China has reversed a policy that would have nixed incentives for investments from foreign automakers, paving the way for further expansion by General Motors, Volkswagen and others. Legislators had removed automotive manufacturing from the list of industries that would receive government support in the future, but foreign investment fell off significantly in April. The country's National Development and Reform Commission responded by not only reinstating foreign automotive investment but by givin
The Chinese government has released new regulations for vehicle recalls. According to Automotive News China, starting next year, automakers who fail to recall vehicles in a timely manner can expect to face fines between $80,000 and $160,000. That may be a small sum for an automaker, but the new regulations also allow the government to levy a fine of between one- to ten-percent of the total sales value of the recalled units.
A black, Chinese-market Audi A6L is practically the poster-child for Communist Party officials who demand extra legroom rear legroom in a stretched version of standard sedan. The Chinese government reportedly spends 80 million renminbi ($12.7 million U.S.) per year on wheels for its bureaucrats, but according to a report in China Car Times the new list of approved cars available to officials is limited to Chinese models. That not only excludes the Audi – which is built in the country &ndas
The exponential growth of China's auto market has left many automakers licking their lips at the thought of rampant profit. Recent years have seen the country's government spur foreign investment with various incentives, including reduced tariffs on imported manufacturing machinery. According to Automotive News, that's all about to stop. China has said it will cease encouraging foreign investment in a move designed to promote natural growth in the sector. The country saw automotive growth drop t
Currently, there are 130 different automakers existing in China, and in an effort to create stronger companies, the Chinese government will be releasing plans to encourage mergers and buyouts between the different manufacturers. These new guidelines, drawn up by the Chinese Ministry of Industry and Information Technology, is said to prohibit automakers from building new plants unless they acquire another existing manufacturer first.
According to a report from Bloomberg, state-owned Chinese news agency Shanghai Securities News is predicting that it is unlikely the Chinese government will approve the purchase of Hummer from General Motors by Sichuan Tengzhong Heavy Industrial Machinery Co. Why? Apparently, China actually wants to reduce the number of automakers operating within its borders and favors keeping manufacturers with an eye towards fuel efficiency. Of all the labels people have put on the Hummer brand, fuel efficien