FAW profits dive on costs, price war Steel prices and margin squeeze blamed for sharp fall in earnings to 18 million yuan in the first half.

(From South China Morning Post)

Byline: VEHICLES Eric Ng

China's second-largest vehicle maker, FAW Group, saw first-half net profit plummet drastically as higher steel and other material costs and a punishing price war ate into margins.

The company posted a net profit of 18 million yuan for the half, compared with "several hundred million yuan" in the same period last year, according to spokesman Gao Yuan, who spoke to South China Morning Post yesterday by phone from the group headquarters in Changchun, Jilin province.

Mr Gao would not give an exact profit figure for last year's first half and the company is not obliged to report audited …