The new Citroën C4 makes its world debut at the Paris Auto Show in October. It will be made in China too and there it gets a special-China-sister with a bigger behind. Citroën will make the C4 sedan only in China because many Chinese drivers still prefer sedans and don’t like hatchbacks that much, they think a sedan loox more expensive and so more impressive to show their friends.

The new joint venture between Fiat and Guangzhou Auto will make Fiats, Jeeps and Chryslers for the Chinese market. First up is the next generation Fiat Linea, a medium sized sedan. The current Linea, on pic, is available in China but as an import which makes it too expensive to sell. The Guangzhou-Fiat joint venture is so new that they don’t have a factory yet, production of the new Linea will only start in 2012.

From ChinaDaily, 200810. BEIJING – An alliance of sixteen of the largest State-owned companies wants to accelerate development of electric vehicles in China, a move which underscores the country’s ambition to be a world leader in new energy vehicles. The alliance, formed on Wednesday, is gearing up to invest 100 billion yuan ($14.7 billion) on electric vehicles by 2012, according to media reports.

Guided by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), the alliance was formed by almost all the major players in the related sectors, including the country’s top three oil majors, top two power grid operators, and two major automakers – China FAW Group Corp and Dongfeng Auto Corp.

The alliance aims to speed up research and development in vehicles, fuel cells and charging systems, as well as setting some unified standards, said SASAC Minister Li Rongrong.

China has already made some progress in areas like auto parts and fuel cells, and should take further steps to build internationally competitive Chinese electric car brands, Li said. Early in 2008, the central government launched a national campaign aimed at getting 1,000 electric vehicles on the roads in at least 10 cities each year to encourage people to buy electric cars.

In June, the Ministry of Finance kicked off an incentive policy in five pilot cities – Shanghai, Shenzhen, Hangzhou, Changchun and Hefei – providing subsidies of 60,000 yuan for a pure electric vehicle, and 50,000 yuan for a plug-in hybrid vehicle.

Chinese automaker and batterymaker BYD, a company which Warren Buffett has invested in, launched its first battery-powered car in 2008 and formed a joint venture on electric cars with German automaker Daimler in March. The consulting firm McKinsey & Company said the US is the most likely to spearhead a movement toward electric cars from gasoline-driven cars.

McKinsey ranked the US first in its electric-vehicle index, ahead of France, Germany and China. Many western European countries have invested heavily in the development of green energy technologies. Li said the alliance is open to other companies, both domestic and overseas.

Use of cleaner energy vehicles is in line with China’s aim at improving energy efficiency and cutting pollution, said Dai Yande, deputy director of the Energy Research Institute (ERI) affiliated with the National Development and Reform Commission.

“It is hard for the country to achieve its energy and environment targets without environmental friendly cars,” he said. Use of cleaner energy vehicles not only reduces China’s reliance on imported oil, but also helps the country cut greenhouse gases emissions, he added.

China has pledged to reduce its carbon intensity by 40 to 45 percent in 2020 from the 2005 level. The country has also set a target of raising the use of non-fossil energy to 15 percent of total energy consumption.

Car sales in China are expected to reach 17 million this year, up 30 percent from last year, China Passenger Car Association said in July. The alliance will help promote the use of electric cars in China, and the establishment of industry standards will be of immense benefit, said Wang Liusheng, an analyst at China Merchants Securities.

However, the alliance should include more automakers, such as China’s biggest auto manufacturer SAIC Group and BYD, he said. “Otherwise, the effect will be limited across the total automobile industry.”

From ChinaDaily, 200810. BEIJING – Zhejiang Geely Holding Group Co Ltd has got the necessary approval to set up a production facility in Shanghai for Volvo cars, sources said on Thursday.

“Jiading will host the facility,” said Jin Jianzhong, Party secretary of Jiading district in Northwest Shanghai, in a telephone interview with China Daily. “We have reached an agreement with Geely on the matter and will provide a series of favorable policies for producing Volvo cars,” said Yu Jianhua, deputy director of the Jiading Industrial Zone and Asset Management Committee.

