China auto price war slams dealers with $20bn in losses

 

 China auto price war slams dealers with $20bn in losses

Industry group recommends calls for financial support, consumer incentives.  Cars at a dealership in Shanghai. Dealers have faced pressure from automakers to stock up on inventory despite weak consumer spending. 

BEIJING -- Auto dealerships in China have sustained 138 billion yuan ($19.6 billion) in combined losses this year through August due to an escalating price war, according to industry data.

The China Automobile Dealers Association (CADA), which includes independent and automaker-affiliated dealerships, submitted an emergency report to the government about the situation, the group said Monday.