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]

When Cadillac aired its 30-second “Go To Green Hell” Super Bowl ad for the upcoming ATS sedan during the last two-minutes of the game’s last quarter, a total of 111.3 million viewers tuned in, effectively making this ad the most watched television commercial in U.S. history. Could the marketing department at GM have somehow foreseen the future and realized the game of the year would come down to the wire?

GM global chief marketing officer Joel Ewanick said, “Cadillac is expanding with new models challenging the world’s best luxury cars. This stunning viewership data proves that Cadillac’s big message reached the largest audience… When it comes to Super Bowl ads, everyone has opinions on their favorite, But its a fact that this Cadillac spot had the biggest audience during the game.”

While Ewanick’s quote suggests that the reception for the advertisement reflects approval for the product, these statistics are more representative of the time it aired. If the same ad had aired at any time other than 9:39:37 PM, the title for “most watched ad” would have likely gone to a commercial with more supermodels, pyrotechnics, and special effects.

Watch the ad after the jump.

Get the Flash Player to see this player.

[Source: Kantar Media]

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]

Posting respectable 2011 sales numbers, the quietly successful Buick Regal outsold the Audi A4, Lexus IS250 and Acura TSX last year. For 2013, the Buick Regal has received some drivetrain upgrades. First, the performance trim Buick Regal GS will receive an automatic transmission. Second, the 2013 Regal will possess eAssist technology as standard.

Introducing the Buick GS with a manual transmission is an interesting move and, according to U.S. vice president of Buick Marketing Tony DiSalle, “With the Regal GS, we made a conscious decision to go against the current trend and give enthusiasts the manual transmission they desire as standard equipment. Adding an automatic simply makes the performance of the GS even more accessible.” The new Aisin AF40 automatic transmission will be a no-cost option from the manual. According to GM, the new automatic transmission will deliver firmer shifts, capable of matching the manual Regal GS to 0-60 at 6.7 seconds. EPA ratings for the GS is at 19 mpg city and 27 mpg highway.

For 2013, the Regal will come with eAssist hybrid technology as standard equipment. A system that provides a light, but effective, secondary electric motor that assists to either motivate the car during slow traffic or to provide an additional boost to the engine, eAssist was initially a $2,000 option for Regals equipped with the Ecotec 2.4 liter engine. According to EPA ratings, the eAssist Regal reaches 25 mpg city and 36 mpg highway.

GALLERY: Buick Regal GS

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.

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.

GM has a long road ahead of them to rebuild consumer confidence in the Chevrolet Volt after months of negative press surrounding the fire risk of their extended-range electric vehicle.

The advertising campaign will focus on just how safe the Volt is and will include full-page ads in 19 different US newspapers including The New York Times, along with television ads. The launch of the ad campaign coincides with GM CEO Alan Akerson testifying to Congress that a recent Volt fire that took place after a NHTSA crash test would never occur in real-world situations.

NHTSA said late last week after its two-month investigation that the Volt does not pose any more of a fire risk than any other conventional vehicle. Unfortunately, damage clearly has been done as GM North America President Mark Reuss admitted that Volt sales took a huge hit in January. GM will be restarting production on the Volt in February at its Detroit Hamtramck assembly plant and expects to build it with “very reasonable” volume. Their immediate focus however, is to rebuild the reputation surrounding the Chevy Volt as quickly as possible.

Check out GM’s first ad “Morning in Hamtramck” after the break.

Get the Flash Player to see this player.

Beginning with the 2012 Chevrolet Sonic, Chevrolet plans to apply eco-impact labels on all of its brand-new vehicles by 2013. As the first of any automaker to present its cars in this manner, Chevrolet’s Ecologic label allows customers to assess environmental impacts associated with any particular Chevrolet vehicle in all stages of its product life.

First, “Before the Road” presents the environmental impact of the vehicle’s manufacturing and assembly. Next, “On the Road” notes fuel-saving features such as cylinder shut-off systems, aerodynamics, and low-resistance tires. Finally, “After the Road” reveals how much of the vehicle can be recycled at the end of its useful life.

