Hunan Changfeng Motor resigned from buying Hummer Brand from General Motors. Chinese said, the car would be too expensive for their army, and sale for civilians would be very difficult. Changfeng, of which Mitsubishi Motors is one of shareholder, deliver off-roads Leopard to Chinese Army. Every of them costs 200,000 yuan, which is a small part of the amount, the Hummer is worth. One of the reason is also a drastic growth of taxes for cars with the biggest engines.

The Chinese government wants to encourage residents to buy cars with economic engines. That is why it brings new taxes run on the engine capacity. They are to frighten potential buyers away from such cars as Hummer is. For engines with capacity between 3.0 and 4.0 liters, charges will grow from 15% to 25%, and in case of the biggest ones (over 4.0L), taxes will be higher twice and grow from 20% to 40%. The tax for the smallest engines was reduced from 3% to 1%, and for these with capacity between 1L and 3L, it stayed unchanged.

Other Chinese carmakers, i.a. the market leader - SAIC Motor, which is the partner of GM in China, informed, that they are not interested in buying Hummer as well.

Source: Puls Biznesu
Source: Xinhua