BYD, he Chinese carmaker partly owned by Warren Buffett’s Berkshire Hathaway Inc., fell to a two-month low in Hong Kong trading on Tuesday after the company forecast first-quarter profit may slump as much as 95 percent.
BYD fell by as much as 11 percent, the biggest intraday decline since Sept. 26, before closing 4.8 percent lower at HK$19.94 yuan in Hong Kong. The company’s Shenzhen-traded shares gained 1.8 percent, reversing a 3.9 percent decline.
China intends to release a plan to reorganize its automobile fleet this year, according to a statement posted on the central government’s website today. China also plans to announce proposals to “reform” the cars used by the Communist Party’s central agencies this year at an “appropriate time,” the State Council said in a notice.
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.