China auto sales exceed US sales in January...

672 Views 2 Replies 2 Participants Last post by MrTippy, Mar 15, 2009

MrTippy

Discussion Starter · Mar 15, 2009

to become the world's largest auto market.

Here's some food for thought:

Quote, originally posted by Volvo (VOLVb.ST) BEIJING (Reuters) »

Volvo (VOLVb.ST) expects its China sales growth will accelerate to over 10 percent in 2009, helped by a rebound in consumer sentiment, a senior executive of the Sweden-based automaker said on Thursday.

China's automobile sales, which surpassed the United States in January to become the world's largest auto market, jumped 24 percent in February, bouncing back from single digits in 2008, according the country's official data.

Alexander Klose, chief executive of Volvo Car China, said the company's sales in China will rise to "way over" 10 percent this year from less than 10 percent in 2008.

"There is more confidence in China now than that was at the end of last year," Klose said. "Confidence has fairly quickly come back."

Volvo sold 13,000 cars in China last year, which accounted for roughly 8 percent of its global sales. That figure will rise to close to 10 percent this year, Klose said.

Official data show China vehicle sales topped 800,000 units in February, the first time in eight months, as Beijing's policy initiatives aimed at boosting consumption lured buyers back to showrooms.

Klose was speaking to reporters after a ceremony marking the launch of its new model S80L, which is being produced in China.

The car is Volvo's flagship sedan and is produced by a joint venture with Chang Automobile (000625.SZ), Mazda Motor (7261.T) and Ford Motor (F.N), the parent company of Volvo.

Ford Motor, which posted a record $14.7 billion net loss last year, has said it will carry out a strategic review of the Volvo brand, including the possible sale of the Volvo unit.

A few Chinese car makers, including Changan Automobile, Geely Auto (0175.HK) and Chery Automobile, are believed to have expressed interest in the Swedish car marker.

($=6.84 yuan)

(Reporting by Michael Wei; Editing by Kirby Chien and Ken Wills)

http://www.reuters.com/article...90312

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Calhon

· #2 · Mar 15, 2009

Re: China auto sales exceed US sales in January... (MrTippy)

Quote, originally posted by Reuters »

Volvo sold 13,000 cars in China last year, which accounted for roughly 8 percent of its global sales. That figure will rise to close to 10 percent this year, Klose said.

Volvo sold over 374K cars globally last year. Sales in China were almost flat versus 2007 and only 3.4% of global sales. I don't see how sales in China can rise to 10% of global sales this year. Perhaps they mean a 10% increase over last year.

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MrTippy

Discussion Starter · #3 · Mar 15, 2009

Re: China auto sales exceed US sales in January... (Calhon)

Good catch, looks like someone botched a translation.

Here's another report of the same story:

Quote, originally posted by http://www.chinaknowledge.com/Newswires/News_Detail.aspx?type=1&NewsID=21885 »

Mar. 13, 2009 (China Knowledge) - Sweden-based Volvo Group aims to increase its car sales in China by over 10% this year as the country's auto market began to see signs of recovery boosted by the government's stimulus policies, Reuters reported on Thursday, citing a senior executive of the European automaker as saying. The company expects its car sales in China to grow "way over" 10% this year...

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