Chinese Automakers Report Mixed Results
January 26, 2009
Two of China's biggest carmakers have issued profit warnings for 2008 and a third reported strong profit growth last year.
Shanghai Automotive (SAIC), China's biggest carmaker by sales, said it expected its 2008 net profit to fall by more than 50 percent from the previous year due to weakening demand and losses at its troubled investment in South Korea's Ssangyong Motor, which is seeking bankruptcy protection. SAIC partners with General Motors and Volkswagen, among others, building cars in China.
Chongqing Changan Automobile, another big Chinese carmaker which lists Ford as a partner, said its 2008 net profit was likely to have fallen neary $6 million due to weak sales and increased local competition.
First Auto Works (FAW) China's second-largest carmaker, said it expected its 2008 net profit to have risen by 90 percent to 20 percent due to expanded sales and production. FAW's partners include Toyota and Volkswagen.
Meantime, China's BYD reportedly considering leasing its plug-in technology with carmakers in U.S., Japan and Europe interested, Edmunds.com's Green Car Advisor reports. BYD recently displayed at the Detroit auto show and has as one of its new investors, Mid-America Energy, one of billionaire investor Warren Buffett's companies.
Posted by Michelle Krebs at 7:30 AM under Business , Companies | Comments (0) | digg this | Seed Newsvine
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