Just when there was beginning to be good news associated with MG, tales of woe return. This time it has to do with British entrepreneur Will Riley, who somehow established himself as the force behind the MG X-Power even though MG branding rights had been purchased by China’s Nanjing.

Riley is in boiling water on three counts: Nanjing is suing to prevent him from using the MG name, employees are suing him for non-payment, and a Canadian man is suing him for theft. Riley bought a subsidiary division, MG Sports and Racing, from the failed company’s administrators, PriceWaterhouse Coopers. Nanjing contends that the subsidiary never had the right to use the logo and image of the parent company.

The employees say that they haven’t been paid for their time, with Riley’s second-in-command claiming that he nearly lost his house for having not been paid and that the company never produced even one car beyond the prototype. The Canadian, who was working to raise investment for Riley, was given that one prototype in exchange for his assistance. When he sent it back to the factory to have work done on it, he later discovered the car was put up for auction and sold to someone else who crashed it. The court proceedings have only just begun in all cases, meanwhile Riley claims he is still committed to bringing back the brand.

[Source: Birmingham Post via China Car Times]

[Source:Autoblog]

The last new MG was the MGF sportscar way back in 1995, and oh, what a difference 14 years makes. The MG6 is the first new MG by the company’s new owner, Shanghai Automotive Industry Corp. (SAIC), and they’ve chosen a four-door liftback for their coming out party. About the size of a VW Golk/Skoda Octavia, the MG6 will be powered by either a naturally aspirated 1.8-litre four-cylinder with 133 brake horsepower and 135 pound-feet of torque, or a turbocharged 1.8-liter with 160 bhp and 158 lb-ft. Shifting is said to be via five-speed automatic.

The MG 6 will go on sale in China first, but it has reportedly been engineered to meet global safety standards and is expected to be exported. SAIC hasn’t given any numbers or even locations for export yet, but the company president said they plan to produce it in the UK by the end of next year.

[Source:Autoblog]

Should Geely succeed in its bid to purchase Volvo, the Chinese automaker does not plan to spend any time playing in its new Swedish sandbox. Ford moved about 380,000 Volvos around the world last year; Geely wants to sell 2.5 times that amount within five years. How so? By injecting “two or three bigger, more luxurious cars” into the lineup and working its home market of China, which Geely feels could be unlocked for 200,000 vehicles alone. Those units could be supplied by a Chinese factory capable of making 300,000 cars per year and would presumably be larger than the upcoming redesigned S60 (above).

Ford has designated Geely its preferred bidder for Volvo. However, in an echo of the tensions between General Motors and Magna’s Russian bidding partner Sberbank, Geely will need to address Ford’s intellectual property concerns among other issues to complete a sale. Volvo’s technologies and reputation for safety are probably worth as much as the company’s physical assets, so it’s not surprising that Ford wants to negotiate the technology transfer. Assuming they can come to terms, closing the deal is expected to cost Geely $2 billion.

[Source:Autoblog]

China joined the World Trade Organization in 2001, at which point it was given five years to adjust to the rules of open trade before any complaints were lodged against it. On schedule, in 2006, the complaints began, lodged by the U.S., Europe, and Canada.

In one example of open trade prohibitive practices, Automotive News reports that if a car built in China uses a percentage of imported auto parts above a specific threshold, China taxes each imported part an additional 25%. In such a price-competitive atmosphere, such a policy all but proscribes the use of imported parts, a move that has lead to complaints from all three continents.

The original complaint was decided at the end of last year in a ruling against China. Beijing appealed, to no avail. In response, China has rescinded the tax, which is an initial step to truly opening the market up for foreign parts- and automakers.

The U.S. trade in auto parts to China is not even 1/13th what it is to Mexico, a statistic that a host of companies would clearly like to change.

[Source:Autoblog]

The headline is attention-grabbing. A former Chinese auto executive is proposing a $6 billion plant in economically-distressed north Mississippi that will employ 25,000 people and produce one million cars a year.

Automotive News’ story is both intriguing and complicated – and not just because three players are named Wang, one is named Yang – so buckle up for the short-and-sweet Autoblog version.

Yang Rong was once China’s third-richest man as the CEO of Brilliance China Automotive Holdings Ltd. But after some disagreements with a Chinese government official in 2002, Yang fled the country and settled in Los Angeles.

Cars are only one of the reasons Yang wants to build $6.5 billion plant in Mississippi (that’s six times the cost of Toyota’s Mississippi plant, by the way). Another is green cards. When Yang left China, he also left his fortune and has apparently been unable to recoup any of it. It’s a scary scenario that many wealthy Chinese fear: upset the government, lose your money. But the U.S. government makes it easy for Chinese residents to both invest their cash in America, as well as move here. Invest a minimum of $500,000 in an economically distressed region of the U.S., creating at least 10 jobs, and you get permanent resident status.

