This article only represents the author's own views.
Just when it looked set to cruise with its new business model, Cango Inc. (CANG.US) has announced an abrupt shift of gears with its latest third-quarter results. The car trader will merge its recently launched new and used trading car platforms into a single entity, a move that it says reflects recent trends in China’s auto market.
At the same time, Cango also announced it will scale back one of its other recent major initiatives to focus on direct car trading. Instead, it will also encourage other traders to set up shops on its platform. That shift looks aimed at easing Cango’s risk of building up too much inventory as China’s car market becomes increasingly saturated and plagued by price wars after years of big growth.