Chinese Government Fools Autoblog, Autoguide, Leftlane News, And Sundry Others

Bertel Schmitt
by Bertel Schmitt

From London’s Telegraph to Fox News, from Autoblog to Autoguide, the story this week is that the Chinese will turn against foreign carmakers by mandating that the Chinese government only buys Chinese cars. Why was TTAC not writing it? I learned to ignore that story. I have lived in China since 2005, and just about every year, there was an announcement that the Chinese government will from now on only buy Chinese. It never happened. Despite the annual announcements, foreign brands still account for 80 percent of the Chinese government motor pool. But maybe it’s different this time?

If you read the press and the blogs, it seems so: “China bans foreign cars from government fleet” headlines Leftlane News. In the story, they write that “the Ministry of Industry and Information Technology has just released a list of the 412 cars that can be purchased by state and local governments. For the first time in the country’s recent history, every single car that is present on the list is Chinese.”

Leftlane News, along with the other breathless and superficially informed outlets have their facts wrong. Sure, there is a list. Sure, there are only Chinese cars on it. But no, this list means absolutely nothing. The list, published on a Chinese government website, says in big (Chinese) letters: DRAFT. The list is out there (allegedly) for public consultation. People can voice their opinion (deadline March 9,) and then the Chinese government will do as it may please. The Chinese government will have fooled the western media and the Chinese population, again.

Will the Chinese government legislate away the long version of the Audi A6, which (along with a white license plate) is a sign that here comes a government honcho? I don’t think so. One of the few papers that are likewise skeptical is the Wall Street Journal. It writes:

“It won’t be that simple. The new list is at the consultation stage. Even if it comes into effect, implementation will be difficult. A move last year to restrict mid-level government officials to buy smaller, cheaper cars appears to have had little impact on sales. Dealers say officials evade restrictions and get the car of their choice anyway. The new list is good public relations for a government keen to show it is cracking down on abuse of public funds. But it will be a while before China’s citizens can hope to spy officials behind the black tinted windows of a domestic brand car.

Apart from the brand cachet, there is one part of the Chinese car business that is often forgotten: Chinese joint ventures with foreign carmakers mostly are with government-owned entities. If the Chinese government buys an Audi, a Buick, a Nissan, a Mercedes, a Volkswagen, it does business with an entity that is half government-owned. If a truly “Chinese” car is bought, more often than not it comes from an independent upstart that used to produce refrigerators before venturing into cars. A face-conscious Chinese bureaucrat simply won’t be seen in a former refrigerator. Not while he’s alive.

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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 4 comments
  • Omnifan Omnifan on Feb 29, 2012

    I thought under communism that everyone was equal. So the politburo members should be happy with the Great Wall 34N4XL minicar.

  • George B George B on Feb 29, 2012

    Bertel, how does Geely buying Volvo affect government purchases? Is the Volvo S80 just not prestigious enough?

    • Bertel Schmitt Bertel Schmitt on Feb 29, 2012

      According to the alleged DRAFT rules, Volvos would not be admitted. Volvo did not spend 3 percent of sales in Chinese R&D. In any case, Volvo is still a Swedish company that just happens to be owned by a Chinese company .... Sorry, everybody buy BYDs ...

  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
  • ToolGuy Ford is good at drifting all right... 😉
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