China Considers Big Push For Auto Industry. Maybe

Bertel Schmitt
by Bertel Schmitt
china considers big push for auto industry maybe

The Chinese government is considering plans to breathe new life in their still growing, but sputtering auto market. “Industrial growth is sharply declining and we have not seen a turning point yet. We feel a lot of pressure,” Industry Minister Li Yizhong said at a recent news conference in Beijing. The Minister laid out several initiatives, “but gave no indication any measures had been decided or when they might take effect,” Gasgoo says. The possible steps are:

– A $2.2 billion package of subsidized loans, targeted at improving technology and cutting energy use.

– Beijing might buy surplus steel to help producers and give aid to steelmakers for upgrading technology as demand plummets.

– Beijing is considering ways to revive car sales by cutting taxes, offering low-interest loans or forcing older vehicles off the road.

At the same time, China’s Ministry of Commerce plans to support the currently disappointing auto exports with a seven point program, their Zhi Luxun said today. According to a Gasgoo report, the points are:

First, probably provide a multi-billion $ program to stimulate auto exports.

Second, encourage medium- and small-sized enterprises to export more through training, certification, and trade show attendance.

Third, give incentives for auto companies to get certified abroad and to introduce foreign technology.

Fourth, grant credits to export-oriented auto companies.

Fifth, encourage auto companies to reduce export risks by taking advantage of commercial banks and insurance companies.

Sixth, continue support of the national export bases for both automobiles and auto parts.

Seventh, offering information for auto companies, such as export destination information, industry policies, tax policies and some other important market information.

But again, these measures are “being studied.” Which means they may come. Or they may not. Welcome to the land of ambiguity.

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  • Johnster Johnster on Dec 15, 2008
    Gardiner Westbound : The model has bigger headlights than the car! The car has those new small LED headlights.
  • Mel23 Mel23 on Dec 17, 2008

    I like their idea of forcing older cars off the road. And if they use another older car to force the first older car off the road, they'll have two wrecked cars that need replacing. Then there's the item about encouraging car companies to take advantage of banks and insurance companies.

  • Jordan Mulach Hey Matt, this story has already been uncovered as not being the Camry update. Toyota US actually took independent digital renders and used them.You can see more about it from the artist here:
  • ToolGuy Well the faithful 2010 RAV4 has new headlamp assemblies installed as of yesterday (ordered them a year ago and put it off until now). Have to remove the entire front fascia *and* remove part of the radiator support to change the headlamps. Ordered new side brackets and clips since the thing is pretty much designed to go together once (it comes apart when it comes apart, is what I'm saying), so we'll get to hop back in there when those show up later this week. (Alternative is to have the wrong gap at the fascia/fender interface and you know we can't have that.)Just crossed 150K mileage, engine is strong, no signs of transmission trouble. Spouse is pushing for an EV (or a Jeep, but I ignore that Jeep part). Michelins are performing well. Very high likelihood that this particular Toyota will be replaced with a non-Toyota, maybe 2 years from now.Oh, no one cares. 🙂
  • Parkave231 Needs moar grille!
  • SCE to AUX Give them everything they want, including the moon. Let the UAW determine how long they want to keep their jobs.
  • Arthur Dailey If I were a UAW leader I would focus more on political policy, such as requirements for North American content. Work harder at organizing non D3 auto plants. Try to win public support and increase union density/membership. But political unionism is not popular in the USA. Instead the focus is often on short term monetary gains.