The Chinese government is expected to reveal plans to encourage mergers and acquisitions between China’s car makers later this year, in a bid to create fewer, stronger companies and accelerate the sector’s already booming growth.
The Chinese Ministry of Industry and Information Technology is reported to be drawing up guidelines that will prohibit car makers from building new plants unless they acquire an existing manufacturer first.
Beijing motor show 2010 picture gallery
At present, there are 130 car makers in China, the majority with annual sales of below 10,000 units. The Chinese government has previously stated that it wants to have two or three car makers with production capacities of two million units or more by 2012, and four to five companies with output of more than one million cars.
Only five car makers had sales of more than one million cars last year. The country’s top 10 car makers made 11.89 million cars, accounting for 87 per cent of all sales.
The restructuring is part of the government’s plan for 20 per cent of Chinese car makers’ sales to be exported by 2015. China’s car exports fell 45.7 per cent last year, to 369,600 units, but have shown a sharp rise again this year.
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Re: Chinese to force car mergers
Re: Chinese to force car mergers
I think we (that's to say, "the west") have always been scared of them. Nostradamus once predicated that Paris would be destroyed by fire from the sky, and that the Asiastic hoards would sweep across Europa from the east.
These days, we ("the west") merely fear their capitalism. I don't know why - their capitalism is just "our" capitalism taken to a more logical extreme.
Re: Chinese to force car mergers
Blimey, this is turning out to be hard work!
I'm simply talking about clear theft of ideas and designs in the present day, which are not supposed to happen under modern international trade and copyrights agreements, NOT about exploitation of workers in the 19th century, which probably happened all over the World in that era .
The issue of cheap labour in China, instead of being wholly blamed on Western companies, is one that should be addressed by the Chinese government that controls everything there and seems pretty happy with the staus quo.
I might be ignorant (won't be the first time), but I didn't think merely pointing out clear cases of industrial plaigarism amounted to display of "imperialism". And, no offence, quite frankly, I'm not particularly interested in taking part in in-depth political/social discussions and history of nasty 'ol imperialist West, on a car forum.