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Chinese Automakers Ask for Help

The Associated Press

SHANGHAI, China -- While U.S. automakers plead for emergency loans from Washington, China's still-young car manufacturers also are appealing for their government's help amid a sales slump.

That support, they say, could come in the form of subsidies for technology development, easier-to-meet standards and better protection from intensifying competition.

"China is the last booming market nowadays, and foreign automakers are investing more money and building more factories here, threatening our own businesses," Xu Heyi, chairman of Beijing Automobile Industries , a partner with Hyundai Motor and Daimler(DAI Quote).

"I think the government should control this more strictly, and support development of our national brands as much as possible," Xu said in a telephone interview.

China's automakers have seen some relief thanks to the recent easing in commodities prices, said Wang Tianjun, a spokesman for Hunan Changfeng Motor , a major maker of sports utility vehicles based in central China's Hunan province.

"But sales are still not good," Wang said in a phone interview Wednesday. "The government should boost the economy by strengthening people's buying power and cut taxes to encourage spending."

"I doubt we, as a smaller, local automaker, could get subsidies from the government, but it would be a great help if the government would do something to support the overall industry through these hard times," Wang said.

So far, there is no sign of an all-out industry campaign in China for a bailout on the scale being sought by Detroit's Big Three automakers, General Motors (GM Quote), Ford(F Quote) and Chrysler , whose executives are appealing to Washington for a $25 billion "bridge loan" of cash to help prevent millions of layoffs and stave off bankruptcy.

Meanwhile, support for similar help for European automakers is growing.