Research On The Government Regulation Policy Of Tianjin Vehicle Maintenance And Repair Industry

As the result of dramatic increase in economic development of human societies,automobile technology spreads rapidly and cars have become essentially synonymous with our modern daily life.Since cars are fixed assets known as tangible assets or Durable Consumption Goods,which costs a lot in maintenance;however,the existence of asymmetric information between the owner of the car and maintenance company offered the opportunity to make adverse selection decisions.Taking advantage of car owners’ ignorance to harm their interests happens from time to time.Not only does this jeopardize customers’ rights,it also goes against the development of automobile maintenance industry’s health.Due to information asymmetry between two parties,it has become necessary for these enterprises to build systems for information disclosure,and simultaneously for interrelated regulatory authorities of the government to do their jobs.In the field of vehicle maintenance and repairs,the reality is that imperfection of laws and regulations,ineffective execution of current laws and regulations,insufficient ways of punishment for violating laws,lack of proper planning for the development of the company,unsound government supervision teams are found in the development of these enterprises as prominent problems which inevitably leads to adversity.This paper first summarized government regulatory authorities’ system on the premise of asymmetric information theory,then analyzed theoretically on automobile maintenance under the supervision of government and researched relevant regulation mechanism from some other countries and cities in vehicles.Specifically to current supervision problems occurred in maintenance and repair franchises in Tianjin Province,it proposed and provided suggestions and solutions to reinforce Tianjin regulatory authorities on automobile maintenance,which are mainly established on three aspects of improving relevant laws and regulation,integrating supervision ways and means and enhancing supervision team building.