The Chinese economy seems to be dropping off quite hard in the automotive sector. BMW, Mercedes, and Audi are all slashing prices some by up to 16%. The future of the Chinese market does not seem to be as bright as it seemed in early 2011 at least when auto sales are concerned. The three mentioned manufacturers all had record sales in China but things slowed at the end of 2011 as the Chinese economy took a downward swing across the board. Manufacturers doing big capacity expansions banking on China to hold steady may be facing a lot of unsold inventory.

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