China's Plans for Its Own Car Brands Stall
Liu Yu thought he was making a pretty generous offer: a $1 million subsidy to entrepreneurs willing to build a dealership for BAIC Motor’s Beijing car brand. Although that covers three-fourths of the cost of each outlet, the BAIC deputy sales chief has struggled to recruit the 150 dealer candidates he wants by yearend. In contrast, BAIC’s state-run parent company has no trouble finding dealers for its joint ventures with Mercedes-Benz maker Daimler and Hyundai Motor—even without subsidies. “China’s indigenous cars are the lowest in the food chain,” says Liu. “Many consumers are biased against them.”
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