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 |  Oct 13 2010, 9:38 AM

PSA Peugeot Citroen is the first automaker to publicly stand up to the Chinese government’s proposed Green Car Plan. Recently an initial draft of a new piece of Chinese government legislation was leaked in which was revealed plans by the world’s largest auto market to strong arm international auotmakers into sharing their hybrid and electric vehicle technology with Chinese partners.

Currently in China if an automaker wants to set up shop it has to partner with a local company in order to do so. Under China’s new Green Car Plan, designed to make China a world leader in hybrid and EV technology, partnerships would now require the local business to take a controlling share of the joint venture if the international company wanted to build or sell “green” cars in China. In other words, the Chinese government is using the lure of its massive (and expanding) auto market to pry industry secrets away from companies – something that isn’t sitting well at all with companies like PSA Peugeot Citroen, after pouring billions of dollars into their own development projects.

In a recent interview with Automotive News China, PSA CFO Frederic Saint Geours commented rather unequivocally that, “The Chinese government will have to reconsider its position.”

With PSA making this dramatic statement, other automakers are likely to step forward and challenge the Chinese governments policy.

[Source: Automotive News China via Autoblog]