FAW’s own brand of cars loses 49 million RMB in 2011

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It seems that cars self branded car venture maybe in for a difficult year, the company has so far lost some 49 million RMB this year and is expected to continue losing money.

From Market Watch:

China’s FAW Car Co. warned Sunday that it expects a sharp decline in its full-year profit after posting a net loss in the third quarter on slowing domestic auto-sales growth.

The company said it expected to turn a profit of between CNY372 million and CNY930 million ($58.5 million and $146.3 million) for the full-year 2011, down 50%-80% from a profit of CNY1.86 billion in 2010.

In a statement, FAW said it recorded a net loss of CNY49.9 million in the third quarter, compared with a CNY449.2 million net profit a year earlier.

“Factors including tight monetary policy, inflation and the removal of government incentives has led to a sharp decline in growth in the domestic passenger-car market; the company’s products have been strongly impacted,” FAW said.

Revenue for the three months ended Sept. 30 was CNY6.65 billion, down 25% from a year earlier.

FAW Car is a unit of unlisted China FAW Group Corp., China’s third-largest auto maker by sales.