The top decision-making level of multinational car companies has come and gone. It should not be a new topic. However, this year's themes are different. Differences and courtesy visits and public relations visits, and European and American car lines that have been pioneering in China for many years, have suddenly felt the pressure of competition from other tight markets around the world when Japanese cars suddenly enter into a close relationship. The era of solo dancing is over.
On July 15, FAW Group celebrated its fiftieth anniversary. At the groundbreaking ceremony of FAW-Volkswagen's new factory, Volkswagen's chairman and president attended the ceremony. The German ambassador to China was also invited to attend the ceremony. The specification is evident. However, if it is not for the public to throw out an investment plan with a total investment of about 6 billion euros on the spot, the limelight is likely to be monopolized by Changchun Fengyue Company, which has no “nameâ€. Most of the reporters who went to the interview were politely "blocked." After disclosing the news, at present, Feng Yue, who is in the form of technical cooperation, “will hope to increase to a joint venture form in the future as soon as possible,†which is the statement made by Toyoda Toyoda’s director Akio Toyoda. Toyota's move is aimed at playing the right balance. There is neither aggressive overbearingness nor the popularity of the FAW celebrations on such an important occasion.
Almost at the same time as the public released the capital increase plan, GM has jointly invested RMB 2 billion in SAIC Motor and plans to reach 200,000 vehicles in 2005. Bill Ford, Chairman and Chief Executive Officer of Ford Motor Co., Ltd., who had been accused of neglecting the Chinese market due to the “Global Weight-loss†program, also visited Beijing in a whirlwind, and he launched an extraordinary one-dollar initiative to increase his investment, which is almost Changan Ford had only 10 times the initial investment of US$98 million. Although Ford only interprets this capital increase as "accelerating in the Chinese market", in fact, leveraging the strong momentum of the Chinese market may be the motivation for Ford to make up its mind.
The Chinese auto market is suddenly speeding up in a pessimistic forecast. This is an unexpected surprise for European and American mainstream car manufacturers who have already set up camps and are preparing for a protracted war. European and American manufacturers have been staking their interests for many years and are meticulously “cultivatingâ€. No one wants to break the balance when such rich people make money. However, the Japanese department, which has been watching cautiously, suddenly entered this year and progressed rapidly, breaking the calm. If China's auto market is bigger, it is impossible for everyone to be full. Europe and the United States are under heavy pressure and respond quickly—the increase in capital and production, and the acceleration of new products. As a result, the legendary Cadillac came; the BMW 3 Series and the 5 Series, which have always been easy to follow, seemed to be extremely compact. As a result, the manufacturer provided data to the EPA and the Vehicle Administration and the parameters of the vehicle's factory. Not so, no domestic BMW can be on schedule. The tacit understanding of the balance was broken. The force of the European and American car lines seemed to indicate that the new round of "enclosure movement" had begun quietly and the eyes were invariably on the high-end luxury car market. Everyone is now at a relatively fair starting line, and the huge profits it carries and the unpredictable market potential will undoubtedly change the comparative power of the Chinese car industry in the next few years.
The struggle between the European and American departments and the Japanese system is still far from the point where you die. Only the three major Japanese auto companies have shown good profitability in the global car industry, and they have taken advantage of the market in North America and Europe. The grudges of both parties will inevitably extend to the Chinese market. European and American cars are not lost in China. The biggest shortcoming is follow-up product follow-up.
The most frequently asked by reporters and most wanted to ask is: "What other products will Volkswagen get to China?" Once the Beatles became the most imaginative conjecture, but disappeared. Although the Volkswagen Group claims that "there are 62 models, one of them must be suitable for China." However, the two publics in China are reaching for models, although Chinese consumers have a curious attitude at the beginning of the car purchase, but with the prior knowledge that Gore took the place back, Volkswagen certainly tends to be safe in vehicle models.
The biggest difference between European and American cars and Japanese products is that most of the Japanese products are thrown out of a package of products and give consumers psychological expectations; European and American car lines do not have such confidence. The models that are suitable for the Chinese market in their eyes have actually arrived in China, but when the domestic auto market suddenly rises, these models have also come to the fore. If you take a brand new product, the production line needs to be rebuilt or built separately. The cost is not cheap, and the market has to say otherwise. The current cycle of new product sales in the market has been shortened to two years or so, and Santana's continuous production for nearly 20 years is a myth. The acceleration of the launch cycle of new products has also become a megalith in the heart of European and American cars.
A few days ago, a Goldman Sachs report pointed out that the Chinese market accounted for 80% of Volkswagen's first-half revenue, but found that its profitability was declining from the financial results of Volkswagen in the third quarter, and they estimated that POLO, GOL, and Audi A6's inventory has exceeded the normal level. Volkswagen can be called the flag of the United States and the United States in the "dismantlement" of China's automobile industry. Over the years, it has been able to maintain its 40% market share in China. When the new food eateries were in the crowd, the public's hurricane began to loosen. It was confirmed that the most important goal was not to maintain a certain market share, but to stay with the Chinese partners and maintain their leading position. Volkswagen, including other European and American car lines that have won the upper hand, may not care that this absolute advantage is slowly being eroded. The capacity for rapid expansion is chasing future buyers with unknown numbers. The Chinese auto market is still far from mature. What happened during this period and afterwards was that the strong man was always strong, or he was later relegated to the top, and there were several possible choices for major multinational companies. Only a joint venture is a complete game, the ups and downs of multinational companies directly affect the state of survival of domestic auto companies. Learning how to avoid the hidden dangers of industrial injury and face up to the possible endgame in the future is also a difficult question for domestic car dealers.
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