China's struggling automakers jump on SUV boom
Associated Press
Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Updated 1:00 am, Tuesday, May 7, 2013
Whatever their specialties used to be, automakers ranging from global brands to China's ambitious rookies are scrambling to cash in on the explosive popularity of sport utility vehicles. The SUV boom clashes with Beijing's efforts to push automakers to develop electric cars and to sell smaller vehicles to help curb smog and demand for imported oil. [...] the SUV's image of safety appeals to prosperous Chinese drivers who face chaotic city streets while electrics from BYD and other producers struggle to attract buyers. The fatter profit margins for SUVs are a financial lifeline to a Chinese industry that is being squeezed as global brands make inroads into their market for smaller cars. Global automakers are redesigning SUVs for China with smaller engines in response to government taxes based on engine size. [...] at the auto show, global automakers including Mercedes Benz and Nissan and local brands such as Geely Holding Group, which owns Sweden's Volvo Cars, and Great Wall Motors Co. showed new SUVs or SUV concept vehicles. The SUV boom could be especially important to China's own automakers, who are struggling as global rivals launch new models aimed right at their traditional low-price market segment. Because they are bigger and heavier like trucks, SUVs are treated more leniently by government rules on fuel efficiency and emissions. The company also is developing four-wheel-drive technology that powers two wheels with an internal combustion engine and two with an electric motor, eliminating the need for a drive train that takes up floor space, Ho said. Reported by SeattlePI.com 3 hours ago.
Associated Press
Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Updated 1:00 am, Tuesday, May 7, 2013
Whatever their specialties used to be, automakers ranging from global brands to China's ambitious rookies are scrambling to cash in on the explosive popularity of sport utility vehicles. The SUV boom clashes with Beijing's efforts to push automakers to develop electric cars and to sell smaller vehicles to help curb smog and demand for imported oil. [...] the SUV's image of safety appeals to prosperous Chinese drivers who face chaotic city streets while electrics from BYD and other producers struggle to attract buyers. The fatter profit margins for SUVs are a financial lifeline to a Chinese industry that is being squeezed as global brands make inroads into their market for smaller cars. Global automakers are redesigning SUVs for China with smaller engines in response to government taxes based on engine size. [...] at the auto show, global automakers including Mercedes Benz and Nissan and local brands such as Geely Holding Group, which owns Sweden's Volvo Cars, and Great Wall Motors Co. showed new SUVs or SUV concept vehicles. The SUV boom could be especially important to China's own automakers, who are struggling as global rivals launch new models aimed right at their traditional low-price market segment. Because they are bigger and heavier like trucks, SUVs are treated more leniently by government rules on fuel efficiency and emissions. The company also is developing four-wheel-drive technology that powers two wheels with an internal combustion engine and two with an electric motor, eliminating the need for a drive train that takes up floor space, Ho said. Reported by SeattlePI.com 3 hours ago.