China Loosens US Auto Import Restrictions
China has granted the US's Big Three automakers auto
import licenses so that they can import new models directly
into the Chinese market. The move is widely seen as an
attempt to deflect Chinese criticism of the yuan, which
is pegged to the US dollar, and criticism of the US's
widening trade deficit with China as it heads into Congressional
and presidential elections in 2004.
Auto sales have registered dramatic growth this year,
driven mainly by strong consumer demand. This year, China
is expected to overtake Germany as the third largest vehicle
market, behind the US and Japan.
General Motors said that it plans to export 4,500 vehicles
through its GM China subsidiary, including Buicks, Cadillacs
and other brands. In addition, it will supply components
and assemblies for about 13,000 vehicles to its joint
venture, Shanghai General Motors.
GM estimates that total vehicle passenger sales this
year will grow 29% to 4.4 million this year. This compares
with roughly 17 million vehicles expected to be sold in
the US this year. GM's market share in China is about
8 percent. The company sold 305,000 vehicles through October,
or 40 percent more than the same period last year.
Ford said that it plans to use its import license to
send 5,000 vehicles, mostly SUVs to China by the end of
2004. These will be sold through Ford's growing dealer
network in China. Ford has a joint venture manufacturing
plant with Changan Automobile Group to make vehicles in
Chongqing.
DaimlerChrysler's import license allows it to import
4,500 vehicles into China by the end of 2004. In September,
it signed a $1.1 billion agreement to start making Mercedes-Benz
sedans in China.
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