Global car manufacturers scramble to adapt to slowing Chinese demand - Buenos Aires Herald
NEW YORK — China’s demand for luxury cars used to move in one direction — up. Now, the prospect of a sustained slump in Chinese demand, prompted by sharp declines in Chinese equity markets and a devaluation of the yuan, has global auto... German car makers are reviewing how many vehicles to send to China or the US, and US dealers say they expect to get more Mercedes, Audi and BMW sport utility vehicles to sell as a result. A longer term slump could prompt automakers to export more vehicles from Chinese factories or absorb the short-term cost of production cuts, analysts said. To offset the sharp slowdown in the growth of overall sales, vehicle manufacturers in China are pushing sales of sport utility vehicles that typically generate more profit per vehicle. Before the market declines and the currency devaluation, demand for SUVs was strong in both China and the US, creating a tug of war over vehicles between US and Chinese dealers for Daimler AG’s Mercedes-Benz brand, BMW AG and Volkswagen AG’s Audi... As Chinese demand weakens, that should mean more German-brand SUVs will be shipped to the US. "Competitive pressure in the US has intensified," BMW’s Chief Financial Officer Friedrich Eichiner said earlier this month. Source: www.buenosairesherald.com
