Chapter 915 The ruin of the joint venture automobile manufacturer
Changtian Technology is really awesome!
To be precise, they are Cangqiong Automobile and Haima Automobile, which are affiliated to Changtian Technology. They are so powerful!
The storm swept over the entire Xiaguo automobile market, stirring up the structure of the Xiaguo automobile market.
With one sure-kill move, many joint venture car companies were unable to resist.
Of course, Lifan cars are also very powerful.
Just because Lifan is relatively small and currently only sells operating vehicles, its impact on the entire industry is still limited.
However, Cangqiong Automobile and Haima Automobile face consumers directly, which makes these joint venture car companies very uncomfortable.
During this period, whether you are an American or European brand or an Asian or South Korean brand, you have lost a lot of potential customer groups.
Front-line salespeople in 4S stores have the most intuitive feelings.
Take Volkswagen as an example. In the past, if a salesperson tracked ten potential user groups, about 5 to 6 would eventually buy Volkswagen cars.
But now a salesperson tracks 10 potential user groups, and only 1 to 2 users will eventually buy Volkswagen cars.
This quantity is basically discounted by more than half.
Shanghai, a large conference room in a hotel.
Representatives from almost all well-known joint venture car brands in Xia State, including vice president level and above, arrived.
There will be no reception, no logo, and no media coverage for this meeting.
But this meeting is very important for major brands.
Among the major representatives participating in the meeting, except for a few who are vice presidents of foreign investors of joint venture brands, most of the representatives are Xia people with yellow skin, black hair and dark eyes.
These people are also very tangled in their hearts.
On the one hand, as Xiaguo people, they are still proud of Changtian Technology Xiaguo's subsidiary bio-new energy vehicles.
But this kind of pride is only a little bit, not much.
As vice presidents of joint ventures, they still have to consider the interests of their own companies.
So from this perspective, they still hold a grudge against Changtian Technology.
The most intuitive manifestation is that everyone’s income has decreased.
Take Volkswagen as an example. The former vice president in charge of marketing and sales had an annual salary of one to two million. In addition, he relied on the company to engage in some business, and his annual income could be several hundred.
This is better than any other job. Since the per capita income in Xia Kingdom is not high, this kind of income directly brings them to the upper class society.
But now, due to the sharp decline in car sales, Volkswagen has also reduced its investment in Xiaguo and even cut off many projects.
The monthly salary of these vice presidents has also changed from more than 100,000 yuan to tens of thousands yuan. It is said that the year-end bonus has also been cut off, and next year there will be layoffs and salary cuts.
Changtian Technology can do anything, but it will never do it if it harms its own interests.
The person presiding over the meeting was Mr. Yi, the person in charge of Shanghai Automobile and Volkswagen.
Mr. Yi's hair fell out a lot during this period.
In his heart, he actually knew that the meeting held today seemed to be of little significance.
But it won’t work if we don’t hold such a meeting.
There was no relaxed atmosphere for mutual communication at the conference venue as in the past.
No one spoke, it was very depressing.
Mr. Yi said: "Let me make an opening statement first. Affected by Cangqiong Automobile and Haima Automobile, I am not afraid of your jokes. Volkswagen's sales of various types of cars were cut in half last month."
Mr. Yi said that Volkswagen's car sales have been cut in half, which is actually an understatement.
If a user buys a bionew energy vehicle from Changtian Technology, he or she will not buy a Volkswagen. This is not a 1:1 ratio.
There are still many potential customers of Volkswagen who originally planned to take delivery of their cars right away. Now they are either holding a wait-and-see attitude, or they have already ordered cars from the new energy vehicle company of Changtian Technology.
So life is very difficult for the public.
"This time we are all gathered here to discuss how we can survive."
Mr. Yi's simple opening remarks made the originally extremely depressing scene boil.
"Our sales in the past two months are not good either. The high-end market has been taken away by Cangqiong Automobile, and the mid- to low-end market has been taught a lesson by Haima." The person complaining was Shanghai Automobile General Motors, which also has a factory in Shanghai.
General Motors vehicles have long given consumers in Xia China the impression that they are very fuel-guzzling.
Therefore, in the later stage of the competition between fuel vehicles, they no longer have an advantage.
