【正文】 inistrative bodies and local governments which violate the Chinese government provisions and the new auto policy be abolished at each level including new car registration, consumption, and disposition to protect consumer benefits. For example, local governments39。 restriction on issues of license plates conflict with the new auto policy and will be abolished.■Chinese business plans by automakers worldwide add up to more than million vehiclesAfter the announcement of the new auto policy, Chinese business plans released by auto manufacturers worldwide are as follows: GM announced an investment plan in which it would invest a total of US $3 billion by 2007 to boost annual production capacity to million. VW announced that it would build new engine plants with annual production capacity of 300,000 in Shanghai and Dalian within two to three years. Toyota announced establishment of exclusive dealers for its highend brand model, the Lexus. Hyundai Motor released a plan to increase its annual production capacity to 600,000 with a total investment of US $740 million by 2007 (In May 2004, Kia, its subsidiary, released a plan to construct a new plant to boost the annual production capacity to 400,000). Ford and Mazda revealed progress of an investment plan in which a second passenger car plant and an engine plant of Changan Ford Automobile Co., Ltd. would be built in Nanjing. If the plan goes smoothly, the bined annual production capacity of Ford and Mazda in China will expand to 600,000.In addition, the following panies announced their plan: VW plans to boost annual the production capacity to million by 2008, Fiat plans to increase its capacity to 150,000 in 2006, and PSA to 300,000. DaimlerChrysler plans to manufacture million Cclass and Eclass as well as 20,000 highend light vans while BMW plans to boost its annual production capacity to 30,000. As for Japanese automakers, Toyota plans an annual production capacity of 600,000, Honda plans an annual production capacity of 500,000, and Suzuki 200,000. Nissan plans a sales volume of 620,000 in 2007 while Mitsubishi Motors plans 300,000. When we add such major automakers39。 plan, the scale of Chinese operations will amount to more than million a year in a few years.■Outline of production/sales plan in China by foreign major automakers(Partner panies include panies whose relationship is limited to technical licensing. A simple addition of planned output amounts to more than million)Major partnerPlanned outputOutline of planVWSCIA,China FAW162Aims to sell 1 million passenger cars a year by 2007. The pany will boost annual production capacity to a total of million 700,000 by Shanghai VW and 660,000 by FAWVW.The pany will make a new investment of 60 billion RMB (approximately 6 billion Euros) by 2008 to boost annual production capacity to a total of million 960,000 Shanghai VW and 660,000 FAWVW.The pany will invest 540 million Euro within 2 to 3 years to build new engine plants with annual production capacity of 300,000 in Shanghai and Dalian.The pany won authorization for establishment of a joint venture for auto sales financing at the end of 2003.GMSAIC130The pany will make a new investment of more than US $3 billion by 2007, boosting annual production capacity of passenger cars to million. Approximately 20 new models will be introduced. A new sales network for highend models including Cadillac will be build up.To enhance its Ramp。D center and to establish a new joint venture pany for auto financing.To start production of engines and transmissions at its Yantai plant in Shandong Prov. in the latter half of 2005.Already won approval for establishment of a joint venture pany for auto financing.ToyotaChina FAW,Tianjin Automotive Industry,Guangzhou Automotive Industry,Jinbei Automobile Co., Ltd.60Plans to invest 100 billion Yen with the objective of winning a 10% share of the Chinese market by 2010 through a joint business with China FAW. Target volume was 300,000 to 400,000 at the time of the announcement of a tieup with China FAW.Development of exclusive dealers for highend model, Lexus will start in 2004 by clearly differentiating Toyota brand six dealers in four cities, Beijing, Shanghai, Guangzhou, and Shenzhen in 2004, 14 dealers by the middle of 2005, and approximately 90 dealers by 2008. Sales target is 50,000 a year. Sales of hybrid vehicles are also considered.Currently awaiting approval for a joint venture passenger car plant in Guangzhou, on which it reached a basic agreement with Guangzhou Automotive Industry in Aug. 2003 to start production as of about 2006. The Camry is a likely candidate of a production model. Production will begin with an annual output of 10,000 and is planned to be increased to 200,000. The total investment is worth 30 billion Yen.Already won approval for the establishment of a joint venture pany for auto financing at the end of 2003.NissanDongfeng Motor62In Nov. 2003, the pany announced a mediumterm business plan for sales of 620,000 in 2007 300,000 passenger cars under the Nissan brand (six models will be launched including Sunny, which was released in 2003) and 320,000 mercial vehicles under Dongfeng brand (Products will be renovated in the next four years).In May 2004, Guangzhou passenger car plant started operations with annual production capacity of 150,000 (Xiangfan plant is also a passenger car plant while Shiyan plant is a mercial vehicle plant). Nissan plans to make a capital investment of billion RMB and an Ramp。D investment of billion RMB from 2004 to 2007. Its Ramp。D center will be founded in Guangzhou as of about 2005.The pany plans to export 6,000 to 10,000 mercial vehicles a year starting in 2007.RenaultBrilliance Group4The pany announced a plant to start production of Logan, a 5000Euro car between 2006 and 2010. Details including production volume are not made public, but its