As the saying goes, one monk carries water to drink, two monks carry water to drink, and three monks have no water to drink. After Dongfeng withdraws from the tripartite joint venture, can Kia and Yueda achieve a second take-off?
A few days ago, Dongfeng Yueda Kia 25% equity transfer project listed by Dongfeng Group has been delisted, the transfer price is 297 million yuan, Dongfeng is satisfied with the withdrawal of the tripartite joint venture, the new joint venture company will be held by both Da and Kia, the specific shareholding ratio has not yet been determined.
The market generally believes that the withdrawal of Dongfeng Group can not only further liberate its own shackles, but also create convenient conditions for the development of Dongfeng Yueda Kia, which can be said to be the best of both worlds.
Liu Changsheng, General Manager of Dongfeng Yueda Kia, said: "In 2022, 'Yueda Kia' will operate in the way of global Kia, and Kia will open a new year in China and usher in a new leap forward. ”。 It can be seen that Kia's urgent expectations for the new joint venture company.
Three monks have no water to drink, two monks can carry water to drink?
Before 2016, Dongfeng, Yueda and Kia were still able to get along well, and the reason why they came to this step was mainly due to the decline in sales and poor profits.
In 2016, Dongfeng Yueda Kia sold as many as 650,000 vehicles; in 2020, Dongfeng Yueda Kia sold only 250,000 vehicles in the whole year, down more than 60% year-on-year. In the first ten months of this year, sales were only 130,000 vehicles, which was like chicken ribs for Dongfeng.
There are also many car companies in the three-party joint venture, such as Southeast Automobile, Dongfeng Yulong and other brands, in a certain period of time, the three parties can develop rapidly under the joint efforts, mainly because of the occupation of market dividends. Once it enters the era of stock competition, the hidden dangers of this model are highlighted. Today, Mitsubishi has withdrawn from the southeast, and Dongfeng Yulon is also in a state of suspension.
After Dongfeng withdrew, Yueda and Kia were able to produce a chemical reaction and show their fists, and it was too early to draw conclusions.
First of all, the "Dongfeng Yueda Kia 25% Equity Transfer Project" was delisted, and the two sides did not announce who the delisting party was, whether it was Yueda or Kia, or the two jointly delisted? It is unknown, so it can be seen that the two sides have not reached an agreement on the future share ratio of the joint venture, or the time to announce it has not yet arrived, and the final result is expected to be announced in April next year.
At the time of the three-legged establishment, Kia, Dongfeng and Jiangsu Yueda held 50%, 25% and 25% of the shares respectively, and the total shares of Dongfeng and Yueda were equal to those of Kia, which could achieve a state of equilibrium, and now this balance has been broken, and if Kia increases its shares, it can improve its enthusiasm, but Yueda's right to speak will be greatly lost.
From the three-way rip-off into the entanglement and stalemate between the two sides, for the development of enterprises, internal friction is undoubtedly a kind of resistance. Of course, it is not excluded that the two sides have reached a tacit understanding, but when 2022 comes, the joint venture share ratio will be fully liberalized, and then the joint venture between the two will be announced.
Today, for the new joint venture, it is kia's voice and planning, and Yueda has not revealed much information. This is clearly not the ideal state of cooperation between the "two monks". Yuedafang has no enthusiasm at all, just Kia's wishful thinking.
Say goodbye to the past and enter the "global strategy" of the new company?
According to Liu Changsheng, general manager of Dongfeng Yueda Kia, in 2022, 'Yueda Kia' will operate in the way of global Kia. For future plans, Kia offers a strategy to return the Chinese business to the global business. Drawing on Kia Global's successful experience and management approach, new changes will be made from within, including a global unified brand image, the implementation of the electrification strategy, the adjustment of the organizational structure, and the introduction of high-quality products.
At present, China's auto market is the world's largest auto market, and major auto brands have increased their investment in the Chinese market to implement product and market strategies according to national conditions, rather than implementing a one-size-fits-all global strategy. Therefore, Kia's return of China business to the global business is not only not a progress, but a retrogressive behavior.
Of course, in addition to the organizational structure of the new company and the strategic level to keep pace with the world, but at the level of specific consumer perception, the key is to rely on products, technologies and sales services, which is the main reason why Dongfeng Yueda Kia has declined to this point.
For new products and models, Kia will accelerate the introduction of new technologies and new products such as hybrid and pure electricity, including mass production of Kia hybrid HEV and plug-in hybrid PHEV models that are fully comparable to Japanese hybrids. From the end of next year or the beginning of 2023, a new electric vehicle will be invested in the Chinese market every year, starting from the form of trying to import electric vehicles to lay out the electric vehicle market. The first electric vehicle to be introduced into the Chinese market will be a pure electric SUV that benchmarks the Tesla Model Y.
At the same time, Kia said it will raise the price of products to provide more high-end products for Chinese users. According to reports, models priced at less than 100,000 yuan in the future will be discontinued as soon as possible, and they will no longer take the way of low-price competition to increase sales and seek high-quality development. Kia's production of models under 100,000 is precisely to reverse the impression that the product is mainly cost-effective.
However, it is not a good product with a high price, it is fundamental to adapt to market demand, and it is in a hurry to tear off the cost-effective label, blindly pursuing price increases, and putting the cart before the horse. For example, kia Kahua MPV models are launched, the current sales volume is just over 20,000 vehicles, and the monthly sales are 5-600 vehicles, how to compete with Toyota Xena, Buick GL8 and other models on the same stage?
With one less monk, Kia seems to be the absolute dominant party, and Yueda's sense of presence is further weakened. Whether it is a new product strategy or a localization business idea, the gap between Kia and toyota, Honda and other joint venture brands is not small, and there is no advantage compared with its own brands. At the same time, the attitude of the larger the partner is also worthy of scrutiny.