SAIC-GM-Wuling to raise CV price by 2%

Shanghai, July 11 (Gasgoo.com) SAIC-GM-Wuling Automobile Co (SGMW), the largest Chinese manufacturer of mini vehicles, announced price rise of some commercial vehicles by 2%starting this month after Gonow Auto first increased prices of its products nationally, Beijing news reported yesterday.

The report said SAIC-GM-Wuling, a three-party jont venture (with 50% owned by SAIC, 34% by GM) based in southern Chinese province of Guangxi, raised the price of its vehicles by within 1,000 yuan, with the Wuling Spark model rising by between 300 yuan and 1,000 yuan, a 2% increase. The price rise is due to the soaring raw materials cost increase and the technical pressure from the newly-issued China III emission standards, SGMW sources said.

Last Saturday, Baosteel Group Co, the largest Chinese steel-maker, concluded the iron ore price negotiations for 2008 with Rio Tinto, one of the world's largest mining companies. As an outcome of the talks, the iron ore price for Rio Tinto increased by 96.5%. Later, some automakers are beginning to increase the prices. Industry insiders said the iron ore price hike is likely to further push up auto-making costs.

Most commercial vehicle makers increased the price starting this year after the high cost rising of steel. However, in the passenger car sector, the possibility of price rise is small due to fierce competition and relatively high profit.