China Ends Some Electric Vehicle JV Mandates- A Plus for GM?
Chinese officials have reportedly waived the requirement for some electric vehicle makers to form joint ventures with Chinese companies before operating in that country. Previously, Beijing had hoped the joint venture requirement would give Chinese automakers access to foreign EV technology. That never happened, and now the government has other priorities.
Foreign companies will be allowed to produce EV batteries, electric motors, battery management systems and electronics without forming joint ventures with Chinese partners, the report said.
It could give a boost to Nissan, an EV pioneer with its Leaf, and General Motors, which is set to begin shipping the Bolt -- its first all-electric vehicle -- by the end of 2016.General Motors, which is a top China automaker via joint ventures, was up 1.7% to 32.03 at the close Thursday. Nissan lost 1.1% to 19.63.
http://www.investors.com/news/china-ends-joint-venture-mandate-for-some-products-a-game-changer/
Foreign companies will be allowed to produce EV batteries, electric motors, battery management systems and electronics without forming joint ventures with Chinese partners, the report said.
It could give a boost to Nissan, an EV pioneer with its Leaf, and General Motors, which is set to begin shipping the Bolt -- its first all-electric vehicle -- by the end of 2016.General Motors, which is a top China automaker via joint ventures, was up 1.7% to 32.03 at the close Thursday. Nissan lost 1.1% to 19.63.
http://www.investors.com/news/china-ends-joint-venture-mandate-for-some-products-a-game-changer/
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The good news is that now the Chinese won't be stealing the EV technology as fast as they would have with joint venture companies. They past methods were to form JV, then start producing the same product elsewhere after all the secrets and technology were stolen from the original JV company. Anyone heard of the Apple iPhone knock offs available there?
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China has the world's largest population (almost 25% of the Earth's population) and the world's worst environmental problem. They have to open up the EV market so the new car buyers will select at least a hybrid, preferibly a BEV, to replaced their gas engine vehicles and reduce the emissions to clean their environment. China is also GM's largest market, so most of GM's EVs will be sold there, and some will be assembled there for sale (the Cadillac CT6 Hybrid is the first). GM also has the JV with SAIC and will build new models exclusively for the Chinese market, and maybe they will be exported worldwide to compete with the other EVs from Japan and South Korea.
I hope this move will increase the availability of EVs for our local market, which is still dominated by Japanese and South Korean brands, leaving the U.S. brand behind.
I hope this move will increase the availability of EVs for our local market, which is still dominated by Japanese and South Korean brands, leaving the U.S. brand behind.
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Prior to this, GM was stuck either handing over it's Voltec IP to a Chinese "partner" or importing Volts at a severe price disadvantage.
Given that GM does have a JV partner, I'm unsure what practical affect this new policy will have. Would GM setup it's own manufacturing for EV's without its JV partner?
Given that GM does have a JV partner, I'm unsure what practical affect this new policy will have. Would GM setup it's own manufacturing for EV's without its JV partner?
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