Saab Announces €70 million Technology Agreement

Like Phoenix, the mythological bird that burns down only to rise afresh from its ashes, Saab has been given a stay of execution.That's because today, Saab Automobile AB announced the signing of a technology license agreement with the Swedish Automobile Coöperatief U.A. (SPV) for the non-exclusive rights in Saab’s (appropriately named, as it turns out) Phoenix architecture technology.

According to a press statement, Saab will receive €70 million (US$97 million) for the licensing agreement, thus securing the short-term funds it so desperately needed – especially after the courts rejected its reorganization plan and denied it protection from its creditors.
In the same deal, Youngman also signed a technology transfer license agreement with SPV for purchasing the license and guaranteeing its payment. The transaction is not yet sealed and the funds will be received when the appropriate documentation is finalized.
Saab intends to repay this short-term bridge loan with a part of the €245 million (US$338 million) it will receive when the Chinese authorities eventually approve the Panga Da-Youngman deal -something the company sincerely hopes will happen sooner rather than later.

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Ford Plans to double its Chinese Market

Since November 2009, China is the world’s top car market, surpassing the US. So it’s only natural for automakers to pay their utmost attention. Among others, BMW previewed the new M5, Peugeot the 508, Nissan the new Tiida and Audi the Q3 at the Shangai Motor Show . The most recent example is Ford, which is planning to more than double its model line-up in the Chinese market according to a senior company executive.

“If you think of the marker as small cars, medium cars, large cars, SUVs, performance vehicles, all those different pieces, we compete in about 22% of that market today," Will Periam, strategy director for Ford’s Asia Pacific and Africa, told Reuters during a recent industry forum in the Chinese city of Tianjin.

"In the future, we expect to compete in about 50%. And that will be by new versions of the products we have and all-new products which aren’t here today,” he added.

Periam also revealed that most of the models that Ford plans to introduce to China, such as the new Focus sedan and the Kuga, will be built at its local plant.

Ford is currently manufacturing the Focus, Mondeo, C-MAX and Fiesta in cooperation with Chongqing Changan Automobile Co. and Mazda Motoe, and its Transit van with Jianling Motors, in which Ford has a 30% stake.

However, Ford missed last year’s boom when a record 18 million vehicles were sold in China, thanks in no small part to government tax incentives and subsidies. But this year the incentive plan has ended and the booming Chinese market has seen its booming sales rate decrease.

Secretary General of China Association of Automobile Manufactures reduced his estimate for 2011 sales growth considerably, from a 10-15% forecast to just 5%. Even so, Ford has increased this year its January to July sales by 13%, to 306,830 vehicles, compared to the same period in 2010, and Ford’s Periam estimates that China car sales will reach 32 million by 2020.

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Video: A Very Bizarre Incident

It’s a crazy, crazy world we live in. Don't believe us? Just take a look at this incident that took place somewhere in Asia, possibly in China if Google Translation did its work (visit the comment section to correct us if we're wrong).
While we can't be certain of the details surrounding this bizarre episode since the description on Youtube doesn’t make much sense after we translate it into English, through the dash-mounted camera we see someone who is driving a small green Toyota being chased by two men, one holding a baseball bat.
Two minutes into the video, we find that the man with the bat has jumped on the moving car and is trying to smash the window before it collides with the vehicle filming the scene... Watch it for yourself in the clip after the break.

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This is What Happens When You Keep Your Eyes on the Girl

The title of this post is pretty much self-explanatory, but if you insist here's the skinny: a man riding his scooter on the road spots a young and apparently attractive woman dressed in a knee-high dress walking on foot.
And as it surely has happened to so many others, one quick look didn't satisfy our protagonist's curiosity (or possibly admiration) so he let his guard down and turned his focus away from the road to get a 360 view of the young woman… See what happens next after the break in the security camera footage.

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Saab Sells 5 Million Shares!!

