KADUNA AUTO MARKET CRASHES INTO AVERAGE OF $1.3M (UP TO 4% FROM THE ORIGINAL)

Auto markets are plunging as the industry struggles to recover from a spate of massive losses in 2017, with a number of companies dropping into a deep depression.

Key points:Auckland-based Bixi Auto has gone into administrationThe company had reported a loss of $923m in 2016, which was down from a profit of $2.5bn in 2015The company has had a series of problems in the past few years, including a $8.6bn loss in 2016.

The company said in a statement that the company was “in the process of closing” its business and had “not been able to secure funding or to secure a future”.

“We remain committed to our business and intend to continue to operate at a loss through the sale of our business,” the statement said.

The Auckland-based firm, which manufactures vehicles and parts for the Australian auto industry, said in February it had incurred a $1bn loss for the first time in its 40-year history.

It said its net loss in 2017 was $924m.

In November, Bixia Auto, which made parts for Volvo and Mercedes-Benz vehicles, also filed for bankruptcy protection.

The collapse of Bixiana Auto, one of the country’s largest car-parts suppliers, is the latest in a string of major auto companies going into administration in the last 12 months.

In the United States, General Motors has filed for Chapter 11 bankruptcy protection, while Chrysler and General Motors Co have been sold off.

Bixi’s collapse is the second largest in the industry in the US, following the collapse of US auto giant General Motors in 2016 and the bankruptcy of Japanese carmaker Nissan Motor Co. As well as Bixio Auto, there are also problems in other parts of the auto sector.

Kaduna Auto, the only major manufacturer in the world to be wholly owned by the state, has gone bankrupt and is being sold off by the State Government for $4.2bn.

Last month, a new carmaker, South African-based Peugeot Citroen Automobiles, said it was planning to go into administration.

In September, Baidu, the countrys largest search engine, announced it was selling off its car business to Chinese internet giant Tencent for $US4.5 billion ($6.3bn).

In Australia, Hyundai Motor has gone public after it said it had recorded a loss in the first quarter of 2017, bringing its financial results to $US1.2 billion ($1.6 billion).