By on June 22, 2011

Nearly two months ago, American senators complained that China is continuing its “long history of breaking international trade rules” and that there is a “trade barrier that is designed to prevent U.S. automakers from accessing the Chinese market” for electric vehicles.

As Ed Niedermeyer said it back when, there were no new rules. There still aren’t any. If there is one man who should be up to date on rules on electric vehicles around the world and especially in China, then it’s Carlos Ghosn. After all, he did bet the future of two companies, Renault and Nissan on the future of the EV. Also, Nissan is the largest Japanese brand in China, and Nissan’s joint venture partner is Dongfeng, a company owned by China’s central government. So he should know what the rules are.

The trouble is: Carlos Ghosn has no idea. This is what he said today:

“China still did not officialize their policy on electric cars. The official policy has not been made official yet. Obviously we will launch an electric car in China. But before launching it we want to know: What are the rules?”

“Will China give incentives to the consumer? It seems like the answer is going to be yes. Who will be benefiting from the incentives? Do you have to be a Chinese brand in order to benefit? Under what conditions will you be able to produce batteries in China? Does the 50:50 rule apply to batteries? Does it apply to the new technology we will be bringing?”

“There are a lot of questions that still are not officially answered. We have some hints. But the stakes are so big that you cannot afford massive investments without knowing exactly what the rules are.”

“This will hopefully happen around summer this year. We have the intention to go with the electric car and the new technology to China, because the Chinese believe in the electric car, they need zero emission, and every single sign they are giving is that they are going to support it heavily.”

There is something that Ghosn knows, and it’s that the  Chinese market is still growing:

“During the month of May, the sales of passenger cars continued to grow in China. And I can tell you even in the month of June we see the sales of passenger vehicles continue to grow. Commercial vehicles are going down for a very simple reason: There were a lot of incentives on the table. When you stop the incentives, obviously you will drive the market down.”

TTAC readers have known this for a while.

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4 Comments on “Ghosn To China: Give Us Your Rules, And We’ll Give You Our EV...”


  • avatar
    Trend-Shifter

    Ghosn is correct to have concerns of unknown rules. See the following information from a Chinese State paper:

    Extract from “China Daily” p14 – Business international – issue Thursday June 2nd 2011

    “The national guidelines on auto parts JV for new energy vehicles released in April have sparked heated discussions over the pros and cons of the proposed policy.
    The National Development and Reform Commission (NDRC) released a draft Catalogue for Guiding Foreign Investment in Industry, which has been thrown open for comments. The draft indicates that foreign investors will be limited to a maximum of 50% stake in JV producing key components for new-energy vehicles.

    China has a 50-50 rule for auto manufacturing joint ventures, but the proposals are the first time such an investment cap has been imposed on auto-part companies.

    Many foreign auto-parts manufacturers that have set up wholly owned companies in China or hold a majority share in domestic JV, have expressed concern over the regulation.

    According to the draft, the phrase “key components” cover everything, from batteries to control systems, which means a host of components makers involved in new-energy vehicle technologies will be affected….

  • avatar
    Trend-Shifter

    Another thing… China still have not set the charging plug interface standard for EV’s.

  • avatar
    Steven02

    China does currently tax all imported vehicles @ 25%.

    But, if you want to see WTO violations, just google WTO rules against China.

  • avatar
    rentonben

    If China still maintains it 50/50 rule, we should do the same – It would be amusing to see the Chicoms forced to build lead-based-toy factories here in America and have hire some our city winos to staff it.


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