Geely Automobile Holdings Ltd., whose parent owns Volvo cars, posted a 13 percent gain in 2011 profit on Chinese demand for new vehicles.
Net income rose to 1.54 billion yuan ($244 million), or 0.19 yuan a share, from 1.37 billion yuan, or 0.17 yuan, a year earlier, Geely said in a statement to the Hong Kong stock exchange yesterday. That beat the 1.47 billion yuan average of 21 analyst estimates compiled by Bloomberg.
Zhejiang Geely Holding Group Co Ltd, parent of Geely Automobile Holdings Ltd, hopes to receive government approval for its joint venture with Volvo Car in the first half of 2012 so production can start next year, Vice President Daniel Li said.
“We believe the joint venture will be approved,” Li told reporters on Thursday after Geely Automobile’s results briefing. Li, who is also a board member of Volvo Car, said he hoped sales of China-made Volvo cars could be launched in 2013.
Skoda hopes to sell 1.5 million cars globally in 2018, from which some 500,000 in China. In 2011 the company sold 879,200 units, its best yearly performance in its 117 year history. Skoda Board Chairman Winfried Vahland said the company plans to develop its operations around the world, and especially in China, predicting that one-third of the anticipated 1.5 million sales in 2018 will come from this country, where Skoda sold 220,000 units in 2011.
China’s vehicle sales this year may miss the industry group’s growth forecast as economic conditions damp demand, an official at the China Association of Automobile Manufacturers said.
“My personal opinion is we won’t be able to reach even 5 percent growth this year as the macro economic backdrop is still difficult,” Gu Xianghua, deputy secretary general of the trade group, said at a conference in Qingdao today. The association has forecast 8 percent growth in auto output to 20 million units this year, Gu said. Read more »
Jaguar Land Rover has clinched a joint venture deal with China’s Chery Automobile in a move that promises to boost sales in one of its fastest-growing markets. Sales of JLR’s sleek saloons and powerful SUVs in China have boomed in recent years as luxury cars remain in demand, even as the overall market cools.
There has never been a better time to buy a Mercedes-Benz in China. The problem for luxury carmakers such as Daimler AG is that the incentives are likely to get even bigger.
Mercedes dealers are offering record markdowns of 25 percent on high-end models such as the S300 sedan, according to data stretching back to 2009 at cheshi.com, which tracks prices at more than 3,000 Chinese dealerships. BMW 7-series and Audi A8Ls sell for 20 percent below sticker prices, waiting lists have vanished and salesmen are dangling perks ranging from free iPhones to Hermes-bag coupons.
China raised fuel prices for the second time this year, hiking gasoline and diesel by 6.5 percent to 7 percent effective on Tuesday, amid rising world crude oil prices and falling domestic inflation.
Prices went up by 600 yuan ($94.90) a metric ton, the biggest hike since June 2009. The average gasoline price went up 6.5 percent to 9,980 yuan a metric ton, while diesel prices rose 7 percent to 9,130 yuan a metric ton. Both prices are record highs.
Nissan Motor and Dongfeng Motor Group Co will spin off the heavy truck segment of their China venture to Dongfeng’s state parent, paving the way for local production of Renault and Infiniti cars as well as a possible new Dongfeng-Volvo truck tie-up, Chinese media reported on Monday.
Nissan’s passenger car business in the venture will remain intact, as will its light commercial truck production with Shanghai-listed Dongfeng Automobile Co, Sina.com said citing unspecified sources.