For a time, the news that “Volkswagen’s 9% stake in FAW-Volkswagen was approved by the Chinese side†was rumored, but Li Pengcheng, a spokesperson and public relations director of FAW-Volkswagen Automotive Co., Ltd., was interviewed by the China Enterprise News reporter. Denial, and said that the two sides are currently in the asset assessment stage and need to measure the assessment according to the Income Law and the Cost Law. Other RUIAN HENGXIN AUTO PARTS CO.,LTD. , https://www.hengxinauto.com
It will take time for Volkswagen to finally complete the increase, but according to its interview reply, it can be determined that the adjustment share will be 9%. After the adjustment, the share ratio of FAW Group and Volkswagen will be adjusted to 51:49. The 10-year-old stock-to-equity adjustment has finally ushered in a turning point, which is undoubtedly good news for the current Volkswagen in China. However, through the share ratio, with the crisis of Volkswagen's status in China, Volkswagen will open up more market segments in the fields of cars, SUVs and even imported cars.
In China, chasing the SUV "window"
The global sales of Volkswagen passenger cars have entered the downward trend since October last year. As China's auto market entered a “new normal†of micro-growth, Volkswagen also experienced negative growth in China for two consecutive months. In the first five months of this year, Volkswagen's total sales in China fell by 3.7% to 1.12 million units. This situation is extremely rare in recent years.
One of the most "busy" is undoubtedly FAW-Volkswagen. In the past two weeks, FAW-Volkswagen has been “topped†for many times due to the decline in sales. In order to blame the outside-mentioned cliff-like decline, FAW-Volkswagen even proactively announced sales data for May. According to official data, sales in May fell by 14.5% from the same period last year, not 40% from the outside world.
In this regard, Cui Dongshu, secretary-general of the Association, said: "The outside world may over-interpret the production and sales data of FAW-Volkswagen. As the decline of China's car market is the most serious, FAW-Volkswagen, as the leader of this market segment, naturally suffers the most fluctuations. As soon as possible to get rid of the unfavorable situation, we should fill the vacancy of the SUV product line as soon as possible."
Looking at the performance of the terminal market in the auto market, the retail sales of cars in May fell by 10% year-on-year, while the SUV surged by 51% year-on-year. At the SUV outlet, FAW-Volkswagen currently only has two luxury SUV models, the Audi Q5 and the Audi Q3, and the Volkswagen brand does not currently have SUV products. This situation makes the VW brand's product coverage low.
It is reported that China will sell 9% of the company's shares in exchange for the production rights of several models including the SUV. Li Pengcheng told this reporter: "With regard to the introduction of new cars, the company has been communicating with the German public, but it has no connection with the stock adjustment." "In 2017, FAW-Volkswagen will launch the first Volkswagen brand SUV."
The construction progress and product planning of the FAW-Volkswagen North China production base have gradually surfaced. Like the Huadong production base in Qingdao, the North China base in Tianjin is put into production in 2018. It mainly produces Volkswagen SUV models with a total investment of 2.5 billion. The US dollar has an output value of about 240 billion yuan. At that time, Volkswagen will intensively launch SUV products in both China and the United States. The foreign media believes that this move is also the response of the current CEO of the Volkswagen Group, Martin Wender, to the Piaget family's global strategy mistakes.
Car market "high and low doubles"
While complementing the SUV product line, although the domestic car market showed a downward trend year-on-year, the public is not willing to lose their "amulet". At this stage, the car is still the main force of its impulse.
Luo Lei, deputy secretary-general of the China Automobile Dealers Association, believes that the auto market seems to be more difficult this year than previously expected. Especially for dealers, the inventory index has been higher than the warning. However, in early April, Shanghai Volkswagen led a price war against the official, which was also to ease the pressure on dealers, reduce the price of dealers to pick up cars, and turn the main body from dealers into OEMs. Following FAW-Volkswagen, joint ventures such as Shanghai GM and Dongfeng Peugeot gathered in response, and finally the official storm fell even involved in their own brands.
The data shows that the sales of Bora, Golf, Jetta, Sagitar and Other models have exceeded 10%. Although the above models remained at around 20,000 units in sales, the top of the sedan was taken away by Dongfeng Nissan Sylphy, and Corolla and Langfang were in the first camp. It can be seen that after the adjustment of the price system, the public still needs to find new stimulating points in the market.
The burden fell on the shoulders of Shanghai Volkswagen. After leading the passenger car market in May, the new model was launched. At the Shanghai Auto Show, the new hatchback sedan Santana Haona was launched, and the Santana sedan was renamed “Santana Shanaâ€. This also means that following Polo and LaVida, Shanghai Volkswagen has the third family-owned sub-brand. On the eve of the Dragon Boat Festival, with the official listing of Santana's endorsement by Huang Wei, Shanghai Volkswagen will have two families, Lang Yi and Santana, to compete in the A-level market.
It can be said that while Santana Hanna is making up for the vacancy between Polo and Lang Lang, she combines the control of the Polo hatchback with the pragmatism of the Langtai wagon, just as Shanghai Volkswagen summed up its brand positioning — New realism. Huna also used the Polo 25 platform already on the Polo, equipped with the latest EA211 engine, which also earned more chips in the competition with Yinglang XT and Fox.
In addition, according to the news released by Shanghai Volkswagen in early June, the chairman of the management board of Volkswagen Group of Germany, the president and CEO of Volkswagen Group (China), Professor Heizman and the president of SAIC Group, Chen Zhixin, at the Volkswagen Group's DRIVE showroom in Berlin, Germany. The two parties further upgraded the Shanghai Volkswagen Anting production base and signed an agreement for the production of new energy vehicles. One of the most important aspects is the production of the new Volkswagen C-Class at the Anting production base in 2016. Seeing that "the same brother" Audi was quickly transformed from a latecomer to an "official car," Volkswagen apparently did not want to limit its focus to the low-end market with lower profit margins.
In order to temporarily alleviate the shortage of product lines in the current high-end market, at the Shenzhen-Hong Kong-Macau Auto Show, Volkswagen officially launched the 2015 Phaeton. For Volkswagen, the Phaeton is a complement to the Volkswagen D-Class segment and the same level Audi A8. Mercedes-Benz S-Class, BMW 7 Series top luxury sedan. At present, almost all of this market is controlled by German brands, and the public does not want to be absent.
But the ideal always returns to reality. At present, Volkswagen has encountered difficulties in the development of the global market in China's most profitable market. At present, for the public in China, the ratio adjustment is only a matter of time. The public is more eager to open up more product market segments and seek more profit points to return to the growth track.