Posts tagged ‘cars’

26/11/2013

China Takes Away Civil Servants’ Official Cars in Anticorruption Crusade – China Real Time Report – WSJ

The perks of being a civil servant keep dwindling.

As part of new anticorruption regulations announced by China’s cabinet Monday lower-ranking civil servants will no longer be allotted official cars for general use,  excluding vehicles needed for law enforcement or emergency-response services.

A security officer stands next to a Chinese made Hongqi car outside the Great Hall of the People in Beijing. Reuters

The move is one of several Beijing has made in recent years to step up scrutiny of its official fleets. It has previously urged governments to buy Chinese-made brands and earlier this year cracked down on other auto-related perks enjoyed by the country’s leaders, including the military.

Cars no longer needed because of the new rules will be disposed of via a public bidding process or other forms of auctions, the guidelines said. In the future, civil servants will be allowed to select their preferred mode of travel and will be reimbursed under a transportation-allowance system.

UBS Securities estimated the value of auto sales to governments in China at about 120 billion yuan, or roughly $20 billion, a year, which looks set to decline given the ongoing fleet-reform regulations, said Andreas Graef of management-consulting firm A.T. Kearney.

While governments will continue to procure some cars for official use, there will be greater centralization of purchasing procedures for cars and related products and services such as car insurance, maintenance services and gasoline, he said.

via China Takes Away Civil Servants’ Official Cars in Anticorruption Crusade – China Real Time Report – WSJ.

02/09/2013

No decision in India on shutting petrol pumps at night: Moily

The Hindu: “Amidst a storm over proposal to shut petrol pumps during night to taper fuel demand, Oil Minister M. Veerappa Moily on Monday said the government had not made any such proposal and the idea had come from public.

“No decision has been taken to keep petrol pumps dry during any part of the day,” Oil Minister M. Veerappa Moily said on Monday. File photo

“It is not our idea. It is an idea which is coming from public and others. No decision has been taken to keep petrol pumps dry during any part of the day,” he told reporters.

His Ministry plans to launch a massive fuel conservation drive from September 16 to cut fuel demand by 3 per cent and save an estimated Rs. 16,000 crore or $2.5 billion in Forex outgo.

“We are toying with the ideas (on conserving fuel) that have come to us. That doesn’t mean we have accepted them or are enforcing shutdowns,” he said.

Mr. Moily said before the planned launch of September 16 campaign, several proposals to save cut fuel consumptions have come to the government and as per usual practice are being mulled over by his ministry.

“It is incorrect to say that any decision on shutting petrol pumps has been taken,” he added.”

via No decision on shutting petrol pumps at night: Moily – The Hindu.

21/06/2013

4.7-trillion-yuan plan to double mainland road network by 2030

SCMP: “Central government earmarks 4.7 trillion yuan for upgrading and extending roads, giving the country 400,000km of highway by 2030

shenzhen_international_toll_roads_4634887.jpg Newspapers suggest 4.7-trillion-yuan plan to double mainland road network by 2030

The mainland will spend 4.7 trillion yuan (HK$5.9 trillion) in the next 17 years to more than double its network of major roads, top transport officials said yesterday.

Dai Dongchang , chief planner with the Ministry of Transport‘s general planning department, told a press conference that a recently approved blueprint for road expansion included 50,000 kilometres of toll highways and 160,000 kilometres of toll-free “national trunk ways”, which are narrower and have slower top speeds.

The mainland has 173,000 kilometres of the two kinds of road at present and the plan approved by the State Council last month says that should rise to 400,000 kilometres by 2030.

By then, toll-free trunk ways should connect all counties, Dai said, while highways should connect all cities with populations of more than 200,000, as well as important transport junctions and border ports.

Huang Min , head of the National Development and Reform Commission‘s basic industry department, said 18 cities of more than 200,000 lacked highway links at present, while more than 900 counties were not connected to national trunk ways.

The new highways would include two north-south routes in the nation’s west, Huang said, with many of the 900 counties expecting new trunk ways also located in the west.

The mainland now had about 110 million private vehicles, 60 times the number in 1981, when the plan for the existing road system was drafted, he said.

Dai said the volume of goods carried on mainland roads was 3.7 times the volume carried on United States’ roads and was expected to at least double by 2030, along with the number of passenger vehicles.

He said China had previously paid more attention to the construction of highways and small roads in the countryside, leading to sluggish development and poor maintenance of trunk ways.

The blueprint forecasts a total of 5.8 million kilometres of roads on the mainland by 2030 – 84 per cent countryside roads, 9 per cent provincial roads and 7 per cent highways and trunk ways.”

via 4.7-trillion-yuan plan to double mainland road network by 2030 | South China Morning Post.

