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]

Fiat has released pictures of its new 500 “wagon” ahead of the car’s big reveal at the Geneva Motor Show this March. Called the 500L, it’s a replacement product for the infamously ugly Multipla.

The “L” stands for “Large” and helps expand the Fiat 500 range to four models. As for sizing, the 500L measures in at 163-inches long, 70-inches wide and 65-inches high. By comparison, the standard 500 model, the 500L is roughly two feet longer.

Designed as an alternative to traditional B and C segment cars, the 500L will go on sale in Europe in the last quarter of 2012 with a choice of two gasoline engines (TwinAir and a 1.4-liter), as well as a 1.3-liter turbodiesel.

GALLERY: Fiat 500L

Just when CAFE loosened standards and lowered from 56.5 MPG to 54 MPG by 2025, the California Air Resources Board (CARB) has decided to propose new and more stringent conditions for automakers that sell cars in California. The California Air Resources Board will not only enforce CAFE, but will also require at least 15.4 percent of all cars sold by any major automaker in the state to either be fully electric, plug-in hybrid, or hydrogen fuel cell by 2025.

Mary Nichols, chair of the California Air Resources Board, observes 15.4 percent as, “a relatively modest goal, but that’s all that we’re mandating. Probably the most heartening aspect of this whole rulemaking was the level of cooperation that we received from the industry… Overall, the degree of support for the package was just extraordinary.”

It is worth noting that earlier this month, researcher LMC Automotive discovered that hybrid sales in the United States have decreased in 2011 to 2.2 percent compared to 2.4 percent of all vehicle sales in 2010. These numbers are far below the proposed 15.4 percent mandate. Despite high profile unveilings of gas-electric products at auto shows across the world,  consumers find the cost premium of owning a hybrid over conventional combustion engine vehicles too expensive.

According to the California New Car Dealers Association, this plan would cause automakers to increase the average price of a new vehicle by an estimated $3,200 in order to develop technology that will accommodate the new rules. Appropriately, Mary Nichols also said, “direct incentives to people who buy these cars (like) rebates and credits” are also being worked out.

California’s new regulation will likely be adopted by an additional 10 states, resulting to the projected total number of advanced green vehicles near three million total units by 2025, 1.4 million of which would be in California.

[Source: Autoblog]

Of the major Japanese Automakers, Nissan Motors has been one of the least affected by natural disasters and the strengthening yen, effectively minimizing exposure to regional risks by erecting facilities overseas.

Nissan has announced plans to build another manufacturing complex in Aguascalientes, Mexico, to expand North American production. An investment worth $2.0 billion USD, the new facility will be joining two other Mexican Nissan factories already in place. When construction is completed, operations are projected to begin late in 2013, with an initial production capacity of 175,000 vehicles annually.

Operations in the new complex include body, trim, and chassis installation, paint manufacturing, associated parts warehousing, as well as an on-site test track for quality assurance tests of new vehicles. All this means that the manufacturing complex will provide up to 3,000 new jobs at the facility, and approximately 9,000 new jobs from supply chain and wider community. All in all, Nissan’s expansion will allow a total of 13,500 jobs provided for Aguascalientes.

Nissan currently makes up six of the ten most popular vehicles sold in Mexico. Nissan CEO Carlos Ghosn said, “Mexico is a key engine for Nissan’s growth in the Americas. Together with our new plant in Brazil, this new manufacturing facility in Aguascalientes is an important pillar in our strategy to ensure that Nissan has the capacity it needs to increase sales volume and market share across the Americas.”

Jose Munoz, president and general director of Nissan Mexico adds, “No other automaker is investing in Mexico more than Nissan. Nissan’s investment in new manufacturing, engineering and technology resources in Aguascalientes validates what thousands of our employees, suppliers, and customers already know. Behind our market leadership is an unparalleled commitment to deliver the best vehicles for Mexico and more than 100 international markets.”

Hyundai has made incredible gains in the global market, challenging larger automakers in markets they once dominated. While Volkswagen has globally sold a record number of vehicles in 2011, Hyundai Motors and its Kia affiliate have exceeded VW’s numbers in the United States. According to senior analyst of auto website Edmunds.com Jessica Caldwell, “Hyundai offers compelling design at an affordable price– a win-win for must consumers. Brand exposure has long been the problem for Hyundai, but that has certainly eased.” The South Korean automaker has made some smart moves to gain publicity, including ads aired during the Super Bowl as well as the company’s sponsorship of the World Cup.

The pressure on Volkswagen doesn’t end at North America, however, as Hyundai intends to bring the fight to Europe as well. Chief operating officer Allan Rushforth for Hyundai Europe said, “It’s very important for Hyundai to be successful. Europe is a top priority because it affects how the company is perceived elsewhere.”

Just as European nations tackle a debt crisis and consumers face austerity measures, Hyundai looks to offer products that mix great value, reliability, European styling and handling. While Volkswagen focuses its attention on challenging GM and surpassing them for the title as world’s largest automaker, Hyundai sneaked up on the German Automaker as Stefan Bratzel, director of the Center of Automotive Management at Germany’s University of Applied Sciences, said, “Hyundai is one of VW’s most serious challengers. The mix of good value, quality and design is a solid basis, and they’ve been getting more innovative every year.”

During the Frankfurt Auto Show in September, a video was posted on YouTube capturing a concerned conversation between VW CEO Martin Wintekorn and his associates at Hyundai’s show floor. Upon studying the adjustable steering column inside the Hyundai i30, Winterkorn  noted, “Nothing rattles. Why can they do it? BMW can’t. We Can’t.”

Winterkorn adds, “It’s become increasingly clear that whoever’s at the front has a lot of opponents. Our competitors are attacking Volkswagen all over the world.”

