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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (21201)	1/12/2005 8:10:26 PM
From: RealMuLan	Respond to of 116555

Slump in Peugeot Citroen's sales in China BEIJING, Jan 12 (AFP) - France's PSA Peugeot Citroen said Wednesday sales from its joint venture in China slumped more than 14 percent in 2004 compared with a year earlier, as overall sales growth on the mainland slowed to around 15 percent. The company's China venture, Dongfeng PSA Peugeot Citroen, sold 89,000 vehicles in 2004 compared with 104,000 cars in 2003, Alexis Vannier, a spokesman for the group, told AFP. Vannier blamed the sharp slowdown in sales on a government clampdown on car loans and a price war between carmakers. This resulted in a "more cautious attitude among those who make up our company's core customers," Vannier said. Since its cars did not meet with most of the requirements demanded for China's taxis, livery cars made up less than 20 percent of company sales, Vannier said. Overall sales growth in China's auto market fell to 15 percent in 2004, compared with around 65 percent a year in 2003 and 2002. Under more difficult market conditions Dongfeng Shenlong, Citroen's Chinese venture partner, planned to reduce administrative personnel by five to six percent or around 200 people, Dongfeng company spokesman Li Pingan said. Li said these staff would be reallocated within the company as it planned to add more than 700 workers to its plant in central China's Wuhan city. He also played down a Beijing Times report that claimed the company had racked up losses in 2004 of more than CNY 600 million (EUR 55 million). The losses were "much lower than this figure," he said. © AFP expatica.com