3/4/12

VW, General Motor, and Toyota's Omitted from the list in China

Shanghai, - "Do not expect a warm welcome abroad with close access to the outside of the industry," commented Dirk Moens, Secretary General of the European Union Chamber of Commerce, as reported by AutoChina (28/02/2012). Two major brands are included in the membership of the European Union Chamber of Commerce is Volkswagen AG and Daimler.

For manufacturers VW, GM, and Toyota who crossed from the list, according to China International Capital Corporation, an investment institution, an estimated 80 billion yuan, could be achieved. Commercial vehicle market enjoyed by local brands. This would lead to discrimination, a reflection of unfair trade practices.

Moens continued, the European Chamber of Commerce will go hand in hand with its members to approach the Chinese government in order to be considered again. Write-off rules of the foreign brands came out two months after the Government under the control of Prime Minister Wen Jiabao to apply the rules of the reduction in foreign direct investment. This policy of "turn off" special treatment for foreign investors to build factories in China.

The Chinese government declared open for public consultation through the Ministry of Industry and Information Technology until March 9, 2012. Previously, foreign brands dominate state spending for a car service to 80 percent in China. Last year, Audi into a brand that enjoys the greatest share of up to one third of the purchase of official cars.

Indifferent

Although these regulations have an impact on the potential loss of market, foreign brands in China tend to be indifferent. Dayna Hart, a spokesman for GM in Shanghai do not want to answer the phone when contacted by reporters. Also, representatives of Daimler AG and Guangzhou Automobile Group Company also did not immediately respond.

Shen Li, a Nissan spokesman in Beijing said the company appreciates the decision taken by the government of China, while Toyota's representative Liu Peng said, "The company would not comment related to the policy of the government."

On the other hand, Great Wall Motor Company's biggest SUV producer in China today is building an assembly plant in Bulgaria with investment of 120 million U.S. dollars (Rp1, 089 trillion). In addition, Zhejiang Geely Holding Group Company managed to put myself down as China are buying brand Volvo from Ford's previous owner worth 1.8 billion U.S. dollars, in August 2010 and recorded as the largest acquisition in China.

Moens asserts, if the Chinese government did not consider the fair market competition, there will be no Great Wall and Geely investment is the second in Europe.

Omitted of foreign car brands from the list of state spending this year by the Government of China had a strong reaction. European Union Chamber of Commerce in China said that the policy could backfire for Chinese cars in the international market.