For Hyundai’s European offensive, the South Korean automaker has prepared a $12.4 billion investment, intended for plant upgrades and vehicle technology development.  Meanwhile, Volkswagen steels itself against imminent competition by holding onto a 62.4 billion euro budget to invest in factories and new vehicles over the next five years.

GALLERY: Hyundai Elantra

[Source: Bloomberg]

One of the stand-out cars at this year’s North American International Auto Show, the Cadillac ATS looks extremely promising. In the 4th installment of Cadillac’s “The Journey” series, we witness GM’s commitment behind this product, from conception, to development, to its debut at the Detroit Auto Show.

Tuned during Nurburgring shakedown testing, the ATS aims to take on the best of what Germany has to offer– the luxury compact sedan segment. Weighing less than 3,400 lbs, the ATS is expected to carry 100 lbs less than either an Audi A4 or Mercedes-Benz C-Class. What’s more, the ATS will also possess an all-original chassis attaining 50/50 weight distribution, must like the segment leading BMW 3-series. But most of all, the party piece of the ATS’ handling dynamics will be its magnetic ride shocks– a first in this segment.

The Cadillac will come with as many engine trim options as its German rivals, offering a 2.5-liter 4-cylinder base power plant producing 200-hp, a 270-hp turbocharged 2.0-liter 4-cylinder and a 318-hp 3.6-liter V6. Expect a diesel engine offering later in the ATS lifecycle as well.

A lot rests upon the ATS as its success will draw implications to Cadillac’s future in the global market. GM North America President Mark Reuss is confident, boldly introducing the ATS at the Detroit Auto Show as, “this is the car to finally challenge the German cars at their own game and win.”

GALLERY: 2013 Cadillac ATS

Watch the 4th video of “The Journey” series below and look out for an appearance by AutoGuide’s very own Editor-in-Chief Colum Wood!

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While small cars have had a difficult time catching on in North America, it seems as if cars in the UK market could never be small enough. A group of businessmen in the United Kingdom decided to resurrect the Peel brand and are now taking orders for both the Trident and P50 models.

0-60 times have not been measured as both Peel models are speed limited to 28 mph. The Peel Trident and P50 weigh 130 lbs and 198 lbs respectively, and are powered by either a 49cc two-stroke producing a peppy 3.35 horsepower or by two trims of electric motors. The first electric motor makes 1.6-hp at 2.5 lb-ft of torque while a more powerful 4-hp motor is available. Both electric motors deliver an operating range of approximately 50 miles.

As for the price, a Peel can be yours at prices starting just under $11,000. While this may sound like a lot of money for not a lot of car, it is worth noting that this little machine is one of Jeremy Clarkson’s favorite automobiles, as the video after the jump demonstrates:
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It’s anything but a secret: more gears mean better gas mileage. Mercedes-Benz packs a seven-speed automatic into many of its cars, Lexus uses an eight-speed transmission in its LS sedans, but these amply geared boxes are generally the things of luxury cars— until now.

We were the first to report that Hyundai had a 10-speed transmission in the works, having announced it at a tech briefing in Michigan. Hyundai has now confirmed that the transmission is under development, and will be in production as soon as possible, though details are still murky about which vehicles will get the technology. Given how aggressively automakers are pushing for better mileage year over year, it might make sense that the new gearbox would fall into Elantras or Accents rather than or alongside the luxurious Genesis and Equus. No doubt the transmission is being designed with the CAFE fuel economy regulations in mind that will come into effect fully in 2025 and expect a 54.4 mpg average rating.

We’ll keep you up to date as more emerges.

It’s no surprise that the 500′s return to North America did not make the splash that Fiat expected. Having sold less than 20,000 vehicles in its first model year in the United States, the 500 only did half as well as the company initially forecasted.

The success of the 500 is essential to the Italian automaker’s re-entry into the North American market. In Europe, Fiat sold more than 770,000 units since the 500′s introduction in 2007. Fiat/Chrysler CEO Sergio Marchionne admitted that the 500′s weak performance was in part due to overly-optimistic forecasting. “We thought we were going to show up and just because of the fact people like gelato and pasta, people will buy it.”

However, Fiat believes that creating variants for the 500 could help boost its popularity.

Set for unveiling at the 2012 Geneva Auto Show, Fiat hopes that a 5-door Fiat 500 wagon will find better success in the North American market. The official release date of the Fiat 500 wagon is slated for 2013, while a sportier Fiat Abarth hot hatch will be available for sale later this year.

Whether the 500 wagon will boost Fiat sales remains to be seen. While the wagon’s dimensions will be slightly larger and more suitable for American consumers, station wagons are historically unpopular in North America.

[Source: Car Connection]

Electric powered vehicles have long faced challenges in battery cell packaging and the difficulties of maximizing range optimizing weight and placement.

In the past, nickel-metal hydride cells failed to store enough energy to propel an EV any more than 100 miles and required a lengthy recharge after the battery depletes. Lithium-ion (Li-ion) does improve the volume-to-energy capacity ratio but automakers must still store battery cells that weigh 1,000 pounds.

Now, technology giant IBM has developed a new battery cell that promises to deliver a solution. Called the lithium-air (Li-air) battery, this new cell has the theoretical density of more than 1,000 greater than Li-ion. What’s more, IBM found the Li-air cells capable of being one-fifth the size and to possess a lifespan that is 5 times as long.

However, IBM withholds the technology for now because they discovered that frequent recharging cycles still compromise the life of the battery. Engineers are currently testing an alternative electrolyte to see whether they could attain improved results. A full-scale prototype is targeted to be ready by 2013.

[Source: New Scientist]