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BEIJING -- A year after their China sales were battered by protests in a territorial dispute, Japan's big automakers are finding it tough to bounce back in the Chinese market. [...]

BEIJING -- China keeps getting better at making cars. One reason: It is getting better at cutting corners. Zhejiang Geely Holding Group, one of the biggest Chinese carmakers, conducted 20 [...]

To capitalize on growing demand for low-cost cars in China, Volkswagen AG and Peugeot Citroen S.A., in conjunction with their Chinese partners, are contemplating developing brands specifically for the Chinese market.

In interview, Peugeot S.A. executive Timothy Zimmerman said his company will sell more cars in China than Peugeot's home market of France by 2015. Mr. Zimmerman discusses Peugeot's sales strategy and expansion plans in that Asian country.

In interview, Dieter Zetsche - Chief Executive of Daimler AG - offers an outlook for the electric cars market and discusses his company's planned investments in the sector over the next ten years. Demand for electric cars will only reach 1% to 5% of total global demand by 2020.

Zhejiang Geely Holding Group Company Ltd. aims to raise Volvo's production to 300,000 vehicles annually in China for the domestic market, and plans to increase yearly sales to 2 mil autos by 2015. Volvo's auto sales totaled 24,405 vehicles in 2009; Geely sold approximately 325,000.

As Hyundai Motor Co. prepares to launch its new Verna subcompact sedan in China, the car maker's sales in that country are expected to surpass sales in its home market of South Korea. Total car sales in China rose 50% in 2009.

As part of its turnaround plans for the Volvo brand, Zhejiang Geely Holding Group Co. is considering repurposing a Geely plant in southwestern China to make Volvo cars and building a new assembly plant, possibly in Shanghai.

Automobile sales in China continued to rise at a slower pace in June compared to previous months. Recent sales had skyrocketed boosted by tax cuts and other incentives.

Following a series of automobile recalls, Toyota Motor Corp. announced it will improve quality by extending the testing time for new models and reducing the number of outside engineers it uses. Toyota is also considering using less virtual engineering and more automotive prototypes.

Prompt government intervention and decisive action by management brought an end to a three-day strike at a Toyota Motor Corp.-affiliated parts supplier in the city of Tianjin, China. Workers received a 20% pay increase and additional bonuses and compensation.

Daimler AG and China's BYD Co. will each invest about $87.9 million in Shenzhen BYD Daimler New Technology Co., a joint venture to make all-electric cars for the Chinese market. Daimler also said it will spend $244 million to build a factory in Beijing to produce automotive engines. Daimler expects sales of Mercedes-Benz to reach 100,000 units in China this year, up from 67,000 units in 2009.

Electric-car maker Coda Automotive plans to build a factory in Ohio to manufacture lithium-ion batteries for Coda's all-electric cars. The plant will employ more than 1,000 workers and use Chinese technology in its manufacturing processes.

According to Nissan Motor Co.'s Chief Executive Carlos Ghosn, Nissan is prepared to manufacture the Leaf all-electric car in China if the Chinese government creates an incentive program for buyers. Nissan will begin making the Leaf in Japan this year, and plans to start production in the U.S. and Europe by 2013.

According to Li Shufu, chairman of Zhejiang Geely Holding Group Co., Geely will invest $900 million to revive Swedish car maker Volvo and bring it back to profitability. Geely bought Volvo from Ford Motor Co. for $1.8 billion.

Ford Motor Co. agreed to sell the Volvo brand to China's Zhejiang Geely Holding Group Co. for $1.8 billion. Ford will receive a $200 million note and $1.6 billion in cash, part of which will be used to reduce Ford's $23.5 billion debt.

To contain damage to Toyota Motor Corp.'s reputation in one of the world's biggest market after recalling millions of vehicles worldwide, chief Akio Toyoda will visit China and hold a press conference to address safety and quality concerns. Toyota recalled 989,000 vehicles in China in 2009, up from 209,000 recalled in 2008.

