Published 28th July, 2013
Two major Western marques received vehicle subsidies for cars that were later found to fall short of requirements.
Shanghai Volkswagen Automotive Co and Shanghai General Motors were found to have unlawfully obtained subsidies in 2011 and 2012 for vehicles that did not meet government standards for energy efficiency.
According to the National Audit Office, the VW joint venture received subsidies of 16.7m yuan ($2.7m) for 5,570 vehicles that fell short of the required fuel economy standards. Shanghai GM received 546,000 yuan ($89,000) of subsidies during the same period.
The two companies, which took advantage of government subsidies - first introduced in 2011 - of up to 3,000 yuan ($490) per unit, are both in 50-50 joint ventures with China’s state-owned automaker SAIC.