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China punishes carmakers that miss fuel economy targets
Reuters | 2018/1/5

BEIJING -- China will suspend production of 553 passenger vehicle models that failed to meet the governments fuel consumption standards, state news agency Xinhua said.

The suspension was to take effect Jan. 1, Xinhua said, citing the China Vehicle Technology Service Center.

The models include products from several major Chinese carmakers and joint ventures such as FAW-Volkswagen, Beijing Benz Automotive, Chery Automobile Co. and Dongfeng Motor Corp.

With the war on pollution in full swing, China has been pushing for green transportation by toughening emission limits and encouraging the use of new energy vehicles, the report noted.

China will extend a tax rebate on purchases of electrified vehicles through 2020, the government said last week -- good news for makers of electric cars and plug-in hybrids.

Pollution is a sensitive issue in China, with large swaths of the country chronically engulfed in smog. The government has vowed to tackle the problem.

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