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