GM, Facing Volt Price Anxiety in China, Urges Beijing to Subsidize Imported EVs
By Scott Doggett September 7, 2010
General Motors is urging the Chinese government to extend its electric vehicle subsidies to imported models, according to IHS Automotive, citing a report by Dow Jones Newswires.
The forecasting service today quoted GM China VP David Chen (pictured) as saying that, "China is the only country that has different subsidy policies [for electric vehicles based on origin]", adding, "The U.S. government provides US$7,500 for every electric car no matter where it comes from."
Chen reportedly added that this hurts overseas automakers' competitiveness in the country and he reportedly said that GM is interested in building vehicle charging stations in China, but he did not elaborate.
His remarks come in reference to GM's plan to sell the Chevy Volt in China next year. The model is expected to cost more than $40,000 there - significantly more than the typical Chinese-made hybrid even before any incentives are taken into account.
The Chinese government announced last month that it plans to spend roughly 100 billion yuan ($14.7 billion) through 2020 to help domestic companies develop alternative-fuel vehicles.
Couple of things worth noting: First, despite the fact that General Motors is trying to get everyone to treat the Volt as an electric car, it is in fact a plug-in hybrid. It is fueled by electricity and gasoline, as opposed to a Tesla Roadster, a true electric vehicle - it's only form of fuel is electricity.
The Japanese government, which is very protective of its markets, recently extended a very substantial cash rebate to buyers of the Roadster, which is assembled in California.
The Chinese government, on the other hand, limits rebates it offers buyers to domestically made EVs and plug-in hybrids.
"Although the government is looking to increase the numbers of such vehicles sold in the country, it is aiming to maintain the stranglehold of locally built vehicles, and this is unlikely to change," an IHS Automotive analyst to Green Car Advisor in an email.
Perhaps instead of criticizing the subsidies the Chinese don't give buyers of foreign-made vehicles, the U.S. should re-evaluate the wisdom of the subsidies it offers to buyers of vehicles made by foreign automakers outside the U.S.A.?
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