Chinese Car Buyers Embrace Online Sales, Dealers Still in the Loop

E-commerce is nothing new, especially in what is probably the world’s most connected country: China. The thing is, Chinese are embracing online sales for new cars, too – and that’s good for business.

Chevrolet Aveo New Face in China

Shanghai GM, one of General Motors’ Chinese joint ventures, has previewed the refreshed Aveo family ahead of its sales debut in June. Confirming the spy photos we presented last month, both the hatchback and the sedan get a new face inspired by the 2016 Cruze that ditches the motorcycle-style headlights of the current model for more conventional units.

Fisker Owner Ready to Spend Whatever it Takes to Beat Tesla New

Lu Guanqiu, the chairman and founder of China’s Wanxiang Group which owns Fisker, is planning to build electric cars in the U.S. and challenge Tesla Motors right in its home market.

Volvo Targets Annual Sales of 1 Million Vehicles Beyond 2020

Volvo Car Group is aiming for annual sales of over one million vehicles in the long term as the company bets on strong growth in the Chinese market. Volvo chairman Li Shufu said the company targets annual sales of 800,000 cars by 2020, nearly double the level last year, helped mainly by growth in China.

New 300HP DS 5LS R Performance Concept by Citroën will Debut in Beijing [w/Video]

Citroën will show the potential of its new China-only DS 5LS sedan with the R concept car, a performance version that will debut at the Beijing Auto Show.

Lincoln to Reuse old Model Names for Chinese Market

A report from USA Today says that Ford’s exeutive VP in charge of global marketing, Jim Farley, recently announced that Lincoln may, in fact, switch from the current American naming scheme to one that revives old historic names, but only for the Chinese audience.

The arguments that stand behind the reasoning are a) the brand has a lot of iconic names under its belt that it no longer uses and b) it is apprently believed that Chinese people actually remember the old days of Lincoln luxury, what the cars from that period were called and what they stood for.

Deems quite unlikely given the cultural and historic background of the country, but we’ll see how it pans out for them once the fully-fledged country-wide introduction enters full swing.

So, in a weird turn of events, North America, which is the traditional home market for Lincoln cars will boast models designated by three capital letters, the first two of which are “MK,” while China will get Zephyrs and Continentals.

By Andrei Nedelea

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China Development Bank Loans $800 Million to Volvo

A report from Reuters officially confirmed an $800 (€590 or £495) million loan that the China Development Bank awarded to Volvo. It’s not the first one they’ve taken out of the PRC, and this one’s amortization plan has been stretched up until the year 2021, by which time the Swedish manufacturer will have doubled its global sales figure to 800,000 units sold annually, if things go according to plan.

The money was justified as going into financing the creation of new models that may in fact, be aimed at ensuring Volvo a bigger slice of the growing Chinese market. It happens to be their top market too, according to data gathered over the last two months.

Whatever they do with the money, the fact of the matter is we’re still expecting the all-new XC90 that will finally replace the 11 year-old model we have now to arrive next year.

It’s the first production model to use Volvo’s new Scalable Product Architecture (SPA), and it will be followed by the replacement for the equally old S80 sedan which we expect will be a keen seller in China too – it’s the next series model they will reveal after the SUV/crossover.

By Andrei Nedelea

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A First in China: Daimler Buys 12 Percent Stake in Chinese OEM BAIC Motors

This may be a landmark deal that could pave the way for similar transactions in the future: Daimler AG has become the first non-Chinese company to acquire an interest in a Chinese OEM (Original Equipment Manufacturer).

The parent company of Mercedes-Benz bought a 12-percent stake in long-standing partner BAIC Motor, the passenger car unit of Beijing Automotive Group (BAIC Group), one of the top automotive companies in China.

Daimler and BAIC Motor have been granted approval from Chinese authorities to go ahead with the deal, marking the official closing of the transaction. Daimler’s investment will take place through the issuance of new shares corresponding to a 12 percent stake in BAIC Motor. The move shows the German automaker’s strong support for BAIC Motor’s intention to launch an initial public offering (IPO) in the future.

As part of the agreement, Daimler will have two seats on the Board of Directors of BAIC Motor, to be held by Daimler AG board member for Greater China, Hubertus Troska, and Daimler AG CFO, Bodo Uebber.

