Crisis Looming over China's World-Class Auto Industry

Crisis looming over China's world-class auto industry

On the outskirts of Chengdu, a city of 21 million, a showroom in a shopping mall offers extraordinary deals on new cars. Visitors can choose from some 5,000 vehicles. Locally made Audis are 50% off. A seven-seater SUV from China's FAW is around $22,300, more than 60% below its sticker price. These deals – offered by a company called Zcar, which says it buys in bulk from automakers and dealerships – are only possible because China has too many ca…

China’s Policies Have Pushed Its Auto Industry Near to Collapse

China’s world-beating auto industry is staring into an abyss. Its carmakers and dealers are struggling to make money and fierce competition has left scores of firms on the brink of collapse. Meanwhile, many thousands of cars are being sold at a fraction of their price, or left abandoned altogether in automotive graveyards. Those are the findings from an extensive investigation carried out by Reuters, which reviewed thousands of car-sales listing…