Now that new energy vehicles and bio-based new energy vehicles have come out, GM's sales have dropped several places, ranking around 10th.
If this continues, General Motors risks withdrawing from the Xiaguo market.
However, General Motors' investment in various places in Xia Kingdom is very large, including factory machinery, equipment and workers.
As soon as I open my eyes every day, even if I don't do anything, a lot of money has been spent.
These things need to sell cars to make a living.
Now car sales are gradually declining and plummeting wildly, and General Motors' debt is getting higher day by day.
A representative from Toyota said: "Changtian Technology is completely unconventional. According to the country's design, fuel vehicles are slowly transitioning to new energy vehicles."
"Our major car companies are also strictly abiding by Xia Guo's relevant regulations and gradually phasing out fuel vehicles."
"But...but...Changtian Technology directly launched bio-new energy vehicles and did not give us time to upgrade and transform!"
When the Toyota representative said this, many people at the scene wanted to laugh, but no one could laugh.
Toyota's representative said this not as a joke, but as a true sentiment.
So their technology in gasoline-electric hybrids was very good, but they made the wrong bet on hydrogen energy vehicles and failed miserably in the new energy market.
Everyone has been discussing it, but there has never been an effective way to deal with it.
Mr. Yi patted the table and said, "I suggest that we all stop arguing and think about how to deal with it."
"Our Volkswagen market analysts have analyzed the operating principles of bio-new energy vehicles during this period, so I am here to give you some suggestions to see if you can adopt them."
"Changtian Technology's bio-new energy vehicles are priced from more than 100,000 to 500,000 to 500,000 to 600,000."
"Among them, there are five to six hundred thousand cars. The intelligence, safety and comfort of the vehicles are unmatched by all the car companies here. Moreover, this group of people is limited and is not our main market, so I press
I can’t express myself.”
"I think what we should be worried about is the range of more than 100,000 to 200,000."
"The most important considerations for users in this category when purchasing a car are comfort, cost, safety performance, appearance, interior, brand value, etc."
"This group of consumers want both good looks and face, and they emphasize the ultimate cost-effectiveness."
"In response to this phenomenon, my first suggestion is to reduce profits and lower prices of fuel vehicles."
"As long as our sales price comes down, we will be able to form misaligned competition with Cangqiong Automobile or Haima Automobile."
"We have a good brand and reputation after operating it for so many years."
"Similar to the level of comfort, fuel vehicles and new energy vehicles have their own merits, and consumers have their own preferences, so we also have advantages."
"As long as we lower the price and consumers calculate and find that the cost of driving a petrol car is almost the same as that of a new energy vehicle, then there will be more room for them to choose us."
"The second suggestion is to increase the configuration."
"Compared with new energy vehicles, we cannot make a fuss about vehicle systems and intelligence."
"But we can make a fuss about the car's comfort, safety, and the retro concept of fuel, and do the opposite of new energy vehicles, and maybe we can get more customers."
"Xia Guo's market is big enough to accommodate all of us, but it absolutely cannot accommodate Changtian Technology's new energy vehicles."
"Because the goal of Changtian Technology is not to develop together with all of us, but to eat up all our markets!"
"Changtian Technology's bio-new energy vehicles are in production, but none of us can survive!"
These words resonated with everyone.
Because during this period, some joint venture car companies have been negotiating with Changtian Technology privately or publicly, hoping to obtain the right to use Changtian Technology's bio-batteries.
However, these joint ventures with foreign capital were all rejected by Changtian Technology.
Blocking foreign investment from bionew energy vehicles means having to occupy this market alone.
"I quite agree with what Mr. Yi said! Only by adopting special measures in special times to reduce profits and maintain car sales can we survive!" The speaker was a representative from General Motors.
GM has its own experience in this regard.
The actual sales prices of many models owned by friends are 20,000 to 40,000 yuan cheaper than the listed prices.
The actual room for decline is actually very large.
How much will the price drop specifically?
This, of course, depends on the market's reaction.
Yamashiro Mazda spoke: "Of course we can reduce prices. We have already made a wave of price cuts some time ago, but if we reduce prices by 20,000 and you reduce prices by 40,000, isn't this another infighting?"
