The New National Car Project will Receive a “Large” Grant and We’re Not Surprised
The news on NNCP has been floating on the internet for quite a while now. To those of you who do not know, the NNCP is the “New National Car Project” that was announced this year. There were mixed reactions about this and we’ve touched on this matter previously in an article (link to article).
In June we were informed that no public funds were to be used for the NNCP, unlike Proton.
It sounded like the initiative would be fully driven by the private sector. It sounded idealistic. The market is harsh and building a new car company is no easy task. The automotive world of today is full of collaboration, acquisition, and partnerships. Look at what happened to Proton.
If we are going to have an NNCP, government involvement is inevitable. We have touched on this previously here. Massive funds are needed for R&D. Every big car company has close relationships with the Government.
South Korea had the “Automotive Industry Promotion Policy” and Japan had the “Automobile Manufacturing Industry Law”. Protection policies are a thing.
What about asking for money? Ford borrowed 5.9 Billion USD from the US Government under the “Advanced Technology Vehicles Manufacturing Loan Program”. GM went bankrupt and is now owned by the United States Treasury, the Canada Development Investment Corporation, the Government of Ontario, Old GM bondholders, and UAW & CAW unions. Car companies, Governements, and money are very closely related.
So, what’s the deal here?
The Grant is for R&D Purposes.
The allocation has already been approved.
Lim Guan Eng stated the government will not invest in the NNCP.
We might see a prototype next year.