China to Stop Production of 553 Vehicle Models Over Fuel Use

Jan 02, 2018

China will end the production of 553 passenger-car models that don’t meet fuel-consumption limits amid efforts by the nation to curb pollution.

The halt in production will begin Jan. 1, the China Vehicle Technology Service Center said in a statement Thursday. Models include FAW VW’s Audi FV7145LCDBG sedan, Beijing Benz’s Benz BJ7302ETAL2 sedan and Shanghai GM’s Chevrolet SGM7161DAA2 sedan.

China has been cracking down on chronic pollution in the past year through measures including curbs to steel supply, restricting coal usage, and a plan to phase out vehicles powered by fossil fuels. The latest announcement marks the first time China has come up with an official list of offending vehicles and there’ll be more to come, said Wang Liusheng, a Shanghai-based analyst at China Merchants Securities Co.

“To emphasize a cut back on energy consumption, such documents will surface frequently in the future,” Wang said in an email. “It’s an essential move to ensure the healthy development of the industry in the long run.”

The 553 models form a “very small” percentage of passenger cars in production, Cui Dongshu, secretary general of the China Passenger Car Association, said by phone. He didn’t provide further details.

Source: Bloomberg