We've been hearing Chinese officials say for quite some time now that there are far too many automakers in the country for a healthy market in the long-term, but we didn't realize until today just how out-of-hand it may be. According to state-run Chinese news agency Xinhua, China has seen an unprecedented 89 new automobile launches so far this year.

That's surely a big number, but it doesn't really hit home until you consider that 89 vehicles in the first half of 2009 averages out to a new or heavily revised vehicle appearing in China once every two days. Of those new designs, 73 were cars, nine were SUVs, six were MPVs and – in contrast to typical American vehicle launches over the same period – only one was a crossover.

As you're surely aware, 2009 is only half over, and there are reportedly some 50 new vehicles still slated for introduction before the end of the year, equaling about 140 new models introduced in 2009. The good news, at least as far the bottom line goes, is that the new releases have translated into sales. The 4.96 million vehicles sold between January and May of this year represent a 14.29-percent increase over the same period in 2008. Still, considering the glut of new models hitting the market, one has to figure that a goodly number of those vehicles will go begging.



[Source: Gasgoo]

Somehow, we managed to miss China's first-ever hybrid sports car at the Shanghai Motor Show earlier this year. Known as the S11 from Tong Jian – which incidentally also seems to be the name of a popular Chinese figure skater – this hybrid sports car looks production ready. Details on the coupe's powertrain are extremely scarce, but China Car Times reports that all four wheels are powered in some manner, presumably through a combination of electric motors and internal combustion.

It's obvious that the S11's designers have looked to the Audi R8 and any number of recent Ferraris for design inspiration, both inside and out. As far as we can tell, the resulting mashup isn't all that bad – minus the one-size-too-small alloys and those awkward Audi-esque blades on either side.

If CCT's sources are correct, design work on the Tong Jian S11 has been completed and the hybrid sports car is headed for production at an unknown plant in Changchun city in short order.



[Source: China Car Times| Images: goche.sohu]

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]

General Motors' pending deal to offload its unwanted HUMMER brand may have hit a major snag. Although no official word has come from the Ministry of Commerce or the National Development and Reform Commission, state-run radio organizations are reporting that the Chinese government will indeed block the sale of HUMMER from GM to Sichuan Tengzhong Heavy Industrial Machinery Co. It's impossible to know exactly how this whole mess will play out, but these reports clearly jive with the general sentiments we've been hearing since the deal was first announced.

According to Chinese radio reports (via the BBC), there are two main objections to the HUMMER deal. First, the brand's environmental credentials don't match up with the direction the Chinese government wants its automakers to head. Second, there are questions as to whether Tengzhong has the expertise to properly manage a large automaker as it's business dealings so far have all been in the construction equipment segment.

Not so fast, says Tengzhong. In a newly-released statement regarding these latest reports, the company had this to say:

Some people may have views and speculation, but the Chinese government has a process that we respect... The view expressed on China National Radio's website did not quote or source anyone at NDRC. We do not yet have a definitive agreement, but are developing our proposals with GM and Hummer and we will continue to engage with the appropriate authorities in an appropriate manner.

At this point, it seems equally as possible that a decision could either come down in short order or come only after a long series of protracted negotiations. Stay tuned. Thanks for the tip, Dave S!



[Source: BBC]

As Chinese media outlets continue to voice derision over GM's agreement to sell its unwanted HUMMER division to Sichuan Tengzhong Heavy Industrial Machinery Co., there are real questions as to whether or not the Chinese government will even approve of the purchase.

State-run media outlet Xinhua News Agency has suggested that Tengzhong's interest in HUMMER may be little more than a publicity stunt, saying, "It couldn't achieve this result (of raising its profile) even if it spent $100 million on advertising." Commenting on Tengzhong's deal to purchase HUMMER, China's Minister of Commerce Chen Deming said:

We hope Chinese companies learn more about international market rules and development trends in their industries and make prudent investments.

While none of that sounds particularly promising, it doesn't necessarily mean the deal won't be approved, and HUMMER CEO Jim Taylor is reportedly moving forward with the automaker's future plans as it looks for a new location outside GM's corporate headquarters in the Renaissance Center to call home. According to the Nashville Business Journal, HUMMER could stay in the Detroit area or possibly join Nissan by taking root in Tennessee.



[Sources: Autocar, Nashville Business Journal]

According to an unnamed source from the 21st Century Business Herald in China (via Gasgoo), Shanghai Automotive Industry Corp (SAIC) has been in talks with General Motors since last March to purchase the Eplison II platform (as used by the latest Opel Insignia and the Chinese-market Buick Regal) for its next Roewe 750 midsize sedan. The fact that SAIC is GM's Chinese partner may seem to lend a bit of credibility to these rumors, though SAIC and General Motors have both initially denied any knowledge of the platform-sharing plan.

