China Auto News of the Week (Sept. 7-11, 2009)

Shanghai, September 11 (Gasgoo.com) Daimler AG's Mercedes-Benz division posted another sales record last month in China, with 6,400 vehicles sold, up 52% from a year earlier. Its China sales in the Jan-Aug period rose by 50% to 37,800 units, gasgoo.com said today, citing the company's press release.

Mercedes-Benz has set its monthly sales record in the China market for three straight months this year, with August sales exceeding 6,000 units, and as a result China has become the third largest market for Mercedes-Benz sedans.

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SAIC in talks to buy GM's India plant - Source

Shanghai, September 11 (Gasgoo.com) China's largest automaker SAIC Motor group is in initial talks with General Motors Co on buying one of its India plants to produce its Wuling vans in the country, an informed source told the Oriental Morning Post on Thursday.

The source said negotiations are still in very early stage and no quick decision would be made very soon. Spokesmen from SAIC and GM China unit declined to make any comment on the matter.

Chery Auto launches Rely brand, Rely V5 model

Shanghai, September 10 (Gasgoo.com) Chinese carmaker Chery Auto launched its Rely brand earlier this week and is set to release the Rely V5 as the first model of this brand, China Car Times said.

While the Riich is Chery's upmarket brand, Rely will be Chery's MPV/Business brand, under which a range of MPVs and other 'business vehicles' are expected to be launched over the next few months.

China's BAIC joins Koenigsegg's deal to buy Saab

Shanghai, September 10 (Gasgoo.com) China's Beijing Automotive Industry Holdings has signed a deal to become a minority stakeholder in Koenigsegg Group AB's deal to by Saab Automobile from General Motors Corp, reports Reuters on Wednesday.

Koenigsegg says in a statement Wednesday that the Chinese automaker has signed a memorandum of understanding to become "a non-controlling minority shareholder in Koenigsegg Group."

Great Wall Motor has four models approved by EU

Shanghai, September 9 (Gasgoo.com) The UK transport ministry yesterday presented the Whole Vehicle Type Approval (WVTA) certificate of the European Union to Chinese automaker Great Wall Motor, giving its four models free access to the EU market, xinhuanet.com reported.

The four approved vehicle models of Great Wall Motor are the Florid, Coolbear, Hover5 and Wingle5. It is the first time that a Chinese-developed vehicle brand has got the EU approval for free sale in the EU countries.

Geely eyes full ownership of Volvo, not stake

Shanghai, September 9 (Gasgoo.com) Chinese carmaker Geely Auto said its parent is involved in a bid for Ford Motor's Volvo Cars unit, and the bidding may need help from a state-owned investment firm, media reported today.

Gui Sheng Yue, chief executive of Geely Auto, told reporters yesterday that Geely Holding Group, who wants full ownership of Volvo, rather than a stake, is too small to acquire the Swedish car brand alone and so will likely team up with a state-owned investment company if it enters the bidding.

China's passenger vehicle sales up 95% in August

Shanghai, September 8 (Gasgoo.com) China's passenger vehicle sales, including sedans, MPV, SUV and minivans, soared 94.7% year-on-year to 849,376 units in August, China Daily reported today, citing an industry association official.

"The booming sales in August have surpassed even the boldest prediction in the industry, as sales in August were previously the weakest of the year," said Cui Dongshu, deputy secretary-general of the National Passenger Car Information Exchange Association.

China to make a record 12mln vehicles in '09

China is expected to manufacture a record 12 million vehicles in 2009, an official with the country's top economic planning agency said Saturday.

Chinese domestic auto makers were expected to produce and sell more than eight million vehicles in the first eight months this year, said Chen Bin, director of the department of industry under the National Development and Reform Commission (NDRC).