lements new sets

 of tax cuts and subsidies to boost demand&nbs

bsp;Province, March

ost of the multinationa▓l automobile manufacturers are planning heavy workforce cuts worldwide, employees in their China units have not much to worry on the job front.PSA Peugeot Citroen, Europe's second-biggest carmaker, is the only foreign automaker which has so far said it would trim its headc▓ount in China.It has cut 1,000 temporary staff at its Chinese venture Dongfeng Peugeot Citroen last November after vehicle sales declined.

The venture, i▓nvested by PSA, China's Dongfeng Motor Group Co and other shareholders, previousl▓y had 9,000 people on

 15, 2009.&nbs

its rolls.Chinese industry website autoday.com.cn had in December said the venture would reduce its workforce by 8 percent by this March.Hui Yumei, aut▓o analyst, Sinotrust, a leading automobile industry research company s▓aid the Dongfeng Peugeot Citroen layoffs is "necessary because of its ailing performance and really bad sales.

"The venture sold 180,800 vehicles last yea▓r, down 12.7 percent compared with 2007, the second consecutiv▓e year sale


s fell.The French automaker announced on Feb 11 that it would further axe 11,000 ▓jobs globally, after the first round of 18,000 staff reductions.Related ▓stories:China is estimated to have sold 790,000 cars in January this year, while the US sold 668,000 cars during the same month. This marks the first time that China has overtaken the US in monthly auto sales, said Mike▓ DiGiovanni, executive director of global market and industry analysis at General Motors Corporation during GM's monthly sales meet▓ing in the US. "This is the first time in history that China has passed the United▓ States in monthly sales," DiGiovanni said. Based on Ja▓nuary's figure of 790,000 units, China is expected to sell 10.7 million ve▓hicles this year, he added. China will sti

ll be unable to surpass the US in total sales volume in the auto

market this year. However, China's auto market▓ is becoming a po

werful new player, according to the ana▓lysis of experts in the industry.Governmental measures help to pick up the marketAfter passing the Proposals on Structure Adjustment of the Automobile Industry, China reduced the purchase tax on vehicles to stimulate consumption. It also launched measures to encourage independent innovation ▓and put local marketing of environment- friendly cars in its agenda. Many auto enterprises have quickly responded by making full use of the positive opportunities provided by the proposals to start a new round of "market-making." The Proposals on Structure Adjustment of the ▓Automobile Industry encourage consumers to buy small-displacement cars, and

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