Following the recall of millions of vehicles worldwide, Toyota Motor Corp. said it is improving the process for testing the quality and safety of its cars. Toyota is also considering improving the way it discloses engineering changes to existing models.

Mazda Motor Corp. is discussing with Ford Motor Co. the possible dissolution of their joint venture in China. Both car makers would negotiate a new structure for working with the present Chinese partner Chongqing Changan Automotive Co. It is speculated Mazda seeks more operational freedom in that country, after Ford reduced its Mazda stake from one third to 13%.

President Hugo Chavez is threatening to nationalize Toyota Motor Corp.'s assembly plant in Venezuela if the company does not transfer new technology to the plant and does not manufacture more vehicles designed for rural areas. Chavez seeks more government intervention in local automotive production, possibly affecting Fiat S.p.A. and General Motors Corp.'s operations.

Ford Motor Co. says it has worked out a framework for the sale of its Volvo unit to China's Zhejiang Geely Holding Group Co. Geely's $2 billion purchase is expected to be completed by mid 2010.

Because current demand is expected to surpass production capacity in China, Honda Motor Co. plans to increase production at existing plants and build a new factory in Wuhan with capacity for 100,000 vehicles a year. Honda will have a combined capacity in China of 360,000 vehicles a year. Total car sales in China will increase 10% to 15% in 2010.

Nissan Motor Co. and its Chinese partner, Dongfeng Motor Co., expect passenger-car sales in China to grow 16% to 600,000 units in 2010. Through November 2009, Nissan has sold 469,559 passenger cars in China, up 51.3% from a year earlier.

General Motors Co.'s Saab unit will sell certain assets, including intellectual property and manufacturing equipment, to Beijing Automotive Industry Holding Co. The value of the deal was not disclosed. It is speculated that the partial sale may signal Saab's liquidation.

Toyota Motor Corp. expects sales in China to grow 14% to 800,000 units in 2010, down from a 20% growth this year. Toyota still hopes to outperform rival car makers by introducing more models with smaller engines. Lexus sales in the country will increase 30% next year to about 43,000 vehicles.

General Electric Co. will create a joint venture with China's Aviation Industry Corp. (AVIC) to develop and manufacturer avionics systems. GE and AVIC hope to supply flight technology for a new jetliner currently in development by China's Commercial Aircraft Corp. and expected to launch by 2016.

Ford Motor Co. will invest $490 million to build its third car-assembly plant in China, to be operated jointly with Chongqing Changan Automobile Co. and Mazda Motor Corp. The new factory will build the Focus compact car model, and will have an initial production capacity of 150,000 cars a year when it begins operations in 2012.

In interview, Dazong Wang -president of Beijing Automotive Industry Holding Co.- discusses his company's investment in Koenigsegg Group AB as Koenigsegg prepares to bid on General Motors Co.'s Saab unit. Mr. Wang says that his company's indirect investment in Saab would boost Saab's sales in China, give Beijing Automotive access to Saab's auto technology, and position both companies for future international expansion.

Toyota Motor Corp.'s June sales in China rose 33% from a year earlier to 56,571 vehicles; first-half sales remained unchanged from last year at 284,000 units. Toyota says it may exceed last year's sales in China of 585,000 vehicles.

Byline: NORIHIKO SHIROUZU; WSJ AUTO MAKING BEIJING -- Beijing Automotive Industry Holding Co. held discussions this week with General Motors Corp. about the possibility of buying Adam Opel GmbH if [...]

General Motors Corp. announced plans to sell its Hummer Div. to Chinese manufacturer Tengzhong Heavy Industrial Machinery Co. for an undisclosed amount estimated at between $200 million and $300 million, but the transaction will need to be approved by three different Chinese government agencies before it can proceed.

Volkswagen AG (VW) is considering forming an alliance with China's BYD Co. to supply VW with lithium-ion batteries for hybrid and electric cars. BYD has explored similar joint ventures with Ford Motor Co., and other European car makers.

