InfoAnda - Crisis forces carmakers to confront problems in China

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Save money but lose weight with Korean banks | 15 February 2011
Congo's Kabila: Rwanda's rebel backing no secret | | 29 July 2012
Beauty in Venezuela is matter of pride, and scalpels | 30 August 2009

Pakistan utility faces action on breakdowns-official | 23 July 2009

">Forum Views () ">Forum Replies ()

Read more with google mobile : Crisis forces carmakers to confront problems in China

Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: Crisis forces carmakers to confront problems in China AFP - Saturday, November 15 SHANGHAI (AFP) - - Car makers in China are locked in price wars, laying off workers and slashing forecasts as the financial crisis transforms what was once one of the auto industry's few global bright spots. PSA Peugeot Citroen announced recently it was laying off 1,000 workers at its factory in the central city of Wuhan. Other automakers are also scaling back while Renault has postponed indefinitely its plans to enter the Chinese market. "We will see much, much slower growth in China," Ivan Hodac, secretary general of the European Automobile Manufacturers' Association said on the sidelines of a recent automotive forum in Shanghai. "Companies' looking to China to offset the problems they have encountered elsewhere is also being put in question." In an economic slowdown, automakers are typically the second sector to be hit after the construction industry because, next to housing, cars are consumers' most expensive purchases, Hodac said. The financial crisis struck as carmakers' inventories of unsold vehicles in China were at their highest levels in four years. Sales recovered slightly in October after two months of decline, rising 8.4 percent on-year after Toyota, Volkswagen and Ford Mazda's Chinese joint ventures and others offered deep discounts on new models. Vehicle sales rose 11.1 percent in the first 10 months of the year with 5.6 million units sold, but that pales next to the 25.2 percent on-year growth for the same period seen a year earlier, according to Chinese industry figures. China's auto sales growth is expected to slow to 3.8 percent next year and 6.4 percent in 2010, according to a forecast by Hou Yankun, an analyst at Nomura. In addition to discounts on new models, dealers are selling older ones at a loss, according to auto industry sourcing portal Gasgoo.com, which is 60 percent controlled by Chery Automobile, China's largest independent car maker. It estimates forty percent of China's car dealers are losing money and nearly a third could close in the coming months. China's car industry as a whole recently cut its 2008 sales target by 20 percent to eight million, said Thomas Callarman, an operations management professor at the China Europe International Business School. This has come after years of ramping up production in anticipation of huge demand. "Two years ago at this same auto forum, some of the same manufacturers were complaining they were already having over-capacity and they were building more capacity," Callarman said. The current turmoil is a reality-check for car companies who now must look beyond optimistic forecasts and at how they are performing against the market as a whole, said Klaus Paur, head of automotive research at TNS China. "This financial crisis is an amplifying factor for identifying the low-performing car manufacturers," Paur said. However, there are still reasons to be optimistic about China, which is expected to overtake the United States as the world's largest car market within seven years, Paur said. Growth potential remains with only 20 people for every 1,000 owning a car in China, compared with 500 per 1,000 in Europe and more than 700 per 1,000 in the United States, he said. "The pace of growth slowing down now is to some extent beneficial to the industry because we'll be taking out a lot of the inefficient capacity," said Raymond Tsang, a partner at the consulting firm Oliver Wyman. He expects a new wave of consolidation over the next 12 to 24 months in the fragmented sector, which has more than 100 auto makers, many propped up by regional governments, he said. "We'll be taking out a lot of the inefficient players or taking out a lot of products," he said. But companies should also be careful about drastically cutting back on investment and their research and development in China, he warned. "They really need to think about their longer-term growth prospects in this market and try not to overreact to the current economic situation," Tsang said. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: China's Economy Brazil's Sao Paulo state loses 10,000 jobsAP - Saturday, November 15 Stocks retreat as investors refocus on economyAP - Saturday, November 15 Japan 'worried' foreign investors may withdraw capital, says officialAFP - Saturday, November 15 China's Fuqi Q3 beats Street; ups '08 view, shares riseReuters - Saturday, November 15 Related Articles: Business GLOBAL MARKETS-U.S. stocks, oil fall on dismal economic outlookReuters - Saturday, November 15 G20 must produce quick, joint action-IndonesiaReuters - Saturday, November 15 Tentative deal in Boeing engineers contract talksAP - Saturday, November 15 US STOCKS-Worries about the consumer weigh on Wall StReuters - Saturday, November 15 Outlooks point to painful holiday for retailersAP - Saturday, November 15 Enlarge Photo Crisis forces carmakers to confront problems in China Related Photos Slideshow Full Photo Coverage: Business & Economy Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Ancient 4,300-year-old pyramid discovered in Egypt Bin Laden is isolated, focused on his own security: CIA Earth would be heading to a freeze without CO2 emissions Britney Spears's son hospitalized: statement China mulls crackdown on lip-synching View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular

