SHANGHAI -- General Motors says 80 percent of the vehicles sold in the first eight months by its joint ventures in China qualify for the tax cut Beijing enacted on Thursday, Oct. 1. Under the new rule, vehicles with engine displacement of 1.6 liters and smaller will carry a purchase tax of 5 percent, while the tax on vehicles with larger engine displacements will remain at 10 percent. The tax cut remains effective until the end of 2016. (See related story in this newsletter.)
To stimulate China's flagging auto industry, the central government will halve the purchase tax on light vehicles with engine displacement of 1.6 liters and smaller to 5 percent. The tax cut will be effective from Thursday, Oct.1, through 2016, the government announced Tuesday.
Volvo Car Corp. has named former McKinsey & Co. consultant Bjorn Annwall as its new global sales and marketing boss. He succeeds Alain Visser, who moves to Volvo sibling brand Geely Auto to become the Chinese automaker's vice president of global marketing and sales.
BEIJING -- Mercedes-Benz named Hans Georg Engel to run its r&d center in Beijing, where he will oversee the operation's continuing expansion. Engel succeeds Klaus Mannsperger effective Thursday, Oct. 1. Mannsperger, who has run the center for nine years, is transferring to Daimler AG's production joint venture with Renault-Nissan in Aguascalientes, Mexico.
Chinese-backed German automaker Borgward expects to enroll 100 dealers in its distribution network in China by the end of next year, company CEO Ulrich Walker told Chinese media. Walker arrived in Beijing last month to recruit dealers, reported Netease, a Chinese website.
Chinese Premier Li Keqiang is calling for a campaign to build an extensive network of battery charging stations for electric vehicles. At a meeting of senior government officials last week in Beijing, Li said all new residential housing property should have sufficient battery charging stations -- or at least have enough space for such stations to be built, reports gov.cn, a website run by the central Chinese government.
Volkswagen Group says 1,946 diesel Tiguan crossovers imported and sold in China may have emissions systems designed to work properly only when tested in labs by regulators. The vehicles are fitted with VW's EA189 four-cylinder diesel engine, VW China said in a statement released Saturday.
SUV prices in China continued to decline in August as the segment's sales rose and as automakers ramped up production of popular SUVs and crossovers, according to the National Development and Reform Commission, China's price regulator. For the month, prices of domestically built SUVs dipped 2.5 percent year on year while prices of imported SUVs dropped 2.1 percent.
Hella KGaA Hueck & Co. says a Chinese molder suspended parts shipments to the supplier, forcing it to reroute parts from other company plants to maintain automotive lighting production for a key customer in China. Hella said the unidentified Chinese injection molding supplier abruptly stopped shipping parts, a move that threatens to dent the supplier's earnings as it scrambles to make adjustments to its supply chain. Hella declined to name the Chinese supplier.
SAIC-GM-Wuling Automobile Co., a General Motors joint venture that produces microvans and entry-level vehicles, will introduce its first electric vehicle next year, according to Chinese media. The Baojun E101 will be a Smart-like microcar with two doors and four seats, reported Internet Info Agency, a Beijing-based website.