Leading automakers gathered in Beijing yesterday for China’s biggest car show, expressing confidence in the world’s largest car market despite the uncertainty created by lackluster growth and environmental restrictions.
More than 1,100 vehicles are being displayed at the Beijing International Automotive Exhibition in the capital’s suburbs, which opens to the public today.
General Motors Co, Toyota Motor Corp, Volkswagen Group and Hyundai Motor Co are among the global manufacturers on the list of attendees, along with SAIC Motor Corp (上海汽車) and Dongfeng Motor Corp (東風), China’s No. 1 and No. 2 domestic automakers respectively.
Photo: EPA
At Ford Motor Co’s display, president and CEO Alan Mulally rode onto the stage in a bright red Ford Mustang model that is the latest incarnation of the iconic brand, which is celebrating its 50th year.
“How cool is that,” he said after getting out, his red tie matching the vehicle’s paint job.
The expo comes as a growing number of Chinese cities are restricting the number of cars on the road in a bid to battle pollution and congestion — moves analysts warn could cut into purchases.
The eastern city of Hangzhou, a popular tourist destination, last month became the sixth major Chinese city to restrict the number of cars on its roads, with some estimates placing the limit at 80,000 license plates a year.
China’s car sales surged 13.9 percent to 21.98 million vehicles last year, but that growth hit a speed bump last month, slowing to a 6.6 percent year-on-year rise after reaching a record 17.8 percent high in January.
The world’s No. 2 economy has also turned in its weakest performance in 18 months, growing 7.4 percent in the first quarter of the year. Beijing has indicated a willingness to accept weaker growth as it tries to move the economy away from investment and toward domestic consumption.
Despite the concerns raised by these developments, industry players and analysts say the Chinese market’s importance to global manufacturers cannot be overstated.
“I think the market for cars is going to continue to be fantastic,” Mulally told reporters, adding that the promise of increased domestic spending outweighed concerns about congestion.
China’s overall plan “to move to a consumer-based economy” was a key factor “that reduces risk,” he said.
Ford has opened three plants in China since 2012, with four more under construction, Mulally said, adding that the move “is part of our biggest global manufacturing expansion in 50 years.”
Karsten Engel, president and chief executive of BMW AG’s operations in China, said that the German automaker was planning to introduce 10 new models to the Asian giant this year, as well as carrying out more manufacturing and research and development in the country.
“All these efforts are based on our confidence in the long-term development of our success here,” he said.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RSS