MIIT has put on notice 7 auto manufacturers, 53 bus or special vehicle manufacturers, and 12 motorcycle manufacturers to be derecognized.
According to rules framed in 2012, any preexisting auto enterprise that fails to produce a minimum prescribed number of licensed vehicles for two consecutive years will be given a warning. They may apply for a grace period of another two years and try to turn the business around; however, no new product from these companies will be approved. After the probation period the situation will be reassessed, and if things are still not looking up, the vehicle production license will stand suspended. Moreover, after suspension, this license cannot be transferred to a new company by way of renaming or relocation.
http://news.cnev.cn/Info_108661.html
The seven automakers are:
1. Tianjin FAW Huali Automobile Co., Ltd.
2. Guangqi Hino (Shenyang) Automobile Co., Ltd.
3. FAW Harbin Light Vehicle Co., Ltd.
4. Hafei Automobile Manufacturing Co., Ltd.
5. Chengdu Xin Dadi Automobile Co., Ltd.
6. China Hengtian Automobile Group Light Vehicle Co., Ltd.
7. Jiangsu Kawei Automobile Industry Group Co., Ltd.
For the whole list, see http://www.cvtsc.org.cn/cvtsc/notice/1433.htm
Apparently this exit policy was undertaken to retire "zombie" companies sitting on licenses without any production when at the same time new or innovative companies are being starved of licenses, often resorting to roundabout measures like reverse mergers with idle companies in order to make a backdoor entry into the motor industry.
The rules stipulate the minimum production conditions as:
1000 passenger cars, 50 medium or large buses, 100 light buses, 50 medium or heavy trucks, 500 light trucks, 100 special vehicles (code 5), or 1000 motorcycles.
Of the above seven, notable is Jiangsu Kawei, i.e. the company making the SUVs [and not the pickups which are made by YTO-Kawei (Luoyang) Vehicle Co. Ltd]. Although figures for Kawei are not usually published, I did find out that it produced 110 passenger cars in 2017.
According to rules framed in 2012, any preexisting auto enterprise that fails to produce a minimum prescribed number of licensed vehicles for two consecutive years will be given a warning. They may apply for a grace period of another two years and try to turn the business around; however, no new product from these companies will be approved. After the probation period the situation will be reassessed, and if things are still not looking up, the vehicle production license will stand suspended. Moreover, after suspension, this license cannot be transferred to a new company by way of renaming or relocation.
http://news.cnev.cn/Info_108661.html
The seven automakers are:
1. Tianjin FAW Huali Automobile Co., Ltd.
2. Guangqi Hino (Shenyang) Automobile Co., Ltd.
3. FAW Harbin Light Vehicle Co., Ltd.
4. Hafei Automobile Manufacturing Co., Ltd.
5. Chengdu Xin Dadi Automobile Co., Ltd.
6. China Hengtian Automobile Group Light Vehicle Co., Ltd.
7. Jiangsu Kawei Automobile Industry Group Co., Ltd.
For the whole list, see http://www.cvtsc.org.cn/cvtsc/notice/1433.htm
Apparently this exit policy was undertaken to retire "zombie" companies sitting on licenses without any production when at the same time new or innovative companies are being starved of licenses, often resorting to roundabout measures like reverse mergers with idle companies in order to make a backdoor entry into the motor industry.
The rules stipulate the minimum production conditions as:
1000 passenger cars, 50 medium or large buses, 100 light buses, 50 medium or heavy trucks, 500 light trucks, 100 special vehicles (code 5), or 1000 motorcycles.
Of the above seven, notable is Jiangsu Kawei, i.e. the company making the SUVs [and not the pickups which are made by YTO-Kawei (Luoyang) Vehicle Co. Ltd]. Although figures for Kawei are not usually published, I did find out that it produced 110 passenger cars in 2017.