However, both of the officials refused to disclose further details about the project, and said the local government and Geely will make a formal announcement in this regard soon. A source familiar with the project said the National Development and Reform Commission has already cleared the plan.

Jiading district government said on its website that Geely will set up the new facility in the Jiading Industrial Zone with an annual capacity of 300,000 vehicles. The plant will produce Volvo’s three-door, four-seat hatchback C30 and mid-sized five-door estate car V70 in 2012.

The company will also locate Volvo’s China headquarters, research and development center as well sales and sourcing center in Jiading. Work on the facilities is expected to begin in the first quarter of 2011 and is likely to be completed by the second half of 2012.

Jiading has already provided a 16,000-square meter workshop to Volvo for its temporary research and development center. By the end of this year, 200 to 300 engineers will work at the facility to develop cars for the Chinese market.

Analysts said Jiading, which is also home to Shanghai Volkswagen and several auto parts makers, will be an ideal location for Geely as it is China’s automobile center and not located too far from Geely’s headquarters in Hangzhou.

The automobile segment is the pillar industry in Jiading contributed nearly 38 percent or 18 billion yuan ($2.65 billion) to the district’s industrial output in the first quarter.

This February, Geely’s subsidiary Beijing Geely Wanyuan International Investment Co signed an agreement with Jiading government’s Shanghai Jia’erwo Investment Co to establish Shanghai Geely Zhaoyuan International Investment Co for the planned Volvo project.

Earlier this month, Geely completed the acquisition of the Volvo car brand by paying $1.8 billion to Ford Motor Co, the biggest takeover by a Chinese automobile company overseas.

Greatwall Motor and the Philippine National Motor Company agreed on a joint venture to assemble and sell Greatwall vehicles in the Philippines. Annual production will be 10.000 cars. Factory will assemble the Hover SUV and Wingle pick up truck. The cars will start rolling of the line sometime in the second half of 2011.

Chinese car company Dongfeng plans to bring pure electric vehicles to the Chinese market within five years, the cars will be branded as ‘Dongfeng’. The company has reserved 300 million dollar for research and development of electric vehicles, Dongfeng expects the market for pure electric to be bigger than the market for hybrids by 2020.

A taste of the future: on pic the Dongfeng I-Car pure-electric concept that debuted at the Beijing Auto Show.

Renault does not have a joint venture in China and continues to rely on import. The French now sell the Koleos and Laguna. Next year they will add the Laguna Coupe, Kangoo, Scenic, Grand Scenic and the Clio Cup for a race series, so that one will be a track-only. Especially the smaller Renaults could sell well if made in China, Renault is still looking for possible Chinese partners but there are no clear plans yet.

Beijing Auto will start pre-production of two Beijing-branded cars in October, to be listed in early 2011. The cars are codenamed C301Z and C306Z. The C301Z is a ‘luxury sedan’ and is very likely based on the Saab-based C71 concept that debuted on the Beijing Auto Show. The C306Z is a ‘economy vehicle slash multi-functional vehicle’ and that one must be the Benz B-class based C30.

The cars will be made in a new factory in Beijing’s (the city) Shunyi district, mother company Beijing Automotive Holdings Group invested 40 billion yuan in the hige new facility with a first-phase capacity of 300.000 vehicles a year.

Picture above shows the line-up for the C71, four different levels, top of the bill a 2.3 turbo automatic, and for starters a 2.0 turbo with manual gearbox.

Honda has decided to make to CR-Z and Insight hybrids in China, likely with joint venture partner Guangzhou Auto. To keep costs low Honda wants to source the expensive batteries locally instead of importing them from Japan. Honda is currently looking for a Chinese battery-supplier. Guess they thought about BYD… It is so not exactly sure when production will start, but Honda thinks 2012 must be possible.

Chrysler sold 40% more vehicles in China over the first half year compared with 2009. In absolute numbers it is still very small: only 11.000. From those, 10.000 were imported cars, mostly from the Jeep-brand, and 1000 were Dodge  Caravans from Chryslers lone joint venture in China with SouEast Auto. A good sign for Chrysler and new Fiat-ownership will likely see them getting a new factory in China soon.