This article is transferred from WeChat public account: Bullet Finance (ID: wwwhygc) author: Xu Yun, Editor: Yang Bocheng, title figure: vision China
“Not only the marriage was not completed, but the new car that could have been delivered within a few days, because the specialty store could not be opened, nor could it be picked up.” Niu Xin said solemnly. Years ago, he bought a Kia Zhipai wedding car with a price of more than 100,000 yuan. He has already paid for most of the car purchase and only picks up the car after the final payment is settled.
Niu Xin was originally scheduled to hold a wedding on the eighth day of the first month of the lunar calendar, but was forced to cancel due to the advent of the epidemic. However, it is not only consumers such as Niu Xin that have been affected. The car market, which has experienced a year-on-year decline in sales for two consecutive years, has also entered the deep cold.
Passenger car market information joint meeting data shows that affected by the Spring Festival holiday and epidemic situation, the national passenger car market retailed 1.72 million units in January, a year-on-year decrease of 20.5%, the lowest value since 2005; the month-on-month decrease of 19.8% , Also the lowest in the calendar year.
Similarly, the auto market data in the first two weeks of February is even less optimistic: the retail sales of the national passenger car market in the first two weeks fell by 92% year-on-year.
This winter has added a bit of uncertainty to Changan Automobile’s “self-rescue”: In 2019, Changan Automobile will turn from profit to loss, and the amount will be huge, with an estimated loss of 2.4-2.9 billion. Changan Automobile began to adopt a series of measures such as pushing new products, divesting loss-making businesses, and introducing strategic investors to develop new energy vehicles to “self-help”.
Image source: hippopx
Today, full resumption of work is still pending, and Chang’an Automobile’s production and sales are affected, which will inevitably slow down the process of Changan Automobile’s “self-help”.
The road of turning over in front of Changan Automobile is long and obstructive.
behind the scene
Chang’an crashed quickly.
According to the financial report, its net profit from 10.285 billion yuan in 2016 to a pre-debt loss of 2.4-2.9 billion yuan in 2019, but only 3 years.
In the 2019 performance forecast, Changan Automobile attributed the decline in performance to the decline in sales. According to production and sales data disclosed by Changan Automobile, it sold 1.76 million vehicles in 2019, a year-on-year decrease of 15.16%.
Picture: Changan Automobile Announcement
This decline is much faster than SAIC, GAC, Geely, BYD and other car companiesIt also exceeded the decline in the auto market. According to statistics from the China Association of Automobile Manufacturers, the cumulative sales of passenger cars nationwide in 2019 were 21.444 million, down 9.6% year-on-year.
In the view of Zeng Yiquan, deputy secretary general of the New Energy Vehicle Branch of the China Automobile Dealers Association, the external reason for the decline in sales and sales of Changan Automobile is that the overall automotive market environment is not very good. In addition, internal reasons such as the state-owned enterprise system, lack of high-end brands, defective individual products, and no return on initial investment also affected Changan Automobile’s performance and sales.
Zeng Yanquan believes that as a state-owned enterprise, Changan Automobile faces more complex problems than private companies such as Great Wall, Geely, and BYD. It is always a slow one in terms of operating speed, system reform, structural change, and development of new energy. Large, but it is difficult to see results in a short time. In addition, Changan Automobile relies too much on joint ventures, and the joint venture system itself has its own criticisms.
In 2019, the sales volume of Changan Automobile’s joint venture segment is in a decline. Changan Mazda and Changan Ford have sold 317,600 units in the whole year, a year-on-year decrease of 226,500 units, a decrease of 41.63%, far exceeding the decline of their own brands.
“Changan Automobile’s sales are very dependent on Changan Ford.” According to Zeng Yiquan, once Changan Ford’s poor performance in all aspects, it will affect the entire group.
“Dependency”
From past data, Changan Automobile ’s sales and performance depend on Changan Ford, not overnight.
In 2016, Changan Ford’s sales reached a peak of 943,800 units. This year was also the peak profit of Changan Automobile, with a net profit of 10.285 billion yuan.
But since then, Changan Ford, which is only one step away from the one-million-dollar sales volume, has fallen quickly, turning on the “endless” mode.
In 2017, Changan Ford achieved sales of 828,000 units, a year-on-year decrease of 12.27%. In 2018, Changan Ford achieved sales of 378,000 units, a year-on-year decrease of 54.38%. Compared with the sales volume in 2017, its sales volume for the first time in 2018 was “cut off.”
In 2019, Changan Ford not only did not increase sales, but “cut back” again. Its annual sales were 184,000 units, a year-on-year decrease of 193,800 units, a drop of up to 51.3%, which is also the worst decline among the Changan Automobile subsidiaries.
For the reason that Changan Ford ’s sales volume has plummeted, the person in the board office of Changan Automobile ((Hereinafter referred to as “the director”) told “Bulletin Finance” that the main reason was that the product upgrade was not fast enough.
The director said frankly, “In the joint venture model, we completely rely on the introduction of Ford products. As a century-old enterprise, Ford has its inherent R & D efficiency. In terms of introducing new products, it has not kept pace with the changes in the Chinese market, resulting in Product updates are not fast enough and some consumers are lost. Once the market is lost, it is very difficult to grab it back. “
At the same time that Changan Ford’s sales have fallen sharply, Changan Automobile’s other joint ventures and independent brands have failed to form a strong support, and even have a “lagging leg” situation, which has caused Changan Automobile’s net profit to shrink significantly: In 2017, net profit fell to 7.137 billion The “big diving” in 2018 reached 681 million yuan, and a pre-debt loss of 2.4-2.9 billion yuan in 2019.
Along with sales and profits, there is also the reputation of Changan Ford.
In recent years, Changan Ford’s Fox oil leak, wing tiger broken shaft, Mondeo odor and other quality issues have caused dissatisfaction among car owners, many people blame Changan Automobile. In the automotive industry, the slogan “One hundred years of Ford, destroyed in Changan” is widely spread.
Zeng Yiquan bluntly told Bullet Finance that the quality of individual products of Changan Automobile is defective, and the user experience is not very good, which affects word of mouth and a major reason for its performance and sales.
In fact, the parties to the joint venture are also taking steps to try to save Changan Ford, which is constantly falling.
Chang’an Auto’s board of directors told Bullet Finance that since the end of 2018, Ford and Changan have conducted very intensive communication, and successively issued some strategic cooperation agreements to deepen the future development of Changan Ford in the Chinese market.
“These agreements involve many aspects, such as cost reduction in procurement, R & D capacity building, dealer system reform, etc. Of course, these measures need to be gradually implemented in such a car company that once reached a million scale. Time to reflect. “The director further said.
Changan and Ford are already “grasshoppers” tied to a rope. Once, Changan Ford’s sales soared, causing Changan Automobile’s performance to rise to a high level, suffering from Changan Ford’s “dependence disorder.” Today, Changan Ford’s sales have fallen sharply, and Changan Automobile will naturally not be better off.
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