Insiders say measures won't hit top carmakers

   Date:2007/01/29

China's new measures to prevent excess vehicle production capacity will have little impact on major producers operating in the world's second-biggest vehicle market.

Industry regulator the National Development and Reform Commission (NDRC) said that carmakers applying to build new plants must have sold four-fifths or more of their approved production capacity in the previous year.  

A firm wanting to construct a second plant must have sold at least 100,000 cars or 50,000 sport utility vehicles or multi-purpose vehicles. It also stipulated minimum sales requirements for trucks and buses.

But it is said the measures would not affect the business of large vehicle firms manufacturing in China as the vast majority of them had met government requirements and some even lacked production capacity. All of these vehicle companies need to build new capacity to meet growing demand.

Kenneth Hsu, vice-president of Ford Motor China, said the measures would not have an impact on the Detroit-based automaker's China business. "We would not expand our capacity aggressively if there were not market demand for our vehicles," Hsu said.

Ford's venture with its Japanese affiliate Mazda and China's Chang'an Motor had an annual manufacturing capacity of 200,000 cars in Chongqing Municipality in Southwest by the end of last year, up from 20,000 units in 2003. The venture is also building a new 160,000-car plant in East China's Jiangsu Province.

Wang Ziliang, a spokesman for low-cost carmaker Geely, said the company's production capacity in East China's Zhejiang Province and Shanghai has not been enough to keep up with its surging sales. "We will have to build new capacity to satisfy mounting demand," Wang said.

Source:未知

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