{"id":11036,"date":"2015-08-14T18:54:18","date_gmt":"2015-08-14T23:54:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11036"},"modified":"2015-08-14T18:54:18","modified_gmt":"2015-08-14T23:54:18","slug":"china-mess-yuan-devaluation-spread-to-the-us","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11036","title":{"rendered":"China Mess, Yuan Devaluation Spread to the US"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/08\/14\/china-mess-yuan-devaluation-dropping-auto-sales-spread-to-the-us-gm-ford-chrysler-component-makers\/\" target=\"_blank\">China Mess, Yuan Devaluation Spread to the US<\/a><\/h3>\n<p>China\u2019s auto market, which had been the single most important element in the convoluted growth story of GM and other global automakers, was getting battered even before the yuan devaluation. But now elements coagulate into a toxic mix.<\/p>\n<p>Sales of passenger vehicles in July dropped 6.6% from a year ago, to 1.27 million, according to the China Association of Automobile Manufacturers, a 17-month low, after they\u2019d already fallen 3.4% in June, and after they\u2019d relentlessly trended down since late last year.<\/p>\n<p>This debacle happened even though automakers had cut prices and heaped incentives on the market to stem the decline. GM and VW started it, and it has now turned into a price war.<\/p>\n<p>GM\u2019s sales through its joint ventures fell 4% in July year-over-year, to 229,175 vehicles. Despite falling sales and ballooning price cuts, GM remains, at least in its\u00a0<a href=\"http:\/\/media.gm.com\/media\/cn\/en\/gm\/news.detail.html\/content\/Pages\/news\/cn\/en\/2015\/aug\/0806_sells-record.html\"><u>press release<\/u><\/a>, optimistic about sales and profit margins in China, its second largest market, and simply blamed \u201cmodel changeovers and the phasing out of older Chevrolet vehicles.\u201d So no biggie.<\/p>\n<p>Ford\u2019s sales through its Chinese joint ventures plunged 6% year-over-year, its third monthly decline in a row, to 77,100 vehicles. Unlike GM, it\u2019s\u00a0<a href=\"http:\/\/www.autonewschina.com\/en\/article.asp?id=13641\"><u>publically<\/u><\/a>\u00a0worried:<\/p>\n<p>\u201cLonger term, we\u2019re still very bullish on China,\u201d Hau Thai-Tang, head of Ford\u2019s global purchasing, told an industry conference in New York. But the company would move to lower output in China if there is a \u201cprolonged period of recessions.\u201d<\/p>\n<p>While some automakers booked gains, like Daimler whose sales surged 42%, others got clobbered, like Nissan whose sales plunged 14%. And VW said today that its Audi sales in July had plummeted 12.5% in China, Audi\u2019s largest market. It sells about a third of its cars there.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China Mess, Yuan Devaluation Spread to the US China\u2019s auto market, which had been the single most important element in the convoluted growth story of GM and other global automakers, was getting battered even before the yuan devaluation. But now elements coagulate into a toxic mix. Sales of passenger vehicles in July dropped 6.6% from [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[8095,7860,130,8094,4254,4255,1031,7987],"class_list":["post-11036","post","type-post","status-publish","format-standard","hentry","category-economics","tag-automakers","tag-car-sales","tag-china","tag-gm","tag-wolf-richter","tag-wolfstreet","tag-yuan","tag-yuan-devaluation"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11036"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11036\/revisions"}],"predecessor-version":[{"id":11037,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11036\/revisions\/11037"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}