Chinese Boycott Of Japanese Cars Hurts Chinese Companies The Most

Sales of Japanese cars in China dropped 40 percent in September as a result of the islands rumpus. The shares of Nissan, Toyota and Honda shares lost about 10 percent of their value. Chinese state-owned enterprises lost much more. "State-owned Dongfeng Motor Group Co., China's second-largest automaker by vehicle sales, and sixth-ranked Guangzhou Automobile Group Co. saw their stock prices slide 16 percent since mid-September," reports The Nikkei [sub]. Why? The Chinese companies are much more dependent on Japanese cars than Japanese carmakers on the Chinese market As outlined two weeks ago, Dongfeng Motor makes cars in joint ventures with Nissan and Honda. Guangzhou Automobile has joint ventures with Honda and Toyota. Says The Nikkei [sub]: . "Japanese brands account for 40 percent of Dongfeng's sales and 90 percent of Guangzhou's. Some 3.5 million Japanese-brand cars were sold in China last year, giving them a 20 percent market share. Of those, 90 percent were made in China. With a local content ratio of around 90 percent Japanese-brand cars are essentially made in China." from The Truth About Cars http://www.thetruthaboutcars.com

Put the internet to work for you. via Personal Recipe 680102