#China

Ford Motor Company is tweaking plans in China and seeking to turn around financial losses after five years of lackluster sales within the region. The new strategy will be focused on exporting to other countries, commercial product, and reinforcing the necessary supply chain for all-electric vehicles.

Mercedes-Benz CEO Ola Kallenius has told the German media that the brand has no intention of cutting ties with China, saying such a move would be unwise for the whole of Germany industry. 

"The major players in the global economy, Europe, the U.S. and China, are so closely intertwined that decoupling from China makes no sense," he was quoted as saying in Bild am Sonntag.

Following our coverage of the Lincoln Nautilus Hybrid, reader feedback seemed overwhelmingly focused on the vehicle being manufactured in China. This was interesting because the article dealt exclusively with updates to the vehicle, which is technically still a product of North America.

But Ford Motor Co. has confirmed that the next-generation Nautilus will indeed be imported from China so that the Canadian facility currently responsible for U.S. volume can be transitioned into an electric-vehicle plant.

The Senate Finance Committee has formally requested that eight major automakers provide detailed information about their supply chains in order to determine whether or not they benefit from slave labor. In a letter sent Thursday, the group referenced a report from Sheffield Hallam University claiming that the auto industry is “unwittingly” utilizing metals, batteries, wiring, wheels, and other components that were coming from questionable sources – namely ethnic slaves living in Western China.

Earlier this year, General Motors filed several trademark applications with model names ranging from Electra E1 to E9, suggesting that Buick would revive the iconic model name for future EVs. The automaker recently debuted the Electra E5 in China, its first vehicle to ride on GM’s Ultium platform and a potential preview of the models we could see here in the future.

Electric vehicle naysayers love to talk about the environmental impact of mining raw materials for batteries. While those arguments are often rooted in some degree of truth, they’re generally made as the only argument and are levied without much evidence for support. Though it’s true that mining and processing nickel, cobalt, lithium, and other materials is awful for the environment, we’re learning more about the geopolitical and financial implications of the practice. 

Some have questioned why General Motors keeps Buick around since it seems like it’s not the most popular brand on America’s roads. What that view fails to consider, however, is that Buick is one of GM’s strongest brands in China, and earlier this month, the company’s president confirmed a new crossover would be coming for the country.

Tesla said yesterday that it will work with Chinese law enforcement to investigate why a Model Y went out of control in that country earlier this month, killing two people and injuring three more.

The organizer of the Beijing International Automobile Exhibition has announced that the show will not go on due to the COVID-19 situation in the country. Though those with a memory longer than that of a goldfish will recall that the event was already postponed in April for that very same reason.  

With a majority of automakers snubbing the upcoming auto show in Detroit, there’s not likely to be much to talk about in terms of new product beyond the next-generation Ford Mustang. But there are interesting things happening elsewhere on the planet if we’re using interesting as a polite euphemism for strange. 

General Motors’ joint operation in China, SAIC-GM-Wuling Automobile Co., is releasing a poverty-tier convertible that makes the long-dead Chrysler Sebring look positively decadent by comparison. Based on the Wuling Hongguang Mini EV – a boxy microcar that only measures 114.8 inches in length – the Cabrio will be a limited production convertible requiring Chinese customers to participate in a lottery. 

Honda is reportedly considering tweaking its global supply chain to create a firm distinction between the Chinese and global markets. While the whole world has seen production stymied by restrictive protocols introduced in response to COVID-19, the Chinese Communist Party has retained a zero-tolerance policy that appears to have totally upended its economy and resulted in continued factory stalls. That's bad news for several Japanese automakers that have stepped up their reliance on Chinese production.

Last year, roughly 40 percent of Honda's automotive production (which includes part sourcing) came through China. This year, the company is allegedly wondering how to tear itself away from the market without losing the ability to sell cars to its massive population.

Toyota has suspended operations at a factory in China because local authorities issued an order for the region to conserve electricity. Sichuan province is reportedly rationing energy for both residential and industrial zones, complicating things for manufacturers. Toyota has said that the plant is likely to be closed through Saturday — adding that it would be monitoring the situation and taking guidance from the Chinese government. But the issue could have sweeping ramifications because the area is also home to numerous part suppliers.

We reached a conclusion to the first Ford Festiva (or Kia Pride, Mazda 121, SAIPA, etc.) in our last installment, which saw the little hatchback finalize its Ford duties in 1993 and its Kia responsibilities in 2000. And while it continues life today as a Wallyscar in Tunisia, our coverage here moves on to Ford’s not-so-anticipated follow-up entry to Festiva, another Festiva! It’s an Aspire to you.

While the semiconductor shortage was long considered the excuse par excellence for why the automotive sector couldn’t produce enough vehicles during the pandemic, some manufacturers have begun pivoting to blaming supply chains that have been stymied by Chinese lockdowns. Toyota is probably the best-known example. But the matter is hardly limited to a singular automaker and market analysts have already been sounding the alarm bell that strict COVID-19 restrictions in Asia will effectively guarantee prolonged industrial hardship around the globe.

Back in April, Shenzhen was emerging from a month-long lockdown. However, the resulting downtime severely diminished the tech hub’s output which exacerbated global component shortages. While Chinese state-run media claimed regional factories maintained full-scale production during the period, the reality was quite a bit different. Meanwhile, Shanghai has remained under harsh restrictions since March and more look to be on the horizon. As an important industrial center and the world’s busiest port by far, the situation has created an intense backlog of container ships that are presumed to create some of the sustained problems that we’re about to explore.

We return to the Ford Festiva once again today, as the subcompact Mazda-designed hatchback stormed North American shores. It did so wearing a Ford badge and a South Korean VIN, courtesy of a Kia factory. But North America wasn’t the only place it landed.

As we learned last time, the Festiva was built in several different countries and assumed many identities over an extensive history. The Festiva still has not reached the end of its life, but we’ll cover that in a separate article. We pick up today in North America, circa 1987.