Mexican Media Brands
Eased Foreign Ownership Rules Could Kill China’s Car Brands
Domestic car brands in China may be wiped out if the government relaxes rules on foreign ownership.
#regulations
Share
Domestic car brands in China may be wiped out if the government relaxes rules on foreign ownership.
So says the state-backed China Assn. of Automobile Manufacturers. It warns that foreign carmakers could leverage their global supply chains and exert pricing pressure that would "kill Chinese brands in the cradle."
Current investment rules cap foreign ownership of assembly operations to 50%, thus forcing foreign carmakers into partnerships with domestic producers. But last October a commerce ministry official told Chinese carmakers they should prepare for the time when they won't be so well shielded.
CAAM reported earlier this week that the share of sales in China controlled by domestic carmakers fell nearly five percentage points to 38.4% in January. Overall sales of passenger vehicles climbed at least 7%.
RELATED CONTENT
-
Feds Probe Another Tesla Crash Involving Autopilot Feature
Federal investigators are looking into another crash involving a Tesla Model S electric sedan that was operating in semi-autonomous mode.
-
BMW Granted License to Test Self-Driving Cars in Shanghai
BMW AG has become the first foreign carmaker to win permission to test autonomous vehicles on public roads in China, according to the Shanghai Daily.
-
Safety & Autonomy
Autonomous vehicles are either right around the corner or years away, but the effect they have on vehicle safety depends a lot on getting everything right.