Geely Warns Its Half-Year Profits Plunged 40%
China’s Geely Automobile Holding Co. warns that slumping sales cut its net earnings in the first half of 2019 40% to about 2.7 billion yuan ($390 million).
China’s larget carmaker says its retail sales dropped 15% to 651,700 units in January-June, including a 29% drop in June. The company notes that its efforts to reduce dealer inventories of unsold vehicles also contributed to the earnings decline.
Anticipating a continuing sales decline, Geely has lowered its full-year sales forecast by 10% to 1.36 million cars and crossover vehicles sold under its Geely and Lynk & Co brands.
How GM, Toyota and a Couple of Gutsy Managers Made the U.S. Version of the Two-Seater a Reality
Once the playground of exotic car makers, the definition of a niche vehicle has expanded to include image vehicles for mainstream OEMs, and specialist models produced on high-volume platforms.
A class-action lawsuit has been filed against General Motors Co. over claimed flaws in the company’s 8-speed automatic transmission used in 2015-2019 model rear-drive vehicles.