The Plot Thickens: China a Suspect in the Renault Spy Case

As previously reported, Renault recently suspended three senior managers on suspicion of industrial espionage, related to the manufacturer’s upcoming electric cars. Naturally, the situation begs an obvious question: whom were they spying for?

On Friday, French legislator Bernard Carayon dropped the bombshell, by saying that “proven, diverse and reliable” sources suspect Chinese involvement in the matter.

“There are in effect several sources that are typically thought to be serious who consider that a Chinese buyer is in fact behind this operation”, said Carayon, a member of President Nicolas Sarkozy's conservative party, on France-Info radio.

The Sarkozy administration declined to comment on Mr. Carayon’s statement and, according to an inside source, the country’s counter-terrorism agency, DCRI, has not yet been involved in the matter.

Meanwhile, Renault didn’t release too many details about the affair, simply stating that it plans to take legal action against the three former company officials, whose identities will be preserved in accordance to the labor laws.

However, the automaker has pointed out in a statement that the managers were people with “extremely strategic” positions in the company, which could be one way of describing a very complicated situation.

China's BYD Debuts Lexus RX-Inspired S6DM Dual-Mode Hybrid at Detroit Motor Show

Chinese automaker BYD marked its fourth consecutive appearance at the North American International Auto Show with the world premiere of the S6DM hybrid, with the DM in the name standing for "Dual-Mode".

The gasoline-electric hybrid is based on the Chinese firm's S6, a mid-size SUV model first introduced at the Shanghai Auto Show in 2009. And no, you're not the only one to find the overall styling of the S6 reminiscent of the previous generation Lexus RX.

The Warren Buffett-backed battery and car maker claims the S6DM is "the world’s first independent 4WD dual-mode electric SUV". Under the hood, the Chinese model is equipped with a 2.0-liter four-cylinder gasoline engine and three electric motors. Two 10-kilowatt electric motors drive the front wheels while a more potent 75 kilowatt motor powers the rear wheels. A six six-speed dual clutch transmission handles power transfer.

Despite the "Dual-Mode" moniker, BYD says the system offers three driving modes including electric only, hybrid gasoline-electric and gasoline engine only. In detail, here's how the Chinese automaker describes each mode:

THREE DRIVING MODES

Fully electric (BEV) mode: At normal speeds, the vehicle can operate in its all-electric mode, with the electric motor (M2) propelling the rear wheels.

Hybrid gasoline-electric (HEV):

1. 2WD: The gasoline engine not only directly powers the vehicle, but also drives the electric motor (M1) at the front wheels to charge the battery pack.

2. 4WD: When more power is needed, the gas engine and the electric motor (M2) power the vehicle together. If the combined power is enough, the gasoline engine will also drive the electric motor (M1) to charge the battery pack. As speed increases, the gasoline engine can take over seamlessly with support from the 6-speed DCT; when braking, the gas engine automatically shuts down and the electric motor (M2) takes over.

3. 2WD: When battery power is low and not much driving power is required, the gasoline engine drives the electric motor (M1) to charge the battery pack and the electric motor (M2) powers the vehicle by itself.

Gasoline powered: When driving on the highway or in case the battery pack is depleted, the gasoline engine can power the vehicle on its own very efficiently.

According to BYD, the S6DM can travel over 38 miles (60km) purely on electric power (BEV) and over 500km (310 miles) combined when engaging the gasoline engine.

BYD said that the S6DM is amongst the models being considering for the U.S market. At the Detroit show, the company's Chairman, Wang Chuanfu, pushed back the brand's U.S. launch to the first quarter of 2012.

2012 Buick Verano Sedan: China's Excelle GT finally Makes it to the States

If you've been following the news on Carscoop, the 2012 Buick Verano won't come as a surprise as the new compact sedan is the North American version of GM's China market Buick Excelle GT that was revealed in the first half of 2010. The two Buicks are identical in styling right up to the somewhat gaudy chrome eyebrows over the tail lamps.

The small Buick is essentially the sedan version of the European market Opel Astra, something that is visible from the profile styling as well as the interior, and is built on the same platform and shares basic engine architecture with the Chevrolet Cruze.

The VW Jetta-sized Verano measures 183.9 in. (4,671 mm) long, 71.4 in. (1,815 mm) wide and 58.4 in. (1,484 mm) tall, featuring a 105.7 in. (2,685 mm) long wheelbase.

Under the skin, the Verano's front suspension uses decoupled MacPherson struts and the rear a Watts Z-link design. Steering inputs are executed by an electric power steering system, featuring a dual-pinion rack, while stopping power is provided by a four-wheel disc brake system with standard anti-lock and electronic brake force distribution, as well as StabiliTrak electronic stability control with traction control.

At launch, the new Buick Verano will offered with a standard 2.4-liter Ecotec four-cylinder engine delivering an estimated 177 horsepower (132 kW) and 170 lb.-ft. of peak torque (230 Nm), with a six-speed automatic transmission driving the front wheels. GM says the basic Verano will return a 0-60 mph [96 km/h] performance of 8.0 seconds and an estimated 31 mpg [7.6 lt/100km] on the highway.

The Detroit automaker said a more powerful 2.0-liter turbo engine will be offered in the future. In China, the Verano's twin sibling is available with a naturally-aspirated 1.8-liter producing 145HP and a 1.6-liter turbocharged four-pot delivering 181HP.

The 2012 Verano compact sedan will receive its world premiere at the North American International Auto Show in Detroit next week and go on sale in the States in the fourth quarter of 2011. Pricing has yet to be released, though an allegedly official document that was leaked online suggests that the Verano will start at around $21,000.

