According to a statement by the China Association of Automobile Manufacturers (CAAM), China’s monthly sales of passenger-vehicles suffered its steepest decline in more than seven years due to a Lunar New Year holiday season hiatus that deprived dealers of a week’s worth of sales. Figures indicated that sales fell to 1.16 million units in January, a 24 percent decrease from the year before. According to five analysts from Bloomberg News, sales were projected to drop 18 percent.

Great Wall Securities Co. analyst Ran Fei said, “Even though the actual holidays were five working days, some dealerships took the opportunity to close their stores for a longer time. The numbers are disappointing.” Compounding the auto sales slump in the Chinese market, the Chinese government also estimated that holiday sales at the nation’s main retailers and restaurants rose at their slowest pace since the 2009 financial crisis.

Are these signs an indication that the world’s largest and fastest growing automotive market is showing economic resistance? Despite these statistics, Ran Fei insists that “Car demand is stable. There’s no indication of any changes on that front.” China’s Passenger Car Association also believes that the Chinese economy is fundamentally sound and interprets the auto sales number as a mere holiday season distortion. The Passenger Car Association expects a 30 percent rise in sales for February.

Huatai Securities Co. analyst Chen Liang adds, “Demand is still there and consumers in the smaller, less developed cities will still have a growing need for cars. These numbers don’t change my outlook for the year.”

In January, GM reported an 8 percent decline in China sales, its first Chinese sales decline in six months. Chevrolet sales suffered a 20 percent hit to 54,399 units. According to Ford, its China sales fell a staggering 42 percent last month. Bucking the trend, Luxury German brands BMW and Audi both posted higher sales, enjoying a 30 percent and 23 percent gain respectively.

IHS Automotive Shanghai analyst Namrita Chow provided this explanation, “Prior to the Chinese New Year, Chinese consumers who are looking to enhance their prestige and status symbol have chosen high-end luxury brands.”

[Source: Bloomberg]

During the closing speech at this year’s National Automobile Dealers’ Association convention in Las Vegas on February 6, former president George W. Bush said he’d bail out US automakers again in a heartbeat if he had to.

Speaking in front of some 22,000 dealers from the US and around the world, the former president (shown above visiting the GM plant in Fairfax, KS while still in office), said that although he was a firm believer in the free market economy and corporations having to pay for consequences resulting from bad decision making; he also believed stepping in to save Chrysler and General Motors was the right thing to do.

“Sometimes circumstances get in the way of philosophy,” he said, yet if it came down to saving the US auto industry, “I would make the same decision again.”

While still in office, Bush pushed through a rescue package of some $25 billion in emergency aid; $4 billion set aside for Chrysler, while some $13.4 was allocated to GM. This was followed by an additional $60 billion from the Obama administration in 2009.

Chrysler paid back its loans last May, six years ahead of schedule and posted a net profit of $183 million for 2011, it’s first time in the black since 2005. GM, so far has paid back about $23 million of the money it borrowed, though some 26 percent of the company is still owned by the US Treasury.

Bush’s speech at the NADA convention was littered with humor, including remarks that he missed some of the perks of being C-in-C. “I had to stop at some of the stoplights coming from the airport,” he said, jokingly.

[Source: Detroit Free Press]

When it comes to cars, what defines collectibility? In many cases it’s often a vehicle that breaks the mold, or one that delivers more style and sizzle compared to its more pedestrian counterparts.

In the case of the 2012 Buick Regal GS, which packs a 270 hp 2.0-liter turbocharged Ecotec four-cylinder engine and can be teamed with a six-speed manual, that’s definitely true. Few cars have done as much to shake off the old fogey aura that’s characterized Buicks for the last two decades, than this spunky sedan.

Now, collector car insurance heavyweight Hagerty is singing the car’s praises too, a statement from the company said that “at a time when allegedly more sporting makes don’t offer real three-pedal manual transmissions, Buick is doing it with the Regal GS.”

This is particularly significant for GM’s North America President Mark Reuss, not only because it puts Buick back on the map, but also because it marks a fitting tribute to the legacy of his father, Lloyd Reuss. As Buick Division General Manager in the 1980s, the elder Reuss helped spearhead the development of the all-conquering Regal Turbos; cars that are now coveted collectibles, especially the 1987 GNX, which at the time of its debut was the fastest accelerating car in America (0-60 mph in 4.1 seconds according to Car & Driver).

“The Regal GS is a unique and thrilling vehicle for the Buick brand,” said Reuss. “As someone who drove a classic Skylark to prom and owned other incredible Buicks like an ’87 GNX, I can say it deserves to be viewed among the best Buick has built.”

The Regal GS now joins Hagerty’s annual “Hot List” of the 10 most collectible Buicks of all time, which besides the 1987 GNX, include the 1932 Model 90 Sport Phaeton, the 1936 Model 66C Century convertible (the so-called Banker’s Hot Rod); the 1940 Super Model 49 Estate Wagon; 1947 Roadmaster Estate Wagon; 1949 Roadmaster convertible; 1953 Skylark convertible; 1963 Riviera coupe and 1970 GSX Stage 1 (widely believed to be the quickest of all factory built four-seater muscle cars).

