Beijing has been taking real steps to reduce its pollution after last year's Olympic Games brought the issue to a very public stage. There are already some rather complicated rules that drivers need to follow and, starting this year, cars will be required to carry a "yellow label" if they don't meet Euro I emissions standards. These standards were first adopted in China back in 1992. Cars that carry these labels will be banned from certain roadways in the city for at least one day per week. Fortunately, owners of such vehicles will soon be eligible for a subsidy that will offer as much as 25,000 yuan ($3,660) to replace the old vehicle with a new and cleaner model. If drivers fail to follow these orders, they face a fine of about $15. Currently, there are over 350,000 vehicles that are so labeled, so this isn't a problem that will be going away any time soon.

[Source: Examiner.com]

One of the most well-known Chinese clones, the Chery QQ3, has been often been the target of retirement rumors. However, just like practically everywhere else, the Chinese auto market is getting help from the government, help that might help the QQ3 survive. One of the measures the Chinese government is applying is a tax reduction on certain vehicle niches, including vehicles mated to sequential gearboxes. Well, for the Chinese New Year, Chery is launching a new QQ3 model that, hey, uses a sequential gearbox. Mated to either a 0.8-liter or 1.1-liter engine, the gearbox manages to save 0.2 to 0.8 liters per 100 km. With the tax benefit, the prices for these QQ3 models have dropped 3,000 and 4,200 Yuan below the manual versions, respectively.


[Source: Sohu via Le Blog Auto]

Small Chinese automakers have developed the nasty habit of cloning the design and styling of successful European automobiles and placing that bodywork atop vastly inferior hardware. Although it doesn't seem right, there may be little that automakers like BMW and Daimler can do about it. Evidence of such can be seen in recent court cases, one of which was lost by a certain Bavarian automaker that sued to stop the European importation of a Chinese SUV with an eerie similarity to its own X5. Now that BMW has lost that case, Daimler's lawyers have reportedly attempted to settle the case with Martin Motors, which is the European importer for the Shuanghuan Bubble. That diminutive machine looks a great deal like the smart fortwo, but it may still go on sale in Europe sometime this month.

Currently, the Bubble is not allowed to be sold in Europe and the first few machines that were imported were detained in customs. If Daimler were to lose the lawsuit, it may be liable for damages to Martin Motors. Sure, it seems odd to us, but apparently the price - and likely quality - of the Bubble is so low that lawmakers believe there's no conflict, regardless of the value of intellectual property.

[Source: Automotive News - sub. req'd]

Hydrogen fuel cells have a lot to recommend them. Fuel cells consume air and hydrogen and produce nothing but water and electricity. They provide a mechanism to get an electric vehicle with the type of range that drivers have come to expect along with the rapid re-fueling they are used too. Unfortunately, they have some serious drawbacks, namely the problem of distributing and storing the hydrogen as well as the high cost of the fuel cells themselves. A major factor in the cost is the need for precious metal catalysts to trigger the reaction that causes the electrons to be stripped off the hydrogen atoms.

The precious metals are needed because of their ability to survive the acidic environment created by the presence of ionic hydrogen. Lin Zhuang of Wuhan University in China has developed a different fuel cell using a nickel catalyst on the anode. This catalyst triggers the generation of hydroxyl (OH) ions which are alkaline. Unfortunately, the current polymer membranes can't conduct these hydroxyl ions so the Chinese researchers developed a new membrane material that can pass these ions. The team also added chromium to the nickel to help prevent oxidation of the catalyst. So far, the power outputs being achieved are low but this is definitely a research path that has some potential for reducing the cost of the cells. Thanks to Martin for the tip!

[Source: Technology Review]

The largest solar power generating station ever might soon be built could be installed at the Qaidam Basin in Northwestern China. China Technology Development Group is planning to build a 1 GW facility comprised of crystalline silicon and thin-film solar cells. The company and partner Qinghai New Energy Co. have gotten approval from local officials to build the new plant, which would be nearly double the size of the next largest example.

OptiSolar is building a 550 MW plant near San Luis Abispo, CA. The first 30 MW phase of the Chinese plant is scheduled to start construction early this year at a cost of $146 million. At this time there is now word on when the rest of the facility might be completed.