Mazda's top brass are all having a headache right now.
They never imagined that Haima Automobile, which they had eliminated from the competition, would one day turn into a phoenix and stand on their heads to shit.
Mr. Yi nodded and said: "That's what I mean. We must not fight among ourselves. This will cause the entire fuel vehicle to collapse. In the end, Changtian Technology will benefit."
The representative of Toyota was very unhappy. When it comes to profit per vehicle, of course Toyota has the highest profit per vehicle.
But the key to high profits is the brand value of the car.
Both Volkswagen and Toyota have enjoyed this sweetness.
For example, the original Volkswagen Tiguan was hard to find and even sold at a premium.
Toyota plays very seriously with its brand value.
The price increase for a car ranges from several thousand to tens of thousands, and users are still flocking to it.
The value retention rate of second-hand cars is astonishingly high.
Toyota, which drives well, is even more popular.
Toyota has already lowered its sales prices some time ago, which has made Toyota headquarters very dissatisfied.
If the price is lowered this time, Toyota's brand value will be seriously damaged.
It will be very difficult to maintain this kind of brand image in the future.
Therefore, a Toyota representative said: "If we continue to reduce prices, consumers will definitely think that our prices should be lower and demand greater discounts!"
"Yes, that's the truth!"
"With continuous price cuts, if we leave this precedent, we will definitely not be able to maintain the high profits we had in the future."
"I have an idea!"
A representative of Nissan said: "There are many ways to lower the price. In order to maintain its brand value, and to make the price reduction more fair for all of us and stop fighting among ourselves, I suggest that the price of the car should remain unchanged and remain as it is now."
level."
"We can provide benefits to consumers in the form of fuel subsidies provided by manufacturers, such as how much fuel subsidy is required for a car of a certain price, and give it to consumers in the form of cash feedback."
"That's a good idea!"
"I think we are actually setting the price at this range now. No one should drop it any further to avoid accidental infighting. We will use fuel subsidies in the form of fuel subsidies. In this way, everyone's subsidies will be equal."
"I also agree. We will wait until we regain the lost market and then talk about it."
"I have another suggestion!" said a Toyota representative: "Any user who has the intention to purchase a car from a car company affiliated to Changtian Technology, and has obtained a quotation from Cangqiong Automobile or Haima Automobile, can purchase a car from us and provide
For quotations, we will give you cash discounts ranging from 2,000 to 5,000!"
"This is very good! I fully support it! This is the real way to win back the users who have been lost to Cangqiong Automobile and Haima Automobile!"
After we had the general countermeasures in place, everyone felt less anxious and began to seriously discuss detailed measures and methods.
Spring 2019.
In order to counter the powerful offensive of Cangqiong Automobile and Haima Automobile, the major joint venture car companies in Xia State began to take action.
“Purchasing fuel-powered cars subsidizes gas prices.”
"You drive and I'll give you gas."
Wait until these propaganda slogans swept the entire Internet as well as television and print media.
Major car companies have begun to use this method to reduce prices in disguised form.
Fuel price subsidies range from a few thousand to tens of thousands depending on the model.
Calculated in this way, after completing all the procedures to purchase a Lavida, it may only cost less than 80,000 yuan.
The same is true for the Corolla. After all the insurance purchase tax and other factors are taken care of, the starting price of the car is only a little over 80,000, to just over 90,000.
Models such as General Motors and Buick, which originally had relatively large discounts, have achieved lower prices through fuel price subsidies.
You can even buy a compact mobility scooter for just over 50,000 yuan.
The strong discounts make consumers very excited.
Let’s calculate the price.
Taking compact cars as an example, buying a fuel car with a relatively strong brand will only cost you a little over 80,000.
On the contrary, the Haima Haiyue 100, a new energy vehicle produced by Changtian Technology, is priced at more than 140,000 yuan.
After this calculation, the gap between the two sides is 60,000.
For many families, the annual fuel cost is only five to six thousand yuan.
60,000 yuan can buy you oil for 10 years.
After the announcement of this policy, sales of fuel vehicles, which had been cut in half for a long time, suddenly experienced explosive sales growth.
Changtian Technology also keenly felt that there was a problem in the market.