See also: https://chindia-alert.org/economic-factors/chinas-infrastructure/

27/05/2013

* As China’s middle class grows, so do its concerns

Taipei Times: “Beijing is facing increasing public pressure to deal with issues such as pollution, food safety and education driven by the 10 percent of its population who now count as middle class

W ith two cars, foreign holidays and a cook for their apartment, one Beijing family epitomizes the new middle class created by China’s decades of rapid economic growth — and its resulting worries.

Li Na, 42, is a caterer at the Beijing Zoo, and her husband, Chi Shubo, 48, works for a state-owned investment company. The couple have seen their fortunes transformed since Li arrived in Beijing 20 years ago from Shandong Province.

Then, she cycled for hours from a shared dormitory to visit her husband’s workplace. Now she commutes in a US-made car and the couple holiday with their 11-year-old daughter in Japan, South Korea and the US.

Tens of millions of other Chinese have made a similar transition. About 10 percent of China’s 1.35 billion people now count as middle class, according to the Organisation for Economic Co-operation and Development, a figure that is set to rise to 40 percent by 2020.

However, their concerns about air pollution, food safety and China’s education system show the challenges facing the country’s newly appointed leaders, who have promised a shift away from the model of growth at all costs.

Every year, Li and her husband set a goal to improve their lives.

“We always have a plan,” Li said. “For example, this year I might want a new camera and my husband will help make that come true.”

The family’s four-bedroom apartment in a Beijing suburb was the most important purchase of their lives.

“We struggled half our lives to buy it,” Li said over a breakfast of fried eggs and bacon.

In a picture of comfortable suburban living, their daughter, who goes by the name Nancy, sprawls on a vast sofa opposite a huge flat-screen Sony television, nuzzling the family’s fluffy brown dog.

Li says her top priority is Nancy’s education. It is not a school day, but Li’s iPhone alarm rings to signal that it is time for her daughter’s first lesson.

She steers her Chevrolet Epica sedan past forests of near-identical apartment blocks to the Haidian Youth Palace, a relic of Maoist-era China which now holds classes aimed at boosting children’s creativity.

At weekends, Nancy has lessons in traditional Chinese calligraphy and a badminton class “with a private coach,” Li said.

In the past year, the young girl swapped learning the piano for a new instrument, the ocarina, a pocket-sized flute.

Nancy has only three or four hours of free time a day on weekends, Li said, as she seeks to hold her position in China’s highly competitive education system.

A glut of graduates created by the expansion of China’s university system means that the graduate unemployment rate is higher than that of the general population, making winning a place at the very best colleges ever more crucial.

Getting into a top school is also not always about ability, Li said, with cash donations sometimes involved.

“Sometimes parents need to do extra work, give out red envelopes and even then, success can depend on your contacts,” she said.

This year has bought some more worrying lessons. When thick smog blanketed northern China, sending pollution levels soaring in the capital, Nancy learned about PM2.5, the name given to invisible pollutants which can damage children’s lungs.

She reached into the pocket of her mother’s car seat and pulled out a face mask.

“My mum made me wear this every day in January and February because the PM2.5 was very bad,” she said.”

via As China’s middle class grows, so do its concerns – Taipei Times.

19/05/2013

* China owner smashes up his Maserati in service protest

News Asia: “A wealthy Chinese Maserati owner hired four sledgehammer-wielding men to smash up his $420,000 supercar in protest at poor customer service, reports said on Wednesday.

four-sledgehammer-wielding-men-destroy-a-maserati-outside-the-qingdao-convention-center-in-china-on-may-14-2013-4

BEIJING – A wealthy Chinese Maserati owner hired four sledgehammer-wielding men to smash up his $420,000 supercar in protest at poor customer service, reports said Wednesday.

The car owner, identified only by his surname Wang, had the group attack the Maserati Quattroporte at the opening of an auto show in the eastern city of Qingdao in Shandong province, the Qingdao Morning Post said.

Video images showed the men going about their task with gusto, leaving the vehicle with a shattered windscreen and mirrors, the grille broken and dents to the bodywork. It was draped in a banner accusing the Italian manufacturer of poor decision-making.

Wang bought the luxury car in 2011 for 2.6 million yuan, the report said — around 100 times the average income of Chinese urban residents last year.

But problems first arose when he took it back to the dealer for an unspecified repair, with staff charging him for new spare parts despite using used ones, the paper quoted Wang as saying. It later failed to fix a problem with a door and scratched the vehicle, he added.

“I hope foreign luxury car producers acknowledge clearly that Chinese consumers are entitled to get the service that is commensurate with the brand,” Wang said.

Maserati’s China arm said the company and its dealer in Qingdao had responded to the customer’s complaint and it regretted his decision.

