Chinese Billionaire Urges Competitors to Bring it on.
Published By : 19 Aug 2014 | Published By : QYRESEARCH
Li Shufu, acclaimed billionaire and chairman of Volvo Cars and Chinese automaker Geely Automobiles, has asked the Chinese government to open its doors to more foreign names. He believes it is the best way to stimulate healthy competition.
According to sales, the Chinese automotive sector is the largest in the world. Li Shufu says that there are, however, too many limitations and regulations placed on it by the government. According to him, the biggest limitation lies in disallowing foreign international car makers to enter the Chinese market.
Mr. Li also stated that the Chinese market should emulate what the U.S and European markets do to keep it completely open. Whoever wants to produce their cars can do so without unnecessary restrictions. He further mentioned in the interview that the idea would be fair to Chinese car makers along with everyone else.
Geely is the Chinese company that also owns the Swiss automaker Volvo Cars. It is currently fighting foreign brands that are trying to dominate. Geely’s sales lowered to only 29% in the first half or 2014, with 187,186 vehicles.
The Chinese government has also talked about consolidating the auto industry by reviewing permits according to total sales. The Chinese industry minister Miao Wei, in an interview said that any company that fails to meet the minimum requirement of 1,000 passenger cars or 50 heavy/medium trucks will have their permits cancelled. The market currently has about 110 brands of cars and trucks.
Geely was the first private automaker to initiate in China. The company was started 17 years ago, and has since bought out Volvo Cars for $1.8 billion in 2010.