Saturday, December 14, 2019
Martin Hennecke

Car slump extends into 13th month
<p>China&#39;s automobile deliveries continued to shrink last month, extending the market&#39;s historic decline and PSA Group and Dongfeng Group (0489) decided to cut thousands of jobs.</p><p>Sales of sedans, sport utility vehicles, minivans and multipurpose vehicles in July fell 3.9 percent from a year earlier to 1.53 million units, the China Association of Automobile Manufacturers said yesterday. That is the 13th consecutive monthly decline.</p><p>The first car slump in a generation is showing no signs of easing as the Chinese economy faces a slowdown and stricter emissions rules and the trade war weigh on demand. Carmakers that relied on the world&#39;s largest auto market for growth for decades, pouring billions of dollars into the country, are now left questioning future investment decisions.</p><p>Retail sales of cars in China fell for the 13th time in the past 14 months in July, plunging 5.3 percent, the China Passenger Car Association said last week. Unlike PCA figures, CAAM&#39;s numbers detail deliveries made to dealerships, not end consumers.</p><p>Meanwhile, Peugeot maker PSA Group and partner Dongfeng Group (0489) have agreed to cut thousands of jobs in China and drop two of their four shared assembly plants in a bid to curb mounting losses.</p><p>Dongfeng Peugeot Citroen Automobiles, the carmakers&#39; joint venture based in Wuhan, central China, will halve its workforce to 4,000 as it closes one plant and sells another under plans agreed last month between PSA boss Carlos Tavares and Dongfeng Chairman Zhu Yanfeng, the document showed.</p><p>In other news, China&#39;s overall phone shipment volume in July fell 7.5 percent year-on-year to 34.19 million, indicating that accumulative volume in the first seven months this year fell 5.5 percent to 220 million.</p>

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