Exactly a month ago to this day, Saab announced a deal with China's Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co while also revealing a grand plan for expanding its range with three new models, the 9-1, 9-6X and 9-7. It also delivered its first 9-4X in the US. All’s well that ends well, right?

Well, in Saab’s case it looks like we haven’t seen the end just yet. The Swedish firm continues to face a cash-flow problem. Thus, it issued a press release concerning the subscription notice for 5 million shares under a €150 million agreement between Swan and GEM Global Yield Fund Limited.
In other words, the Swedish company is offering a part of its shares for sale, with their price determined on a 10-day pricing period that commenced on August 3.
Saab also said that it expects to pay its white-collar workers' delayed salaries by Friday.Meanwhile it continues negotiations with other parties in order to restart production at the end of August and to fulfill the 11,000 orders it claims it already has received.

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Fiat Marks 500 Launch in China

The first Fiat 500 to make its way into China was presented today in Shanghai by Fiat Group Executive Vice President for International Operations, Lorenzo Sistino.

To celebrate the launch, Fiat crafted a special version named 500 “First Edition” featuring bodywork graphics by five young Chinese designers. The special edition will be available in a limited run of just 100 numbered units ahead of the city car’s regular launch in China on September 15.

The 500 “First Edition” is based on the Lounge trim featuring a three-coat pearlescent white body color, red leather interior and special badges on the door pillars. It is equipped with the 1.4-liter MultiAir engine that delivers 101HP and is mated to a 6-speed automatic gearbox.

The normal 500 that arrives in China in September will feature the same engine and gearbox offering buyers a choice of three trim levels (Pop, Sport and Lounge), 12 body colours, 9 color-material combinations for the upholstery and two interior trims (black or ivory).

All who place an order for the Fiat 500 between July 12 and September 15 will automatically enter a draw with the winner being able to exchange his or her car with one of the 100 “First Edition” models.

Sistino said the 500 hatchback will be followed next year by the 500C convertible and the “500 by Gucci” version, while he also revealed that next year Fiat will launch a new saloon made in its Chinese plant in Changsha with its local partner GAC.

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Chinese Buyers Prefer European over Local Brands

Car buyers’ preferences in China are shifting towards European models and away from domestic and even Japanese vehicles, according to a new study published today by JD Power Asia Pacific. This is the third year that the study takes place.

The latest edition included 65 brands and 161 separate models in nine segments and is based on responses from 4,979 potential buyers of new-vehicles located in 53 cities.

JD Power said it examined pre-purchase perceptions amongst Chinese consumers who intend to buy a new car in the next 12 months. The results show that the percentage of potential new car buyers considering a model by a European carmaker has increased substantially, from 25% in 2009 to 32% in 2001.

The reasons cited are positive perceptions of safety and engine and transmission technology, as well as strong recommendations from friends and family for European cars.

On the other hand, consideration for models by Japanese carmakers has followed the opposite direction, dropping from 32% in 2009 to 27% this year. New car buyers said that they don’t have the same confidence in quality, reliability and dealer service, nor do they receive positive feedback from family and friends.

Domestic carmakers are also facing a decrease in car buyers’ preferences, from 26% in 2009 to 20% in 2011. Poor quality, negative reviews and a lack of recommendation from family and friends are cited as the main reasons.

The study also showed that brand awareness and perception differs according to location and plays a major role in considering a new model.

“Brand awareness does depend on location; for example, in the South region, Japanese brands have particularly high brand influence due to their long tenure there,” said Dr. Mei Songlin, general manager of research at J.D. Power Asia Pacific, Shanghai.