Other News on Friday, 14 November 2008
Renewed flare-up of violence around Gaza
American University takes root in northern Iraq
Thai crisis likely to resume after royal funeral | International |
Court refuses to free Lockerbie bomber due to cancer
Foreigners shot in Pakistan, U.S. missiles hit militants | International |
Suspected US missile strike kills 10 in Pakistan: officials
Eurozone sinks into recession for first time
EU, Russia seek to put ties back on track | International |
OPEC to hold special meeting in Cairo on November 29
Dexia posts 1.54 billion euro loss
India Kashmir votes in test for New Delhi rule | International |
World leaders gather for crisis summit
EU's Solana says new contacts with Iran possible | International |
Wildfire destroys 70 homes in California
Scottish court refuses to free Lockerbie bomber
HK enters recession for first time in 5 years
Adulterated milk kills six tribal children in India | International |
Nissan to further cut production in Japan
US mil: soldier dies of noncombat causes in Iraq
Videogame makers predict jingle bells at registers | Technology |
S&P cuts Pakistan ratings as debt crisis loomss
Lawmaker plans bill on Web neutrality | Technology |
China says it might work with IMF on global crisis
Japan ready to lend $100B to IMF bailout fund
UK couple in real-life divorce over virtual affair | Technology |
Sumitomo Mitsui first-half profit plunges 51 pct
OPEC to hold special meeting in Cairo on November 29
China shares extend gains on stimulus plan
Taiwan dollar off 2-wk low on US$ selling, exporters
Nissan cuts production further in Japan
S.Korea won turns down on econ fear, risk aversion
CSI fans unhappy about William Petersen exit: poll | Entertainment |
Wildfire devastates celebrity enclave near L.A. | Entertainment |
Resurgent U.S. dollar a challenge for concert biz | Entertainment |
Gaza violence flares again as UN food handouts stop
Rockets from Gaza strike deep into Israel
World asked to help craft online charter for religious harmony
Somali Islamists approach Mogadishu, impose sharia | International |
Air France pilot strike causes major disruption
Key Shiite clerics warn Iraqi gov't about US pact
Zimbabwe opposition shuns power-sharing government | International |
Google giving voice to iPhone Internet search
Opel asks for German public loan guarantees
Counting the dead gets more complicated in Iraq
West queries IAEA aid for Syria during atomic probe | International |
Tech sector facing most job cuts since 2003: report
Indian probe lands on moon, sends images
Crime threatens Chavez vote in Venezuela slums | International |
British troops out of Iraq by end of 2009: Iraqi official
'Second Life' ends first marriage for British man
Britain's Prince Charles turns 60
Explosive charge thrown at EU mission in Kosovo | International |
Speculation Obama will choose Clinton as top diplomat
Nokia sees cellphone, gear market falling in 2009 | Technology |
Top Iraq official upbeat over US, British pull-out pacts
US shares fall on weak sales data, Europe climbs despite recession
Facebook pulls Italian neo-Nazi pages after outcry | Technology |
Court refuses to free Lockerbie bomber due to cancer
Japan 'worried' foreign investors may withdraw capital, says official
Obama considers Clinton for secretary of state: reports
Crisis forces carmakers to confront problems in China
Pakistani rupee ends steady despite rating downgrade
WRAPUP 1-Foreigners shot in Pakistan, US missiles hit militants
Crude falling despite news of another OPEC meeting
Charlize Theron named U.N. peace messenger | Entertainment |
OPEC calls special meeting amid calls for output cut
Justin Timberlake's NY restaurant sued over wages | Entertainment |
Stars watch horrified as luxury Calif. homes burn | Entertainment |
Ex-Guns N'Roses drummer seeks rehab, and his old job | Entertainment |
Author recalls how Schindler's List was written | Entertainment |
Reality turns harsh for former Idol participant | Entertainment |
Lizzie McGuires Hilary Duff to get own TV show | Entertainment |
UK photo show documents death, revolution in Iran | Entertainment |
US military says 10 insurgents killed in Afghanistan
Iraqi envoy sees US remaining ally under Obama
In shift, Microsoft sells software online
U.N. troubleshooter starts talks on Congo crisis | International |
Endeavour speeds toward space station
Obama rumored to favor Clinton as top diplomat
Official history lifts a veil on US code-breaking agency
Sri Lanka army says seizes entire west coast | International |
Space shuttle Endeavour blasts off towards space station
China to spend $59 bln on airports by end-2010 | International |
Taiwan's fiscal deficit to widen on econ-boosting moves
G20 to agree to reform roadmap, stimulus efforts
More than 100 homes gutted in wealthy California enclave
S.Korea agrees to guarantee banks' foreign loans
US military deaths in Iraq war at 4,197
IMF head welcomes Japanese cash offer
Japan PM to urge removing toxic assets from balance sheets
Madonna appeals to fans to donate to Malawi school | Entertainment |
Crude continues decline despite signals from OPEC
Barry Manilow tackles '80s on fourth decade set | Entertainment |
David Letterman gives boost to country singer | Entertainment |
Convicted rapist seeks stardom in reggae world | Entertainment |
Stars watch horrified as luxury Calif. homes burn | Entertainment |
Reality turns harsh for former Idol participant | Entertainment |
California blaze 'like Armageddon' says actor Lowe
Rock band the Killers embrace pop on new album | Entertainment |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01