Changan Auto's Profits Up 596 Percent
Changan Auto, China's largest maker of minivans, reports
profits were up 596 percent in the second quarter over
the same period one year ago. Profits were 439.25 million
yuan (US$53.06 million), compared to 63.09 million yuan
one year ago.
First-half sales were up 64.1 percent to 196,211 vehicles.
The company attributed the rise to people being afraid
to use public transport because of the SARS crisis.
The company, which is listed on the Shenzhen Stock Exchange
with the symbols 000625.SZ and 200625.SZ warned that it
expected a slowdown in the second half because of the
abating of the crisis. In spite of this, it expects earnings
in the first nine months of the year to grow by more than
50 percent.
The company's partners are Japan's Suzuki and the US's
Ford Motors.
The company warned that it was seeing signs of downward
pricing pressure because of increased production and competition
in the China domestic market.
China has become a popular market for truck and car makers
who are seeking to escape their depressed home market.
Volkswagen,
Volvo,
Chunlan,
and Visteon
have all announced plans to begin or increase production
in the China market. Other major makers are quietly expanding
in China.
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