Car enterprise knockout stage: can electrification become the "lifesaver" of weak car enterprises?-Shanghai Metals Market

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Car enterprise knockout stage: can electrification become the "lifesaver" of weak car enterprises?

Translation 09:37:04AM Aug 08, 2019 Source:Geshi Automobile Network
The content below was translated by Tencent automatically for reference.

SMM News: no matter independent, or joint venture, some weak car enterprises continue to decline in the overall environment of the industry, the automotive industry is facing adjustment, reconstruction of the present, began to accelerate into the final knockout stage of the new round.

Since the second half of last year, China's car market has been declining for 12 months in a row, making all aspects of the vehicle industry chain feel under pressure. As a car company facing the market and consumers, it is even more bitter in the final knockout stage of this round.

From the sales point of view, of the nearly 100 car companies counted by the Federation, more than 20 car companies saw more than 50% decline in sales in the first half of this year compared with the same period last year. Among these auto companies are Tianjin FAW, FAW hippocampus, Dongfeng Yulong and other declining independent brands, as well as joint ventures such as Changan Peugeot Citroen, Dongfeng Renault and Guangzhou Auto Fick.

No matter independent or joint venture, some weak car enterprises continue to decline in the overall environment of the industry, and the automobile industry is facing the current situation of adjustment and reconstruction, and begins to accelerate into the last knockout stage of the new round.

In recent years, with the promotion of the "new four modernizations" of the automobile industry and the strong support of the state for new energy vehicles, some traditional automobile enterprises have begun to actively look for new ways out from the perspective of industrial transformation. In this respect, the representative enterprises are Jiangling Automobile and Baowo Automobile. However, since last year, under the impact of the downward impact of the car market, the two major car companies have been left behind by the mainstream army, with a strong tendency to be marginalized. So, into new energy, can you save the fate of these car companies "eliminated"?

Jiang Ling: can "electric shock" avoid marginalization?

As an established traditional car company, Jiangling Automobile started as a commercial vehicle. In the early years, with the help of the star model Ford Quanshun, Jiangling made good achievements in the light truck market. Today, Jiangling's JMC brand trucks, JMC brand pickup trucks, and JMC brand light passenger cars have a stable market performance in the commercial vehicle market. However, in the field of passenger cars, due to the continued weakness of Jiangling's own brand, coupled with the limited layout of Jiangling Ford, it has not improved much in this field.

In 2015, under the background of the rapid rise of the new energy industry, Jiangling Group New Energy vehicle Co., Ltd. was officially established, and quickly established its own production base, "three Power" laboratory and so on. In 2016, Jiangling sold 15600 new energy units for the whole year, which is not easy for new energy vehicle companies that have not yet launched new products.

Today, Jiangling new energy product system is gradually improved, models covering hatchback and hatchback pure electric cars, as well as pure electric SUV. However, with the gradual decline of state subsidies for new energy vehicles this year, the market performance of Jiangling new energy is also showing a flagging trend. According to statistics from the Federation of multiplier, Jiangling New Energy sales totaled 11800 units in the first half of this year, down more than 30 percent from the same period last year.

The decline of Jiangling new energy sales has to be said to be related to the decline of national policy subsidies and the homogenization of products. Throughout the layout of Jiangling New Energy products, although the coverage is wide, and the price is not high, but there is no differential competition with other products in the market. In addition, after the pure electric vehicle market loses the driving force of the policy, the market performance is bound to plummet, and Jiangling new energy enterprises, such as Jiangling new energy, which rely on the policy to survive, are bound to suffer from the impact when the product competitiveness is not enough.

If the establishment and development of Jiangling new energy is the result of the east wind driven by the state to support new energy vehicles, then Baowo's "electric shock" is to "survive" and have to do so.

Bao Wo: what is the intention of "building the third pole of a car"?

Also in 2015, Baowo Motor (China) contributed to the establishment of the company. In just four years, Baowo's leadership has changed several times, but the media and the public have been particularly impressed by its "storytelling" marketing skills and its positioning as a "Chinese capital-controlled German brand".

Last year, Yang Song took over Baowo. Then, its planning of the "Baowo military regulations", "Zang Tou Shi", "absence from the Beijing Auto Show", "the fastest curve" and a series of marketing "tricks" were brushed by the industry. Among them, at a press conference held in early May last year, Yang Song announced to the media that Baowo had put forward an innovative ET energy concept, that is, a "dual-track parallel concept of new energy vehicle development." This means that in the future, Baowo will synchronously develop, design, manufacture and sell traditional fuel vehicles and new energy vehicles. At this press conference, the BXi7, the first pure electric SUV model of the Baowo brand, was officially launched, which was born on a e-Propulsion platform that is compatible with the production of two energy models.

