Changan Automobiles, Ford's local partner in China, reports extended losses in Q3 2019
Changan Automobile Co., Ford’s local partner in China estimates its loss to increase to RMB 550 million in Q3 2019 from RMB 160 million (US$23 million)in Q2. The loss is claimed to be driven by plunging sales in its proprietary car unit and joint ventures with Ford Motor Co. and Mazda Motor Corp.
The state-owned carmaker said in a filing on the Shenzhen stock exchange that the total losses in the first nine months of 2019 now stand between RMB 2.4 billion and 2.8 billion.
For the first nine months of 2019, sales at Changan’s own brands fell 19 per cent YoY to around 580,000 vehicles. In the period, deliveries at Changan Ford dropped 58 per cent to about 129,000 and sales at Changan Mazda dropped 25 per cent to roughly 96,000 units.
Changan Ford makes sedans and crossovers for Ford brand and Changan Mazda assembles and distributes Mazda sedans and crossovers.
The long-term downturn of the Chinese new light-vehicle market, which started in July 2019, has impacted sales and profits of many international and domestic carmakers including Changan making operations tougher for them.
In the first three quarters of 2018, the company still managed to report a net profit of RMB 1.16 billion.
source: ALCIRCLE.COM
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