State-owned carmakers spin their wheels while private rivals grow | Sales rise in early October as tax cut attracts buyers

COMMENT Why state-owned carmakers spin their wheels while private rivals grow Yang Jian SHANGHAI -- China's auto market rallied in September after declining for three straight months, but the three biggest state-owned automakers aren't sharing the market's good fortune. At a time when private Chinese automakers and global brands are rebounding, China's Big 3 automakers risk being marginalized. Pictured: Yang Jian is managing editor of Automotive News China. >> More China auto sales rise in early October as tax cut attracts buyers Bloomberg Auto sales in China rose in the first half of October after the central government cut a tax on passenger-vehicle purchases at the start of the month. Average daily retail sales from Oct. 1 to Oct. 16 jumped 12 percent from a year earlier, according to data from the China Passenger Car Association. >> More  TOP HEADLINES OF THE LAST WEEK VW group sales slip 0.8% in Sept. Light-vehicle export slump continues CAAM says China aims for 30 million unit output capacity by 2020 Qoros unveils midsize crossover at Milan expo Honda delays 5.2 billion yuan China plant, citing slowdown Bloomberg Honda Motor Co. will delay the construction of a planned $822 million (5.2 billion yuan) assembly plant in China in the wake of stagnant demand. The carmaker previously had planned to start construction on a third plant with partner Dongfeng Motor Corp. in Wuhan, said Chen Binbo, vice president of the two automakers' joint venture. >> More Hyundai's quarterly profit slides 23% on weak China sales Reuters SEOUL -- Hyundai Motor Co. said its third-quarter net profit fell 23 percent from a year earlier, as the South Korean automaker soaked up the impact of slower China sales and aggressive discounting campaigns. Hyundai, ranked fifth in global auto sales together with affiliate Kia Motors, said its net profit from July through September slid to $1.1 billion (7.0 billion yuan), down from $1.3 billion a year earlier. >> More Jeep Cherokee enters production in Changsha Automotive News China Fiat Chrysler Automobiles launched production of the Jeep Cherokee in China this week to expand the Jeep brand's presence in China's fast-growing SUV market. The Cherokee is built in Changsha at a plant owned by Fiat Chrysler's joint venture with Guangzhou Automobile Co. The 2.4-liter compact SUV will go on sale in November. >> More Lincoln MKX crossover goes on sale in China Automotive News China BEIJING -- Ford Motor Co.'s Lincoln luxury brand launched sales of its third product, the MKX crossover, in China this week. The vehicle is priced from 449,800 yuan to 659,800 yuan ($70,300 to $103,900). The MKX will be distributed through 18 stores in 15 Chinese cities. >> More Volkswagen says it's still bullish on China for 2015 Reuters FRANKFURT -- Volkswagen AG expects to keep gaining market share in China, and will continue to expand its product portfolio there, the company said on Monday. "We expect to continue on this trajectory as we head towards year end and maintain a positive outlook for fourth quarter results in 2015," Volkswagen Group China CEO Jochem Heizmann said in a statement. >> More Ford China to recall 220,000 Kuga crossovers to fix potential fuel leaks Reuters BEIJING -- Ford Motor Co.'s China joint venture will recall about 220,000 Kuga crossovers to fix potential fuel leaks, China's quality watchdog said. Driving on severely bumpy roads could cause fuel lines in the vehicles to rub against other components, eventually leading to wear and tear and potential fuel leaks, the General Administration of Quality Supervision, Inspection and Quarantine wrote on its website. >> More Chinese company to supply steering systems to Daimler Trucks Automotive News China Zhejiang Shibao Co. has won a global contract to supply steering gears for trucks and buses produced by Daimler AG, reports IHS Supplier Business. The company cautioned that production volume will be dictated by market demand. >> More