Models with the highest levels of consideration in each segment:

• Compact segment: BYD F0 and Chery QQ3
• Premium compact segment: Chevrolet Sail
• Entry midsize segment: Volkswagen Polo
• Midsize segment: Chevrolet Cruze
• Lower premium midsize segment: BYD F6
• Upper premium midsize segment: Honda Accord
• Luxury segment: Audi A4L
• SUV segment: Volkswagen Tiguan
• MPV segment: Buick GL8

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aab Announces New 9-1, 9-6X and 9-7

Saab’s parent company Swedish Automobile NV said on Monday it converted the non-binding memorandum of understanding with Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co into a final agreement. However, the deal is still subject to regulatory approval from Chinese and Swedish authorities as well as the European Investment Bank.
In addition to the above agreement, Saab announced the formation of a Sweden-based joint venture company between itself and Youngman called NPJV, which will focus on the development of three new product models.
According to the Swedish automaker, these include an entry-level 9-1 and two premium cars, named 9-6X (most likely an SUV because of the "X" designation) and 9-7 (presumably a 7-Series competitor) which didn’t feature in Saab’s original plans.
The NPJV will be 50 percent owned by Saab Automobile and 50 percent by Youngman Passenger Car.
“Within the development process of these three new vehicle lines, Saab Automobile will be responsible for controlling and managing the design, the development and testing process to the start of production and providing other necessary technical and quality control support,” Saab said in a statement.
The Swedes added that Youngman’s passenger car division will be “responsible for providing the necessary financial investments in the joint venture”. Saab did not say where these models will be built, but manufacturing will most likely take place in China.
Mr. Pang Qingnian, CEO of Youngman, commented: “The agreement on the New Product Joint Venture brings together the best of both worlds, merging the industrial and financial strength of Youngman Passenger Car with the state-of-the-art technical expertise of Saab Automobile. The Saab '9-6X' and Saab '9-7' will be key to enhancing the prestige of the Saab brand to an even larger group of customers in China and the US, while the entry level Saab '9-1' will appeal to urban motorists around the globe.”

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Bentley Defies Crisis with a 20% Increase in Sales

Crisis? What crisis? For you and me, perhaps, but not for Bentley buyers. The VW-owned British luxury carmaker announced today a 20% increase in global sales for the first half of 2011 with 2,978 cars delivered to customers, the best start for the company since 2008.
The luxury marque attributes this surge in sales to the high demand for the new Continental GTas well as the increasing popularity in (least we forget, communist…) China, where Bentley sales have risen by 57% compared to the same period last year, to 680 cars. Thus, it has become the manufacturer’s second best market, behind only the US (George Orwell's "Animal Farm", anyone?).
Not to be outdone by China, the capitalist West has contributed its fair, albeit smaller, share to Bentley’s rise. In Europe, sales have increased by 25% (494 cars) and in the USA by 23% (907 cars). Only in Japan, due to the recent catastrophic natural disasters, and the Middle East, where political unrest rules, have sales declined.
So, well done Bentley - and well done to all the fat cats out there, be they…capitalists or…communists, who are rapidly increasing in numbers each day.

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VIDEO: China Opens World’s Longest Ocean Bridge Measuring 26 Miles

China opened today to the public not just one or two, but amazingly four of the world’s longest over-sea bridges. Three of the bridges are part of the Beijing-Shanghai High Speed Railway, which made its maiden trip today.
This project began in 2008, cost around US$33 billion and employed approximately 10,000 workers. It is expected to carry double the number of passengers than before (80 million versus approximately 40 million), whilst also reducing the time it takes to make the journey from 10 to less than 4 hours!
The Jiaozhou Bay bridge, which at 26.4 miles (42,4 km) is the world’s longest bridge over water and the sixth overall, connects the city of Qingdao to the suburban Huangdao over the other edge of the bay. It is two-tenths of a mile longer than the English Channel.
It appears that the Chinese, in their efforts to alleviate the congestion problems that plague their country, have really gotten used to making long bridges as 11 of the world’s 15 largest are located in China.