To pay suppliers and dealers before its June bankruptcy-restructuring deadline, General Motors Corp. will receive an additional $4 billion in funding from the U.S. federal government. GM also reached an agreement with labor union Canadian Auto Workers to freeze wages and reduce employee benefits in an effort to reduce costs before bankruptcy filing, which is expected as early as next week.

CONSUMER DEMAND China's shift to small cars catches Toyota flat-footed BEIJING -- Toyota Motor Corp. TM-N has hit a pothole in China, where its failure to anticipate booming demand for [...]

AUTO INDUSTRY Bidders jostle to redraw global automotive map Foreign bidders are lining up to pick off parts of General Motors Corp. GM-N as the contraction of the U.S. auto [...]

Chinese car maker BYD Co. is negotiating to provide automotive lithium-ion batteries to electric car manufacturers in Europe and the U.S. Last year, BYD received a $230-million investment from a company controlled by entrepreneur Warren Buffett.

Through international acquisitions, China's Geely Automobile Holdings Ltd. hopes to gain access to technologies and sales networks in other countries, while avoiding trade restrictions it might face as a foreign manufacturer. Geely has been named as a possible bidder for Ford Motor Co.'s Volvo brand.

China's Geely Holding Group is expected to bid for Ford Motor Co.'s Volvo unit in a bold move to expand internationally during recession. If successful, Geely would maintain Volvo as an international brand and not focus it on the Chinese market. Volvo's full-year sales in 2008 dropped 32% in the U.S., and the company posted a fourth-quarter operating loss of $736 million.

Byline: NORIHIKO SHIROUZU; WALL STREET JOURNAL STAFF BEIJING -- Geely Holding Group is likely to submit a bid to acquire Ford Motor Co.'s Volvo brand, people familiar with the situation [...]

In an effort to raise cash and streamline its operations, Ford Motor Co. will forge ahead with plans to sell its Volvo automotive brand. Several Chinese parties are expected to enter the bidding process. Volvo posted a third-quarter pre-tax loss of $458 million and may seek emergency funding from the Swedish government.

Byline: NORIHIKO SHIROUZU; WALL STREET JOURNAL STAFF Toyota Motor Corp.'s senior board members selected as its next president Akio Toyoda, grandson of the company's founder, people familiar with the matter [...]

In July 2007, Chrysler L.L.C. formed a joint venture with Chinese firm Chery Automobile Co. to develop a line of small automobiles for sale around the world. Automobiles were to be manufactured in Chery's facilities in China, and sold globally under Chrysler's Dodge brand. Chrysler and Chery have jointly decided to not pursue the joint venture. It is speculated that Chery's automotive platform did not meet U.S. and European safety and emissions standards.

In a move to capitalize on growing demand for low-cost vehicles and consolidate its position in China, General Motors Corp. is holding negotiations with the Chinese province of Guangxi to increase GM's 34% stake in joint venture SAIC GM Wuling Automobile Co. It is speculated that GM would buy an approximate 26% interest from state-owned Liuzhou Wuling Motors Co. Shanghai Automotive owns the other 50.1% of SAIC GM Wuling.

To counter a drop in truck sales, Toyota Motor Corp. announces it will decrease capacity by temporarily closing two truck-manufacturing facilities in the U.S., and better utilize its workforce by shifting production of automobile Prius from Japan to the U.S. The 4,400 employees affected by the plant closures will not be laid off but will undergo further productivity and safety training.

New labor deals and a devaluated dollar have made U.S. automotive manufacturers more competitive on the international market. Article discusses auto companies' export plans and expected international sales.

Toyota Motor Corp. reports a 10% drop in U.S. sales in March. Article discusses the effects of high fuel prices and limited auto financing on automobile sales, unit sales statistics by automotive manufacturer, and prospects for the industry's recovery.

German automobile manufacturer Daimler AG will be introducing a hybrid car in 2009 that will be powered by a lithium ion battery. US-based General Motors Corp. is also expected to announce an advancement in its hybrid powertrain vehicles using lithium ion batteries.