Chinese government targets fewer, stronger car companies
13 May 2010

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.

Jim Holder

See all the latest MG reviews, news and video

Join the debate

Comments
29

13 May 2010

If the phrase, "small is beautiful" should have meaning it ought to be China. Now they want to whittle their many inventive car companies down to three giant corporations? Like the USA?

13 May 2010

[quote Los Angeles]If the phrase, "small is beautiful" should have meaning it ought to be China. Now they want to whittle their many inventive car companies down to three giant corporations? Like the USA? [/quote]

That's what it says in the article,.

13 May 2010

Smacks of BMC, Leyland and ARG. Can only bring baaaad.

13 May 2010

[quote Calibra V6]Smacks of BMC, Leyland and ARG. Can only bring baaaad.[/quote]

Well they bought Rover.....must be the BL/ARG influence!!!

13 May 2010

[quote mantaray]

[quote Calibra V6] BL/ARG[/quote]

[/quote]

Exactly... BLARG!!!!!

13 May 2010

[quote Calibra V6]Exactly... BLARG!!!!![/quote]

Yes, I noticed that....I was going to copywrite it as a new term for "British motor industry ineptitude" lol

13 May 2010

Absolute Brilliance in planning from the Chinese Government! Who would have thought it?

28 August 2010

36 out of the 120 are owned by the governement and 53 are owned by local government, so why don't they merge them first using their shareholder power?

28 August 2010

[quote Los Angeles]

If the phrase, "small is beautiful" should have meaning it ought to be China. Now they want to whittle their many inventive car companies down to three giant corporations? Like the USA?

[/quote]

Inventive? Chinese car companies that copy foreign designs almost to a t? That's stretching the concept of inventiveness a bit too far, isn't it?

28 August 2010

the inventiveness is in deciding to and investing in the copying of others. which seems to have eluded many others who are not as inventive? maybe the word should be opportunistic?

either way no bad thing.

Pages

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Lexus LC500
    Car review
    20 October 2017
    Futuristic Lexus LC coupé mixes the latest technology with an old-school atmospheric V8
  • Maserati Levante S GranSport
    First Drive
    20 October 2017
    Get ready to trade in your diesels: Maserati’s luxury SUV finally gets the engine it’s always needed
  • Jaguar XF Sportbrake TDV6
    First Drive
    19 October 2017
    The handsome Jaguar XF Sportbrake exhibits all the hallmarks that makes the saloon great, and with the silky smooth diesel V6 makes it a compelling choice
  • Volkswagen T-Roc TDI
    First Drive
    19 October 2017
    Volkswagen's new compact crossover has the looks, the engineering and the build quality to be a resounding success, but not with this diesel engine
  • BMW M550i
    First Drive
    19 October 2017
    The all-paw M550i is a fast, effortless mile-muncher, but there's a reason why it won't be sold in the UK