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Automakers forecast strong sales for 2011

By Chang-Ran Kim, Helen Massy-Beresford and Gilles Guillaume | China Daily | Updated: 2011-02-10 07:53

TOKYO/PARIS - Bullish forecasts from major car companies lifted hopes for the auto sector, as the likes of Toyota and parts maker Faurecia SA set out new goals for 2011 based on strong growth.

The industry has been dogged by concerns about slower demand growth in Asian markets and a bumpy recovery in Western markets, but a raft of positive statements on Tuesday nodded to still-strong emerging markets and good sales in the United States.

Toyota, the world's number one automaker, raised its full-year outlook beyond market forecasts on stronger sales projections and cost cuts. It said profitability was helped by better than expected sales in Asia, Japan and Russia.

France's Faurecia also posted strong growth in Asia and North and South American sales and said it would focus on expanding in those markets, sending its shares to a three-year high.

Audi AG saw global sales rise by 22.6 percent to 95,400 cars in January, and said it continued to see positive growth in both China and the United States.

The company said January was its best on record due to "significant double-digit growth in all regions".

"We are getting an increasing flow of good numbers from automakers. After Audi and Mercedes in China, we've also just seen some solid figures from BMW. This is lifting the whole sector," said a Frankfurt-based trader.

Another trader added, "The market is gaining confidence about the growth in China and premium markets sales in general."

BMW AG said group unit sales rose by 28 percent in January to 105,177 vehicles and added it expected strong growth to help the automaker reach its 2011 target of selling more than 1.5 million units.

Daimler said it aims to sell the highest number of cars in its history this year after January vehicle sales in its Mercedes-Benz division rose 23.1 percent.

France's Renault is due to report final full-year results on Thursday, a day after its partner, Japan's Nissan Motor Co, is expected to report a drop in third-quarter profits due to the stronger yen and falling demand in Japan.

Reuters

(China Daily 02/10/2011 page16)

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