During the year 2009 China’s auto industry restructuring plan introduced

China to 15 principle car businesses into smaller diagram than 10 prepares are proceeding with the end of this year will be liberated in the past the merger and reorganization automakers plan. Ministry of Industry and Information (hereinafter referred to a letter the Department of Public Works), vice minister of Miao yu4 19 at the Shanghai International Auto Show, said Summit.

Miao yu said, at prevailing, the Department of Public Works has launched a letter promoting the expansion of corporate reorganising motor vehicle guidance, the policies will move ahead the introduction of estimates to promote the proper solution of the procedure of overload demonstration personnel to deduce the transfer of enterprise supplies to deduce the debt with the sanctioned the load of disposal to encourage the auto industry through mergers and reorganising of goods to integrate resources, improve their competitiveness.

Miao yu said that in the automobile industry restructuring and revitalization plan for China’s auto enterprises to increase the degree of concentration of a specific request that the present 15 large-scale enterprises into the car less than 10, but there are many issues which need to be resolved. Such as tax issues, an enterprise of the car by other provinces after the merger rate, the tax is paid by the headquarters or remain in situ. “The problem is not resolved, it is difficult to get the support of local government. Similar to a lot of this problem.”

He revealed that before the end of this year, the State Council will be out of the auto commerce amalgamation and reorganization plans.

Miao yu said that the annals of a uncommon worldwide economic urgent position on China’s commerce has produced in grave shock. China’s auto market from the starting of the third quarter of 2008 had couple of contradictory development, falling effectiveness of key enterprises, a considerable down turn in trade items, own emblem, and little and medium-sized enterprises face large difficulties.

Crisis and the external demand is shrinking and so on, but also with the Chinese automobile industry self-development among the existing contradictions and problems related. For example, irrational industrial structure, technological level is not high, the capability of independent innovation is weak, the imperfect consumer policy and other issues are also important causes.

Miao yu said, thus, China’s automobile industry reorganising and the revitalization plan, is to enhance protection, enlarge worker appeal, transfer the plan of merge consumption through the implementation of positive policies, stability and deductions of consumer appeal in automotive, reorganising as the main row, promote the reorganization of enterprises, to move ahead the technological development and the essential to the independent advance, to encourage the expansion of have brand enterprises, and promote novel energy automobiles and essential parts and constituents industry, and the formation of novel competitive advantage.

In the implementation of expertise, the auto adapt and clear the next three years designing to revitalize the centered investment will organise 10 billion yuan of exceptional capital to support the auto aim on the mechanical transformation of enterprises, technological improvement, as well as new vehicles and exceptional components and constituents of power development. Miao yu revealed, engaging the localized automotive technological enterprises extend funding accepted next week, engaging the centered engine vehicle enterprise will be the association of mechanical tasks for the deployment of next week.

The first quarter of 2009, introduced as a result of the inside and on the floor heading down 1.6 liters displacement cars and car pay for tax by half of the subsidies go to the scenery moped, automobile demonstration and sales growth demonstrating a gradual trend of year-on-year passenger car sales growth to achieve the double. Displacement 1.6 liters and on the floor heading down the first quarter of the passenger cars traded a total of 1.41 million terminal year, an enhance of 21.7% through the same time span, total passenger car market portion of three quarters, forcing appearance on the market significantly.

Miao yu said, if the implementation of these policies for numerous time in the car sales market later the stimulation, afterward leisurely chilly, we will examine the introduction of more forceful incentives.