General Motors, the largest foreign automaker in China, has minimized the risks to its expansion plans in the country after the state announced the end of a seven-year policy to attract foreign investments.
“We expect the new guideline to have minimal negative impact on GM’s future plans in China,” the company said in a statement. GM China spokesman Dayna Hart didn’t give any further details. China’s announcement may obstruct overseas investments in the country, as foreign carmakers could face difficulties getting state approval to build future plants, according to research firm LMC Automotive.
Inquired by Bloomberg, VW and Ford officials declined to comment on how the changes in policy will affect their business in China, but said current investments won’t be hurt. “VW will work toward fulfilling its expansion plans in China, which include actively developing electric cars and new-energy vehicles, and will continue to bring in fuel-efficient technologies and products,” VW said in a statement.
Kevin Wale, GM’s China president, said earlier this month that the company plans to boost production capacity by 25 to 40 percent over the next two years. GM said today it expects to remain a „key pillar” of the Chinese automotive industry.