Market-leader General Motors Co. says it and its partners have sold more than 1.5 million vehicles in China through last Tuesday. The partners sold a record 1.3 million units in China in all of 2008.

GM sold 166,900 vehicles in China in October, twice the volume it recorded for the same month a year earlier. Year-over-year sales through October were up 60%, falling about 40,000 vehicles short of 1.5 million units.

In the first 10 months, SAIC-GM-Wuling, GM’s mini-commercial vehicle joint venture, reported sales of 891,300 units in China-two-thirds higher than in the same period last year.

Sales gains at Shanghai GM, which markets the Buick Regal, LaCrosse and Excelle and the Chevrolet Cruze and Lova, rose nearly 47% through October to 548,700 units. FAW-GM Light Duty Commercial Vehicle Co. Ltd. has sold nearly 17,500 units since its formation in August

After creditors last week rejected a turnaround plan by SsangYong Motor Co., a court in Seoul has given the bankrupt South Korean OEM until mid-December to submit a new proposal.

Under the failed plan, SsangYong was to have converted about $332 million of debt into equity. In addition, Shanghai Automotive Industry Corp.’s ownership was to have been reduced to 11.2% from its current 51% stake.

Already South Korea’s smallest OEM, SsangYong has laid off 30% of its workforce this year. The company hasn’t earned a quarterly profit in nearly two years.

The Seoul Central District Prosecutors’ office indicted seven SsangYong Motor Co. engineers last week on charges they shared technology secrets related to hybrid control units with majority owner Shanghai Automotive Industry Corp. three years ago.

SsangYong received funds from the Korean government to help develop the technology. The case against the engineers says the company failed to obtain required government approval to provide SAIC with the information.

The SsangYong engineers reportedly didn’t receive any compensation from SAIC for the information but were “persuaded” to divulge the information. There are no plans to bring charges against SAIC, which acquired a controlling interest in SsangYong in 2005. Critics suggest SAIC was only after SsangYong’s technology and never had long-term plans for the company.

BMW AG and its Brilliance China Automotive Holding Ltd. partner in China plan to invest a combined $730 million-split evenly-to expand production at an existing facility in the northeastern city of Shenyang and build a second plant.

When completed, the two projects will increase BMW’s annual capacity in the market from just 41,000 vehicles today to about 100,000 per year by 2012. Output at the new facility could eventually grow to 300,000 units per year, according to Bloomberg News. Other media reports indicate that the partners also plan to open an engine plant in China.

BMW and Brilliance have produced about 150,000 3 and 5 Series sedans at Shenyang since forming their venture in 2003. BMW Group sales in China were 72,000 cars, up about 37%, from January through October this year.

The new factory will assemble a long-wheelbase version of the 5 Series designed specifically for Chinese buyers, who typically are chauffeur-driven.

Separately, BMW CFO Friedrich Eichiner denies that BMW is looking for a new partner in China to make its top-end 7 Series. There have been rumors recently that have named SAIC Motor Co. as a likely candidate for such a project.

Renault-Nissan CEO Carlos Ghosn is urging China to subsidize the sale of electric vehicles with $7,500 incentives for consumers similar to those offered in France, Japan and the U.S.

The outspoken executive notes that EVs will have limited mass-market appeal unless governments help drive sales by helping to offset their high costs. He made the comments last week during a visit to China to discuss Nissan’s plan to introduce its Leaf EV there. The five-passenger hatchback goes on sale in the U.S. and Japan next year and globally in 2012.

Mitsubishi Motors Corp.’s global sales fell 26% to 445,000 units from April through September. But they dropped only 18% in Asia outside Japan-a market that currently accounts for 51% of the company’s total volume.

By comparison, year-over-year sales plunged 44% in Europe and 35% in North America. MMC’s sales in Japan slipped 8% to 77,000 units for the period.

The company is sticking to its previous forecast of selling 932,000 vehicles through the full fiscal year ending next March 31, down 13% from fiscal 2008. Emerging markets are expected to continue to account for more than half the overall volume.

To help spur sales, MMC has begun rolling out its flagship Lancer EX sedan in Asia, two years after it was launched in Japan as the Galant Fortis. In the past, The Nikkei notes, the company would have waited until the end of a vehicle’s lifecycle before launching it in emerging markets. But the company has recently begun assembling the vehicle in Thailand and China, and plans to do so in the Philippines early next year.