Vincent Wang, an associate of Yang’s, says Italdesign Giugiaro is designing the new venture’s cars, and documents show Porsche AG providing “our car’s engineering design.” Giugiaro confirms it has talked with the group, Porsche essentially says it has no comment. Such a controversial car must be powered by something just as unusual, right? Oh, yeah. The CEO of the project, C.T. Wang, tells Automotive News, the cars will be “powered by a combination of gasoline, electric, hybrid and compressed-natural-gas powertrains.”

Yang calls his project, Hybrid Kinetic Automotive Holdings, Ltd. One of Yang’s former associates has split from the group and also plans to build an automotive plant. That company is now called GreenTree Automotive, after being forced to change its name from Hybrid Kinetic Automotive Corp. Yeah. ‘Cause that would have just been too confusing.

And where in Mississippi would someone go to gamble $6.5 billion on an automotive plant? Tunica County, of course. Home to nine of the Hospitality State’s approximately 30 casinos.

[Source:Autoblog]

We’ve known for a while now that Mexicans are getting some Chinese cars with their ten gallon jars of pickles, but what about Americans? Would we go for vehicles from another country from across the Pacific? There’s a wonderful moment at the end of Tucker: A Man and his Dreams where Jeff Bridge’s Preston Tucker character pleads with the jury at his corruption trial that if American industry doesn’t change change course, we’ll soon be buying our cameras from the Japanese.

According to a new study, 15% of American new car shoppers are ready to buy cars from China, while 11% are ready to buy their wheels from India. Ready for the kicker? Just 16% said they would consider a car from Korea. Ouch. Said George Peterson, head of the study, “As Hyundai and Kia have been on the American scene for decades now, it’s surprising that consideration for Chinese and Indian brands, sight unseen, would be about as strong as it is for the Korean brands.” Surprising, sure. And if you live near Seoul, depressing. Full press release after the jump.

Americans Open To Vehicles From China and India

By George Peterson

July 28, 2009
New Study Shows Willingness to Accept Unknown Brands

Tustin, CA (July 28, 2009) - Newly released research shows fifteen percent of new car buyers in the United States say they would consider purchasing their next vehicle from China, and eleven percent would consider buying a car from India, without knowing specific brands or vehicles.This compares with sixteen percent who said they would consider a vehicle from Korea, which has been marketing vehicles in the U.S. since the 1980s.

“As Hyundai and Kia have been on the American scene for decades now, it’s surprising that consideration for Chinese and Indian brands, sight unseen, would be about as strong as it is for the Korean brands,” said George Peterson, president of automotive research firm AutoPacific and author of the study. “However, with so many premium and high-tech non-automotive products already being made in China and purchased by Americans, why not automobiles too? It appears that buyers in America are willing to give Chinese and Indian vehicles a chance right out of the box. Understanding these consumers will be critically important to the success of any newcomer.”

The just-released study - “Opportunity for Chinese and Indian Brands in the USA” - provides new insight into who these consumers are and what they’re looking for in their next car or truck. Based on a national survey of more than 30,000 new car and truck buyers, AutoPacific’s 2009 Research Suite database reveals insights into the willingness of Americans to consider cars and trucks coming from China and India.

“Not only are a significant number of people willing to consider Chinese and Indian brands, this group consists of highly desirable buyers who would be coveted by any manufacturer. They tend to be young, well-educated, and affluent for their age and have good jobs in administrative, health care and middle management positions,” added Peterson.

The study shows Chinese and Indian considerers are more likely to currently own Japanese and Korean brands, indicating that these brands may have the most competition from the new entries, rather than domestic brands like Chrysler, Ford and GM. The study also revealed that while those who would consider a car from China and India rate reliability and durability high, they are not as interested in the dynamics of a vehicle like handling, braking and acceleration.

About AutoPacific

AutoPacific is a future-oriented automotive marketing research and product-consulting firm. Every year AutoPacific publishes a wide variety of syndicated studies on the automotive industry. The firm, founded in 1986, also conducts extensive proprietary research and consulting for auto manufacturers, distributors, marketers and suppliers worldwide. Company headquarters and its state-of-the-art automotive research facility are in Tustin, California, with an affiliate office in the Detroit area. Additional information can be found on AutoPacific’s websites:? http://www.autopacific.com and http://news.vehiclevoice.com.

[Source:Autoblog]

China’s Sichuan Tengzhong Heavy Industrial Machinery, the company that recently surfaced as the top bidder for Hummer, is about to start talks with Chinese regulators to secure the deal. While General Motors has a tentative agreement with Tengzhong, the two companies have yet to receive the state’s blessing, which is necessary for the sale to go through.