Unfortunately, however, BXi7 has not shown its due sales performance in the market. At the end of last year, because of Baowo's tight finances, Fukuda, which was mired in huge losses, decided to sell its 67 per cent stake; two months later, China took over. In this regard, industry insiders revealed that Yang Song took over Baowo, its core mission is to let Baowo achieve asset restructuring, and ultimately for Fukuda to sell a good price.

Now, with the departure of Yang Song team, Baowo ushered in a new master. Baowo car sales grew by 30% in the first half of this year, and the industry believes the growth is due to the arrival of Shenzhou Youche. At the beginning of this year, Shenzhou Youche combined with Baowo issued a new strategy to launch a new retail platform for Shenzhou Baowo cars, aimed at fully realizing the separation of production and marketing and reshaping the channels.

Bruno Lambert, the new president of Baowo Motor, believes that under the power of the new model, Baowo will devote itself to the electrification, intelligence, networking and sharing of the new generation of cars, and become the "third pole" between the traditional mainframe factory and the new car-making power.

However, with the help of new investors, how should Baowo's road to "electrification" take place? How far can I go? It deserves the attention of the industry.

With the decline of the car market and the reconstruction of the automobile industry, the traditional car enterprises have been accelerated to be electrocuted. However, for relatively weak car companies such as Jiangling and Baowo, can "electric shock" ensure their smooth progress? At present, it is still an unknown quantity.

The industry believes that when the policy "big hand" that plays a regulatory role in the new energy market gradually shrinks, the rise of new power car enterprises, the entry of traditional car enterprise giants, or make the competition in the new energy market become more intense. From the development trend of the industry, the development trend of pure electric vehicles replacing diesel locomotives is irreversible, so, in the future, the prospect of new energy vehicle market is particularly broad. However, in a short period of time, the car market is still dominated by diesel locomotives.

At present, under the pattern of policy withdrawal and industrial restructuring, can weak car enterprises survive this "winter"?

"Click to sign up for this summit

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business

 

Car enterprise knockout stage: can electrification become the "lifesaver" of weak car enterprises?

Translation 09:37:04AM Aug 08, 2019 Source:Geshi Automobile Network
The content below was translated by Tencent automatically for reference.

SMM News: no matter independent, or joint venture, some weak car enterprises continue to decline in the overall environment of the industry, the automotive industry is facing adjustment, reconstruction of the present, began to accelerate into the final knockout stage of the new round.

Since the second half of last year, China's car market has been declining for 12 months in a row, making all aspects of the vehicle industry chain feel under pressure. As a car company facing the market and consumers, it is even more bitter in the final knockout stage of this round.

From the sales point of view, of the nearly 100 car companies counted by the Federation, more than 20 car companies saw more than 50% decline in sales in the first half of this year compared with the same period last year. Among these auto companies are Tianjin FAW, FAW hippocampus, Dongfeng Yulong and other declining independent brands, as well as joint ventures such as Changan Peugeot Citroen, Dongfeng Renault and Guangzhou Auto Fick.

No matter independent or joint venture, some weak car enterprises continue to decline in the overall environment of the industry, and the automobile industry is facing the current situation of adjustment and reconstruction, and begins to accelerate into the last knockout stage of the new round.

In recent years, with the promotion of the "new four modernizations" of the automobile industry and the strong support of the state for new energy vehicles, some traditional automobile enterprises have begun to actively look for new ways out from the perspective of industrial transformation. In this respect, the representative enterprises are Jiangling Automobile and Baowo Automobile. However, since last year, under the impact of the downward impact of the car market, the two major car companies have been left behind by the mainstream army, with a strong tendency to be marginalized. So, into new energy, can you save the fate of these car companies "eliminated"?

Jiang Ling: can "electric shock" avoid marginalization?

As an established traditional car company, Jiangling Automobile started as a commercial vehicle. In the early years, with the help of the star model Ford Quanshun, Jiangling made good achievements in the light truck market. Today, Jiangling's JMC brand trucks, JMC brand pickup trucks, and JMC brand light passenger cars have a stable market performance in the commercial vehicle market. However, in the field of passenger cars, due to the continued weakness of Jiangling's own brand, coupled with the limited layout of Jiangling Ford, it has not improved much in this field.

