Clock ticking for auto 'shells'

A recent announcement from China's Ministry of Industry and Information Technology finally ended the life-tenure validity of production certificates in the auto industry, which is expected to accelerate consolidation in the sector.

According to the notice on the ministry's official website, manufacturers of automobiles and motorcycles that have gone bankrupt will have their production certificate repealed.

And for those companies that have "failed to maintain normal operations" - that is producing and selling only a few or even zero vehicles in the past two years - the ministry will give them two years to fix their business, otherwise it will suspend their certificates.