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China to punish carmakers that fail to meet fuel economy targets

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#1 · (Edited)
SHANGHAI (Reuters) -- China said today it would punish carmakers by restricting their production and publicly naming them if they fail to meet fuel consumption requirements on passenger vehicles set for 2015.

Punitive measures outlined for offenders of the already-announced fuel economy rules reflect Beijing's latest effort to fight pollution and promote more efficient use of energy.

They are also likely to push automakers, both foreign and Chinese, to embrace more cutting-edge technology such as gasoline-electric hybrids and all-electric cars.

China's fuel economy rules, as stringent as those to be enforced in the United States, Europe and Japan, involve a fleet-wide corporate average target of 34 mpg (6.9 liters per 100 kilometer) in 2015 and 47 mpg (5.0 liters per 100 kilometer) in 2020. They take effect on Nov. 1.

China said it would publicly name carmakers who fail to meet the 2015 target and would ban the production of new models that do not meet fuel economy targets, to be determined by a special weight-based formula.

The government will also reject expansion plans by offenders, who will be required to submit improvement plans.

Punitive measures

James Chao, director of IHS Automotive for the Asia-Pacific region, said the punitive measures for 2015 "may not matter in a practical sense," because most automakers, save for a few, are projected to be able to comply with the requirements.

But if similarly tough punitive measures were to be enforced in connection with targets for 2020, "it could have a very significant effect, given that few (makers) ... are projected to be able to comply on a corporate average fuel efficiency basis," Chao said.

The rules were published by five government agencies including the Ministry of Industry and Information Technology.

Fighting pollution

China has already taken a series of measures to fight pollution, including restricting car sales in major cities and providing incentives for selling electric vehicles. But the latest measures would put further pressure on carmakers.

Last year, 85 car manufactures in China measured their corporate-average fuel consumption, and about 30 percent of them, mostly domestic brands, failed to meet their annual target for 2013, according to results published by MIIT earlier this year.

No punishments were imposed at the time but China's desire to tighten government oversight of fuel economy rules is behind the punitive measures backing the 2015 and 2020 targets.

The rules also apply to importers of foreign passenger vehicles. Last year, 13 importers of foreign brands, including General Motors, Nissan Motor Corp., Porsche, and Hyundai Motor Corp., failed to meet their annual target, partly reflecting the fact that most imports are bigger and more powerful models.

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Oh well thats the end of the Cadillac dream in China?

Come 2015 China would have opened another 20 Coal power plants by then.

 
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#2 ·
China has some bad pollution, which of course makes it's way to the USA and other parts of the world. I'm glad they are tightening the rules, but will they be enforced or do the manufacturers just have to pay off the right person?

China is just scary with their way of enforcing laws or just making things up should a company offend them. Were I Mary B., I'd never set foot in the country lest they decide to make some kind of political statement and arrest her.
 
#3 · (Edited)
Better not say to much you get 30 months imprisonment for making negative blogs in China (I would be a lifer, within a week, if GM Insider News was based in China)



Gotta say that that Xi Jinping is a handsome dapper young looking leader does not look a day over 30 years old, Wuling are my favourite brand. He is very gifted at soccer player, if Mary B told him she likes soccer and Chevy UK sponsors Man U, Chevy would get an instant exemption from these new rules. Caddy needs sponsor Chinese soccer maybe the Chinese national team, then they might bend the rules a bit.
 
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