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Hot from vvspy.com... Tomorrow's NEWS today!
Looks like one of our fears is about to come to pass and that is the Chinese government is forcing mergers of auto plants and Geely is not excluded.
Will it be Geely/VolvoChangan or Geely/Volvo/BYD? Your guess is as good as mine.
Armed with this news will Ford reconsider the sale of Volvo to Geely?
Or will the Jakob/Crown bid now merge as the shining knight to save princess Volvo? Jakob/Crown can now JV with any company they desire.
AFP - Saturday, January 30
China auto makers must merge before adding plants: report
SHANGHAI (AFP) - - Authorities will require Chinese auto makers to merge with a domestic rival before being allowed to build new factories as Beijing moves to muscle in on the global market, state media reported Friday.
Government guidelines expected to be formally announced in March will provide tax incentives and preferential lending for the mergers, the Shanghai Securities News reported, citing unnamed sources.
The move is part of a Beijing plan to consolidate the sector and build companies that can compete on the world stage.
Two Chinese auto makers vying to become global players were presently seeking a go-ahead to produce cars in Beijing, the report said, citing unnamed sources close to management at Beijing Automotive Industry Holding Co (BAIC).
BAIC has agreed to buy some of the intellectual property rights from General Motors' Swedish unit Saab, while Geely Zhejiang Holdings, which is also eyeing a Beijing plant, is acquiring Ford's Swedish brand Volvo.
By 2011 Beijing aims to cut to 10 from 14 the number of major domestic auto makers, who are responsible for 90 percent of China's sales and output, according to an industry restructuring plan unveiled by the cabinet last year.
Under the plan, two or three companies would be capable of each producing more than two million units a year, while four or five others would have annual output capacity of one million units.
China has more than 100 auto makers, but many small players are losing money and are propped up by regional governments, according to analysts.
China overtook the United States as the world's largest auto market last year, with sales up 46.2 percent on year to 13.65 million units, partly due to policies including tax cuts and state subsidies, government data show.
SAIC Motor Corp, China's biggest auto maker in terms of sales, sold more than 2.7 million vehicles last year, but foreign brands dominate the market and SAIC's success rests on its partnerships with General Motors and Volkswagen.
Looks like one of our fears is about to come to pass and that is the Chinese government is forcing mergers of auto plants and Geely is not excluded.
Will it be Geely/VolvoChangan or Geely/Volvo/BYD? Your guess is as good as mine.
Armed with this news will Ford reconsider the sale of Volvo to Geely?
Or will the Jakob/Crown bid now merge as the shining knight to save princess Volvo? Jakob/Crown can now JV with any company they desire.
AFP - Saturday, January 30
China auto makers must merge before adding plants: report
SHANGHAI (AFP) - - Authorities will require Chinese auto makers to merge with a domestic rival before being allowed to build new factories as Beijing moves to muscle in on the global market, state media reported Friday.
Government guidelines expected to be formally announced in March will provide tax incentives and preferential lending for the mergers, the Shanghai Securities News reported, citing unnamed sources.
The move is part of a Beijing plan to consolidate the sector and build companies that can compete on the world stage.
Two Chinese auto makers vying to become global players were presently seeking a go-ahead to produce cars in Beijing, the report said, citing unnamed sources close to management at Beijing Automotive Industry Holding Co (BAIC).
BAIC has agreed to buy some of the intellectual property rights from General Motors' Swedish unit Saab, while Geely Zhejiang Holdings, which is also eyeing a Beijing plant, is acquiring Ford's Swedish brand Volvo.
By 2011 Beijing aims to cut to 10 from 14 the number of major domestic auto makers, who are responsible for 90 percent of China's sales and output, according to an industry restructuring plan unveiled by the cabinet last year.
Under the plan, two or three companies would be capable of each producing more than two million units a year, while four or five others would have annual output capacity of one million units.
China has more than 100 auto makers, but many small players are losing money and are propped up by regional governments, according to analysts.
China overtook the United States as the world's largest auto market last year, with sales up 46.2 percent on year to 13.65 million units, partly due to policies including tax cuts and state subsidies, government data show.
SAIC Motor Corp, China's biggest auto maker in terms of sales, sold more than 2.7 million vehicles last year, but foreign brands dominate the market and SAIC's success rests on its partnerships with General Motors and Volkswagen.
