As the GM Motors gets ready to disperse the Chevrolet Volt plug-in hybrid from its plants to the Chinese customers, the Chinese government’s intervention proves to be a hurdle. The government having the upper hand has cashed in on the opportunity quite artfully. It is putting immense pressure on the company to divulge its core techniques and methods that have been applied to make the hybrid. 

The Chinese government is proving to be quite adamant in the matter. It has straight away refused to provide permission for the Volt to qualify for subsidies totaling up to Rs. 8.86 lacs per car. It has put up a condition that unless GM Motors is willing to disclose the secrets of one of the three main technologies it uses, the Hybrid cannot be rolled-out. Some international trade experts have expressed their concern regarding the decision taken by the Chinese government. They have said that China’s move may go against the World Trade Organisation rules, if the government’s demand is actually imposed on GM Motors.

General Motors

 

Foreign auto companies have disregarded the move and expressed their disbelief towards the attitude being displayed by the Chinese government. They are crying foul as they feel that the demand would create an unfair trend. According to them, there would be no grounds on which the carmakers would compete with the local Chinese car companies.

GM is trying its level best to convince the Chinese officials to allow the Volt to qualify for the subsidies and tax breaks with no technologies being shared. Raymond Bierzynski, Executive Director of Electrification Strategy at GM China said that “We’ll bring it up in every conversation we have.”

Carmakers have done a lot in bringing up the trend of plug-in hybrid cars in place. The government’s decision may bring some speed breakers in the process, but such confrontations cannot deteriorate the will and the passion which carmaker possesses.