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Guangzhou's Automobile Industry Profitable
The automobile industry in this capital of south China's Guangdong Province has turned from a money loser into a profit maker as a result of reorganization and adjustment.
The industry as a whole expects to make 800 million yuan (about US$100 million) in profits this year.
Motor vehicles produced by automobile companies in Guangzhou are highly competitive on the market nowadays.
In order to speed up the development of the automobile industry, the Guangzhou City Government designated the industry as a pillar industry and decided to grant all possible assistance to it. Since 1997 the automobile industry has undergone a series of reorganization, thus changing the situation of scattered production.
At present, the city's automobile industry has introduced a system whereby the Guangzhou Automobile Industry Group serves as the backbone and another 16 companies as auxiliary producers.
The new system has avoided internal vicious competition and realized the concentration of advantageous resources such as professionals, products and technology. As a result, the industry began to make profits in June.
In the mean time, the City Government also readjusted the automobile accessories enterprises and selected 50 promising ones as major producers.
The new system of the automobile industry is now in good condition, a leading official of the Guangzhou Automobile Industry Group said. The industry's total production value is now 15 billion yuan (about US$2 billion), and is projected to reach 50 billion yuan (about US$6 billion) by 2005.
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