The Plot Thickens: China a Suspect in the Renault Spy Case

As previously reported, Renault recently suspended three senior managers on suspicion of industrial espionage, related to the manufacturer’s upcoming electric cars. Naturally, the situation begs an obvious question: whom were they spying for?

On Friday, French legislator Bernard Carayon dropped the bombshell, by saying that “proven, diverse and reliable” sources suspect Chinese involvement in the matter.

“There are in effect several sources that are typically thought to be serious who consider that a Chinese buyer is in fact behind this operation”, said Carayon, a member of President Nicolas Sarkozy's conservative party, on France-Info radio.

The Sarkozy administration declined to comment on Mr. Carayon’s statement and, according to an inside source, the country’s counter-terrorism agency, DCRI, has not yet been involved in the matter.

Meanwhile, Renault didn’t release too many details about the affair, simply stating that it plans to take legal action against the three former company officials, whose identities will be preserved in accordance to the labor laws.

However, the automaker has pointed out in a statement that the managers were people with “extremely strategic” positions in the company, which could be one way of describing a very complicated situation.

High Demand for German Luxury Cars in the U.S. and China

Germany’s car market has definitely seen better days, as sales in the first 11 months of 2010 are down 25.2% compared to the same period last year. However, strong demand for luxury cars in the U.S. and China is keeping premium automakers like Audi, BMW and Mercedes-Benz busy during the holiday season and, most importantly, profitable.

“2010 was expected to be a tough year all round” John Lawson, a London-based analyst at Citi Investment Research, wrote in a report. “But rich China sales have leapt (and) foreign exchange has been very supportive”.

As a result, German manufacturers have shortened Christmas holidays and are keeping some of their production facilities open between Christmas and New Year’s.

State-side, the premium segments have seen an 11.1 percent increase in demand, outperforming the overall market growth. Audi has profited the most from the economical rebound, with sales up 23.6% for the year through November. Mercedes follows closely behind, with an 18.6% increase, while BMW takes third place with +11.6%, according to Autodata Corp.

The Chinese market fared even better, registering a 40% increase in the luxury car segment, also led by the Ingolstadt-based carmaker. Nine of the ten top selling premium vehicles in China are German, with Lexus securing just one spot on the list. Furthermore, the uphill trend is expected continue over the next five years.

“The luxury car segment is expected to keep double-digit growth in the next five years, with the booming number of second-time buyers who are eager to distinguish themselves and keen to prove their social status”, J.D. Power said in a December report about the Chinese market.

Beijing to Restrict Car Usage, Chinese Automakers Anticipate Market Downturn

Beijing is a city in crisis. It is, more or less, a microcosm of the world at large: smog and traffic congestion are choking China’s capital. This year, 4.7 million cars were sold in Beijing alone; nearly twice the number sold just five years ago. Despite a new subway system, the roads remain gridlocked, and the Beijing municipal government has had enough. From 2011, radical changes will be introduced to the city’s traffic and vehicle registration laws to make it the city that bit more livable.

This year, roughly 720,000 new vehicle registrations were issued for microvans and cars. In 2011, this number will be slashed to a third. Only registered Beijing residents will be able to purchase a license, and only Beijing registered vehicles will be allowed in the city during rush hour. Parking fees are also set to increase.

China’s largest city, Shanghai, has had something similar in place for the past ten years, though analysts never expected Beijing to do the same. Beijing’s municipal government has always insisted it would not implement such a system. Now, analysts fear the repercussions for China’s burgeoning auto industry. So says Yale Zhang, an independent auto analyst:

“Auto makers may have to adjust their production and sales plans next year. The move by Beijing will basically cost auto makers half a million new car sales next year. But Beijing as the capital city can become an example for other cities in the future.”

As you would expect, China’s automakers are less than happy about the planned restrictions. Chery spokesman Jin Yibo expresses this growing sentiment:

“Definitely this will impact our sales in Beijing next year, But it's hard to say what percentage will be affected specifically. In fact, what worries me more is that other cities will follow Beijing's lead to issue such regulations, and that will have a bigger impact.”

Other cities, including the eastern provinces of Jiangsu and Zhejiang are considering similarly restrictive measures, such as requiring residents to purchase a dedicated parking space before buying a car.

The news comes just as analysts are predicting a downturn in China’s auto sales, with growth slowing to 10% in 2011 down from 30% this year and 50% in 2009. The cause lies not only in new restrictions such as those being implemented in Beijing, but also in an anticipated increase in the vehicle ownership tax and the discontinuation of government subsidies on small, fuel efficient cars.

Only time will tell whether these restrictions will help Beijing in the long term.

Mercedes' Chinese Partner BAIC Blatantly Copies B-Class with New BC301Z

Beijing Automotive Industry Holding Corp., commonly known by the acronym BAIC, is one of Mercedes-Benz's partners in China. However, that didn't stop the Chinese automaker, which has acquired the intellectual rights for Saab's older 9-5 and certain 9-3 models, to rip off the design of Mercedes' B-Class for its new BC301Z five-door hatchback and to a lesser extent, the BC302Z sedan.

The styling similarities are not only concentrated on the outside with the profile line, V-shaped grille, headlamp and bumper designs, but are continued inside with the dashboard.

Fortunately for Mercedes, that's not the case with the drivetrain as the 4.038mm long BC301Z hatchback will be offered in China with a choice of two Mitsubishi-sourced gasoline engines, a 1.3-liter unit linked to a five-speed manual and a 1.5-liter powerplant hooked up to a CVT. The five-door model will be followed next year by a four-door sedan (BC302Z) and station wagon (BC303Z) variant.

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