In Australia, meanwhile, MMC plans to launch a new compact SUV in December. A facelifted version of the Outlander SUV also was recently launched in Asia Pacific.

Japan’s Fujikura Kasei Co. is building its third automotive coatings facility in China. Located in Shanghai, the greenfield site is expected to be fully operational by January 2011 and achieve annual sales of $22 million by about 2015. The plant will be supported by a new technology center in Shanghai.

Fujikura, which claims about half of the market for automotive coating materials in Japan, will co-own the new China plant with domestic paint maker Shanghai Coatings Co. and local trading company Kyokuto Boeki Kaisha Ltd. The latter two partners will hold 30% stakes each, with Fujikura controlling a 40% share. Its president, Joji Washino, will head the new company, which will be capitalized at $6.4 million.

The Shanghai plant will be capable of producing 1,100 metric tons of polypropylene and other resin-based coatings annually, thus doubling Fujikura’s output in China to 2,200 lbs per year. The supplier’s other Chinese facilities are located in Tianjin and Foshan.

Mazda Motor Corp. will start shipping its Mazda2 subcompact to Australia from its first factory in Thailand next year. The Thai-built vehicles will displace exports sent from Japan-where the car is known as the Demio-to help speed shipments and lower costs.

Mazda expects demand for fuel-efficient cars such as its 1.3-liter Mazda2 to increase in Australia in coming years. Last year, Mazda sold 80,000 vehicles in the market.

Located in the central province of Rayong, the new Thai facility is part of Mazda’s AutoAlliance venture with Ford Motor Co. The plant, which was launched last month, has an annual capacity of 100,000 vehicles that is allocated evenly between the partners. The Thai-built Mazda2s also will be sold in Indonesia, Malaysia and the Philippines.

In a bid to tap into China’s growing middle class, Mazda Motor Corp. plans to add minivans and SUVs to its vehicle lineup there next year. The company currently builds small cars in China through its joint venture with Ford Motor Co. and Chongqing Changan Automobile. It sold 185,000 vehicles in the country in the most recent fiscal year, up nearly 38% from the previous year.

FAW Group Corp. will build Mazda’s MPV minivan at its plant in Changchun. The facility is in the process of doubling its capacity to 200,000 units per year. Mazda exported the MPV to Hong Kong last year but not mainland China.

Meanwhile, the Mazda plans to export the CX-7 crossover SUV to China from its plant in Hiroshima. Currently, the vehicle is primarily sold in Europe, Australia and the U.S.

Alliance partners Nissan Motor Co. and Renault SA say they will launch the first phase of their new assembly plant in Chennai, India, next May. But Renault reiterates that it will not invest in the facility until the car market revives.

Initially, the Chennai facility will have the capacity to build 200,000 vehicles per year. When Renault antes up its share of the investment, capacity will double to 400,000 per year.

Most of next year’s output will be allocated for Nissan’s Micra small sedan. About 110,000 of the cars are due to be shipped to Europe. Nissan says moving production of the Micra from the U.K. to India will reduce overall costs, including transporting the vehicles back to Europe. The company also plans to build the Micra in Thailand, China and two other unidentified countries.

Renault has struggled in India. Sales of the low-cost Logan sedan, which it builds and markets there in partnership with Mahindra & Mahindra Ltd. haven’t matched the vehicle’s success elsewhere. As a result, M&M is urging Renault to modify the car to better suit Indian tastes.

To keep pace with rising sales in emerging markets, Nissan Motor Co. plans to open quality-control centers in China and India, The Nikkei reports.

Similar to existing quality centers in Japan, Europe and the U.S., the new Nissan facilities will disassemble problem vehicles to determine the root cause of reported problems. Quality teams will coordinate their efforts with manufacturing engineers and responsible suppliers.

The center in China, set to open next month, will be located within the Japanese automaker’s Dongfeng Nissan Passenger Vehicle Co. joint venture complex in Guangzhou. It will be staffed initially by 20 technicians.

The India facility will be adjacent to the new vehicle assembly plant Nissan is opening in Chennai with partner Renault SA. The quality center will open along with the assembly plant next spring.

