China

Great Wall Motor Delays H8 Model SUV Delivery

This article was originally published on May 8, 2014 at 8:56 am EST

Summary:

  • Great Wall Motor (HK: 2333/ CH: 601633) says it will delay its delivery of its latest H8 Model SUV, citing that the transmission system tends to make “percussion sounds” during high speed trials and thus reduces the user experience.
  • Shares of Great Wall Motor halted trading on May 8, but the company did not provide a date when shares will resume trading.

Why It Matters:

  • Great Wall Motor planned to launch the H8 SUV model in January; however, the company decided to push the launch back by three months. Great Wall Motor first introduced the model during the Beijing Auto Show on April 20 and started to receive orders from customers from six cities including major metropolitan areas such as Beijing, Chengdu, and Guangzhou. Local articles suggest that customers can no longer place orders for the H8 SUV.
  • The H8 is the company’s initial foray into the high-end SUV market and has attracted significant investor attention. In a recent brokerage report, China Investment Securities expects sales of the H8 SUV model to boost company sales on the whole. As a result, the delay will bring a very negative effect on the company’s second quarter sales results.