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.

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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. Read more »

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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!

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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).

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The Chinese government has given, as expected, the green light to the Volkswagen Group for the building of two new automotive plants in the cities of Foshan and Yizheng. The final approval for the project was signed today, June 28, in Berlin during a meeting between Chairman of VW’s board, Prof. Dr. Martin Winterkorn, and the Presidents of the Chinese partner companies. Read more »

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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.

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Japanese carmaker Nissan Motor Co. revealed on Monday its new midterm business plan dubbed “Power 88”, with which it aims to boost both its global market share and profit margin to 8 percent within six years – hence the “88” reference in the name. Last year, Nissan, which is 44.3 percent owned by French partner Renault, had a 5.8 percent global market share.

The new plan calls for the introduction of 52 new cars for fiscal years 2011 to 2016, or about one new vehicle every six weeks.

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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.

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The Australian pickup truck market will soon welcome a new player in the 1-tonne segment, courtesy of China’s ever-growing automotive industry. Beiqi Foton Motor Co. Ltd, more commonly referred to as BFC or simply Foton, is a subsidiary of China’s more widely known BAIC and will be represented in the country by Sydney based Australian automotive distributor, WMC Group.

The WMC Group secured the rights to distribute the Foton range of 4x2 and 4x4 utility vehicles with plans for the first vehicles to go on sale in Australia early next year. The Sydney based distributor said Australian Design Rule compliance and testing is currently underway and is due to be finalized within the next two months.

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Ailing Swedish car manufacturer Saab will not be producing new vehicles for at least two more weeks until it resolves the problems with its suppliers, the company said on Monday.

"There will be no normal production during weeks 25 and 26 (June 20th-July 3rd)," Saab spokeswoman Gunilla Gustavs told Reuters. "We are still negotiating with all suppliers and we need to get everyone on board at the same time. The weeks of 27-29 (July 4th-24th) are planned to be normal working weeks".

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Global vehicle sales by the Volkswagen passenger car brand rose 12.2 percent to a record-high of 2.09 million units in the first five months of the year, compared to 1.86 million the same period in 2010.

More than a third of those vehicles were delivered in China, which has become the Volkswagen brand’s largest single market. In the period from January to the end of May, VW sold 714,200 cars in the country, recording a 15.3 percent increase.

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Lately, it seems whenever there’s a problem with production at Saab’s Trollhattan plant, the Swedish automaker’s parent company Spyker Cars N.V. announces a new deal with a Chinese company.

Today, Spyker signed a non-binding memorandum of understanding (MOU) with two Chinese firms, Pang Da Automobile Trade Co., Ltd (Pang Da) and Zhejiang Youngman Lotus Automobile Co., Ltd. (Youngman), which if approved by regulators, could see the company falling into the control of Chinese hands. We'll remind you that Saab had previously signed a deal Chinese firm Hawtai but it failed to go through Chinese regulators.

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German car magazine Auto Bild and weekly Der Spiegel reported Thursday that General Motors is once again considering the sale of its Opel and Vauxhall units. The reports were dismissed as pure speculation by the Detroit automaker as well as a German state with an Opel factory, which called the news “nonsense”.

According to the news reports, GM allegedly was no longer in need of Opel’s know-how in manufacturing small cars as well as low emission and fuel efficient powerplants and that it could replace the German brand with its South Korean GM Chevrolet unit, formerly known as Daewoo.

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BMW isn't the only automaker releasing limited-edition models unique to the Chinese auto market. This week, Porsche took the wraps off the new 911 Turbo S Anniversary Edition to celebrate 10 years in China. Only 10 cars will be built and all of them are destined for the Chinese market. Read more »

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Chinese customers love a good limited edition model and BMW tries its best to keep them happy. Not long ago, BMW had released the China market-only M3 Matte Edition and M3 Tiger Edition. During the BMW M Legendary Experience event held in China last week, the Bavarian automaker lifted the covers off yet another special M3, the Carbon Fiber Limited Edition of which only 111 examples will be built at a price of 1.23 million yuan (approximately US$189,800 at today’s exchange rates) a piece. Read more »

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We have all encountered them, but as with anything else in this life, there are potholes and there are potholes. The one that opened in the city of Changchun, which is the capital of China's Jilin province, is what you would call a supersized pothole, and to make matters worse, it occurred on a road bridge as a large lorry was passing over it.

The giant hole, which reportedly measured close to 50 feet long (about 15 meters) and 16-feet wide (around 15 meters), literally swallowed the commercial truck which then plunged down to the river. Chinese media reported that there were two men inside the lorry and that both were injured. Hit the jump for a video report of the incident.

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SAIC Motor Corporation, the owner of MG Motors, plans to develop several new models for the British brand in order to boost sales outside its home market in China. The Chinese owner of MG Motors has already spent £1 billion ($1.64 billion) to re-launch the MG and Roewe brands (former Rover) and intends to invest another £2.2 billion ($3.6 billion) to achieve annual sales of 700,000 by 2015.

In 2010, the two brands sold 160,397 cars, most of which were delivered in China, with only 2,000 units exported to other markets. This past April, MG launched its new mid-size MG6 in the UK, the first new car to be assembled at the British firm’s Longbridge plant in 16 years. The company said that when it completes the development of a diesel version, it will offer the car to rest of Europe. "We will not go into mainland Europe without a diesel," UK managing director, William Wong, told Autonews.

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Chinese distributor Pang Da Automobile is pumping more cash into Spyker NV's ailing Swedish unit Saab by placing a new order for 630 vehicles valued at €15 million or US$21.5 million. This latest order comes after an earlier one last week for 1,300 cars worth €30 million (US$43.2 million) and is part of a broader deal in which Pang Da agreed to buy a 24 percent stake in Saab’s parent company Spyker for €65 million (US$93.5 million).

The Swedish automaker said that as with the first order, Pang Da will pay the additional €15 million order up front with the funds expected to be received by the end of this week. Delivery of the vehicles ordered by Pang Da will start in the fall of this year.

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Saab is back in the business of making cars again -at least for now- almost two months after production came to a halt on April 6 when the company’s suppliers stopped deliveries of parts in protest over unpaid bills. The Swedish company was able to restart production after receiving €30 million (US$42.8 million) in advance on a deal it has signed with Chinese car distributor Pang Da Automobile.

The China company’s CEO, Mr. Pang Qinghua, visited the Trollhättan factory today together with CEO and Chairman of Saab Automobile, Victor Muller, and witnessed the first vehicle to roll off the assembly line. Saab said around 100 cars were built today but plans to “increase the daily production rate in the coming weeks in parallel with the full re-establishment of the supply chain”.

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Here’s an idea: why not simply ask the public what they want in a car? Focus groups are one thing, but Volkswagen is taking this concept to extremes with its newly launched People’s Car Project. The ostensible goal of the project is to solicit advice from some of China’s 450 million internet users; advise that will shape a new model for the Chinese domestic market.

Dubbed “mass manufacturing” by Volkswagen, the Orwellian-sounding project will run for one year and gather Chinese consumers’ input in the form of text, images and film through the Zaoche website. There will also be competitions where users can vote for their favourite designs, and prizes will be handed out to the best. If proven successful, the same idea could be implemented in other regions as well.

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