Changan Automobile likely to suffer Q1-Q3 net losses of RMB2.8 billion

Posted on 10/16/2019 9:44:34 AM

Chongqing Changan Automobile Co., Ltd released a performance review on October 14. It said the net losses attributable to shareholders in the first three quarters of 2019 was estimated to reach between RMB2.4 billion ($336 million) and RMB 2.8 billion ($396 million), a year-on-year nosedive of more than 300%.    
As to the Q3 performance, the net loss was predicted to be between RMB160 million $22.6 million) and RMB550 million ($77.8 million). Compared to the first-half net loss of RMB 2.24 billion ($317 million) announced by Changan Automobile, it is observed that the company’s losses were narrowed down in the third quarter.
The automaker said the three quarters’ losses were mainly attributed to the sales decline. The Q3’s increase in earnings resulted from the optimized product structure by its indigenous part.     
Changan Automobile sold 1,225,879 vehicles in total from Jan. to Sept., down by 23.6% from the year-ago period, according to the automaker's announcement. Of that, Changan’s self-owned brands’ sales reached 580,000 units, sliding 19% year on year. The sales of the two major joint ventures--Changan Ford and Changan Mazda-- were 128,906 units and 95,845 units respectively, a year-on-year decline of 58.2% and 25.4%.   
Changan Automobile consolidated the partnership with Ford Motor to accelerate the product upgrade and manufacturing strength of Changan Ford in late September.
To boost sales in China, Ford Motor is slated to employ local executives, speed up product R&D and delivery, and strengthen intelligent technology R&D. Changan Ford will roll out at least 18 new models over the next three years, including the first China-built Lincoln-branded SUV model and the Ford Explorer. 
Meanwhile, Changan Automobile plans to launch more SUV models under the CS series, making this portfolio become the main force of Changan's self-owned brands.

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