The Truth About Cars » government subsidies http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Tue, 15 Apr 2014 02:57:23 +0000 en-US hourly 1 http://wordpress.org/?v=3.8.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » government subsidies http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com Russian Government to Spend $8 Billion Subsidizing Local Car Industry http://www.thetruthaboutcars.com/2014/01/russian-government-to-spend-8-billion-subsidizing-local-car-industry/ http://www.thetruthaboutcars.com/2014/01/russian-government-to-spend-8-billion-subsidizing-local-car-industry/#comments Wed, 22 Jan 2014 10:00:40 +0000 http://www.thetruthaboutcars.com/?p=704634

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The Russian government said that it will spend up to 271 billion rubles ($8US billion) over the next three years to subsidize the country’s struggling auto industry. A government web site said that the subsidies will underwrite research & development, jobs and costs related to more stringent emissions standards. Car sales in Russia in 2013 fell by 6% to 2.78 million units and 2014 looks like another weak year as the Russian economy stutters, according to the Association of European Businesses.

A 2012 effort to prop up Russian automakers, a recycling fee for imported cars supposedly to pay for scrapping the cars at the end of their life cycles, raised issues with the World Trade Organization so that fee was expanded to include locally manufactured cars as well. The new indirect subsidies are less likely to run afoul of the WTO.

A government incentive program for car consumers was also tried last year but the program ended in December.

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China Renews Subsidies For EVs and PHEVs But Not Conventional Gas-Electric Hybrids http://www.thetruthaboutcars.com/2013/09/china-renews-subsidies-for-evs-and-phevs-but-not-conventional-gas-electric-hybrids/ http://www.thetruthaboutcars.com/2013/09/china-renews-subsidies-for-evs-and-phevs-but-not-conventional-gas-electric-hybrids/#comments Fri, 27 Sep 2013 13:26:31 +0000 http://www.thetruthaboutcars.com/?p=526073 China-EV-Sales

China has renewed government subsidies for three more years for private buyers of electric vehicles and plugin hybrids, but contrary to some observers’ predictions, incentives for the purchasers of conventional gasoline-electric hybrids have not been renewed. Reuters reports that the national government in Beijing said that it would provide up to 60,000 yuan ($9,800) towards the purchase of an all-electric vehicle and as much as 35,000 yuan for each “near all-electric” plug-in vehicle. The purpose is ostensibly to reduce air pollution but the policy is also expected to benefit Chinese car makers like BYD.

The revised subsidy program renews a three-year program that expired at the end of 2012. The key difference is the addition of hydrogen powered fuel cell vehicles, which will be eligible for up to a half million yuan government rebates, about $80,000. Rebates that large would likely go towards transit buses, not private automobiles.

Some analysts say that if China is to meet it’s stated national goal of having a half million hybrids and EVs on the road by 2015 and 5 million by 2020 it will probably have to announce a separate subsidy program for gas-electric hybrids. Only 27,800 alternative energy vehicles were registered in China by the end of last year, 4/5ths of which were buses, according to the state owned and managed Xinhua news agency.

A joint statement issued by China’s Ministry of Finance, Ministry of Science and Technology, the National Development and Reform Commission and the Ministry of Industry and Information Technology said that the incentives are aimed at “accelerating the development of new-energy vehicles, promoting energy saving and reducing air pollution.”

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Trade War Watch 8: China Probes US Bailout http://www.thetruthaboutcars.com/2009/11/trade-war-watch-8-china-probes-us-bailout/ http://www.thetruthaboutcars.com/2009/11/trade-war-watch-8-china-probes-us-bailout/#comments Tue, 17 Nov 2009 10:40:21 +0000 http://www.thetruthaboutcars.com/?p=335847 Bail! Picture missinginaction.be

As U.S. President Barack Obama landed in Shanghai for a weeklong visit to his largest creditor, China, the news awaited him that China’s Ministry of Commerce will investigate the U.S. government’s financing and rescue plans for the American auto industry, Shanghai Daily reports.

The move is part of China’s probe into possible dumping and subsidies on U.S.-made vehicles imported to China, the ministry said. Trade officials will be looking for dumping practices and for unfair government subsidies.

Ministry spokesman Yao Jian said China’s probe will look into 24 items which include the U.S. government’s rescue and restructuring plans for the auto industry as well as government subsidies on new-energy vehicles and its “cash-for-clunkers” incentive program.

The concerned U.S. automakers have the right to defend themselves with evidence presented to Chinese investigators by registering within 20 days after China started the probe of U.S. auto imports on November 6, and corrective action must be taken within 60 days after a case is registered.

The investigation applies to sedans and off-road vehicles with engine displacements of 2.0 liters or more, and the whole process of the probe and ruling is expected to be completed within 12 months.

The probe is widely seen as a tit-for-tat measure after Obama imposed punitive tariffs on Chinese tires and steel pipes. These investigation have become a common occurrence: The U.S. has carried out 13 investigations against Chinese products this year for alleged dumping and illegal subsidies.

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