Replies to post #2031 on A123 Systems fka AONEQ

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“A123 can’t make any money selling batteries here,” in the United States, O’Neill wrote in an e-mail, “so I don’t get how its chances improve in China.”

Guiyang becomes 2nd city to restrict car purchase in China
by Jennifer Chen 2011-07-20
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GUIYANG, Guizhou – Guiyang, capital of southwest China’s Guizhou Province, has become the second city in China to restrict car purchase in tackling traffic gridlock after Beijing, according to media reports.

The Guiyang government has started to issue two types of plates, namely the exclusive plates and the common plates, from July 12. Car buyers in the city have to go through a lot-drawing system to compete for the 2,000 exclusive plates per month. Cars with common plates, which will be issued with no restrictions on the quantity, are prohibited from entering the downtown area, or the “1
st ring road” of Guiyang.

The vehicle parc of Guiyang totaled 616,000 units by the end of 2010, 7.7 times of the 79,800 units in 2000 with an annual growth rate of 23 percent. Private cars have taken up 53.6 percent of the total to 330,000 units, according to the sources.

“This should not happen,” said Cui Dongshu, deputy secretary-general of China Passenger Car Association, during a media telephone interview. “The act of Guiyang government may arouse more sales restrictions in other developed cities, which will further hamper the staggering development of China’s auto market,” Cui commented.

“Guiyang’s car purchase restriction policy does not comply with the Automotive Industry Readjustment and Revitalization Plan (the Plan) issued in 2009,” disclosed an official of the National Development and Reform Commission on July 19. “The Plan will not expire until the end of 2012, and the government has never supported such car purchase restriction policies,” added the official.

Another official from the Ministry of Industry and Information Technology said that it is unlikely that the central government will order the local government to cancel such car purchase restriction policy. “We can only instruct and supervise local governments on a city level on their car purchasing restriction projects,” added the official.

Beijing started to restrict new car sales at 20,000 units per month at the end of 2010. According to statistics from China Automobile Dealers Association, Beijing sold around 150,000 new cars in the first half of this year, down 60 percent compared with the 378,600 units delivered in the same period last year.