Furthermore, BAIC will get a controlling stake (51 percent) in the production joint venture Beijing Benz Automotive Corporation (BBAC). At the same time, Daimler will increase its stake in the integrated sales joint venture Beijing Mercedes-Benz Sales Service Corporation (BMBS) by 1 percent to 51 percent. The latter reunites all sales and service activities for imported and locally produced Mercedes-Benz cars under one roof and is a key pillar for Mercedes-Benz’s sustainable growth in China.

BAIC Group is one of China’s largest automakers, with sales of over 1.7 million vehicles in 2012.  

By Dan Mihalascu

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Daimler Teases Denza EV, Will Debut at the 2014 Beijing Auto Show

The Auto China 2014 in Beijing will host the world premiere of the Denza electric vehicle, the first production model of the joint-venture between Daimler AG and its Chinese partner BYD.

Called Shenzhen BYD Daimler New Technology (BDNT), the JV is dedicated exclusively to electric vehicles. To prepare for the market introduction of the Denza EV, BDNT is currently carrying out intensive testing of pre-production. So far, the Denza has been tested in dusty, summer conditions in the South of China, with winter tests to begin soon in the freezing cold of north-eastern China.

The plant in Shenzhen is also running production tests in order to start building what BDNT calls “the safest and most reliable electric vehicle”, designed and engineered in China for the local market.

Previewed by a concept car at the 2012 Beijing Auto Show, the Denza EV may be based on the Mercedes-Benz B-Class Electric Drive, judging from the shape of the development prototype shown in the photo.

Following the car’s premiere in Beijing, the first Denza dealership will open in the Chinese capital by mid-2014, with further dealerships being built simultaneously in Shanghai and Shenzhen.

Three of China’s leading automobile dealership groups, Zhongsheng Group Holdings Limited (Zhongsheng Group), Lei Shing Hong Auto (China) Management Co., Ltd. (LSH), and Pangda Automobile Trade Co., Ltd. (Pangda Group), will become the first dealers responsible for the distribution and service of Denza electric vehicles, following a Memorandum of Understanding signed earlier this year.

Mercedes isn’t the only German maker to create a new brand for electric cars in China as BMW has done the same with Zinoro, which has already released its first model, the E1.

By Dan Mihalascu

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Smart ForTwo Electric Drive Debuts at the Guangzhou Auto Show

China will be the 14th market worldwide to get Smart’s ForTwo Electric Drive model, with the EV minicar becoming the first Europe-imported all-electric model available in the world’s largest car market.

The announcement was made at the Guangzhou Auto Show, where the ForTwo Electric Drive celebrated its Chinese debut. The EV is already available to buy from dealerships around the country.

The new generation Smart Electric Drive has been available in Europe, the USA, Canada and Japan since production began in 2012. The model is the number one battery-powered electric vehicle in Germany, making up around 40 percent of the EV market. Smart says roughly 93 percent of customers would recommend the smart electric drive.

The Smart ForTwo Electric Drive is powered by a 55kW (74hp) electric motor delivering 130 Nm (96 lb-ft) of instant torque which helps the EV sprint from 0 to 60 km/h (37 mph) in 4.8 seconds. Top speed is limited to 125 km/h (78 mph) to help the car achieve a driving range of 145 km (90 miles).

Smart sales in China rose 43.8 percent in 2012, with the country set to become a crucial market for vehicles with alternative drive systems, thanks to supportive measures from the local government. Many analysts predict China will become the world’s largest market for alternative drive vehicles as well. 

By Dan Mihalascu

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New Fiat Ottimo is a Dodge Dart Five-Door Hatchback

It's reveal time for Fiat that pulled the covers off the new Ottimo, which is the hatchback version of the China-market Fiat Viaggio, or as North American consumers know it, the Dodge Dart sedan.

Displayed at the 2013 Guangzhou International Auto Show, the Ottimo comes with a very-Alfa Romeo Giulietta-style roofline and a more youthful looking front end featuring a thinner and overall sleeker grille and bumper design than the Viaggio, with Fiat also redesigning the tail lamps and bumper at the back.

Inside, the dashboard remains the same as the Viaggio, with the Dodge-sourced steering wheel looking kind of out place for anyone familiar with Fiat's interiors.

Fiat said that the addition of the five-door hatchback model to its China range will practically double daily production at the plant it runs in southern China with local carmaker Guangzhou Automobile Group.

Sales of the hatch will begin in China this December. There are no known plans to offer the car in other markets.

Live photos via Pcauto

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