Daimler Shrugs Off Beijing's Curbs On Cars

Bertel Schmitt
by Bertel Schmitt
daimler shrugs off beijing s curbs on cars

Daimler is unimpressed by Beijing’s plans to limit new vehicle license plates to 240,000 next year. Daimler still expects double-digit car sales growth in China in 2011.

BMW is similarly sanguine. A spokeswoman told the Wall Street Journal that “these are not the first limitations in Beijing. With the existing ones, we haven’t had any negative experiences. The additional measures aren’t a surprise to us, but it is unclear how they will be implemented. Therefore we can’t say anything yet about the effects.”

Both have reason to be blasé:

First of all, there is a giant loophole in the regulations. If you already have a car, you can buy a new one without drawing lots from the 240,000 pile. The China Automobile Dealers Association expects that at least 160,000 vehicles will be sold in 2011 in Beijing to those who trade in old for new. Some put this number at 200,000 or higher. Remember: Beijing already has 4.7 million cars.

Secondly, most of China’s new car growth is coming for the second and third tier cities, and this is where the wealth moves.

Thirdly, people who buy a “Benz” (as the call a Mercedes in China), or a BMW usually know how to deal with regulations like these. It is already expected that registrations in neighboring provinces will jump.

Daimler knows Beijing well: The city is their joint venture partner. BAIC, largely owned by the city, plans a 400 percent increase in its dealer network before the end of 2011, Gasgoo reports.

Join the conversation
  • Buickman Buickman on Dec 27, 2010

    apparently there are no negative connotations about Government Motors in the Middle Kingdom.

    • PrincipalDan PrincipalDan on Dec 27, 2010

      The Chinese government has it's fingers in all the pies. It is expected. Buickman, are customers being that vocal about the "government motors" thing when coming in car shopping or seeing you on the street?

  • Buickman Buickman on Dec 27, 2010

    here in the Flint market people aren't opposed to the bailout but they have lost their loyalty to GM. 20,000 salaried Delphi retirees screwed out of their pensions, second tier wages shoved down their throats without allowing a vote, life insurance chopped, health care premiums raised, plants torn down, dealers forced out of business. it's actually become fashionable to drive a foreign car

  • Blowfish Blowfish on Dec 27, 2010

    i am sure the haves have vays of driving another new model of benz or bimmer. There aint nothing to stop panzers. 7. Panzer-Division was later nicknamed Gespenster-Division (the "Ghost Division" only the have nots will have to stay in bicycles for longer.