Tengzhong, GM and Hummer have been working on a proposal to present to the National Development and Reform Commission, despite speculation that the deal will be blocked by those Chinese officials. Tengzhong reportedly remains optimistic, saying they haven’t heard anything from the authorities and don’t expect to until their proposal is actually submitted.

Speculation that the deal was in jeopardy began when a China National Radio station reported that government regulators would block the deal based on environmental concerns about Hummer vehicles and the fact that Tengzhong doesn’t have much experience as an automaker. Tengzhong is better known as a manufacturer of special-use vehicles, structural components for highways and bridges, construction machinery and energy equipment, so some have suggested this is little more than a publicity stunt for the company, but it certainly sounds like they are serious about the deal now.

[Sources: Reuters, Wall Street Journal]

Last week, Volkswagen and Chinese automaker BYD signed a memorandum of understanding to work together “in the area of electric mobility” and vehicles that use li-ion batteries. BYD Chairman Wang Chuanfu (yes, the guy who likes to drink battery fluid) and VW’s Martin Winterkorn signed the MOU in Wolfsburg, Germany. Ulrich Hackenberg, Member of the Board for Technical Development at Volkswagen, said in a statement (available after the jump) that, “Hybrids and electric vehicles will play an increasingly important role [for VW], of course. Particularly for the Chinese market, potential partners such as BYD could support us in quickly expanding our activities.”

Perhaps VW was kicked into action by another German automaker taking a look at another EV automaker?

PRESS RELEASE:

Volkswagen and BYD sign memorandum of understanding

Partnership in the area of electric mobility to be explored
Wolfsburg, 25 May 2009 - During an informational visit by the Chinese carmaker BYD “Build Your Dreams” – led by the Chairman of the Board of Management, Wang Chuanfu – a memorandum of understanding was signed last week by Mr Wang and Dr Winterkorn.

Dr. Ulrich Hackenberg, Member of the Board for Technical Development at Volkswagen, insisted on personally providing the delegation of Chinese top managers with information. The visit, which took place first at the Elektrotraktion Technology Centre in Isenbüttel and then at the test tracks in Wolfsburg, featured technical discussions and test drives with a variety of vehicles such as the Golf twinDrive and the prototype for an electric vehicle. “Volkswagen will consistently expand its successful ‘BlueMotionTechnologies’. Hybrids and electric vehicles will play an increasingly important role, of course. Particularly for the Chinese market, potential partners such as BYD could support us in quickly expanding our activities,” emphasised Dr Hackenberg.

Afterwards, the Chairman of the Board of Management of Volkswagen AG, Dr Martin Winterkorn, and the Chairman of the Board of Management of BYD, Wang Chuanfu, signed a memorandum of understanding. The objective of signing a memorandum of understanding between Volkswagen and BYD is to explore the options for partnership in the area of hybrids and electric vehicles powered by lithium batteries.

[Source:Autoblog]

What may have started off as a Mercedes-Benz CLS clone quickly evolved into something slightly more original – assuming you view it from the front or rear. The Great Wall CHC011 is quite a departure for the Chinese automaker, primarily known for low-cost trucks and SUVs in its home market. In addition to going with an alphanumeric name that’s all the rage in the west (bear in mind, this is the same company that gave us such gems as the Coolbear, Gwkulla and Socool) the CHC011 takes the popular “four-door coupe” aesthetic, throws in some highly stylized head- and tail-lamps, and adds a 3.0-liter V6, six-speed automatic transmission, adaptive cruise control, electronic stability control, eight air bags and a ten-way adjustable driver’s seat. And with “executive seating” in the rear, you’ll easy forget about the poorly proportioned wheels GW pilfered from Discount Tire.

[Source:Autoblog]

Still think of the Race of Champions as an elitist European event? Think again. Organizers have announced that that the annual face-off is scheduled to head to China this year.

The Race of Champions, for those unfamiliar, is a year-end event in which the top drivers from various motorsport disciplines – including F1, rally, touring cars, Le Mans…even motorbikes, drifting or the occasional NASCAR pretty-boy – compete against each other in a series of heats on varied machinery around a dedicated track built inside a major sports arena. The event crowns two winners: the solo Champion of Champions, and the Nations Cup in which drivers pair up to represent their home countries. After a decade in the Canary Islands, the race was held for three consecutive seasons at the Stade de France before moving to Wembley Stadium for the past two years, but a new arrangement will see this year’s race held in Beijing at the Bird’s Nest stadium built for last year’s Olympic games. Previous champions have been predominantly rally drivers (including three titles for Sebastien Loeb and two for Mattias Ekstrom), while Germany’s contingent of Michael Schumacher and Sebastian Vettel have taken the national honors. Who will be crowned champion this year? Tune in on November 3-4, only two days after the Formula One season wraps up in Abu Dhabi (assuming they can get the Yas Island circuit ready in time) to find out.

[Source:Autoblog]