Per reporter: Sun Tongtong Per editor: Pei Jianru
Recently, the production and sales data released by GAC Group shows that in March, GAC FCA sales fell by 99.97%; from January to March, GAC FCA sold 1860 vehicles, down 75.29% year-on-year.
Image source: GAC Group announcement
The decline in sales has been going on for four years, and various market rumors about GAC FCA have appeared frequently.
"The production and sales situation in March is mainly due to the impact of the epidemic on the production line transformation of GAC FCA's Changsha plant, which is still in progress. At the same time, due to the shortage of chips, the lengthening of the shipping cycle of imported parts and other factors, in order to ensure the quality of vehicles and normal delivery, the factory production plan had to make corresponding adjustments. At present, the company's operating conditions are normal, the transformation of the production line is in a steady and orderly manner, based on the advance judgment of the situation, the sales of retail products are not affected. The relevant person in charge of GAC FCA told the "Daily Economic News" reporter.
It is understood that the sales volume of GAC FCA announced by GAC Group is the wholesale sales volume of manufacturers, and the terminal retail inventory is currently sufficient.
From prosperity to decline
At present, GAC FCA, which is in distress, also has a glorious past. In 2015, GAC FCA localization landed, in 2016 quickly launched the guide, free light, free man three new SUV models, the cumulative sales of 179,900 vehicles that year, an increase of 260%; the following year, GAC FCA ushered in a highlight moment, in the Jeep brand throughout the year without new products into the market, in 2017 cumulative sales of more than 220,000 vehicles, an increase of 57%, jumped to become the mainstream car company in the domestic car market.
Image source: Per reporter Zhang Jian photographed (data map)
However, in 2018, GAC FCA ushered in a turning point, with annual sales slipping to 125,000 units, a year-on-year decline of 39%, and its Fiat brand announced its withdrawal from the Chinese market due to dismal sales. At the same time, GAC FCA product quality problems are frequent, and the "machine throttle" incident exposed on the CCTV "3·15 Party" that year accelerated the Jeep brand at the peak off the altar. Subsequently, GAC FCA sales continued to decline.
"The main reason for gac FCA's low sales is the unclear brand positioning and frequent product quality problems. Jeep's main nostalgia after domestic production has indeed achieved good results, but soon the brand positioning problem was exposed, neither pure off-road nor the swing positioning of urban SUVs, making it difficult for consumers to choose; oil loss, cruise control at constant speed, difficulty in starting, suddenly extinguishing and other quality problems occurred frequently, resulting in a rapid plunge in sales. Ren Wanfu, an analyst in the automotive industry, said in an interview with reporters.
The change in the share ratio remains unresolved
In recent years, GAC FCA has made a series of adjustments in the hope of saving the decline, including a capital increase of 4 billion yuan from both shareholders and two executive changes within two months. Despite the constant rumors of "delisting", the shareholders of GAC FCA have repeatedly said that they will not withdraw from the Chinese market.
In January, Stellantis Group announced on its official website that it plans to increase its shareholding in GAC FCA, a joint venture with GAC Group, from 50% to 75%, and THATC and Stellantis have agreed to the relevant procedures for the transaction, but still subject to regulatory approval.
However, GAC Group subsequently issued a statement saying that the equity adjustment matter was not approved by GAC, and in recent years, due to the great difficulties in the operation of GAC FCA, the shareholders of the two sides of the joint venture have conducted in-depth communication and consultation on their joint venture and the revitalization plan of GAC FCA, and at present, the two sides have not signed a formal agreement on the equity adjustment of GAC FCA.
As of now, the negotiations between the shareholders on the share ratio issue have not been released, and the Stellantis Group's request for comment to the reporter only said, "No comment." ”
Image source: Per reporter Zhang Jian photographed (data map)
"If the gac FCA joint venture stock ratio is adjusted, it may bring some hope to the enterprises that are mired in the quagmire." GAC FCA has fallen into a black hole of losses in recent years, and the amount of losses has been expanding, which has brought relatively great pressure to GAC Group, and alleviating the pressure by changing the joint venture share ratio should be the real idea of GAC Group. For The Stellantis Group, the Chinese market is inseparable, and having an absolute controlling stake can also free up its hands and feet. Ren Wanfu said.
Zhang Hongzhuo, chairman of the Automobile Working Group of the European Union Chamber of Commerce in China, also believes that "the relaxation of the restrictions on the equity ratio of the automobile industry and the number of joint ventures set up will help foreign car companies to maximize the use and give full play to the flexibility given by the policy and improve the operational efficiency in China." At the same time, the importance of foreign enterprises to the Chinese auto market will be further strengthened, and the design and research and development of automotive products that meet the preferences of Chinese consumers will become the mainstream. ”
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