Daimler 'still confident' in China sales outlook after market plunge
BEIJING (Bloomberg) -- Mercedes Benz owner Daimler A-G, relying on on China to give you the most gas for auto demand growth in 2013, vowed to keep up its investments following the nation 's largest stock market rout since 2007.
"I 'm nevertheless favorable theme to some stabilisation of the stockmarket," Hubertus Troska, head of Daimler China, told reporters Monday in Beijing. "I 'm nonetheless assured Daimler will promote a lot more than than 300,000 models in China this year."
China's share prices slumped Monday by the most since 2007, as worsening financial information sabotages government assistance actions.
Daimler will plow forward by investing more on compact vehicles in an industry where it has been been including car dealers as the automaker anticipates vehicle ownership levels to increase, in accordance with Troska.
Marketplace tumult has taken a toll on car companies, with consumers purchasing the fewest passenger automobiles in 17 months in July. More exorbitant reductions offered after the initial sales drop in over a couple of years in June failed to restore demand.
The drop-off for Chinese equities presents a threat to Mercedes' skill to keep up the rate of revenue development that shoved the manufacturer sales forward of BMW AG and Volkswagen AG's Audi in July.
Demand for the c class sedan and Mercedes compacts increased China deliveries by 2-2% in the seven months through July, setting the car-maker on course to surpass its yearly sales target on earth 's largest automobile market.
Mercedes pulled forward as its German friends were tripped up by the more comprehensive market drop-off, with Audi's deliveries in Jul. dropping 13 percent. BMW posted a 7.4 percent decrease, times after declaring that China's slow down may drive it to reduce this year's profitability targets.
The start of local manufacturing to get a fresh long-wheel base c-class late last year has assisted insulate Mercedes from the business slow down. The auto-maker also started making the GLA compact SUV in April with associate BAIC Motor.
China this month devalued its money to fight an economic slow down, making another obstacle for German luxury car manufacturers.
The plan change decreases the worth of the car companies' repatriated profits in the united states and raises the expenses of imports. Daimler has mentioned the money devaluation may have a "negligible" effect on net income in 2013.
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