In order to make the Hot List, Hagerty says a vehicle “must be geared toward the driving enthusiast beyond just being a form of transportation. Like the other Buick classics listed here, the 2012 Regal GS will be remembered more than most of its peers for many years down the road.”

Did you think that every automaker’s secrets were revealed at the North American International Auto Show in Detroit? Think again.

At least ten new models will debut at this year’s Chicago Auto Show, which kicks-off this Wednesday, February 8th. Here’s a quick round up of what to expect:

Acura

The ILX Sports Sedan will debut, and replace the TSX. The new ILX will be based on Honda’s Civic platform, and share the powertrain choices. Additionally, the ILX will show off three engines, including a Hybrid. The ILX will be targeted towards a younger crowd, and is being called a “gateway” to the luxury brand lineup.

Joining the ILX will be a new RDX. The popular SUV will be redesigned and will show off a wider track, a longer wheelbase and a new V6 engine. The RDX will be showing off some new technologies as well, including Pandora Internet Radio, and a Text-to-Speech SMS voice texting.

See the rest of our Chicago Auto Show preview below:

Continue Reading…

Despite Ford’s efforts to stop GM, the apocalypse-surviving Chevy Silverado commercial aired last night during the Super Bowl.

According to GM, the advertisement was intended as a “good-humored” spoof on the Mayan calendar predictions. Depicting a band of Silverado owners that are navigating across a “completely over-the-top, outrageous version of the devastation and destruction predicted to occur this year by the Mayan calendar,” the ad also features giant attack robots, meteors, and frogs that are falling from the sky. The punch line is when the gang of Silverado owners realized one of their friends did not survive because they drove a Ford rather than “the longest lasting, most dependable truck on the road.”

Ford took issue with the ad and we now know what the company said in a formal letter sent to GM requesting for the ad to be pulled. Representing lawyer Lynne M. Matuszak wrote, “Ford demands that Chevrolet immediately cease and desist from making any unsubstantiated and disparaging claims regarding Ford’s pickup trucks.” Matuszak’s letter further demanded that GM, “permanently remove the commercial from its website, its YouTube and Facebook pages and any other internet sites.”

Ford’s letter then warned, “If Chevrolet does not comply with the above terms prior to the start of the Super Bowl, then Ford will take all appropriate steps to enforce and protect its reputation.”

Taking it a step further, Ford called out the Silverado’s safety record, noting that the 2012 Ford F-150 earned an IIHS Top Safety pick while the Silverado received less than impressive side impact, rear crash, and rollover results.

GM’s global chief marketing officer Joel Ewanick and GM are committed to broadcasting the ad and sharing it on YouTube. Joel Ewanick said, ”We stand by our claims in the commercial, that the Silverado is the most dependable, longest-lasting full-size pickup on the road. The ad is a fun way of putting this claim in the context of the apocalypse. We can wait until the world ends, and if we need to, we will apologize. In the meantime, people who are really worried about the Mayan calendar coming true should buy a Silverado right away.”

Like Coca Cola versus Pepsi, the clash of Ford vs. GM will last for many years to come. We will be expecting a humorous and entertaining rebuttal ad from Ford soon.

[Source: Detroit News]

Why not watch the ad again below:

Continue Reading…

Although electric vehicle technology has been touted as the way of the future, some believe that there is still untapped potential lying within the conventional internal combustion engine.

To encourage engineers to push the internal combustion technology forward, Republican Congressman Dan Lungren has introduced a bill that will reward a handsome $1 billion in Federal prize money to the first U.S. automaker that can successfully sell 60,000 mid-size sedans that are capable of achieving 100 mpg on gasoline.

In 2007, the X Prize Foundation held a contest with a similar format called the Progressive Insurance Automotive X Prize. Participating teams were challenged to create a vehicle that was capable of reaching 100 mpg, travel safely in highway speeds, and emit less than 200 grams of carbon dioxide per mile. The winner of the challenge would receive a $10 million reward that will be used to fund the project to become a mass-market vehicle. Unfortunately, none of the vehicles were deemed commercially viable for mass production.

But now that it has been 5 years since the Automotive X Prize, the technology may be closer to our reach if not already attained. However, unlike the Automotive X Prize, Congressman Lungren would only award the winner after 60,000 units of its landmark 100 mpg mid-size sedan have been successfully sold. Not only does the bill ban vehicles of radical shapes and sizes like the Aptera, but 60,000 units is a daunting number that’ll effectively discourage any startup automaker. Compounded with the restriction to U.S. automakers only, the bill suggests a three-way battle between GM, Ford, and Chrysler.

While the bill does not necessarily suggest that a hybrid system is off limits, the aim is to encourage technological advances in the internal combustion gasoline engine, which rules out diesel technology as well. Given the parameters, perhaps earning the prize is much more difficult than it seems.

How are you going to survive the end of the world on December 21? According to Chevrolet‘s new Super Bowl ad, the only way to make it is by driving a Chevy Silverado.

