Carmakers forced to lower sales target of 2008

Shanghai, November 12 (Gasgoo.com) With less than two months left for 2008, whether automakers can meet their sales target has become clear. Year to date, five domestic carmakers have officially announced to lower their full-year sales target for the whole or several brands, Beijing Morning Post reported.                                                         
                                                                                                                                                                     
Auto companies that cut sales target for 2008:
Company                    Original sales target (unit)             Adjusted target (unit)                  Adjusting rate

Changan Mazda                     120,000                                    less than 60000                              -50%

Dongfeng Yueda Kia              200,000                                   160,000                                              -20%

Dongfeng Peugeot                 130,000                                     90,000                                              -31%

Dongfeng Citroen                    150,000                                    110,000                                            -27%

Magoton                                     90,000                                       70,000                                              -22%

In contrast to the five automakers that cut their sales targets, other carmakers such as FAW-Toyota, Guangzhou-Toyota and Dongfeng Nissan are still waiting and seeing. "We will not give up till the last minute, though under great pressure for meeting the sales target set at the beginning of this year," Guangzhou Toyota vice general manager Hu Su said.

Analysts said that is what most automakers thought for not cutting target.

Sales fulfillment for major passenger-vehicles manufacturing companies:
Auto company       Full-year target  (unit)            First ten-month sales  (unit)                Fulfilled rate

SAIC-GM-Wuling            620,000                                      485,500                                             78%

FAW-VW                           600,000                                      423,800                                             71%

Shanghai VW                  590,000                                     403,900                                              68.5%

Shanghai GM                  600,000                                      363,200                                             61%

FAW Toyota                     420,000                                      314,700                                              75%

Chery                                480,000                                      300,800                                              63%

Dongfeng Nissan           340,000                                     276,900                                               81%

Guangzhou Honda        340,000                                      254,800                                               75%

Beijing Hyundai             380,000                                      243,300                                                64%

Changan Ford Mazda   312,000                                      175,200                                                56%

Guangzhou Toyota        210,000                                      136,000                                               64.8%

Experts said though these automakers haven't announced to lower their sales targets, it is impossible for them to achieve the full-year targets. Judging from the first ten months' result, most companies can only gain a slight sales growth compared to 2007, while others may just post flat sales or downward.

Analysts said that amid economic downturn, whether automakers can survive or not depends on their products.

Actually, most carmakers have begun to carry out their product strategies. When lowering the sales target, Dongfeng Peugeot Citroen Automobile Co will also emphasize the hot-selling cars like Peugeot 307, new Elysee and C-Quatre and cut production of Picasso, C2 and Peugeot 206.

The Geely Auto has also adjusted products schedule to replace "Geely" and "Shanghai Maple" brands. FAW-Toyota has set new plant in Changchun to support the hot-selling Corolla.