Volkswagen Lavida: Chinese Mid-Size Sedan Coming to Beijing Auto Show

A teaser shot of Shanghai Volkswagen’s forthcoming Chinese built and designed mid-size sedan that will debut at the Beijing auto show in April emerged on the internet today. While we can’t vouch for its authenticity, if real, it looks like VW’s new sedan that will be named “Lavida” is heavily based on the latest generation Skoda Octavia. Shanghai Volkswagen is a joint venture between the German carmaker Volkswagen and Chinese Shanghai Automotive Industry Corp (SAIC), which has also formed a separate venture with General Motors.

NAC MG TF Pricing Announced – More Expensive Than an MX-5!

Chinese carmaker NAC MG has announced UK pricing for its British built TF LE500. The mid-engined, rwd roadster that's due to arrive in dealerships across Britain this September has been priced at 16,399 GBP (that's $32,700 or EUR 20,600 with the current exchange rates). For that money you get a 136Hp 1.8-liter engine and several standard amenities like air-condition, ABS, leather seats, windstop, 16-inch alloy wheels, a body colored hardtop, parking sensors and a Pioneer MP3 compatible CD / radio.
But we ask; more than 16,000 pounds for a car that's practically a facelifted version of the original MG TF that was introduced in 1995? That's a lot for a car that was already outdated compared to its rivals when it went out of production in 2005, let alone in 2008. For example, prices for the Mazda MX-5 1.8 start from 15,750 pounds while you can get a nicely equipped MX-5 1.8 Icon for 16,825 pounds. We drove the last TF130 back in 2005, and while the MG had its fun side, even then, it showed its age in more ways than one.

China's SAIC Considering Buying Stake in General Motors

Industry insiders are reporting that China's SAIC has expressed interest in buying a stake of General Motors come its public offering in November, though it has yet to make a solid commitment. GM has declined to comment on the matter.
The U.S. government is eager to unload its 61% stake in GM after taxpayers bailed out / loaned the iconic automaker to the tune of US$50 billion. This comes despite the political ramifications of selling part of the brand to foreign investors or sovereign-wealth funds.
The government has rejected suggestions that the IPO should be limited to domestic investors, however the Treasury has state that no single investor or investor group would receive, "a disproportionate share or unusual treatment."
The Initial Public Offering (IPO) of GM shares will include those held by the U.S. Treasury, a union-managed retiree trust and the Canadian government. The government's plan is to offload their stake in GM in one month, though GM CEO Dan Akerson believes it could in fact take years. The Treasury will wait until after the November midterms in order to keep politics out of the float.
SAIC's bid is not that farfetched, either. Insiders note that SAIC has been building cars with GM in China since the 1990, with its home market a key source of strength for GM. Year-to-date sales were up 19% in August, for instance, even though the U.S. and Europe are still struggling.
By Tristan Hankins

MG to Build First All-New Model in 15 Years at its UK Plant

MG Rover's old Longbridge car plant is set to comeback in a big way when SAIC / MG begins building its first all new car in 15 years at the end of the year. The plant will start producing the MG6 mid-size model from knocked-down kits imported from China, preceding the UK relaunch of MG as a "value brand" in 2011.
The all new car will be available initially as a five-door fastback, with a four-door saloon to follow later on. The automaker optimistically told the Financial Times that customer clinics have compared the MG6 with the likes of the Ford Mondeo, Skoda Octavia and even with small BMWs. Prices in the UK are said to range between £16,000 to £20,000 (US$25,425 to US$31,780).
Shanghai Automotive (SAIC) bought the intellectual property rights to some of MG's cars and engines after the collapse of parent company MG Rover in 2005. Meanwhile, Nanjing Automobile bought much of the production equipment back in 2007.
The latter's 2007 estimate of selling 50,000 cars a year appears to have been rather optimistic, with actual sales being more of the order of, "hundreds, not thousands". The two companies are now merged under the SAIC name.
MG's Birmingham office employs some 300 engineers and 30 design staff, who provide design and engineering services to parent SAIC. MG Birmingham has previously contributed its extensive knowhow to the development of the Roewe 550 and 350 sedans and the MG Zero concept car that was shown at the Beijing Auto Show earlier this year.
Chinese automakers have had no success exporting cars to Western Europe and the United States in the past. MG Birmingham's input is especially important for SAIC, with the Chinese still struggling to make large cars that are competitive with the Europeans. David Lindley, Head of SAIC's Technical Centre explains:
"There's still a lack of capability in Shanghai, and probably will be for years, to design a new vehicle from a clean sheet of paper."
The success of the MG6 is essential for the future of Longbridge and for MG's European operations. At present, Longbridge only builds small numbers of the outdated MG TF roadster.
Only time will tell if MG can buck the trend and recapture the hearts and minds of British consumers. The MG6 will hopefully be the first step in this difficult process.

By Tristan Hankins

Source: FT (sub. req.) , Kudos to Aikiv for the tip!

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GM's New China Brand Baojun Launches first Car, the 630 Compact Sedan

SAIC-GM-Wuling (SGMW), GM's mini-commercial vehicle joint venture with China's SAIC and Wuling Motors, today rolled out the first Baojun branded passenger vehicle at its plant in Liuzhou, southern China. The Baojun 630 is a low price, four-door compact sedan developed locally using GM technology that will go on sale in early 2011 through a new network of dedicated Baojun dealers.
The Baojun brand was created to offer even more affordable passenger vehicles in China and to compete with the country's domestic automakers such as Zhejiang Geely and BYD.
According to SGMW General Manager Shen Yang, "The Baojun brand will make SGMW a more competitive automaker as we roll out a full lineup of passenger vehicles under the nameplate in the coming years. We have high expectations for the brand and our first model, the Baojun 630, which will compete in the middle range of the passenger car segment – the industry's fastest growing."
The Baojun 630 sedan will be built at SGMW's facility in Liuzhou, which has an initial annual capacity of more than 100,000 vehicles.

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