Chinese Automakers Ask For Help
While U.S. automakers plead for emergency loans from Washington, China's still-young car manufacturers are also appealing for their government's help amid a sales slump.
While U.S. automakers plead for emergency loans from
That support, they say, could come in the form of subsidies for technology development, easier-to-meet standards and better protection from intensifying competition.
"China is the last booming market nowadays, and foreign automakers are investing more money and building more factories here, threatening our own businesses," Xu Heyi, chairman of Beijing Automobile Industries Holding Co., a partner with Hyundai Motor Co. and Daimler AG.
"I think the government should control this more strictly, and support development of our national brands as much as possible," Xu said in a telephone interview.
"But sales are still not good," Wang said in a phone interview Wednesday. "The government should boost the economy by strengthening people's buying power and cut taxes to encourage spending."
"I doubt we, as a smaller, local automaker, could get subsidies from the government, but it would be a great help if the government would do something to support the overall industry through these hard times," Wang said.
So far, there is no sign of an all-out industry campaign in
Meanwhile, support for similar help for European automakers is growing.
Chinese automakers face similar challenges in terms of slowing sales and exports. But the country's relatively new industry lacks the legacy of employee benefits costs and other decades-old burdens of the American automakers.
Most Chinese automakers already have some advantages. Most are state-owned companies that enjoy a degree of support from their local government owners. They also benefit from requirements that foreign automakers operate through joint ventures controlled by Chinese partners.
Many in the industry were stunned, though, when auto sales fell in August and September before gaining 8.4 percent in October.
Overall, nobody expects a contraction in the Chinese industry on the same scale as that seen in the
"Times are tough, and my sales have dropped by 30 percent in the past three months," said Bu Yiping, a sales manager at a Volkswagen dealership in eastern
Analysts say that while consumers are holding back from big purchases given the gloom over the economic outlook, many also are just waiting for manufacturers to slash prices further.
What many in the nascent Chinese industry feel is needed is more support for their own efforts to develop advanced auto technology.
Among the most vocal critics of
"Most of the standards were an adoption of foreign ready ones or equivalents that did not conform to Chinese reality," Li told a recent automotive industry forum in
Foreign automakers easily meet such requirements, while local, independent car manufacturers are at a disadvantage, Li said.
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