Forbidden City: Not From Beijing? Get Outta Town!

Bertel Schmitt
by Bertel Schmitt

Want to belong to a really exclusive club? Own a car in Beijing. Don’t have one yet? Sorry, try your luck in the license plate lottery. Out-of–towner? Don’t even think of entering downtown during rush-hour. “Vehicles that are not registered in Beijing are prohibited from entering the urban area inside the Fifth Ring Road during the two daily rush hours,” reports China Daily. Even during off-peak hours, Beijing’s capital is full of surprises for outsiders.

Beijing police has started handing out 100 Yuan ($15) fines to country folk that ignores the rush hour rule. $15 lighter, and with a warning notice in their hand, they are being turned around and sent back to the farm. The only way to get around it is with a special, and highly prized permit.

Even off-peak times can be a matter of high suspense: The “leave your car at home on one day of the week” rule now applies to out-of towners also. It depends on the last number of the license plate, and rules keep changing often enough to confuse even the most sophisticated Beijinger. Breaking that rule costs 300 yuan ($45).

The new rules jump-started a business that had been languishing in China: Car rentals. “Car rental agencies have been enjoying a boom in business ever since new restrictions made it harder for people to buy an automobile in the capital,” reports China Daily.

Another market is in a total state of confusion: Used cars. If you already own a car, you don’t need to enter the lottery if you get another one. That looked like a great loophole, and used cars turned into a prized possession. Then, word got around that the plates are not transferrable, and used car prices plummeted. Now, the market is in limbo and waits for new regulations to be handed down.

“The license plate lottery may benefit from some tweaks,” said China Daily yesterday. Beijing’s administration is taking the admonition to heart – and tweaks the system daily.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Joeaverage Joeaverage on Jan 11, 2011

    They were doing something similar 20 years ago in Naples, Italy when I lived there.

  • James Zu James Zu on Jan 17, 2011

    when I saw that Buick Minivan I was shocked. never seen one before here in Canada. They have the same rule in Shanghai, doesnt seem to help at all. too many cars + bunch of people who doesnt know how to drive + more who doesnt follow the rules = one traffic nightmare.

  • Redapple2 Love the wheels
  • Redapple2 Good luck to them. They used to make great cars. 510. 240Z, Sentra SE-R. Maxima. Frontier.
  • Joe65688619 Under Ghosn they went through the same short-term bottom-line thinking that GM did in the 80s/90s, and they have not recovered say, to their heyday in the 50s and 60s in terms of market share and innovation. Poor design decisions (a CVT in their front-wheel drive "4-Door Sports Car", model overlap in a poorly performing segment (they never needed the Altima AND the Maxima...what they needed was one vehicle with different drivetrain, including hybrid, to compete with the Accord/Camry, and decontenting their vehicles: My 2012 QX56 (I know, not a Nissan, but the same holds for the Armada) had power rear windows in the cargo area that could vent, a glass hatch on the back door that could be opened separate from the whole liftgate (in such a tall vehicle, kinda essential if you have it in a garage and want to load the trunk without having to open the garage door to make room for the lift gate), a nice driver's side folding armrest, and a few other quality-of-life details absent from my 2018 QX80. In a competitive market this attention to detai is can be the differentiator that sell cars. Now they are caught in the middle of the market, competing more with Hyundai and Kia and selling discounted vehicles near the same price points, but losing money on them. They invested also invested a lot in niche platforms. The Leaf was one of the first full EVs, but never really evolved. They misjudged the market - luxury EVs are selling, small budget models not so much. Variable compression engines offering little in terms of real-world power or tech, let a lot of complexity that is leading to higher failure rates. Aside from the Z and GT-R (low volume models), not much forced induction (whether your a fan or not, look at what Honda did with the CR-V and Acura RDX - same chassis, slap a turbo on it, make it nicer inside, and now you can sell it as a semi-premium brand with higher markup). That said, I do believe they retain the technical and engineering capability to do far better. About time management realized they need to make smarter investments and understand their markets better.
  • Kwik_Shift_Pro4X Off-road fluff on vehicles that should not be off road needs to die.
  • Kwik_Shift_Pro4X Saw this posted on social media; “Just bought a 2023 Tundra with the 14" screen. Let my son borrow it for the afternoon, he connected his phone to listen to his iTunes.The next day my insurance company raised my rates and added my son to my policy. The email said that a private company showed that my son drove the vehicle. He already had his own vehicle that he was insuring.My insurance company demanded he give all his insurance info and some private info for proof. He declined for privacy reasons and my insurance cancelled my policy.These new vehicles with their tech are on condition that we give up our privacy to enter their world. It's not worth it people.”
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