“We deeply regret that the customer decided to terminate bilateral talks in such a sudden manner,” it said in a statement read to AFP by an employee.

Qingdao’s authorised Maserati dealer said on China’s Twitter-like Sina Weibo: “We deeply regret that before the two sides could reach a result via negotiation, the vehicle owner… smashed the world famous car in public… to cause a sensation.”

During the dispute “thugs” had disrupted its daily operations and intimidated staff and visitors, it added.

Chinese Internet users were divided over the incident, with some expressing scepticism about the car owner’s motives.

“Is it to defend his rights or just for show? I think it is more of a show — why do you smash your supercar if you just want to seek justice for the change of a 2,400-yuan part?” said one posting.

via China owner smashes up his Maserati in service protest – Channel NewsAsia.

06/05/2013

* China’s New Diplomatic Weapon: Red Flag Limos

WSJ: “Forget panda diplomacy. China has added a new weapon to its soft-power arsenal — home-grown luxury cars.

On Friday, Beijing donated 20 Chinese-made Hongqi, or Red Flag, sedans worth around $2.3 million, to the Pacific nation of Fiji.

At a ceremony in Suva, Fijian Prime Minister Voreqe Bainimarama described the gift as “generous” and “timely”— the cars will go straight to work next week as the country hosts a high-level meeting of G77 group of developing nations.

Fiji and China have been on friendly terms since 1975, when Fiji became the first South Pacific island nation to forge diplomatic ties with Beijing.

The Hongqi is no stranger to politics, either.

First produced in 1958, the luxury sedan was synonymous with Chinese power trips in the Mao era and the early reform years, used to transport top Chinese politicians and foreign dignitaries visiting China.

When former Chinese premier Zhou Enlai needed a nap, his own personal Hongqi had a switch he could flick that allowed him to stretch out in the back, an engineer who worked on the original design told state broadcaster China Central Television in an interview last year.

In the wake of global oil shocks manufacturer China FAW Group Corp ceased manufacture of the Hongqi in 1981. Production re-started in 1995.

Now FAW is priming Hongqi’s latest H7 model for a slice of China’s market for luxury cars.

FAW’s hopes for the old brand’s revival are high. The Hongqi H7 means the monopolization by foreigners of the high-end auto market in China could “be smashed at one stroke,” a statement on FAW’s website reads.

Yet sales thus far have been modest amid persistent doubts over quality and after-sales service. According to data from consultancy LMC Automotive, 460 Hongqi H7s were sold between the time it rolled off the production line in middle of last year and the end of March.

Those numbers could improve as the government steers its car fleet in a more domestic direction, away from the Audis and other foreign brands that have dominated over the last decade. State media recently cited FAW group president Xu Xianping as saying 10 provincial governments and some central government departments have plans to begin using Hongqi cars.

To that, add the government of Fiji. After the G77 powwow, the cars will be deployed to several ministries, according to reports in Fiji media.

As China extends its diplomatic reach, expect to see Red Flags chauffeuring the powerful on more streets around the world.”

via China’s New Diplomatic Weapon: Red Flag Limos – China Real Time Report – WSJ.

16/03/2013

* Shell, Samsung in China pilot to ease currency controls

Reuters: “China has eased strict cross-border currency rules for 13 multi-national firms including Samsung and Shell in a scheme that further cranks open its tightly controlled capital account, financial sector sources told Reuters.

A Shell fuel leaves the Kingsbury fuel terminal, central England June 11, 2008. REUTERS/Darren Staples

The experiment, which has not been publicly announced by the government, gives firms freedom to shift funds worth up to 30 percent of their invested capital in China across its borders, bankers directly involved in the scheme said.

The move responds to growing demand from international firms operating in China for freedom to use soaring stores of yuan, also know as the renminbi, to boost the efficiency of their management of capital while keeping speculative pressure at bay.

“It’s a way of opening up the capital account which helps companies deal with the real flows of the economy,” Michael Vrontamitis, head of product management of transaction banking for East Asia at Standard Chartered in Hong Kong, told Reuters.

“Those are the real flows. These companies are not speculating on the currency,” said Vrontamitis, whose bank is handling transactions for Shell under the pilot program.

Six of the firms involved are foreign, eight company executives and bankers with knowledge of the matter said. They are Shell, Samsung, Intel Inc, Alcatel-Lucent, Schneider Electric and Caterpillar Inc.

The other seven companies are Chinese state-owned enterprises: Sinochem Corp, China Minmetals Resources, China Shipping Group, COFCO Group, Baosteel Iron & Steel, Shanghai Electric Group Co. and China Eastern Airlines.

