Mercedes, BMW and Audi of China Investigated for Using…Asphalt as Sound Deadener

We had honestly not heard of asphalt (normally used to pave roads) being utilized as a sound deadening material, let alone by luxury automakers. However, the Administrative Center for Defective Products of China (DPAC) has announced that it will be launching an investigation into the use of the material by Audi, Mercedes-Benz and BMW.

It's actually not the manufacturers directly, but rather their Chinese joint-ventures (Beijing-Benz, Brilliance-BMW and FAW-VW).

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GM Posts All Time Record July Sales in China, up 11.7 Percent from the Beginning of 2012

It's been a good sales month in China for General Motors and its 12 joint ventures in the country as the Detroit-based company set an all-time record high of 199,503 deliveries in July, up 15.1 percent over the same month last year.

In particular, the Shanghai GM joint venture posted sales of 97,064 units (+5.7%), SAIC-GM-Wuling 98,694 units (+26.6%) and FAW-GM 3,379 vehicles (+3.1 percent).

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VW Investigating its Chinese Partner FAW for Stealing Designs and Illegally Producing Parts!

Chinese carmakers and parts manufacturers stealing designs of components or even entire vehicles from Western automakers is nothing new, but we rarely see these issues coming out in the open when they happen. And if you are wondering why, it is because foreign companies don't want to disrupt their business in the country.

However, on Friday, German business daily Handelsblatt reported that the Volkswagen Group is investigating allegations that its Chinese manufacturing partner FAW Group Corp. illegally copied and manufactured transmissions, engines and other components owned by VW.

A Volkswagen spokesman in Germany was quoted by the Wall Street Journal saying that the company "was examining the situation carefully before coming to any conclusions".

It was reported that VW managers recently uncovered FAW's plans to copy the German automaker's MQ200 transmission found in several Audi, Skoda and VW models and use it on the Besturn B50 small sedan, to be sold in Russia where it will compete against similar models from VW and Skoda.

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Hongqi Debuts Flagship L7 and H7 Sedans at the Beijing Auto Show as FAW Re-Launches the Brand

No Chinese auto show is complete without a reference to Hongqi (Red Flag), one of the oldest nameplates in the country and at one time, the only brand for the domestic political elite.

At the Auto China 2012 in Beijing, Hongqi presented two new models, the flagship L7 showcar and the production ready H7 sedan, while its parent company First Automobile Works (FAW) laid out a new five-year investment plan for the brand.

The most impressive model at Hongqi's stand is without doubt the L7, a throwback to the days of the Cold War when the company produced China's state limousines.

As with Hongqi's previous flagship limousine concept, the HQD from 2005, there's a V12 engine located behind the brazen 1950's style front end. The 6.0-liter mill is said to produce a little over 400-horses.

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