China Penalizing 20 More Automakers for PEV Subsidy Rule Violations

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GRA

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Via hybridcars.com: http://www.hybridcars.com/china-penalizing-20-more-automakers-for-pev-subsidy-rule-violations/

. . . Securities Daily, an official Chinese newspaper, reported today that 20 more companies have committed violations. These include global automakers Nissan and Hyundai, and Chinese makers Geely, JAC Motor, and a subsidiary of electric carmaker BYD. Five bus makers had already been cited for violations. . . .

Yesterday, five Chinese bus makers were penalized by the government for taking about 1 billion yuan ($150 million) in illegal subsidies for new energy vehicles. One of them, Suzhou Gemsea Coach Manufacturing, had its production license revoked by the Ministry of Finance. The ministry will fine four other firms for violations, including Chery Wanda Guizhou Bus, King Long United Auto Industry, Shenzhen Wuzhoulong Motors, and Henan Shaolin Bus.

Chery Wanda Guizhou Bus is a subsidiary of popular Chinese carmaker Chery Holding. The scandal has placed a dark cloud over China’s drive to use subsidies to combat heavy air pollution in the nation’s growing cities. New energy vehicle subsidies played an important part of PEV sales more than quadrupling last year to 331,000 vehicles.
 
If every manufacturer is being cited as violating the rules, it suggests the problem isn't with the manufacturers, but with a change in the government's thinking and a decision to no longer subsidize this aspect. And apparently, this might be applied retroactively. But rather than publicly announce they are changing directions, they may have decided to blame the manufacturers to save face.

Sounds like another example of how it is dangerous to do business in China.
 
DarthPuppy said:
If every manufacturer is being cited as violating the rules, it suggests the problem isn't with the manufacturers, but with a change in the government's thinking and a decision to no longer subsidize this aspect. And apparently, this might be applied retroactively. But rather than publicly announce they are changing directions, they may have decided to blame the manufacturers to save face.

Sounds like another example of how it is dangerous to do business in China.
Or it simply reflects the level of corruption there (not that car companies in Europe and here are much different, as the ever-expanding diesel scandal shows).
 
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