[Source: Earth2Tech]

The Chinese Government has created a National High Technology Research and Development Program, dubbed the "863 Program," and one of the first funding recipients is China BAK Battery Corp. China BAK will be getting a grant of up $3.1 million, initially, from the federal government and more from local governments. The money will be used to fund R&D and commercialization efforts on China BAK's lithium phosphate battery technology. The hope is to get manufacturing of high-power batteries for electric and hybrid vehicles going as soon as possible. The company is already one of the largest producers of lithium ion cells for electronics applications.

[Source: China BAK Battery Inc.]

Every major automaker glommed onto the Chinese market as its last best hope for growth when the previously-untapped market suddenly started buying cars. However, all of those operations are partnerships with local Chinese companies and those companies have been trying to learn the car business from the established players. Everyone's biggest fear has been that the Chinese would reach a point where they no longer needed the partnerships. In the last couple of decades, Chinese companies have taken over a significant portion of the world's manufacturing and automakers are terrified they will take over their business as well.

BYD is one of the more aggressive Chinese manufacturers. The company's plug-in hybrid, the F3DM, went on sale in China earlier this month and BYD had planned to introduce plug-in hybrid cars in Europe and the US in 2010. However, that plan has now been pushed back by at least a year. BYD has not explained why it has delayed exporting its hybrids. However, the serious decline of the automotive markets in Europe and the US may be a big part of the reason.

[Source: Reuters]

Ford is defying the global trend towards reduced sales with its European Fiesta, which was newly redesigned this year and has only been on the market for two months. In that brief period of time, the Blue Oval's EU operations have managed to move a rather remarkable 42,200 individual units, which accounts for 6.2 percent of the entire new car market in the UK. The only car that's selling better from the automaker's stable is the Focus. Even better for Ford, half of all Fiestas sold are loaded to the gills with options, thereby increasing profit margins.

As good as these early sales figures may be, things are actually set to improve as the new Fiesta hits China within the next few months and is scheduled to arrive in the United States in early 2010. Australia and New Zealand are also slated to get the global car in short order. Although the overall market is down, the Fiesta's impressive sales performance is definitely a bright spot and its entrance into Ford's home market can't come soon enough.


[Source: Ford]

The first mass-produced plug-in hybrid from a Chinese company, the F3DM from BYD, goes on sale today. You can get it in China for the equivalent of $20,000 today, or wait until 2011 and buy one here in the US. The F3DM (the DM stands for "dual mode") uses a ferrous battery and can go 60 miles in electric-only mode. BYD expects to sell 10,000 units next year.

That all sounds very good, but BYD is new to building cars - the company's first model, the F3, went on sale in 2003 - and faces a lot of hurdles for public acceptance, at least outside of China. BYD (Build Your Dreams) does make more rechargeable batteries for things like cell phones and laptops than anyone else and investor Warren Buffett spent $230 million for an almost 10 percent stake in BYD a few months ago. These are signs that the company's goal to be the world's largest automaker has at least a little something to stand on, but Honda, for one, remains unimpressed. We'll be sure to keep an eye out for BYD's main floor presence at the Detroit Auto Show in a few weeks. Until then, check out pictures from previous BYD booths in the galleries below.



[Source: LA Times via EVWorld]

China has decided to stimulate demand for alternative fuels with a standard financial measure: raising the fuel tax. The fuel tax on gasoline will climb from the equivalent of 13 cents a gallon to 64 cents, while the tax on diesel will rise from 6.5 cents a gallon to 51 cents. Ouch. While this measure will be partially offset by the current low oil prices, China has announced plans to keep fuel prices more directly tied to crude oil prices. The Chinese government believes that this measure, the perceived volatility in gas prices, will help citizens opt for more fuel-efficient cars, alternative fuels and fuel-saving technologies. The first changes to the gasoline price scheme were designed in 1994, but now is considered an ideal time to update them.

