Provincial governments support local Chinese carmakers

The Guangdong provincial government announced in January that as part of the Chinese central government’s stimulus package for the automobile industry, it would provide Guangzhou Automotive Industry Group Co. Ltd. with up to RMB1 billion (US$146.50 million) in subsidy to make its own brand of vehicles. Guangzhou Auto will launch its vehicles to coincide with the 2010 Asian Games, which will be held in Guangzhou City. Other provincial governments have also announced similar subsidies. Jilin’s provincial government said it would support the country’s second-largest carmaker, First Automotive Group Corp., by scrapping administration fees when customers buy new cars. (February 6, 2009)