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Posts Tagged ‘china car sales’

Celebration Low-Key as Beijing Auto Show Opens

Chinese sales plunge, prices and profits under pressure.

by on Apr.25, 2016

Chinese biggest auto show of the year opened to international media on Monday.

Dozens of cars, trucks, concepts and crossovers are making their debut at the Beijing Auto Show today, everything from locally made battery-electric vehicles to Ford’s big F-150 Raptor pickup.

But the tone at the event is decidedly lower key than in the past, and for obvious reasons. This year marks the first time since the Chinese automotive market shifted into high gear at the beginning of the Millennium that sales are expected to grow at a single-digit pace.


And, after years of struggling to keep up with booming demand, even as they spent tens of billions of dollars opening up new plants, automakers now face the very real possibility that China could soon face a very different situation, something more common in Europe and North America: over-capacity.


GM, Ford, Buick Trend and Deliver Record Chinese Sales

by on Jan.08, 2016

The Ford Focus in China.

Despite the increasingly serious downturn in the Chinese economy, both Ford Motor Co. and General Motors Corp. managed to lock down record sales in China for 2015.

That bucks the trend that has hammered a number of their key competitors, including Japanese giant Toyota and embattled German maker Volkswagen. Both makers are upbeat, albeit playing things cautiously as they look ahead to 2016.

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So far, both GM and Ford have refrained from making any predictions about China’s market. However, executives from both companies are likely to be pressed for forecasts during the North American International Auto Show in Detroit next week.


Strong Nissan Profits Could Signal Good Numbers for Toyota, Honda

Nissan earnings up 38%, as maker raises full-year forecast.

by on Nov.03, 2015

Nissan CEO Carlos Ghosn at the Tokyo Motor Show.

Nissan Motor Co.’s strong quarterly earnings – and upgraded forecast for the full year – signal that its two chief Japanese rivals, Toyota and Honda, will also deliver solid numbers, industry analysts are forecasting.

Nissan delivered a 172.8 billion yen, or $1.4 billion, profits for the July-September quarter, the second in its fiscal year. That was up from 124.9 billion yen during the same period a year ago. And the maker said it expects to see a 17% increase in net income, to 535 billion yen, or $4.4 billion, for the full fiscal year ending next March.

Go Figure!

“We are increasing our financial forecast for the full year as our product offensive, our continued financial discipline and the ongoing benefits of our Alliance strategy is delivering better than expected results,” said CEO Carlos Ghosn.


BMW Earnings Accelerate – But Maker Warns China Could Put on the Brakes

by on Nov.03, 2015

On track: BMW expects models like the new 7-Series to continue boosting its sales.

BMW delivered a 20% surge in third-quarter earnings, but the maker cautioned that a slowdown in the Chinese market could put the brakes on its bottom line in the months ahead.

The Bavarian maker has enjoyed a global surge in demand for its luxury products – while also benefiting from the addition of a number of new models, analyst said.  Demand has benefitted from both the U.S. automotive rebound as well as growing sales in China, which is generally expected to become the world’s largest luxury car market. But how soon is now uncertain.

By the Numbers!

“We continue to chart a course of profitable growth, with reported figures continuing their upward trend in the first nine months of the year”, said BMW Chairman Harald Krüger, in a prepared statement


Ford Set to Invest $1.8 bil in China R&D

Playing catch-up; will VW problems provide an opportunity?

by on Oct.12, 2015

Ford CEO Fields has steadily expanded the maker's presence in China, including production and R&D.

Ford Motor Co. will invest nearly $2 billion over the next five years on its Chinese R&D operations in a bid to catch up to market leaders Volkswagen AG and General Motors.

A latecomer to what is now the world’s largest automotive market, Ford has rapidly gained ground in recent years as it has expanded both its Chine product portfolio and manufacturing network. Much of its growth has come at the expense of Japanese rivals like Toyota, but the current crisis that has tripped up VW could prove another opportunity for Michigan-based Ford.

Watching the World!

The new R&D effort will include the battery-based vehicles that Chinese regulators are demanding in an effort to deal with that country’s endemic smog problems. At a conference in Shanghai on Monday, Ford CEO Mark Fields said the maker will introduce both a hybrid version of the midsize Mondeo, and a plug-in, the C-Max Energi, in China next year.