Some of the names of participating companies and banks have been reported in the Chinese media, but the full list has not been disclosed. The currency regulator declined to comment.

via Shell, Samsung in China pilot to ease currency controls: sources | Reuters.

14/03/2013

* VW ramps up China production to offset weak Europe

Reuters: “Volkswagen, Europe’s biggest carmaker, plans to almost double production capacity in China over the next five years to grab a bigger slice of fast-growing emerging markets and offset declining demand at home.

A logo of Volkswagen is pictured a car dealer in the western city of Hamm January 14, 2013. REUTERS/Ina Fassbender

The German company said on Thursday it aimed to have the capacity to make over 4 million vehicles in China, already its largest market, by 2018.

Volkswagen (VW), which delivered around 9.1 million vehicles in total last year, has said previously it hopes to snatch the global sales crown from Toyota Motor Corp in 2018.

“VW’s future is increasingly being decided in China, Russia, India, the Americas and Southeast Asia,” Chief Executive Martin Winterkorn said as the company published its annual report. “This is where we will generate most of our growth in future.”

Carmakers across the world are relying on emerging markets for growth amid a protracted slump in recession-hit Europe, which if anything has got worse in recent months.

VW said last month, alongside its 2012 results, that growth in group operating profit might stall this year due to weakness in Europe, which would be the first time group earnings have not risen for four years.

In the annual report, which gave details on 2012 results for the first time, the company said operating profit at its main VW brand fell 4.1 percent to 3.64 billion euros last year despite higher sales, reflecting big discounts to lure European buyers.

The VW brand, which provides almost a third of group earnings, also saw western European deliveries drop 11.6 percent in the first two months of this year.

“We have to really put our shoulders to the wheel and give our very best,” Winterkorn said. “The environment is definitely a tough challenge, especially for European car makers.”

Operating profit at VW’s two Chinese joint ventures, in contrast, surged 42 percent last year to 3.7 billion euros.

VW has said previously the ventures would spend almost 10 billion euros ($13 billion) through 2015 on new plants, products and technologies.

The company said on Thursday it would set up a new assembly plant in southern China, adding to the dozen component, engine and production factories it already has in the country.

It also has another three assembly plants and two component facilities starting operation in 2013.

With 10.6 billion euros in net cash resources, VW is open to making acquisitions, Winterkorn told Reuters in an interview, noting “there are always opportunities one cannot pass up.””

via VW ramps up China production to offset weak Europe | Reuters.

02/02/2013

* Coming of age: China’s used car market outpaces new sales growth

This also means that tyre companies will be selling tyres to replace the original sets.  Invest in rubber company shares!

Reuters: “Used car sales in China grew faster than new car sales for a second straight year in 2012, and should account for half of all sales within seven years as the world’s biggest autos market matures.

People select automobiles at a second-hand market in Shenyang, Liaoning province December 10, 2011. REUTERS/Sheng Li

While new cars still outsold used vehicles by more than 3 to 1 last year, they are sputtering after a period of breakneck growth, and the potential for the pre-owned market to be the industry’s growth engine is prompting foreign automakers to open more used-car outlets.

A key target for them are buyers like Jiang Meng, a 32-year-old office worker in the southeastern city of Guangzhou, who this month went shopping for a sport utility vehicle, and hadn’t considered a second-hand car until she came across a used car dealer run by Nissan Motor Co’s (7201.T) local joint venture.

“I wanted an SUV, but I wasn’t sure of getting a used one until I stepped into the store. There are so many models and they offer a warranty,” said Jiang, who traded in her 2-year-old Nissan Tiida sedan for a 4-year old silver Qashqai. The deal cost her 25,000 yuan ($4,000). A new Qashqai is priced at around 189,000 yuan.

“The car was very clean inside and outside and it drives very well. Many of my friends thought it’s new,” she said.”

via Coming of age: China’s used car market outpaces new sales growth | Reuters.

08/01/2013

* Mahindra to Launch Sun-Powered Car

WSJ: “Mahindra & Mahindra Ltd. plans to launch a new, sun-powered electric vehicle in India in the hope that high fuel prices will push consumers to look for new options in the car market.

The car, called e2o,  runs on lithium ion batteries that allow it to travel 100 kilometers in one charge, the company said in a statement Tuesday. The vehicle, the only four-seater electric car in India, can also be solar charged, the statement said. The company will produce it at its new plant in Bangalore and plans to launch it in the market by March.

The name of the vehicle – pronounced “ee to oh” – follows the Mahindra tradition of having vehicle names ending with o (Scorpio, Bolero, Xylo, Gio, Genio). The company said the “e” in the name stands for the energy of the sun, and the “0” for oxygen.”

via Mahindra to Launch Sun-Powered Car – India Real Time – WSJ.

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