Sales plummeted, losses of tens of billions, Dongfeng withdrew from the Dongfeng Yueda Kia joint venture, is it a blessing for Kia?

Rumors about Dongfeng's withdrawal from Dongfeng Yueda Kia have been around for a long time, but the three parties have always avoided talking about it.

As early as the middle of this year, Kia, Yueda Investment and Dongfeng Motor have begun negotiations to re-evaluate cooperation.

Kia wants to expand the share ratio, and for Dongfeng Motor, there is not much right to speak, coupled with poor sales, timely stop loss is the best policy, so things after that are logical.

Until November 19, Dongfeng was listed on the Shanghai United Assets and Equity Exchange to transfer 25% of the equity of Dongfeng Yueda Kia Automobile Co., Ltd., the transfer price was only 297 million yuan, and the rumor was finally certified.

Soon, on December 17, the official website of the Shanghai United Equity Exchange showed that the 25% equity transfer project of Dongfeng Yueda Kia had been delisted at a transfer price of 297 million yuan.

At present, the company's future share ratio is still in consultation with Yueda, and the results are expected to be announced in April next year.

Speaking of Dongfeng Yueda Kia, it is really a big ups and downs. Founded in 2002, it was jointly established by Dongfeng Motor Company, Jiangsu Yueda Investment Co., Ltd. and South Korea's Kia Motor Co., Ltd., with 25%, 25% and 50% of the three parties respectively, and the Koreans hold the highest controlling stake.

After its establishment, Dongfeng Yueda Kia's sales rose steadily, and after reaching a peak moment of 650,000 vehicles in 2016, sales took a sharp turn in the following year, with sales falling to 359,500 units, and then began to "fall endlessly".

In 2018, 370,000 units, 289,800 units in 2019, in 2020 continued to fall to 249,300 units, the company's net profit -1.188 billion yuan, an increase of 863 million yuan year-on-year. From January to September this year, Dongfeng Yueda Kia sold a total of 112,000 units, down 20.61% year-on-year.

Since 2017, Dongfeng Yueda Kia's operating income has declined continuously, with a total loss of 9.035 billion yuan in less than 5 years.

For Dongfeng, this exit is also to get rid of a non-performing asset. Speaking of non-performing assets, no one has more say than Dongfeng, I don't know whether it is a unique vision or other unspeakable problems, Dongfeng's non-performing assets can be really many, in addition to Dongfeng Honda and Dongfeng Nissan, Dongfeng Citroen, Dongfeng Peugeot, Dongfeng Renault, Dongfeng Yulon, Dongfeng Infiniti, Dongfeng Yueda Kia and other joint venture brands, sales can be described as miserable.

Not only the loss of the joint venture brand, Dongfeng Benfeng also has poor sales, and Dongfeng's independent Dongfeng Fengshen, Dongfeng Fengxing, Dongfeng Venucia, etc. are all difficult households. Now that Dongfeng Yulong has gone bankrupt, Venucia has also returned to Dongfeng Nissan, but this is only a stop loss, and the decline of Dongfeng has not changed.

Dongfeng Yueda Kia to this point, theoretically accounting for 25% of the shares of Dongfeng certainly does not carry this pot, now whose pot is no longer important, once full of streets Maxima, K5, Lion Run, Cerato, etc., are the fans of the memory, the "Di Si Sanbao" of that year is actually not a pejorative meaning, but a manifestation of high market share. In 19 years, the "love share" was finally worth only 297 million, which could not help but make people sigh.

After Dongfeng withdrew from Dongfeng Yueda Kia, MoMo speculated that the takeover should still be Hyundai Kia Group, so that Hyundai's holding ratio may reach about 75%, mastering the complete right to speak. Kia will become another joint venture car company in China after BMW Brilliance, in which foreign car companies occupy most of the shares.

The advantage of this is that it can carry out the global strategy of the group more independently and freely, without considering the factors of Chinese investors, and it is more efficient in operation, management and future development. To put it bluntly, the introduction and domestic competitiveness of models, and the price of these models to be suppressed, the introduction of New Jawa is a good start.

Now the importance of the Chinese market is self-evident, the previous lessons are also there, after this storm, Kia is bound to make changes, 2022 is regarded by Kia as the second stage of development in China, "will start again with the new attitude of new power startups", for whether Kia will have changes from the inside out in China, we wait and see.