Global News: Canadian Sales Fall; Ford Shortens Work Week In Russia; and Korea's SsangYong Sues Chinese Parent
April 03, 2009
In Global News this week, vehicle sales in Canada fell to 1997 lows, Ford shortened its work week at its plant in Russia and South Korean automaker SsangYong sued its Chinese parent SAIC.
In Canada, March vehicle sales fell 15 percent to their lowest level since 1997. Ford is urging the Canadian government to institute a "scrappage" or cash-for-clunker program like ones that have been successful in Germany and France. In Canada last month, GM sales dropped 17 percent, Ford's 15 percent, Chrysler's 27 percent and Toyota and Honda's both fell 23 percent each.
In Russia, Ford wants to scale back the work week to four days at its St. Petersburg plant as auto sales in the country are plummeting. Industry sales for January and February combined fell 36 percent from the year earlier. Volkswagen and Toyota have forecasted vehicle sales in Russia will be a third or more lower in 2009 than they were in 2008. The dismal global economy has weakened demand and prices for the commodities that have given Russians money to spend on cars. In addition, finance rates have soared to more than 20 percent.
In South Korea, bankrupt SsangYong is suing China's largest automaker SAIC, which purchased 52 percent of Korea's smallest automaker in 2004. SsangYong, which has seen its sales drop to about a quarter of what they once were, charges that SAIC transferred technology to China and plans to let the company die while failing to pay the promised $1 billion in investment. SAIC retains its ownership in the company but no longer has management control. An auditor appointed by the bankruptcy court is expected to recommend liquidation of SsangYong.
In China, Mitsubishi opened a sales office in recognition of the rapid growth it has experienced there in recent years. In 2006, Mitsubishi sold 4,000 vehicles in China; that number rose to 14,000 in 2008.
In Germany, the government wants Daimler AG executive Ruediger Grube to head the country's national rail network, Deutsche Bahn. Grube is head of corporate development and responsible for its strategy, acquisitions and operations in northeast Asia.
Posted by Michelle Krebs at 10:29 AM under Companies , News | Comments (0) | digg this | Seed Newsvine
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