Tuesday, September 26, 2006

China in Auto News 1
Daimler Chrysler to bring in Chinese-made car?


Daimler is hinting that it may find a Chinese partner for an upcoming small car. Well, that's got to go over well in middle America.

Chrysler in Auto News 2
China to Tax Large Engines - Support Turbos


In the international press, China is all about "free trade", but at home, China requires foreign car makers to enter into (50-50) partnerships with local companies. It seems inevitable that one way or another, once the local company has built up capital and knowhow, the foreigner is going to be told to hit the bricks.

There is one area where China is equal to, and maybe ahead of the West, and that is (surprisingly) emissions and fuel economy policy. China imposes high taxes on automobiles, and on large-displacement engines in particular. As a substitute, China has been progressive about turbochargers. See the Automotive News article on China and Turbochargers.

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