国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Business / Auto China

Car makers pay to keep Chinese dealers happy as market slows

(Agencies) Updated: 2015-01-09 14:18

Car makers pay to keep Chinese dealers happy as market slows

A BMW Vision Future Luxury concept car is displayed during its world premiere ceremony at Auto China 2014 in Beijing April 20, 2014. [Photo/Agencies] 

After years of outsized growth that turned China into the world's biggest car market, a slowdown is exacerbating tensions between global automakers and local car dealers, with smaller margins leading to tougher negotiations over sharing profits.

The dispute is turning costly for some of the auto firms, who have agreed to shell out hundreds of millions of dollars to keep the peace.

Spearheading the backlash is the China Automobile Dealers Association (CADA), a dealer trade body which earlier this week went public with an announcement that it had persuaded German automaker BMW to pay 5.1 billion yuan ($820 million) in compensation to dealers for lower than expected 2014 profits.

CADA took the unprecedented step of giving interviews to foreign media to announce the deal. BMW has not confirmed the 5.1 billion yuan figure but says it has reached a deal which does not require it to modify its 2014 profit target.

BMW is not alone. Volkswagen-owned Audi has pledged 2 billion yuan in subsidies, two sources with direct knowledge of the matter told Reuters. Daimler has paid China-based Mercedes dealers about 1 billion yuan, two sources familiar with the matter told Reuters. Both companies declined to comment on the figures.

And subsidies are not the only issue. Dealers also complain of high sales quotas, which can hurt their margins. Porsche, also owned by Volkswagen, has imposed a target to increase sales in China this year by 40 percent to 64,000 cars, which its dealers want scaled back, said a CADA official who declined to be identified. Porsche declined to comment.

The disputes are signs that the Chinese auto market is shifting gears from a period in which car makers and dealers scrambled to keep up with demand, to a new era in which China functions more like a mature market.

In 2013, the Chinese bought 492,000 Audis, 362,000 BMWs and 228,000 Mercedes, making the country an important battleground for the big German luxury brands.

But increasingly, Chinese drivers are more careful about prices and less willing than before to pay more than customers in other parts of the world. That means profit margins are lower, and dealers argue that they need bigger subsidies from the manufacturers to stay afloat.

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
湖州市| 榆树市| 本溪| 霍林郭勒市| 汪清县| 青阳县| 通榆县| 二连浩特市| 汤原县| 清河县| 泾阳县| 柘城县| 铁力市| 平罗县| 马山县| 蓬莱市| 三江| 黄平县| 永嘉县| 乌鲁木齐市| 桃园市| 武冈市| 山阴县| 云阳县| 宝山区| 绥江县| 闸北区| 金沙县| 五寨县| 南宁市| 墨江| 枣庄市| 黔西县| 林西县| 团风县| 石林| 商水县| 灵武市| 新民市| 新田县| 水富县|