China Aims to Cut Auto Groups to 10 from 14

The official reported today that the government is planning to reduce the number of auto major auto makers in China. From Reuters:

The plan, approved by the cabinet this month, also says the government will provide subsidies worth 5 billion yuan ($732 million) between March and the end of 2009 to aid purchases of autos in rural areas, the newspaper quoted unnamed sources as saying.

China is drafting a string of policy packages to help industries, ranging from steel to logistics and consumer goods manufacturing, ride out the slumps in the Chinese and global economies.

The auto plan aims to stabilise demand for cars so that China’s total vehicle sales and production this year both exceed 10 million vehicles, and grow an average 10 percent annually over the next three years, the newspaper said.

February 23, 2009 11:51 PM
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Categories: Economy, Main