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Daimler Signs A Deal with BAIC US$2.87 billion

The picture may seem familiar: Chinese and German businesspersons on the same table signing some papers, while German Chancellor Dr. Angela Merkel, and Chinese Prime Minister Wen Jiabao, standing behind them with their country flags are floating in the background.
Only this time the Germans are Daimler’s executives, not Volkswagen’s, and the other signatory is BAIC (Beijing Automotive Industry Corporation).
The deal involves Daimler investing $2.87 billion (€2.0 billion) to expand its operations with BAIC, called Joint Venture Beijing Benz Automotive Co, Ltd.
"As early as 2020, at least one in five premium compact cars is expected to be sold in China," Daimler CEO Dieter Zetsche said. So it makes perfect sense for the company to expand its activities in the local market.”
This year, the GLK SUV will be added to Mercedes-Benz’s Chinese range and production of theC-Class and E-Class, which is currently 80,000 units per year, will increase according to demand.
In addition, from 2013 three new (yet unspecified) premium compact cars will be added to the luxury carmaker’s China market range. In the same year, a new engine factory with annual capacity of up to 250,000 units will produce 4-cylinder gasoline engines for the local market and a new R&D center will be established.

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Chrysler Seeks Fiat Synergies to Start Cars Production In China

China is the world’s largest car market: last year alone, more than 18 million vehicles were sold there, of which 13.76 million were passenger cars. Furthermore, analysts McKinsey & Company predict that it will grow tenfold between 2005 and 2030.

Do you want to know Chrysler’s share in this massive car market? A measly 31,000 in 2010 and a projection for just 40,000 in 2011. Therefore, it is only natural that the American carmaker is looking for ways to increase its share in this rapidly expanding market.

Problem is, you just don’t walk into China and start building cars: “To find a partner, negotiate, get government approval, build a plant – that’s a long time” Mike Manley, head of Chrysler’s international operations told Reuters news.

But, according to Manley, Chrysler already has a way to get rid of all that fuss and make things happen quickly: “Fiat are already through that”.

Fiat Spa, who manages Chrysler and is sharing technologies and models, has since 2009 established a joint venture with GAC, the country’s sixth biggest carmaker, to build cars in China.

"If there's an opportunity for us in the same way as we've done with Fiat in terms of technology or using their distribution, our speed to market is going to be so much quicker," Manley said, adding that if Chrysler, or rather Jeep, wants to succeed in the competitive small SUV market, it would have to build them in China.

Jeep is already planning to launch the Compass and Grand Cherokee models in China, while Chrysler is examining the possibility of importing the 200 and 300 sedans from the United States.

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New Chinese Order Saab with a Temporary Lifeline

Maybe the future of Saab isn’t as dark as it looks, and the voluntary bankruptcy proposed by suppliers isn’t the only solution. Well, at least for now. That’s because the Swedish automaker announced today that an unnamed Chinese company place an order to buy 582 cars, with a total value of € 13 million.
The pre-payment is to be received this week, giving Saab a much needed funding to pay its workers and suppliers. This, however, is only a short-term lifeline for the ailing company and the efforts to secure funds that will guarantee the brand’s future and restart production, which has been halted again since June 8, are ongoing.

Victor Muller, CEO of Saab Automobile, said:

"I am pleased to announce this agreement, as it secures part of the necessary short-term funding for Saab Automobile and allows us to pay our employees' wages before the end of this month. The management of Saab Automobile is deeply committed to the company and its employees. I respect the decision of the union members to resign from the board of Saab Automobile. We very much regret the current cash shortage, which is causing undeserved hardship to all, and we are working relentlessly to resolve the current situation. We hope to secure additional short-term funding, necessary to reach agreement with all of our suppliers to restart production, soon.”
“Mr. Vladimir Antonov's interest in participating as an investor/financier in Swedish Automobile remains unwavering, but he is still awaiting a decision on his clearance from parties at interest following the Swedish National Debt Office (NDO) recommendation to clear him over 8 weeks ago. Once clearance has been obtained, Mr. Antonov can provide much needed financing and/or capital to Swedish Automobile/Saab Automobile at this critical time. We are pushing hard to obtain this vital clearance as soon as practically possible.”

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