Chinese auto firms seek government help

Some Chinese auto manufacturers are asking for government assistance to boost flagging demand for cars, the Wall Street Journal reported. Executives told the paper that rather than asking for a massive bailout similar to that sought by US auto makers, Chinese car companies are mainly asking for lower taxes on sales of cars with smaller engines or that use environmentally friendly technology. Passenger-car sales in October rose 11% year-on-year, up from about 6% in August and about 2% in September. But analysts cautioned against reading too much into the rebound. Passenger car sales in the first 10 months of 2008 grew by about 10%, down from the 21% rise seen in 2007 or the 30% growth seen in 2006.