In the United States, the government, both on the federal and state level, provides an array of incentives for eco friendly cars such as plug-in hybrids, clean diesels and electric cars. However, the United States isn’t the only main automotive marketplace with such incentive programs in place.
Over in China the nearby government has drafted its own ‘New Energy Vehicle Development Plan’ designed to market the proliferation of green cars, particularly plug-in hybrids and electric cars. The plan necessitates the investment up to $15 billion in R&D expenses, along with the progression of electric car infrastructure as well as buyer incentive plans similar to tax credit repayment offered in the United States.
On the other hand, where China’s program varies significantly to the one here in the United States is always that entitled cars will have to be produced in China, either by way of a Chinese firm or even in some pot venture with a Chinese firm. Additionally, china firm also needs to have intellectual property rights and "mastery" of one of three key parts: the motor, battery or power electronics.
This means that cars like the Chevrolet Volt, which can be presently built exclusively within the United States, will probably be excluded from China’s New Energy Vehicle Development Plan.
As expected this has ruffled several feathers of United States senators down in Michigan. Sens. Debbie Stabenow of Lansing and Carl Levin of Detroit, for instance, have already written to trade members to help assuage the things they call discriminatory practices through the Chinese government.
This would leave the Chevrolet Volt, which goes available for sale in China towards the end of the year, in a problem with locally built vehicles, and this subsequently could even hamper the rollout of plug-in hybrids and electric cars in the marketplace.