China Auto News of the Week (June 22 - June 26, 2009)

GM may sign non-binding agreement with BAIC and RHJ

Shanghai, June 26 (Gasgoo.com) US auto giant General Motors may sign non-binding memoranda of understanding with RHJ International SA and Beijing Automotive Industry Holding Co for selling Opel, Bloomberg reports Friday, citing people familiar with the talks.

Citing the source, the report said talks between GM and Magna have stalled over the issue of "the use of GM's technology and engineering designs".

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Chevy Volt electric cars to be built, sold in China

General Motors will build the Chevrolet Volt extended-range electric car in China beginning in 2011 as part of the automaker's plan to roll out its revolutionary technology in a wide variety of vehicles around the world, the newsletter AutoBeat Asia reports.

Tengzhong, GM to seal Hummer deal Jun 28

Shanghai, June 25 (Gasgoo.com) Sichuan Tengzhong Heavy Industrial Machinery Co. will sign a formal deal with General Motors Corp on June 28 in the U.S. to acquire GM's Hummer brand, sina.com said yesterday.

Insider sources told the Chinese web portal that China's top economic planner and commerce ministry are very likely to approve this deal. The acquisition and payment will be carried out by Tengzhong's parent Sichuan Huatong Investment Holding Co, Ltd, 98.5% owned by Li Yan (Suolang Duoji), or by an overseas company of Huatong.

Hummer CEO: Tengzhong to give cash only

Shanghai, June 24 (Gasgoo.com) Hummer CEO Jim Taylor said yesterday that he expects Sichuan Tengzhong Heavy Industrial Machinery Co. only to be an investor and not to get much involved in Hummer's daily management after the Hummer brand is sold to the Chinese company, sina.com said.

In an interview with the leading Chinese Internet portal, Taylor said Tengzhong knows much about the Chinese market while Hummer's executives know much about the Hummer's products, so Tengzhong doesn't need to operate the Hummer brand, or to worry about its own lack of auto-making experience -- it is expected to be an investor only.

SAIC may buy Opel Insignia platform to build new Roewe

Shanghai, June 23 (Gasgoo.com) China's Shanghai Automotive Industry Corp (SAIC) is planning to purchase new Buick Regal's platform from General Motors Corp to make its own brand car models, according to an informed source quoted by Chinese language newspaper 21st Century Business Herald.

The source said delegations headed by Jiang Jun, deputy general manager of SAIC's passenger car division, has held several round of talks with Joseph Liu, currently GM Asia Pacific's vice president for sales and marketing, on the matter since March this year.

Mitsubishi-Changfeng tech transfer deal to expire

Shanghai, June 23 (Gasgoo.com) The technology transfer agreement between Japanese automaker Mitsubishi Motors and its Chinese partner Changfeng Motor will expire at the end of this month, China Business News reported today.
 
Mitsubishi Motors' follow-up expansion in China is still under discussion as the merger between Changfeng Motor and Guangzhou Auto has been completed. The Japanese carmaker holds a 14.59% stake in Guangqi Changfeng Automobile Co., the venture of the two Chinese automakers.

Renault and Great Wall to jointly build cars in Venezuela

Shanghai, June 23 (Gasgoo.com) French carmaker Renault is contemplating plans to assemble vehicles in Venezuela starting 2010 in a partnership with Chinese manufacturer Great Wall Motors, Automotive News reported.

Renault and Great Wall de Venezuela have signed a non-binding letter of intent to carry out a feasibility study on building cars together for the Venezuelan market, Renault spokesman told the newspaper.

BYD Auto to launch 5 new car models in H2

Shanghai, June 22 (Gasgoo.com) BYD Auto plans to launch five new car models in the second half of this year. In addition, the F3DM electric car will sell to individual consumers from September, and the all-electric e6 model is also likely to go on sale by December, sina.com said today.

The S8, G3, L3, S6 and M6 are the five new models that BYD will put on sale in the coming six months. The BYD S8 (former F8) is China's first coupe-like sedan that uses hard-top convertible technology. At present, the "S8 Convertible" is on mass production and may go on sale by early July.