Falling vehicle sales are increasing the pressure on Chinese carmakers and prompting many of them to bolster financial resources for the bumpy road ahead, analysts said. Vehicle sales from January to July totaled 14.13 million units, down 11.4 percent year-on-year, according to the China Association of Automobile Manufacturers. It estimated that sales would drop 5 percent this year from 2018 to 26.68 million vehicles. During the first seven months of this year, carmakers and parts manufacturers in the country had issued bonds worth 56.47 billion yuan ($7.9 billion), up 83.8 percent from the same period last year, according to the 21st Century Business Herald newspaper. And the trend has not stopped. In a filing to the Shanghai Stock Exchange on Aug 10, SAIC Motor Corp, the country’s largest car group by sales, said its general assembly had passed a bill to issue bonds worth up to 20 billion yuan. This was the first time that the carmaker, which is a partner of Volkswagen and General Motors, had come up with a bond plan in 11 years, according to the 21st Century Business Herald. SAIC said in the filing the bonds would be issued “to improve cash flow and fund research… Read full this story
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