China’s automakers have seen high automobile inventories over the past six months, prompting many to worry whether the country’s car industry is facing a crisis.
According to information published online earlier this month by the China Automobile Dealers Association, the comprehensive inventory index of automobile dealers reached 1.98 in June, up from 1.88 in May.
Going local to the great city of Xi’an in Shaanxi Province where the new Geely GLEagle GC7 was launched at a dealer, and when you can have a party, you should have a party! To celebrate such and such the dealer had one GC7 sexed up with black and orange wrap. We dig, loox really hip. Now, another look at how things go in the provinces:
China became Ferrari’s second-largest market worldwide in 2010 and the Italians want more. Ferrari is therefore expanding its Chinese dealer network. Traditionally the big money was on the east coast but nowadays there are also many potential Ferrari buyers in the rich cities of the west and southwest.
How things can go wrong in the countryside. Here we have a fine story from ChinaDaily about a village nearby the great city of Xi’an that rents out a school building to an auto dealer. The building was donated by a wealthy Hong Kong philanthropist who is not happy. Children ain’t happy either. Messy local politics in China! Read on:
XI’AN – A village’s primary school built with donated funds has been turned into an auto dealership, and villagers say the local government in Weinan, Northwest China’s Shaanxi province, must intervene.
A man surnamed Wang shows the 60,000 yuan ($9,132) of coins he used to buy a Chery car at a car dealership in Xianyang city, Northwest China’s Shaanxi province, August 1, 2011. Wang, who is a flour wholesaler, used a van to transport the seven sacks of coins, which he had amassed through flour sales to business clients including steamed bread shops and noodle manufacturers.
Fiat Group Automobiles, a unit of Fiat Spa , plans to expand its dealership network in China to around 100 dealers from 40 by September 2012, a company executive said on Tuesday.
Fiat Group Automobiles will also launch in China a medium sedan, known as the C-medium, specially designed for the Chinese market in September next year, said Lorenzo Sistino at a press conference in Shanghai to launch the company’s Fiat 500.
Porsche plans to triple its dealer network in China to about 100 from 33 by 2018 at the latest. The carmaker will inaugurate 10 dealerships a year, with openings in smaller cities such as Ordos in the northern Chinese province of Inner Mongolia, and Haikou on Hainan Island in 2011.
Luxury-car sales in China will rise 20 percent this year after surging 48 percent to 459,000 vehicles last year, according to industry researcher JD Power & Associates. Total deliveries in 2010 grew 32 percent to 18.1 million vehicles, surpassing the U.S. for a second year.
Via Reuters. Mazda Motor Corp will expand its dealership network in China by 20 percent this year to take advantage of a growing auto market and lay the groundwork for the planned release of the Mazda3 sedan there in the October-December quarter, the Nikkei business daily said.
Volkswagen Group plans to almost double its dealerships in China in the next five to eight years, according to Christian Klingler, the company’s board member for sales and marketing.
By 2014 the company intends to have 1,600 dealerships, up from the current 1,000, with the number of employees expected to surge from the present 56,700 to more than 100,000, Klingler said. “There will be more growth (in dealer outlets) in smaller cities than in first-tier cities,” Klingler said. “And clearly growth in the western region will be stronger than in the east.”
Even after a series of embarrassing recalls last year, Toyota Motor Corp’s Lexus managed to remain the No 1 luxury vehicle maker in the United States – a spot it’s held for 11 years running. In China, however, it’s an also-ran. Lexus sold just a fifth of luxury leader Audi AG’s tally last year in the world’s biggest car market. It also trails BMW Group and Daimler AG’s Mercedes-Benz.
To bolster the standing of Lexus in China, Toyota is turning to the feature that cemented its early success in the US: extreme customer service. Showroom amenities such as cappuccino machines, WiFi, Lego tables for the kids, and airport shuttles for busy executives dropping off their cars for servicing – standard touches among “luxe” brands in the US – took root in Lexus’ dealerships in the US during the 1990s.