Daimler 'still confident' in China sales outlook after market plunge - Automotive News
BEIJING (Bloomberg) -- Mercedes-Benz owner Daimler AG, counting on China to provide the most fuel for car demand growth this year, pledged to keep up its investments after the country's biggest stock-market rout since 2007. "I am still positive... Daimler will plow ahead by investing more on compact cars in a market where it's been adding dealerships as the automaker expects vehicle ownership levels to rise, according to Troska. Market tumult has already taken a toll on carmakers, with consumers buying the fewest passenger vehicles in 17 months in July. The slump for Chinese equities poses a risk to Mercedes' ability to keep up the pace of sales growth that pushed the brand's sales ahead of BMW AG and Volkswagen AG's Audi in July. Demand for the C-class sedan and Mercedes compacts boosted China deliveries by 22 percent in the seven months through July, putting the carmaker on track to exceed its annual sales goal in the world's biggest auto market. Mercedes pulled ahead as its German peers were tripped up by the broader market slump, with Audi's deliveries in July falling 13 percent. BMW posted a 7. 4 percent decline, days after saying that China's slowdown may force it to lower this year's profitability goals. Source: www.autonews.com
