The end of the vehicle joint venture era, the end of the auto parts car companies to win the key

In October 2012, the National Development and Reform Commission approved the Chery Jaguar Land Rover Motor Co., Ltd. passenger car joint venture project and agreed to establish a joint venture between Chery Automobile Co., Ltd. and British Jaguar Motor Co., Ltd., Land Rover, Jaguar Land Rover Auto Trading (Shanghai) Co., Ltd. The company will build passenger car production projects. Due to the country's tightening of foreign investment in China's automobile manufacturing policy, this project is also called China's last joint venture vehicle project. Although everyone has reservations about Chery's cooperation with Jaguar Land Rover, it is undeniable that joint venture car companies have become a winning weapon for state-owned car companies to capture the market and continue to squeeze the survival space of their own brands.
Cross-border car makers in-depth development of the Chinese market to squeeze their own brand survival space Although the Chinese auto market has also been tepid since the beginning of this year, compared to the European auto market dragged by European debt, the Chinese market still has great potential to be developed. For example, PSA, whose sales volume has fallen continuously in the French car market, kicked off its China strategy as the "PSA Group Recovery Plan." General Motors is also confident that its Chinese market has sold more than 5 million vehicles in five years. Fiat Chrysler is relying on the Chinese market to offset the impact of the downturn in the European auto market. According to statistics from the China Association of Automobile Manufacturers, from January to September 2012, among the top ten passenger car companies, a total of 8 were joint ventures between state-owned enterprises and foreign companies, with a total sales volume of 5,886,200. If you count the number of joint-venture companies that do not rank in the top ten, this figure can easily exceed 6 million vehicles. From January to September this year, the top ten companies sold 12.3899 million vehicles.
The Chinese market brought joint sales for both joint ventures and profits. In addition to strategically focusing on the Chinese market, it has also accelerated the pace of seizing the domestic market and has built factories in laps. Following the groundbreaking of FAW-Volkswagen's Foshan plant and Shanghai Volkswagen's Xinjiang plant, Volkswagen will build a new plant in China. Shanghai Volkswagen's new plant will be located in Changsha, and FAW-Volkswagen's new plant will be built in Hohhot. Shanghai GM's new plant in Wuhan was contracted. SAIC-GM-Wuling’s new plant was built in Sichuan or Changan Ford’s new plant in Hangzhou added 250,000 vehicles.
In contrast, the struggle of independent brands and the fierce competition in the auto market have led to the penetration of joint-venture vehicle companies in the layout of their product lines. There have been fewer than 100,000 joint-venture brands in the market, and now they are already joint ventures. In the market where auto makers are reluctant to give up, there has been a large number of joint venture products in the markets where their own brands used to survive, and consumers often choose joint venture cars of the same price.
China's auto industry must have its own brand. Key components in the joint venture model In August this year, Volkswagen AG issued an announcement saying that China FAW Group infringed on four patented technologies from Volkswagen. The public is reviewing the situation. As soon as the news broke out, it caused an uproar in the industry and foreign investors were very clear about the vigilance of Chinese auto companies. Wu Song, General Manager of Guangzhou Automobile Passenger Vehicle Co., Ltd. also stated to the media that its own brand is a guarantee for the safety of China's auto industry. Without strong independent brand strength support, the Chinese auto industry’s profits will be severely drained. The bubble of the Chinese automobile industry’s false prosperity will always be shattered. Day.
In addition to core technologies, key components of automobiles are also the key to the survival of independent brands. Dong Yang, secretary general of the China Automobile Industry Association, lamented more than once. “Parts and components are the basis for the development of the automotive industry and also a short board for building a powerful automobile country.” For a long time, the parts and components procurement rights of the joint venture companies are basically in the hands of foreign partners. Even if the profits of the joint venture company become thin, foreign companies can still obtain huge profits by controlling the parts procurement system. Take Toyota as an example. Before entering China, some of the company’s equity-participating parts enterprises will be distributed to the domestic market, thus forming a full-time supply. . Honda and Nissan introduced cooperative suppliers at the beginning of their entry into the Chinese market. Most of these suppliers belong to the “institutional” partners of the two companies.
In contrast, in the domestic auto parts market, the dependence on foreign capital in core technologies is still very serious. According to the latest data from the Ministry of Commerce, foreign capital controls most of the market share of auto parts sales. Last year, domestic auto parts sales accounted for only 20 percent of the whole industry. % ~ 25%, auto parts manufacturers with foreign investment background accounted for more than 75% of the industry, among these foreign suppliers, the sole proprietorship enterprises accounted for 55%, Sino-foreign joint ventures accounted for 45%. Due to the lack of independent research and development capabilities and core technologies, Chinese self-owned brand parts and components can only use resources and cheap labor to gain market share. Take the gearbox as an example. In the Chinese market, the current position of foreign-funded automatic transmissions cannot be replaced, because the market share of autonomous transmissions developed by China is very low, and the dependence on foreign capital will continue for a long time.

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