In the mourning for Ms. Hu Youping, the turbulent public opinion has forced the Chinese auto market to undergo unstoppable changes.
In the industry association's forecast of passenger car terminal retail sales, everything around is transformed into a set of figures, and passenger car sales in June are expected to fall by 7.6% compared to the same period in 2023. The various consumption stimulus policies are almost catching up with the types of models on sale, but still have not brought back enough buyers. In five of the past six months, sales have declined year-on-year, and the real purchasing power of Chinese car buyers is not as big as the mouths of experts.
Sales of new energy vehicles (NEVs) continued to soar at a rate of 32.7% y/y at about 860,000 units, and the penetration rate of the entire passenger car market reached a monthly peak of 49.1%, just half a step away from the halfway point in mid-April. Such a reality puts more pressure on the joint venture brand. The market share, which is already less than 4 percent, continues to be compressed. Many joint venture auto brands have been forced to start a new round of production cuts, layoffs, and price cuts; The area of franchised stores and secondary outlets in the third-tier market is getting larger and larger; OEMs are required to continue to reduce prices and reduce supply volumes:
The contraction of the whole value chain of joint venture brands is intensifying.
Nowadays, the presence of the French and Korean systems has long been better than nothing, and the German, Japanese, and American systems have become the main targets of being pursued. While Mitsubishi's withdrawal from the Chinese market was gradually forgotten and Honda was busy reducing its workforce in China, Nissan closed its Changzhou plant. The bitter battle of Japanese cars was a reality of their fears about joint ventures in China in the early 1970s. Japanese media quoted industry analysis as saying:
The strategic inflection point of Japanese cars in China.
Japanese cars are being beaten, and even Wall Street is feeling the same way. The bottom line of the living space of multinational automakers has been repeatedly redrawn, and it is no longer suitable for them to survive. The ongoing price war makes it unprofitable for all participants, and the expected losses are easier to see than the profits. GM, Ford, and Stellantis should abandon the Chinese market as soon as possible:
China should no longer be at the heart of the strategy of GM, Ford and Stellantis.
As Chinese automakers and Chinese experts join forces to seize 70 percent of the domestic share, Chinese automakers have shifted their attitudes towards multinational automakers.
Even in Suzhou, where more than 2,000 Japanese-funded companies have been stationed, less than two years after the Kimono Girl incident, Japanese mothers and children who were waiting for school buses were still attacked with knives; Even if a foreign teacher plays in Jilin Beishan Park, he will be treated with a sharp knife if he accidentally collides with someone while walking; Even though the amount of FDI in the first five months was only 412.51 billion yuan; Nor can it prevent China's auto market from becoming more and more aggressive.
The excessive pursuit of the penetration rate of new energy vehicles has disrupted the business expectations of all participants; The ultra-long extension of new energy subsidies has undermined the rules of the basic market and disdained the call for equal rights for oil and electricity, which has worsened the operating ecology of the domestic market. The experience of joint venture car brands will also be felt more directly by state-owned automakers.
Without the 800-100 billion yuan revenue provided by the two joint ventures of Volkswagen and Toyota, the Hongqi brand of FAW Group has lost its surviving blood; Without the profits of Beijing Benz, the value of BAIC Group's existence is only shell resources; Without the support of the joint venture between Volkswagen and GM, the transformation of MG, Roewe, and Zhiji lost their souls; Cutting off the revenue of the two joint ventures of Toyota and Honda, Aion lost the guarantee of being friends with Sima Nan, and the strategies of GAC Group and Changan had to go deeper:
Compared with multinational automakers, state-owned auto groups cannot afford to lose their joint ventures.
When the joint venture company is in operational difficulties, the situation of the state-owned automakers will not be better than it seems, and there are no longer a few manufacturers that have already appeared abnormal, and there is a possibility of onset at any time.
In the face of the laid-off employees, Guangqi Honda provided them with a compensation plan of N+2+1.8 (N represents working years, 2 represents two months' salary, N+2 standard compensation, and 1.8 refers to 1.8 months' bonus), which caused everyone to rush to the hot search with the news of being laid off, which became the luckiest choice for workers:
Don't miss the opportunity, and never miss it.
The current rolling bucket can no longer be stopped naturally, and things are making great strides in a more unpredictable direction:
Everyone is becoming a cost.
In the shouts of expelling Japanese manufacturers and forcing them to withdraw from joint venture brands, the past and present of layoffs in state-owned automobile groups have always been concealed. The fate of the joint venture company decided the life and death of the state-owned automobile group:
Some costs are not visible.