China’s Environmental Concerns Could Be GM Problem

Cars and other fossil fuel-using vehicles contribute to smog, and regulations to reduce notorious urban pollution in China could put a dent in GM and other foreign auto sales there. In recent years, GM has sold more cars in China than were sold in the United States during any years, notes Bruce M. Belzowski of the Transportation Research Institute at the University of Michigan, in the report. Some cities, including Shanghai, are limiting the number of license plates issued, and this could limit growth in auto sales. So far, Chinese consumers are not embracing the higher costs of fuel-efficient vehicles. As complaints about smog and the health effects rise, the Chinese government may also impose regulations that favor smaller cars, which could kill two birds with one stone – promote their own fledgling auto industry that focuses on small vehicles while reducing emissions. Foreign manufacturers may plan to target interior Chinese cities that are less regulated than the coastal cities. – YaleGlobal