[Source: Gasgoo]

Any thoughts that Chrysler had of getting small cars through a joint venture with China's Chery Motors are now officially dead. The Detroit News has been told by Mike Manley, Chrysler EVP for international sales, that discussions between the two companies have concluded and the companies will pursue their own directions. The slackening Chinese market has meant that Chery has been losing significant amounts of money there and can't afford to invest in expansion to engineer and produce products for Chrysler elsewhere. Chrysler's hope had been to use the low cost of production in China to source small cars, but Chery is so far from producing products that would be able to pass US safety and emissions regulations that the cost would still have been prohibitive for Chrysler. For now it looks like Chrysler will be relying on Nissan and its Versa platform, at least in Central and South America. It's still not known if they will offer a variant of the Versa in the US.


[Source: Detroit News]

SAIC, China's largest home-market automaker, has just announced via a filing with the Shanghai Stock Exchange that it's entering into a joint venture to develop hybrid and electric vehicles. The project calls for a $300 million investment up-front, proving once again that green tech can be expensive. Technologies like electric vehicle transmissions and drivetrains will go through the research and development stages at the new company before going into production. SAIC is already partnered up with General Motors in China and has recently launched the Buick LaCrosse hybrid, its first locally-produced car with the fuel-saving technology. The Shanghai Buick uses the same GM Belt-Alternator Starter hybrid system (BAS) that we see in the US from the Chevy Malibu hybrid and Saturn Aura hybrid, cars that share the Buick's underpinnings. Environmental problems in China, especially regarding the air quality of its largest cities, have prompted the government to push for more fuel efficient vehicles.

[Source: Inside Line]

When one thinks of Michelin, the first thing that often pops up, after the Michelin Man of course, is tires. A tire's design can have a tremendous impact on any given car's performance, both in the traditional sense and for its fuel efficiency. To wit, all the best green cars come equipped with special low rolling resistance tires fitted as standard equipment. Michelin is looking to branch further out into the rolling bits of our future automobiles, and that includes the electric drivetrain. The French tire-maker rolled out its Active Wheel technology earlier this year at the Paris Motor Show on the Venturi Volage.

A total of eight motors are used by Michelin to control a standard automobile that's been equipped with its Active Wheel technology. With so much going on with the rolling stock, Michelin is looking to outside suppliers for help on the rest of the EV architecture and has therefore begun collaborating with CITIC Guoan Mengguli Corp. in China. Already, the two companies have a working prototype built atop a Lifan 520 sedan that can reach 87 mph and go for up to 81 miles before needing a recharge of its lithium ion batteries. The dynamic duo believes it can have the system ready for OEMs by the end of the year. We're not sure if that means in one month or at the end of '09, but we'll keep a close eye on the partnership for further details.

[Source: Automotive News - sub. req'd]

Although mocked by some competitors, BYD continues to shout about deployment of its alternative powertrains. As we mentioned recently, BYD has everything ready to produce and sell all-electric and plug-in versions of the F3 sedan. According to Gasgoo, this was confirmed by the Chinese Ministry of Industry and Information Technologies. The vehicle's specifications remain unchanged: 109 km (about 70 miles) of all-electric range thanks to its lithium-ion iron phosphate batteries that are mated to a 1.0-liter gas engine. BYD claims that the two powertrains produce 300 lb-feet of torque when working altogether. About a dozen Chinese cities, notably Shanghai and Beijing, will be the first to have the F3DM available for sale.

[Source: Gasgoo]

Things are looking up for Chinese automakers at the Detroit Auto Show this January, literally. Once relegated to the dark trenches of Cobo Hall's basement, the recent departure of so many Auto Show stalwarts has opened up enough room in the main auditorium that automakers like BYD now get to share floor space with the big guns of the auto industry. Now, we just hope the newcomers don't screw it up by showing off less than competitive vehicles. Of course, if you are Honda CEO Takeo Fukui, nothing BYD brings to display will be good enough.

BYD in particular has a few interesting models from which to choose from, including a couple of brand-new hybrids, but the model we'd most like to see in Detroit would be the BYD e6, which is fully electric and was just recently shown at the Beijing Motor Show. We would also love to see what it's got under the hood, which remained shut the entire time it was first shown. BYD and Brilliance: Now's your chance to shine, better take advantage.

[Source: Automotive News, sub. req'd]