Honda Motor Co. says it sold 50,700 vehicles in China last month, up from 35,700 units a year earlier. Year-over-year sales in China through October were up 17% to about 460,000 units, pushed by demand for the City small car made by Honda and Guangzhou Automobile Group Co.

Carlos Ghosn, CEO of Nissan and Renault, says the two companies have reached an agreement with Bajaj Auto Ltd. to introduce an ultra-low-cost minicar in India by 2012.

The ambitious project aims to undercut the production costs of Tata Motors Ltd.’s $2,500 Nano. But the partners stop short of saying their vehicle would beat the Nano’s barebones base price.

Ghosn says the vehicle, which will be built by Bajaj and sold internationally, also will be more fuel efficient than the Nano. The French and Japanese companies will handle marketing and distribution in export markets. The Bajaj partnership was announced two years ago, but Renault had been squabbling with the Indian company about design, branding and other technical specifications.

Even before the collapse of Lehman Brothers helped usher in the global recession, a growing chorus of analysts was concerned about structural problems in the auto supply base that included high costs, debt levels and overcapacity.

Not every company saw a crisis coming, and none expected such a rapid and steep decline in sales, which is why dozens haven’t survived. But a few, including TI Automotive, faced up to their issues and began restructuring well before the collapse. As a result, TI Automotive is exceptionally well positioned as global auto sales start to recover.

William Kozyra, who became chairman, president and CEO on June 1, 2008, has led the re-invention of TI Automotive. In this exclusive interview with AutoBeat Daily, he describes the company’s strategy.

What was TI Automotive’s condition when you arrived?

BK: At a high level, I found a vertically integrated, global provider of fluid storage, fluid delivery and fluid carrying systems with sales of about $2.5 billion and good relationships with many of the world’s major automakers.

The company had good technology and was well positioned to help automakers improve fuel economy and reduce greenhouse gas emissions. But it was highly leveraged with significant debt and high capital expenditures. Even in good times, the owners and I recognized this was not a robust platform. As the global automotive market started to weaken, it was apparent that we would need to change.

What did you do?

BK: First, we addressed the immediate needs of our North American business, which meant aggressive cost cutting. We reduced salaried jobs, implemented a temporary pay reduction in the U.S. and Canada, reduced other fixed costs and cut capital spending.

As we grew more concerned that the decline would spread to other parts of the world, our global senior management team developed a strategy to cut costs across all regions, and it started with our senior global management team taking temporary pay reductions.

What did the employees think?

BK: From the very beginning, we stepped up our communications to help explain the reasons behind our initiatives, and we were very candid regarding specific details about the state of the company. I think it helped build confidence in our plan, and our employees continue to be very supportive.

In fact, after top management took a voluntary pay reduction, several employees down the chain took voluntary pay reductions of their own in support of the company.

I also received very positive feedback on the fact that we were working together across the two business streams we had at the time, which is something that rarely happened in the past. This solidified my view that we needed to start operating as “One TI.”

What did you do about the organizational structure?

BK: With the structure we had in place, we weren’t efficiently leveraging our technology and scale and delivering the resulting value to customers. That led us to create five global divisions that are backed by senior executive customer champions and key account managers whose job is to drive our internal processes to deliver exceptional quality and service to our customers. Other changes included establishing a cross-divisional advanced technology group. With this structure, each division is sharply focused but still part of a unified TI Automotive culture.

Where are you in the process of reinventing TI?

BK: One of the final steps is the formal approval of our balance sheet restructuring, which we negotiated using a process called a “scheme of arrangement.” This is a process that U.K.-registered limited companies like ours can use to restructure their balance sheets. In our case, our lenders agreed to reduce 90% of our debt in exchange for equity, which will give us a much stronger, more stable balance sheet and position us for profitable growth. Beyond making our balance sheet stronger, it doesn’t directly impact our customers, employees or suppliers.

What happens next?

BK: We filed the plan on Nov. 10, and we expect to have U.K. court approval by year-end. That means we will enter 2010 with an exceptionally healthy balance sheet, a sharper focus on technology and a strong emphasis on customer service. I’m very confident it will be a good year for TI Automotive.