The 30-second Super Bowl commercial takes a look into the very near future to give us a glimpse of what’s going to happen once the Mayan apocalypse comes to pass. One lucky survivor emerges from the rubble in his Chevy Silverado to survey the damage (and it looks like we met our end at the hands of aliens and giant robots). He meets with his friends at a specified meeting point… well, except for Dave. He was driving a Ford and didn’t make it.

And it looks like the rumors are true – Twinkies can survive anything, as our fortunate heroes find out. However, it doesn’t look like any women survived the apocalypse. You can discuss amongst yourselves if this is a positive or negative consequence.

It’s a pretty funny ad, so watch it after the jump. Our only critique is that the ad could have used a few zombies to make it even more realistic. Yep, you can never have enough zombies in a car commercial.

Continue Reading…

It’s cool to be in the car business again. If in doubt, just ask President Barack Obama, who recently spent time sampling and sitting in a number of new vehicles at the 2012 Washington DC Auto Show.

Although as President, Obama isn’t permitted to drive, something he’s lamented in a number of speeches and interviews, that doesn’t necessarily stop him from getting behind the wheel.

During his 20 minute tour of the show, Obama sampled some 18 different vehicles, all we might add, built by the Detroit three, Ford, Chrysler and General Motors. Vehicles ranged from fuel sippers like the 2013 Chevy Malibu Eco and Ford Fusion Energi Plug-in Hybrid, to muscle machines like the Corvette ZR1 and Shelby GT500.

Sitting in a Jeep Grand Cherokee, Obama (shown above during an earlier visit to the Jeep plant in Toledo), remarked to Dodge Brand president Reid Bigland that his first new vehicle was GC and asked him how the current model was selling. Bigland jokingly responded that the President’s former ride would now be worth a lot of money, citing the fact that Obama’s Chrysler 300C is currently listed on eBay for $1 million.

Although the President stated that the “US Auto Industry is back” and the fact that “GM is back Number One, shows the kind of turnaround that is possible when it comes to American manufacturing,”  despite, as he believes the fact that some (namely Republicans) were willing to sit back and watch the industry die, there were still a number of automakers who weren’t entirely pleased by the President’s visit to the auto show.

Mike Stanton, president of Global Automakers, which represents Honda, Hyundai, Nissan and Toyota among others, was miffed that Obama essentially ignored a number of US built vehicles from these overseas brands that were rolled out especially for the White House visit.

“We are terribly disappointed that the President did not spend time with our manufacturers who have created jobs, employ more than 80,000 people in the United States, invested more than $43 billion and last year built more than 3 million cars here,” he declared.  Ouch. That said, given Obama’s remarks at the DC show and the image above, we can only wonder what the President thinks about Fiat.

[Source: The Detroit News]

Smug journalists across the internet are poking fun at the possibility that President Barack Obama might have referred to the 2013 Shelby GT500 Mustang as “sick” during his visit to the Washington D.C. Auto Show.

True or false, his remarks about the muscle car don’t really matter. What’s slightly more significant is the speech he made to herald General Motors’ return to the throne as the world’s highest volume automaker.

While it isn’t surprising that the President would want to talk about something like that, it is a good chance to point out that GM is doing more than taking the Costco approach to selling cars.

In fact, GM is leading more than just the number of vehicles sold. They’re also the industry’s top innovator, according to The Patent Board. This is actually the fourth consecutive quarter that the Detroit giant can claim that title. An impressive 1,123 U.S. patents were granted to the company in 2011 for global product engineering, global powertrain engineering, global research and development and OnStar organizations.

It’s interesting because we don’t always think of GM when imagining who will come out with the latest breaking tech or engineering feats, yet they emerged victorious over 183 other firms. It seems like most of the automotive wizardry starts overseas in Europe and makes its way to domestic vehicles a little while later.

Blind spot detection is a great example of that. Volvo was the first to introduce it, but companies like GM and Ford are on board with the bandwagon.

Among GM’s recent patents, there is technology for quieter brakes, better OnStar voice recognition and something called eAssist Thermal Management which controls engine shutoff to ensure occupant comfort in extremely hot or cold weather.

That begs the question: what’s next from some of the greatest minds in Michigan?

More than 1,900 GMC and Buick dealerships are getting a face-lift by 2013, but it’s about more than just a look. It’s also about a new atmosphere that enhances the customer experience.

“Luxury shoppers today expect a certain level of treatment when purchasing a vehicle,” said Brian Sweeney, U.S. vice president of Buick & GMC sales and service. “Those expectations are now being met at many Buick and GMC stores around the country.”

The image enhancement program, as it’s called, will boost the stores’ image by adding a new exterior façade with updated signage, a bright and airy showroom featuring a greeting station and lounge with free Wi-Fi. You may even find a café or a salon in a few locations — pretty fancy stuff.

So why did GM feel the need for an enhancement program? It’s because Buick and GMC attract more than 40 percent of its buyers from brands outside General Motors. So far, about 170 dealers underwent a face-lift through the image enhancement program. Right now, 1,900 Buick and GMC dealers are involved, but by the end of 2013, that number will grow to more than 2,000 across the U.S.

“These aren’t just new faces on old buildings. We’re creating the complete and convenient dealership experience that attracts these buyers,” Sweeny said.