GM to get boost from China's fuel-efficient vehicle incentives

If you recall, China recently introduced a $442 (U.S. at the current exchange rate) subsidy for fuel-efficient, gasoline-powered vehicles. While China's introduction of the new incentive was meant to spur sales for its domestic automakers, it appears as though U.S.-based General Motors will reap the biggest rewards even though details of the plan remain murky and have even confused automakers. A spokesperson for Chang'an told Edmunds that it's unclear, "whether the subsidies would be given in terms of production, capacity or sales."

Here's what we've learned so far: China's incentive only applies to vehicles motivated by engines with 1.6 liters of displacement or less. Since few Chinese automakers produce efficient vehicles that fit those guidelines, the nation's hopes of significantly boosting domestic sales may be busted. Automotive News reports that, of the first 30 models to attain full government approval for the incentive, only 14 hail from Chinese automakers. For individual automakers, General Motors comes out on top with six models – the Buick Regal, Chevrolet Cruze, Aveo, Lova, New Sail and Spark – that qualify for the newly-introduced incentive. Given its dominance of this list, GM is likely to see increased sales as buyers jump on the chance to save both fuel and some coin.

Photos by Michael Harley / Copyright ©2010 Weblogs, Inc.

[Source: Automotive News – sub. req.]