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Bearish 2014 heavy truck manufacturers business policy tightened


After the Spring Festival, people began to return to work. For most heavy-duty truck dealers, the manufacturer's business policies have been studied in depth during the past years or during the Spring Festival. At this time, most of them have invested in the new year. The reporter learned that it may be due to the consideration of the 2014 market. Most heavy truck manufacturers have tightened their business policies.

The policy of price increase tends to be flexible. “Valin started its annual business meeting at the end of this month, but the price list has already come down. The business policy is still following the policy of last year. The new simplified policy is expected to be released to dealers at the business conference at the end of the month. "Li Zheng, general manager of Henan Zhongxin Automobile Sales Service Co., Ltd., said. Although the business policy in 2014 has not yet been released, he has already felt that the policy has been tightened compared to last year.

"For example, the price of this year's China IV car has been adjusted upwards by more than 10,000 yuan compared with that in 2013." Li Zheng said that according to his understanding, many manufacturers' prices for vehicles have risen, and Hongyan's price rose from 5,000 to 8,000 yuan. The increase was about 5,000 yuan. Valin gained the most, with an average increase of about 1 million yuan. "The reason is not clear, it may be the practice." He analyzed: "Because every season after the holiday season, manufacturers will basically have to raise the price, once the market does not increase sales, the various OEMs have begun to put out Policies, such as increasing promotional points, etc."

Hebei Tongli Automobile Trading Co., Ltd. is a distributor of heavy truck brands such as Hualing, Jianghuai and Hongyan. According to Zhang Wenshan, deputy general manager of the company, the business policies of these manufacturers have not changed significantly compared with last year. "However, the overall market environment in the past two years is not very good. There is a trend in manufacturers' business policies that is becoming more and more humane and gradually becoming flexible. Everyone is thinking about ways to survive. It is a hard time now," said Zhang Wenshan.

Baotou City Silver Lida Automobile Trading Co., Ltd. operates the heavy truck brands such as Hualing, Jiefang, Dongfeng, Beiben and Hongyan. The general manager of the company, Wang Xi, believes that compared with previous years, the overall characteristics of the manufacturers’ business policies this year are more focused. Sales volume, more flexible in terms of marketing policies, “Let the dealers run out, look for customer marketing”. In addition, there are no other major adjustments.

"There is a definite focus on sales, and all manufacturers are in this model, but it is no longer the same as the original to hold inventory to pressure you, and how much inventory you must have, this phenomenon is rare, because vehicles are especially heavy trucks. Sales are not good, loss is very powerful." Zhang Wenshan explained.

Shaanxi Automobile's distributor, Mr. Bian Zhiqiang, general manager of Ordos City Enfield Mining Equipment Co., Ltd. also stated that manufacturers have basically no other changes besides shrinking their business policies this year.

The top rebate was canceled. "Originally, the manufacturers gave rebates to the dealers. However, this year it is the top pick that does not give back rebates. It only gives the chassis rebates. The specific reason is not yet clear, but it is definitely unfavorable to the dealers, because the money is less. “Bian Zhiqiang said that according to his understanding, Shaanqi, Hongyan, and CNHTC have made such adjustments to the 2014 refitting policy.

According to Zhang Wenshan's introduction, Hongyan has changed mainly in the fixed-point appointing reform policy that it began to implement last year. However, because Hebei Tongli and Hongchang Tianma, a large top-loading enterprise, are located in the same city of Shijiazhuang, the local area is also relatively recognized by this brand, and the company itself. Hongchang Tianma has a large amount of fittings, so it is not affected by changes in manufacturers' policies.

Bian Zhiqiang also feels that compared with last year, the price of vehicles has increased a lot, and the overall number of rebates is more demanding than in previous years. “Actually, this is not to say that price increases, vehicle prices are similar to last year, but there are fewer rebates, and the number of points that can be given to customers is correspondingly lower, which is equivalent to price increases.” He said that this also means that business policy has been tightened.

This also reflects from the side that manufacturers are not optimistic about the 2014 market. “Manufacturers and individuals are doing the same business. A large amount can guarantee profits, but if the amount is small or that price is definitely to lose money, the amount will not go up, and manufacturers cannot lose money.” Bian Zhiqiang Analysis said.

More stringent financial policies "Now financial policy is almost gone." Bizo said: "For example, manufacturers will also do a part of financing leases for households and vehicles, and stop paying for household vehicles from the second half of last year, while Ordos What the special markets basically do is not to go to households, so the financial policy is almost gone."

Hongyan’s financial policy has generally been adjusted to a small extent. It mainly uses the advantages of SAIC Finance to do some business. “But they changed some of their distribution policies this year. Like our original CITIC Bank mortgages did a good job, and this year has required some changes. Originally, as long as manufacturers grant credits, they can do some normal mortgages, and now they must also carry out asset mortgages for legal entities. And so on, the requirements are more stringent.” Zhang Wenshan introduced: “After this change, for us, although the risk is reduced, it is not very convenient to operate.”

Zhang Wenshan stated that the adjustment of Hongyan's business policy is also reflected in the two aspects of differentiated authorization and sales service integration. "It is based on the distributor's operating capabilities to properly distinguish the channels. This aspect has been implemented in some areas last year. I understand that it is the product line franchise or buy out of the sale." Zhang Wenshan said: "But we were originally made red. Rock is a complete line of products, so it hasn't changed so far."

"I think this is a feasible approach. In fact, it is to ensure the profitability of dealers and avoid vicious competition." Zhang Wenshan commented: "It can also be understood that it is the concentration of advantages that supports the growth of distributors, such as mortgages, finance, and rebates. You can choose to buy the model, the price of the buy-out model is 1+1, which is more favorable."

The integration of sales services is to encourage distributors to provide services. "This year, we have formulated a system and made it clear in our policy that we must bundle the number of vehicles, accessories and maintenance, link the sales rebate and the rebate of the incoming accessories, and give you individual policy support, without affecting other policies. This is a relatively large force," said Zhang Wenshan.

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