GM Beats Q2 Forecast with Nearly $1.2 Bil Net Income

EBIT-adjusted earnings are best for any quarter since 2009 bankruptcy.

by on Jul.23, 2015

General Motors CEO Mary Barra remains upbeat about the coming months despite problems in China.

Despite being hit with a $1.1 billion special charge, General Motors managed to deliver a second-quarter profit of nearly $1.2 billion, or $0.67 a share – its biggest three-month profit since emerging from bankruptcy in July 2009 – with strong demand for its North American trucks helping fuel the strong performance.

Factoring in one-time charges equal to $0.62 a share, GM handily outperformed the Wall Street consensus forecast of $1.08 per share. And the second-quarter numbers compared with the modest $190 million, or $0.11, GM reported for the April-June 2014 numbers.

We Earn Your Trust!

“The first two quarters of the year were strong as we fully capitalized on a robust North American industry and maintained our strength in China, despite the challenging conditions in that market,” GM CEO Mary Barra said in a statement. “We said our goal was to improve our earnings and margins this year, and we are on plan.


China’s Car Market Hits a Speed Bump

Plunging stocks sap consumer spending.

by on Jul.09, 2015

A Chevy Cruze in China.

When trade industry officials forecast that the Chinese automotive market would grow by about 7% to 8% this year much of the rest of the industry turned green with envy. But for China, that was a severe retrenchment after years of double-digit growth.

Now, it seems, even that forecast may have been too optimistic, however. Car sales began to slow down earlier this year, along with the rest of the country’s economy. But demand in recent weeks has taken a sharp plunge as the Chinese stock market shows signs of a full-fledged meltdown.

News You Can Trust!

Though it remains the world’s largest new vehicle market, year-over-year sales fell 3.2% in June, according to the China Passenger Car Association, to a total of 1.43 million. That marked the country’s first down month since February 2013.


Growth of Global Car Market Slowing Down

“Cyclicality has not been repealed.”

by on Jun.23, 2015

U.S. car sales could be reaching their cyclical peak in the next year or two, according to study.

Led by the U.S. and China, global auto sales have been on a tear in recent years, reaching all-time record numbers despite the poor performance in markets like Europe and Latin America. But a new study warns that demand is going to soften – and soon.

Worldwide, sales will continue to increase, according to the annual automotive outlook produced by Detroit-based turnaround specialist AlixPartners. But the rate of growth will slip to an annual 2.6% for the next seven years, down from 3.1% between 2007 and 2014.

Stay in the Fast Lane!

The U.S. and China will likely see the sharpest slowdowns, the study warns, emphasizing that “cyclicality has not been permanently repealed.”


Ford May Cut Production as Chinese Car Market Falters

Domestic Chinese makers gaining ground on foreign rivals.

by on May.26, 2015

Ford recently unveiled its Focus ST in China.

With the economy faltering, the Chinese car market is growing at its slowest rate in 15 years – and Ford Motor Co. says it may respond by trimming production in the once-booming China.

That would be a sudden shift in direction for Ford which, only two months ago, announced the opening of a major new plant in Hangzhou, part of its plan to double production capacity in the populous Asian market to 1.2 million vehicles annually.

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“If there is softness in the market, I won’t let stocks build and we’ll cut production,” said David Schoch, president of Ford Asia Pacific. So far, he added, “We have had some production cuts, but it’s nothing material.”


Ford Charges into China with New $760 mil Plant

Ford on the way to becoming China’s fourth-largest carmaker.

by on Mar.24, 2015

The new China plant will initially produce the Ford Edge but will have capacity for five other models.

Late to the Chinese party, Ford Motor Co. is playing a fast-paced game of catch-up. The Detroit maker’s latest move comes with the opening of a new, $760 million assembly plant in Hangzhou, about 100 miles southwest of Shanghai.

The new facility will bring to 1.2 million Ford’s rated annual capacity in China, and could position the company as the market’s fourth-largest manufacturer. But the Hangzhou plant opens just as the Chinese car market begins to cool, along with the rest of the economy, for the first time in more than a decade.

Global Insight!

Nonetheless, Ford CEO Mark Fields, who was on hand for the Tuesday plant dedication, was optimistic, declaring, “This world-class facility will help us accelerate the delivery of high-quality, innovative products to our customers in China.”