Guangzhou Auto Hammered Hard Over Islands Dispute, Japanese JVs
Guangzhou Autos is reporting that 2012 profits are down as much as 80 percent, thanks to the dispute with Japan over a few islands in some godforsaken corner of the world.
The conflict over the Daiyou Islands, as they are known in China, led to social unrest and an anti-Japanese backlash. Bad news for GAC (as the company is known), since their joint-ventures are with Honda and Toyota. A small JV with Fiat didn’t do much to help the company’s financial health.