Wednesday 25 February 2009
A2 TOP NEWS
Big-10 plan
to gear up
car makers
Jin Jing
CHINA hopes to cut the
number of its major auto
makers from 14 to 10 and
increase the market share of
domestic-brand vehicles in a
consolidation push designed
to enhance the competitive-
ness of a stalling industry.
The plan, which is part of a
larger auto industry stimulus
package announced earlier,
seeks to create two to three
powerhouse auto makers with
annual sales and production
capacity of 2 million units and
another four to five car com-
panies with the ability to sell
1 million vehicles every year,
two officials from the China
Association of Automobile
Manufacturers told Shanghai
Daily yesterday.
None of China’s car com-
panies meets the top criterion
now. The one that comes clos-
est is Shanghai Automotive
Industry Corp, which sold
around 1.8 million vehicles
last year.
The government also wants
to increase the market share
of Chinese-brand passenger
vehicles to 40 percent from
the current 34 percent, the
sources added.
Backed by the merger plan
and other measures contained
in the stimulus package un-
veiled in mid-January, the
government hopes domestic
car makers will sell at least
10 million vehicles this year
and maintain annual sales
growth of 10 percent over the
next three years, the sources
said.
Last year, the country’s
vehicle sales rose 6.7 percent
to 9.38 million, the slowest
pace since 2000 as the global
economic downturn reduced
consumer purchasing power
and curtailed exports.
Monday to Sunday 2 Yuan
Editor-in-Chief:
Zhang Ciyun
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The merger push will have
the greatest effect on China’s
top 10 car makers, a group
that accounted for 83 percent
of total sales last year and in-
cludes state-owned firms such
as SAIC, FAW Group Co and
Dongfeng Motor Corp and
privately owned Geely.
Some consolidation is al-
ready under way. The Beijing
Automotive Industry Group,
the nation’s fifth-biggest car
maker, is in discussions to
take over Fujian Automotive
Group in south China to ex-
pand production.
Guangzhou Auto, the Chi-
nese partner of Toyota and
Honda, is pursuing the sport
utility vehicle specialist
Changfeng Automobile Co.
No quick fix
Analysts warned, however,
that an immediate surge in
industry mergers is not likely
despite the government
encouragement.
“Mergers and acquisitions
still depend on the goals of
individual car makers,” said
Zhang Xin, an auto analyst at
Guotai Jun’an Securities Co.
“It could become compli-
cated if it involves conflicts
among local governments”
that are reluctant to lose a
source of taxation.
The detailed measures have
been sent to local govern-
ments for their review.
Under the larger stimulus
plan, the government is set-
ting up a 10-billion-yuan
(US$1.46 billion) fund to
help car makers develop new-
energy vehicles.
It is offering 5 billion yuan
in subsidies to support vehicle
purchases in rural areas start-
ing on March 1.
And the sales tax on vehicles
with smaller engines is being
cut in half to 5 percent.
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Taipei trial continues
Former Taiwan leader Chen Shui-bian (right) leaves for Taipei district court from the
Tucheng Dentention Center in Taipei County yesterday, as Chen’s trial on corruption
and money laundering charges continued. He again pleaded innocent to graft and
money laundering charges yesterday, two weeks after family members confessed to
related offenses. — Lu Tou
Chen speaks out in sex-pix case
Lydia Chen
HONG Kong singer and
actor Edison Chen testified
in a Canadian court on Mon-
day against the person who
allegedly gained access to
his computer and released
hundreds of raunchy pictures
that showed him in bed with
several female entertainment
stars.
The 28-year-old celeb-
rity appeared in a Vancouver
courtroom to give a statement
in the trial of Ho Chun Sze, a
former employee of a Hong
Kong computer store where
Chen sent his laptop for repair
in 2006.
Sze faces three counts of
obtaining access to a comput-
er with illegal intent and will
stand trial in Hong Kong.
The Vancouver-born star
refused to return to the spe-
cial administrative region,
saying he fears assassina-
tion because of a scandal
that has shocked Chinese
communities around the
Shanghai Daily
www.shanghaidaily.com
‘Slumdog’
vetted for
local run
THE biggest winner of the 81st
Academy Awards, “Slumdog
Millionaire,” will debut in
Chinese mainland cinemas in
late March or early April.
Weng Li, spokesman for the
China Film Group Corp said
yesterday that the decision
was made to import the film
because “its artistic value has
been proven by the Oscars. Its
theme is positive, healthy and
inspirational.”
“Slumdog Millionaire,” a
low-budget production depict-
ing a rags-to-riches love story,
went into the Oscar ceremony
with 10 nominations.
It ended up winning eight
honors including best pic-
ture, best director and best
editing.
But the acclaim both before
and after the Oscars has not
prevented controversy. One of
Asia’s top actresses yesterday
defended “Slumdog” against
criticism that the film glossed
over the reality of life in the
slums of Mumbai.
Former Bond girl Michelle
Yeoh, who worked with
“Slumdog” director Danny
Boyle on the 2007 sci-fi movie
“Sunshine,” said the film was
a fairy tale and shouldn’t be
confused with what life is
actually like for India’s poor.
“I’ve been to Mumbai,” Yeoh
said at a Hong Kong news
conference promoting the
Asian Film Awards. “The
harsh reality of the place is
such that there are certain
places where it’s horrible.”
She said Boyle had to make
the film upbeat because the
true story of what it is like to
live in a slum wouldn’t have
appealed to audiences.
(Shanghai Daily/Agencies)
world, according to China these images were released,” known for her squeaky-clean
News Service. Chen agreed he said. The number of sex image in the popular female
to make a deposition in Van- pictures appearing online singing duo Twins, fell into
couver under a mutual legal sharply rose from just two on obscurity after the scandal.
assistance treaty between the first day to 100 pictures The pictures, which Chen
Canada and Hong Kong. two days later. said were all taken “with
The statement will be used Some of the pages hosting consent,” surfaced on the
as evidence when Sze’s trial the photos received more than Internet in January last year
begins on April 4. 25 million hits, and the feed- after Chen’s laptop was sent
Hong Kong Chief Mag- ing frenzy crashed the Web in for repairs in the summer of
istrate Tong Man flew to Hong Kong. 2006.
Canada to hear the evidence. Chen, who left show busi- Chen said he was shocked
Chen sub- ness after to discover the exposure as he
mitted a laptop the scandal, thought he had deleted the im-
to the court confirmed ages before the repairs.
along with all
“It was more that the four “That strongly led me to
the copies of of an attack, a female celeb- believe there was some foul
the pictures rities in his play in this computer store,”
he took from well-planned pictures were he said.
2001 to 2006. attack ...” actress Cecilia Chen, a pop singer and star
He de- Cheung, actor- of a popular series of Hong
s c r i b e d singer Gillian Kong films, apologized last
himself in court as “a quite Chung, former actress Bobo year for the scandal and then
private person” and said the Chan and model-actress Ra- returned to his childhood
pictures were never meant chel Ngan. home in British Columbia.
for anyone else to see, and But he refused to an- He played the lead role in the
only those in the photos had swer any questions about first two episodes of the tril-
viewed them before they be- the women in court, saying ogy “Infernal Affairs.”
came public. they had already suffered The film was later adapted
“It was more of an attack, a enough. by Hollywood director Martin
well-planned attack in the way Gillian Chung, previously Scorsese as “The Departed.”