Mexican Media Brands
China Poised to Relax Dealership Rules
China has proposed new rules that would reduce the control carmakers currently exercise over their dealers, Bloomberg News reports.
#regulations
Share
China has proposed new rules that would reduce the control carmakers currently exercise over their dealers, Bloomberg News reports.
The draft regulations from the Ministry of Commerce would allow retailers to sell domestic brands without permission from the manufacturer, free factory authorized dealers from company-imposed sales quotas and enable dealers to sell service parts to each other.
The measure would require carmakers to contract with dealers for at least three years at a time compared with the current annual renewal system. Dealers also would be shielded from being forced by carmakers to sell mandatory insurance to customers.
Analysts tell Bloomberg the proposed changes would likely reduce profits for foreign car brands doing business in China. Currently, they say, wholesale vehicle prices to dealers usually are higher than retail prices.
If the new rules are adopted, they also may force consolidation among the more than 26,000 dealers currently operating in China, suggests research firm Sanford C. Bernstein.
RELATED CONTENT
-
Self-Driving Chevy Bolt Ticketed for Driving Too Close to Pedestrian
Police in San Francisco ticketed the backup driver in a self-driving Chevrolet Bolt for allowing the car to drive too close to a pedestrian in a crosswalk in San Francisco.
-
Carmakers Ask 10 States to Help Bolster EV Sales
Carmakers are asking for more support for electric cars from states that support California’s zero-emission-vehicle goals, Automotive News reports.
-
U.S. in No Hurry to Regulate Autonomous Vehicles
The National Highway Traffic Safety Administration says the emerging technology involved in self-driving cars is too new to be tightly regulated.