While all of Roewe's sedans have so far been based on the aging underpinnings of the former Rover brand from the U.K., recent concepts – such as the attractive N1 from the Shanghai Motor Show earlier this year – show that the Chinese automaker is serious about designing attractive machines for its home market and beyond.



[Source: Gasgoo]

It took General Motors eight years to sell one million Buicks in China, but the second million came in only three. Brisk auto sales in the land of the Great Wall are part of the reason for the increase, but the General has also stepped up its product lineup with new offerings, including the Regal, LaCrosse, and Park Avenue. Shanghai GM's two-millionth Buick was a red Regal, delivered to a customer in the southern city of Guangzhou.

While those vehicles have brought some high-end class to GM Shanghai's Buick operation, they haven't come close to the success of the smaller Excelle. Shanghai GM has sold 900,000 copies of the Excelle sedan, hatch, and wagon since 2003, and sales are still going strong with 94,000 units moved in the first five months of 2009.

While Buick has struggled as a brand here in the States, the marquee has enjoyed blockbuster success in China. Buick was a smash success in China in the 1930s, as provincial presidents and emperors chose the brand over more austere offerings from the likes of Rolls-Royce and Mercedes-Benz, and it appears some of that goodwill has been projected into modern times.

Further proof that General Motors is readying a Opel Astra derivative for the Buick brand has just arrived in the form of spy shots showing a mid-size mule testing at Germany's Nürburgring. Somewhat obscured behind the excessive camo is Buick's trademark "waterfall" grille, however, the A-pillar and C-pillar survive the transition from Opel to Buick.

Inside, the badge engineering is markedly more apparent with what looks like an instrument panel, center console, and steering wheel directly ported over from the recently revealed 2010 Opel Astra. In all likelihood, the Buick version will be sold almost exclusively in the Chinese market and, although it would be built along side the Cruze at GM's Lordstown, OH plant, it's doubtful that the compact Buick will ever be sold in the States. But if it does, we'd suggest reviving the Skylark or Somerset moniker, because, hey... we know how well they went over before.

Less than one week before Transformers 2: Rise of the Fallen goes into wide release in China, fans of the morphing vehicle-turned-robot movie franchise took to the streets of Beijing in full Bumblebee regalia.

What looks to be a well-organized event was put on by website Autohome.com.cn, and it appears that they even managed to get General Motors' Chevrolet division in on the act, with a new Bumblebee-spec Camaro to lead the procession of like-painted fan cars.

We're not sure we'd go with the yellow-and-black stripes treatment on our own rides, but we remain impressed with both the dedication and the sheer variety of cars that have been given the 'Full Bumblebee,' including a couple of new Cruze sedans and a passel of Aveos, a Ford Focus, a Suzuki Swift and an SX4, a Citroen C4 – even a Mark II Volkswagen Golf. Check out the high-res photo gallery after the jump, and be sure to click on the link below for even more shots of the event. Thanks for the tip, Joe!



[Source: Autohome.com.cn via Google Translate]

Any talk of brands for sale in the auto industry invariably includes a Chinese automaker as one potential bidder. As such, it's not surprising to hear that Chinese automaker Geely is reportedly in the running to buy Volvo from Ford. Chinese media, however, have begun reporting that Geely has actually signed a deal with the Dearborn-based automaker to buy the last remaining brand from Ford's now-defunct Premium Auto Group.

Has it actually happened? Both Ford and Volvo have made no official statements that would confirm what's being reported in the Chinese media. Official confirmations usually come after a deal has been widely reported in the media, though. However, the only outlets reporting this rumor are from China. We haven't heard a peep from any Swedish-based news organizations, which is surprising considering they were on the ball last week reporting that Koenigsegg had struck a deal with General Motors to buy Sweden's other big auto brand, Saab.

Swedespeed.com actually asked Volvo if the reports of a sale to Geely were true. James Hope, Volvo's US Product Communications Manager, had this to say.

"An announcement related to the sale of Volvo Car Corp. would only come from Ford Motor Company. As of today [Wednesday, June 17, 2009], neither Ford Motor Company nor Volvo Car Corporation in Sweden has made any announcement regarding the sale of Volvo. Reports of such a sale by any media outlet are speculative and, therefore, are not accurate."

There you have it. If an agreement has been struck by Geely and Volvo's parent company Ford, nobody's except the Chinese are talking about it.

[Source: Autocar.uk, Swedespeed]