Strengthening rumors of a steep 20% consumption tax on luxury cars in China could create a ripple in the automobile industry with expectations high for the segment and productions plans ramping up. On watch: Lincoln (F), Cadillac (GM), Mercedes-Benz (DDAIF.PK), Audi (VLKAY.PK), Tata Motors (TTM), and Porsche ((POAHY.PK).
The luxury automobile market in China could take a minor hit with a new regulation banning military license plates from high-end sellers including Lincoln (F), Cadillac (GM), Mercedes-Benz (DDAIF.PK), and Porsche ((POAHY.PK). Though official numbers are hard to come by, the practice of high-ranking officers driving luxury vehicles is common.
Porsche (POAHY.PK) says China will replace the U.S. as its biggest market next year as it expects to continue making inroads in the nation. Similar to other automakers, the company expects a slower pace for sales in China next year but will still consider setting up local manufacturing with the long-term prospects for the market still strong.
Porsche (POAHY.PK) plans to push through its sale of a 50.1% stake to Volkswagen (VLKAY.PY) as quickly as possible, as the automaker sees the immediate benefits of economies of scale outweighing what could potentially be a higher tax bill.
The newly-released annual survey from J.D. Power on customer satisfaction in the auto industry shows Ford (F +0.8%) and Chrysler (FIATY.PK) slipping lower with their brands, while Toyota's (TM +0.4%) Lexus retains its top ranking. Foreign names largely dominated the list, with Jaguar (TTM +1.9%), Porsche (POAHY.PK), Cadillac (GM -1.9%), and Honda (HMC -0.1%) all showing strong. The poor result for Ford seems to emanate from its MyFord Touch entertainment system, which presented a myriad of issues for confused owners.
Former Porsche (POAHY.PK) CFO Holger Haerter is one of 3 charged with fraud over statements made about a loan in the events surrounding the infamous 2008 short squeeze on Volkswagon (VLKAY.PK). Porsche shares -2.9% in Frankfurt.
Volkswagen (VLKAY.PK) closes in on a deal to acquire the remaining 50.1% of Porsche (POAHY.PK) that it doesn't already own, according to inside sources. A deal could be announced in the next two weeks if the two European automakers reach final agreement on terms and Germany tax authorities sign off on the transaction. POAHY.PK +0.5% in Frankfurt trading, VLKAY.PK -1.4%.
Shares of Volkswagen (VLKAY.PK -5.1%) and Porsche (POAHY.PK -12.5%) slide as the automakers say their merger can't be completed by the end of the year, given the extent of legal proceedings against Porsche. "The continuing legal hurdles mean that it is currently impossible to quantify the economic risks of a merger," VW says.