Changhe autos destroyed 12 million RMBs worth of its own produce this week in accordance with the government.
Changhe autos says that hundreds of its already produced, but not yet sold cars do not meet Chinas emissions and safety standards, and were thus destroyed in accordance with China’s General Administration of Environmental Protection.
Changhe Autos never specified which models were destroyed.
This government move looks like a first. It raises the questions of who will be next and who among these third tier manufacturers can endure it.
Could this be the start of a consolidation of the auto makers in China?
Following the onset of C-NCAP testing, all the small manufacturers are already nervous about their products vulnerability to failure. Barring big outside investments such as little Lifan recently attracted, consolidation will accelerate.
Joest speaks about 200 Changhe Ideal. He shows a photo (according my vision photoshopped) of a Changhe Ideal II.
Erik, I got up with 200 by dividing the 12 million RMB value by my own rough estimated price of an Ideal.
While the picture is just something I made up with a picture of an Ideal II from Autohome and a scrapyard picture fond on Google.