From Detroit Free Press
BEIJING — China, the world’s third-largest vehicle market, has unveiled a new policy that prods carmakers to merge into fewer, bigger groups and protects China FAW Group Corp . and other large producers.
The policy, which took effect Tuesday, requires companies to provide from their own funds at least 40 percent of the 2 billion yuan ($241 million) of investment needed before they are allowed to make cars, according to a copy of the policy placed on the Web site of China’s State Development and Reform Commission. The new rules will also grant speedier approval for expansion to automakers with at least 15-percent market share.
“The new policy may help big automakers to grow through consolidation,” said Zhang Xin, an auto analyst at Guotai Junan Securities Co . in Beijing.
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