A Leading Portal for China Auto Industry
Federal incentives to encourage a shift from gas-guzzling SUVs to fuel-efficient “green cars” could hurt struggling North American auto makers by keeping some drivers out of the marketplace without significantly boosting sales of gasoline-electric hybrid cars, industry watchers say.
Auto analyst Dennis DesRosiers said Tuesday the government should be concerned with how auto makers might react to its budget plan, which favours hybrid cars with a rebate of up to $2,000 on the purchase but puts a $4,000 tax on SUVs and other vehicles that use high amounts of fuel.
“If I was General Motors, Ford and Chrysler, I'd be real (upset). Right now, these companies are in real sensitive mode in terms of their very survival,” Mr. DesRosiers said.
“Key decisions are being made in their head office boardrooms in terms of plans of what to keep open, what plants to close and where to put their investments. And what does the federal government do? They send a bomb — a missile — into these boardrooms saying we're going to put a $4,000 tax on your most profitable vehicles,” he said.
Mr. DesRosiers suggested consumers will find other ways to acquire an SUV, if they really want to make the purchase, such as buying used — an area that isn't covered by the incentive plan — or travelling stateside to make a purchase.
The taxes “don't deter consumers from buying these kinds of vehicles, mainly because you can drive a large SUV through the loopholes in them.”
We deliver timely, professional China automotive news and commentaries, and authoritative interviews on global purchasers, suppliers, CEOs of consultation firms and aftermarket companies; focus on the industry dynamic news and markets!
GAC Trumpchi GM8 interior design revealed, taking after GS8
Changan Plans to Have Car Production and Sales Surpass 3.3 Million Units
Zotye S will Launch 10 New Models, Coupe SUV Make Its Debut
Liu Liang was Appointed as Qoros’s New CEO
GAC Trumpchi GS3 with an 1.0T engine to rival Haval H2
Domestic TLX Launch, ACURA 3 New Models Out
Sokon Industry Group Tries to Sell 420,000 units This Year for Establishing a Million-car Group
Beijing Hyundai’s Releases its 2017 Plan, with Many New Models being Launched
GWM WEY Meets Obstacle in Sprinting for High Sales, Haval Lowers Price for Increasing Sales Volume
Dongfeng Peuogeot 5008 revealed-the Highlander rival
The exposed Chery technological plan involves powertrain and connected vehicles
BAIC Invests 1 billion in Promising Car-sharing Service
JAC New Energy Vehicles February Sales Decreased by nearly 90%
NEXTEV Complete $600M Equity Trading Leading by Tencent and Baidu
First Geely electric SUV exposed,possibly “Vision EV”
The "National Auto" Red Banner Will Launch 8 New Models This Year
PC sales slipped in first two months for first time in 12 years
Decreasing purchase tax benefits have limited effects, self-independent brands increasing 6.1% year-to-year in the previous two months
Jiangling sales increased,20 more models to launch
Hot Auto Products|
Auto Products Directory|
Auto Parts Manufacturers|
Copyright Notice © 2016 Gasgoo.com Corporation and its licensors. All rights reserved.