In 2015, under the background of the rapid rise of the new energy industry, Jiangling Group New Energy vehicle Co., Ltd. was officially established, and quickly established its own production base, "three Power" laboratory and so on. In 2016, Jiangling sold 15600 new energy units for the whole year, which is not easy for new energy vehicle companies that have not yet launched new products.

Today, Jiangling new energy product system is gradually improved, models covering hatchback and hatchback pure electric cars, as well as pure electric SUV. However, with the gradual decline of state subsidies for new energy vehicles this year, the market performance of Jiangling new energy is also showing a flagging trend. According to statistics from the Federation of multiplier, Jiangling New Energy sales totaled 11800 units in the first half of this year, down more than 30 percent from the same period last year.

The decline of Jiangling new energy sales has to be said to be related to the decline of national policy subsidies and the homogenization of products. Throughout the layout of Jiangling New Energy products, although the coverage is wide, and the price is not high, but there is no differential competition with other products in the market. In addition, after the pure electric vehicle market loses the driving force of the policy, the market performance is bound to plummet, and Jiangling new energy enterprises, such as Jiangling new energy, which rely on the policy to survive, are bound to suffer from the impact when the product competitiveness is not enough.

If the establishment and development of Jiangling new energy is the result of the east wind driven by the state to support new energy vehicles, then Baowo's "electric shock" is to "survive" and have to do so.

Bao Wo: what is the intention of "building the third pole of a car"?

Also in 2015, Baowo Motor (China) contributed to the establishment of the company. In just four years, Baowo's leadership has changed several times, but the media and the public have been particularly impressed by its "storytelling" marketing skills and its positioning as a "Chinese capital-controlled German brand".

Last year, Yang Song took over Baowo. Then, its planning of the "Baowo military regulations", "Zang Tou Shi", "absence from the Beijing Auto Show", "the fastest curve" and a series of marketing "tricks" were brushed by the industry. Among them, at a press conference held in early May last year, Yang Song announced to the media that Baowo had put forward an innovative ET energy concept, that is, a "dual-track parallel concept of new energy vehicle development." This means that in the future, Baowo will synchronously develop, design, manufacture and sell traditional fuel vehicles and new energy vehicles. At this press conference, the BXi7, the first pure electric SUV model of the Baowo brand, was officially launched, which was born on a e-Propulsion platform that is compatible with the production of two energy models.

Unfortunately, however, BXi7 has not shown its due sales performance in the market. At the end of last year, because of Baowo's tight finances, Fukuda, which was mired in huge losses, decided to sell its 67 per cent stake; two months later, China took over. In this regard, industry insiders revealed that Yang Song took over Baowo, its core mission is to let Baowo achieve asset restructuring, and ultimately for Fukuda to sell a good price.

Now, with the departure of Yang Song team, Baowo ushered in a new master. Baowo car sales grew by 30% in the first half of this year, and the industry believes the growth is due to the arrival of Shenzhou Youche. At the beginning of this year, Shenzhou Youche combined with Baowo issued a new strategy to launch a new retail platform for Shenzhou Baowo cars, aimed at fully realizing the separation of production and marketing and reshaping the channels.

Bruno Lambert, the new president of Baowo Motor, believes that under the power of the new model, Baowo will devote itself to the electrification, intelligence, networking and sharing of the new generation of cars, and become the "third pole" between the traditional mainframe factory and the new car-making power.

However, with the help of new investors, how should Baowo's road to "electrification" take place? How far can I go? It deserves the attention of the industry.

With the decline of the car market and the reconstruction of the automobile industry, the traditional car enterprises have been accelerated to be electrocuted. However, for relatively weak car companies such as Jiangling and Baowo, can "electric shock" ensure their smooth progress? At present, it is still an unknown quantity.

The industry believes that when the policy "big hand" that plays a regulatory role in the new energy market gradually shrinks, the rise of new power car enterprises, the entry of traditional car enterprise giants, or make the competition in the new energy market become more intense. From the development trend of the industry, the development trend of pure electric vehicles replacing diesel locomotives is irreversible, so, in the future, the prospect of new energy vehicle market is particularly broad. However, in a short period of time, the car market is still dominated by diesel locomotives.

At present, under the pattern of policy withdrawal and industrial restructuring, can weak car enterprises survive this "winter"?

"Click to sign up for this summit

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business