Shares of VW, PSA dropped after association says Chinese rebates may end

Article by Christian A., on December 11, 2010

Shares of Continental AG, Volkswagen AG and PSA/Peugeot-Citroen dropped after the China Automobile Industry Association said at a recent briefing in Beijing that Chinese incentives for buying cars will not be extended and will likely expire at the end of December 2010.

Xiong Chuanlin, the vice secretary-general of the association says that, in 2009, the association wrote to the government requesting an extension for the tax incentives.

Preferred shares at Volkswagen, whose largest market is China, dropped as much as 7 percent, PSA declined by as much as 4.8 percent and Continental dropped as much as 6 percent.

In November 2010, deliveries in China surged 29 percent. But this trend is expected to change as stimulus measures in China, the world's biggest auto market, including subsidies for rural car-buyers, a consumption-tax rebate for smaller vehicles, and incentives to trade in older models are all due to expire at the end of the December 2010.

China is a growing market for Continental and PSA. Yu Bing, an automotive analyst at Pingan Securities Co. in Shanghai, said that consumers who expect the stimulus policies to be discontinued in 2011 are bringing forward purchases before time runs out. [via autonews - sub. required]

Topics: vw, psa, china

If you liked the article, share on:

Comments

Recommended

Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 2017
As it is now, Nissan Motor’s Nismo road car operations is a relatively a small business, with an annual volume of 15,000 performance-oriented cars. However, Nissan is giving Nismo fans...
by - May 21, 2017
The refreshed 2018 Acura TLX will be hitting the showrooms next month with a starting price of $33,000 for the TLX 2.4L and $36,200 for the V6. Coming out with...
by - May 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries