Dealerships Concern about Government

　　National People's Congress deputies and Chinese People's Political Consultative Conference members recently held hot discussions about the automotive industry which is related to people's livelihood, according to the Beijing Conference. In addition, the dealerships have their own views and hopes.

　　Li Yanjun, the Vice President of Sanjiang Brilliance, believed that government procurement can influence consumer's decision. If Chinese government is really able to purchase domestic brands as official vehicles, the independent brands will embrace a positive effect.

　　He also said that as to domestic brands the government should have a defined standard and actively supports and encourages the development of domestic automakers. Li Yanjun believed that currently domestic brands' products are different from the previous ones. Independent brands cars are suitable for the official purposes and they can play their role.

　　Lu Wei, the Vice President of Chery Zhongruichen-a dealership for Chery, shared the same view with Li Yanjun. He put forward his own point of view about government procurement of domestic auto brands.

　　"After the 2010 sessions of National People's Congress and Chinese People's Political Consultative Conference, domestic brands will have a great opportunity. Regarding government procurement, I believe that the execution is most important," Lu said. He thought that although some documents have required that domestic brands should account for 50% in government procurement, the conditions of implementation are uncertain. Lack of regulatory measures, those files will become a dead letter. Lu Wei hoped that deputies and members should call upon the matter and the government can make a clear definition and classification.

　　For the dealerships of domestic brands, they concerned about the government procurement during the sessions of NPC and CPPCC. Government procurement can not only promote sales in large scale, but also promote the brands, which is a top concern for the dealers of Chinese automakers. Only by establishing brands can they enter higher value-added markets.

　　Liu Guilin, the General Manager of Dashihang-a dealership for Cadillac, told the Beijing Conference that he was more concerned about the recalls.

　　Liu said: “Recently Toyota carried out large-scale recalls due to quality problems. Therefore recall has become a hot topic at present.” He said that a vehicle consists of hundreds of parts. Consumers should keep a calm mood towards recalls. They should not feel scared. Of course, calm state of mind is based on the manufacturers' active decisions to shoulder responsibilities. As to recalls, Liu believed that both sides should have correct understandings and recalls should have a more human face. At the same time, Liu acknowledged that relevant functional departments should come up with a more detailed recall system, which can promote automaker to shoulder reasonability. Once the manufacturers take the initiative to shoulder the responsibilities, consumers will have a correct view.

　　Hao Wei, the Deputy General Manager of Beijing Hyundai Xinfa Dealership, said," Recently people paid more attention to Toyota's recalls. Therefore bills related to the quality of products attracted concerns."

　　He believed that as a world's leading automaker, Toyota is well-renown for its quality of products and refined management. Because of excessive pursuit for production and scale, Toyota overlooked the quality of products, resulting in massive recalls. Toyota's recalls should serve as a warning for Chinese automakers.

　　In addition, Hao Wei thought that the number of cars in China is quite huge. However, the majority of automakers proposed a high-growth plan. In some first-tier cities the demand is close to saturation. As to some second, third or even fourth-tier cities, it will become a major problem for Chinese automotive industry that whether consumers' interest will be protected well.

　　Most dealers have the same concerns as Hao Wei.

　　Some dealerships said that in first-tier markets consumer have already bought one or more cars. They care about quality and service, two factors which have a direct impact on brand loyalty. In recent years, the complaints related to automotive consumption keep rising. Some dealers said that they hoped that NPC deputies and CPPCC members should hand in more proposals about improving quality of products. (Translator: Qinghua/Hanxin)

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