The Traderszone Network

Published in TZ Latest News 18 May, 2015 by The TZ Newswire Staff

Price cutting threatens automakers’ rich margins in China

International automakers are slashing prices for vehicles they sell in China in response to a slowdown in demand that threatens the industry’s rich profit margins. General Motors Co (GM.N) and Ford Motor Co (F.N) cut prices on Chinese models late last week, following moves by Volkswagen AG (VOWG_p.DE) last month to increase discounts on several popular vehicles. “Pricing adjustment is part of what we need to do every day,” GM China chief Matt Tsien told Reuters.