressive of their cars built to date. Rarely are my expectations exceeded, but on this occasion they have been - the cars, like the hotel, must exemplify quality, and the service requirements have also mirrored these high standards,” said Sir Michael Kadoorie, Chairman of The Hongkong and Shanghai Hotels Limited.

More images and press release after the jump.

## Source: Rolls-Royce ##

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Earlier this month, Chrysler began sales of a locally-produced 300C sedan in the Chinese market. Following its launch in China, Chrysler gave the car a proper debut at Auto China 2006. In China, the Chrysler 300C Sedan is currently built at Beijing-Benz DaimlerChrysler Automotive Co., Ltd., DaimlerChrysler’s joint venture in Beijing, China, and the local Chrysler 300C 2.7L, 3.5L and 5.7L have been available since November 8, 2006.

“The Chrysler brand’s succession of innovative product introductions continues to solidify the brand’s standing as a leader in design, purposeful technology and value,” said Joe Eberhardt, Executive Vice President – Global Sales, Marketing and Service, Chrysler Group. “With the launch in China of our new flagship Chrysler 300C Sedan, which is already enjoying huge sales success around the world, alongside the world’s most popular minivan and the innovative PT Cruiser, the momentum is sure to continue.”

## Source: DaimlerChrysler ##

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Malcolm Bricklin has dropped his plan to bring Chery-produced cars to North America. Bricklin and his Visionary Vehicles company had planned to import up to 250,000 cars to North America. Bricklin originally was planning a U.S. launch of Chery Automobiles in January 2007, but had since pushed the launch back several times to late 2008 or early 2009.

However, Bricklin’s plans seem to have been done in by Chery’s relationship with several Western automakers, including Fiat and DaimlerChrysler. Fiat plans to buy four-cylinder engines from Chery, and Chery is the leading candidate to build the Dodge Hornet. The Chrysler group may import Chery models to the U.S., and brand them as Dodges.

Bricklin says Visionary Vehicles now plans to design its own vehicles and contract production to a Chinese automaker for export to the U.S. and other markets, including possibly Europe. According to a source close to Bricklin, Chery Automobiles, the FAW (First Automobile Works) Group, Shanghai Automotive Industry Corporation (SAIC) and Geely Automobile Global are in the mix.

## Source: AutoWeek ##

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