With these Ecologic labels, GM makes itself more attractive to environmentally conscious consumers. According to GM North America President Mark Reuss, “Customers want companies to be honest and transparent about their environmental efforts and sustainability goals, and rightly so. Putting an Ecologic label on each Chevrolet is just one more way for us to share our environmental progress.”

The numbers and data on the Ecologic labels are determined by independent, third-party sustainability agency Two Tomorrows, a company that provides environmental audit and assurance services to companies.

[Source: Forbes]

In North America, Buick is trying hard to shed its blue-rinse, AARP image. In China, however, the brand’s status is very much revered. In fact, to own a Buick in many aspects, is to know that you’ve arrived.

Perhaps its not surprising then that among the best selling cars in China, Buicks rank right up there. In fact, last year, the best selling model of all wore a Tri-Shield logo, the Buick Excelle, sold stateside as the Verano.

With sales of some 253,514 units (by contrast the entire US Buick lineup sold 177,633 cars and SUVs last year), it clearly indicates that GM’s “premium” division is absolutely going gangbusters in the world’s largest auto market.

Other “global” cars that fared well include the Chevy Cruze (which was the third best selling car in China in 2011) and the Ford Focus, which ranked number 10.

2010′s best seller, the Chinese BYD F3, saw demand plummet last year, ranking as 11th on the best seller list. Recently, the Chinese government passed legislation that aims to restrict the sale of some imported cars in an effort to spur demand for home grown vehicles, which so far have been largely overlooked by Chinese buyers, especially in the premium and luxury segments.

Volkswagen, which was among the longest established and largest  presence among Western automakers in China, had no fewer than four vehicles on the best seller list last year, the Bora, Jetta, Lavida and Santana.

[Source: Automotive News]

In 1989, Rick Moranis played a nerdy dad who accidentally downsized his children to an insect scale in Honey, I Shrunk The Kids. He probably wouldn’t have believed it if someone told him that 23 years later automakers would be doing the same thing to their cars.

For those of us living in the North American 2012, there are increasingly large swarms of little cars buzzing around the streets. The din their tiny engines makes isn’t overwhelming yet, but just wait.

General Motors’ German subsidiary, Opel, is planning to release a micro car they’re calling the Allegra (or, tentatively, Junior). No, not the allergy medication, though the thing is small enough to be mistaken for a bee in ragweed season, at least compared to the standard American palate. When the Allegra hits Europe in 2013 it will probably stand to compete against cars like the Volkswagen Up, MINI Cooper and Fiat 500.

In fact, it’s a solid 3.3 feet longer than the Mercedes-Benz spawned Smart ForTwo, which looks like a cross between a golf cart and an alien space pod. Our spies caught the Opel Allegra on camera during winter testing, but what’s the big deal? Opel cars aren’t sold in North America, right?

Well, not necessarily. Rumors are floating around that the not-so-smallish micro car might make it overseas rebadged as a Buick. (Why not? It’s not the first Buick to come from Opel). And with the recent launch of the Fiat 500 and the Scion iQ on our shores, the market for mini-cars is growing.

Of course, the name will likely change to keep big pharma happy.

GALLERY: Opel Allegra/Junion Spy Photos

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!

Get the Flash Player to see this player.

Want more ATS? Then check our our First Look Video as well

Get the Flash Player to see this player.

At present, save from slight trim and equipment (such as the Denali trim package shown above) there really isn’t much to differentiate the GMC Sierra from it’s Chevy Silverado counterpart. However, that’s set to change.

During an interview in Detroit, Mark Reuss, GM’s North American President said that for the next generation of GM full-size pickups, due for launch as 2014 models, the plan is to move the Sierra more upmarket with a greater list of standard equipment, more distinctive sheetmetal and corresponding higher sticker prices; a similar strategy has so far proved quite successful for GMC’s line of SUVs.

Such a move finally sweeps away the last vestiges of badge-engineering at America’s biggest automaker, something the “old” General Motors was notoriously known for.

“I think you will see equipment and models attacked very differently,” Reuss declared. “If we are going to carry two brands, we are going to make them pay their way.”

[Source: Autoweek]