Mexican Media Brands
China Urges Weaker Carmakers to Merge
Chinese regulators indicate they may encourage the country's weakest carmakers to merge or be acquired as an alternative to government-backed measures to boost new-car demand, Bloomberg News reports.
#regulations
Share
Chinese regulators indicate they may encourage the country's weakest carmakers to merge or be acquired as an alternative to government-backed measures to boost new-car demand, Bloomberg News reports.
The news service cites comments over the past weekend by the deputy directors of the National Development and Reform Commission and the Ministry of Industry and Information Technology. The officials point to "severe" structural problems and profitability challenges for many domestic carmakers as the country's car sales drop below year-earlier volumes.
Beijing has been pushing for years to sharply reduce China's 100 or so vehicle producers, many of whom build only a few thousand cars per year.
Last week the China Assn. of Automobile Manufacturers called on the government to stimulate demand with tax breaks and looser restrictions on license plates in large cities. But critics suggest market forces be allowed to force out weak companies, Bloomberg notes.
RELATED CONTENT
-
Study: How States Should Update Traffic Laws for Autonomous Cars
U.S. states should require that all automated cars have a licensed driver on board, suggests a study by the Governors Highway Safety Assn.
-
Dubai to Test Digital License Plates
Next month Dubai will begin testing digital license plates that can display various messages, make payments and conduct other transactions.
-
Daimler Cleared to Test Advanced Robotic Cars on Beijing Roads
Daimler AG has become the first foreign carmaker to win permission to test advanced self-driving vehicles on public roads in Beijing.