Chery's 2014 profits plunge 86% as 2 joint ventures struggle
Chery Automobile Co.'s profits tumbled 86 percent to 127 million yuan ($20.5 million) last year from a year earlier as two of the company's joint ventures suffered heavy financial losses, according to Chinese media.
The company's earnings fell even though Chery in 2014 sold more vehicles and achieved higher average transaction prices than in 2013.
Last year, Chery's sales rose 4 percent to 455,380 vehicles, and the average price of its vehicles increased to 80,000 yuan, up from 50,000 yuan in 2013.
But two of its joint ventures suffered huge losses, reported Internet Info Agency, a Beijing-based website, citing a recent interview with Chery Chairman Yin Tongyue.
Chery Jaguar Land Rover Automotive Co., a 50-50 partnership established three years ago with Jaguar Land Rover, has yet to generate a profit. It lost 584 million yuan last year.
Meanwhile, Qoros Automotive Co. suffered a loss of 2.1 billion yuan due to weak vehicle sales. Qoros was established in 2007 as a 50-50 joint venture between Chery and Israel Corp. Since January, Qoros has operated as a joint venture between Chery and Kenon Holdings of Singapore, which was spun off by Israel Corp.
Last year, Chery invested an additional 1.6 billion yuan in Chery Jaguar Land Rover Automotive and Qoros Automotive. To support the investments, the company sold its stakes in 39 suppliers and automotive engineering companies, according to the company's website.
Chery, headquartered in Wuhu of east China's Anhui province, is a state-owned company controlled by the Wuhu municipal government.
Last year, Chery's sales rose 4 percent to 455,380 vehicles, and the average price of its vehicles increased to 80,000 yuan, up from 50,000 yuan in 2013.
But two of its joint ventures suffered huge losses, reported Internet Info Agency, a Beijing-based website, citing a recent interview with Chery Chairman Yin Tongyue.
Chery Jaguar Land Rover Automotive Co., a 50-50 partnership established three years ago with Jaguar Land Rover, has yet to generate a profit. It lost 584 million yuan last year.
Meanwhile, Qoros Automotive Co. suffered a loss of 2.1 billion yuan due to weak vehicle sales. Qoros was established in 2007 as a 50-50 joint venture between Chery and Israel Corp. Since January, Qoros has operated as a joint venture between Chery and Kenon Holdings of Singapore, which was spun off by Israel Corp.
Last year, Chery invested an additional 1.6 billion yuan in Chery Jaguar Land Rover Automotive and Qoros Automotive. To support the investments, the company sold its stakes in 39 suppliers and automotive engineering companies, according to the company's website.
Chery, headquartered in Wuhu of east China's Anhui province, is a state-owned company controlled by the Wuhu municipal government.
