Personal Cars and China (2003) / Chapter Skim
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1. Introduction
1. Introduction
Pages 7-13
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From page 7... ...
In the United States, one of every six workers deals in some way with automobiles and trucks making them, repairing them, driving them professionally, insuring them, licensing them, and building and maintaining highways for them. As for fuel, a steep rise in the price of gasoline seriously affects the entire U.S.
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From page 8... ...
, the government proposes specific actions to restructure and strengthen the industry, which is now primarily engaged in truck manufacture and in joint ventures with foreign manufacturers for automobile assembly, and to produce a Chinese family car at a price that would encourage mass ownership (for specifics of the five-year plan for the automotive industry, see the appendix to this chapter and Chapter 3~. The plan emphasizes advanced technology and the production of vehicles that will be competitive in the international market, and gives priority to investments in highways and oil and gas pipelines.
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From page 9... ...
Among other things, indigenous Chinese companies will have to expand their R&D capabilities, including in new product design and advanced manufacturing techniques, and they will have to invest heavily in manufacturing facilities so they can accommodate all new vehicle designs. In any event, the growing automobile fleet, whether produced by indigenous Chinese industry, joint ventures, or imports, will present the Chinese people with both potential benefits and potential liabilities.
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From page 10... ...
The United States, Europe, and Japan have active policies for limiting fuel consumption, but each has a different strategy. lapan, Korea, and Brazil have had varied experiences in the rapid development of an indigenous automotive industry, and the Partnership for a New Generation of Vehicles (PNGV)
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From page 11... ...
The committee met five times in Beijing, Shanghai, and Changchun, China; Washington, D.C.; and Davis, California. The purpose of the study was to: · achieve an understanding of the benefits and costs of developing personal-use vehicles in China · propose options for solving the problems of congestion, pollution, increased energy consumption, and changes in the urban structure · suggest strategies for developing a Chinese national car, as described in the five-year plan, while taking into account China's social development, the available technologies, opportunities for international cooperation, the possibility of cooperation between government and industry, the role of such a car in the national transportation system, and the impact of a large increase in the number of private cars on sustainable development.
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From page 12... ...
The automotive sector has not developed a consumer-oriented policy that is, the product line, marketing, and pricing of manufacturers are not tailored to meet consumers' needs. Moreover, some local governments impose fees and complex registration procedures or ban imports from other regions.
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From page 13... ...
3. Abolition of the "localization policy." The disappearance of China's present policy of preference for local enterprises will have a negative effect on foreign investment, technology transfer, and new product development in the Chinese automotive sector.
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