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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (51567)	7/15/2004 2:32:55 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Japan will need defending too, from these funny cars geely.com with odd geely.com names from yet another motorcycle geely.com maker, just as GM did not need defending from those quirky cars from that motorcycle manufacturer Honda back in the early 1970s :0) iht.com Geely plans cost cuts as sales slow By Bernard Lo and David Saunders (Bloomberg News) Wednesday, July 14, 2004 HONG KONG: Geely Automobile Holdings, which makes low-cost cars in China for first-time buyers, plans to cut costs by 20 percent this year as the growth pace slows in the world's fastest-expanding auto market. Sales volume at Geely, which sells vehicles in China for as little as 48,000 yuan, or $5,800, is down about 10 percent this year from the company's original estimates because buyers have been waiting for discounts to end and prices to stabilize, the executive director, Lawrence Ang, said in an interview on Bloomberg television in Hong Kong. Geely, the publicly traded unit of China's biggest privately owned carmaker, is expanding its production and model range, making cars with bigger engines and higher prices to attract more affluent customers. It plans to double sales this year to 160,000 units and aims to increase market share to 10 percent in China by the end of the decade. "We have to get down costs and grow sales volume further," Ang said. "Weakening sales give a good opportunity for us to go back to our suppliers and ask them for further price cuts." He said the carmaker has been holding talks with suppliers since last month. Geely's sales have been buoyed by the introduction of its Beauty Leopard model, a sports car with a 1.3-liter or 1.5-liter engine, Ang said. The company has sold about 500 units of the new car a month, about 60 percent of them to female customers. Geely plans to raise sales of the Beauty Leopard, also known locally as the Mybo, to 1,000 units, he said. Bloomberg News