EV shopping guide
Focus on new energy vehicle information and shopping guide
concern
After receiving 297 million, Dongfeng Group officially withdrew from Dongfeng Yueda Kia.
Suddenly? Not suddenly.
● In August, it was reported that the tripartite shareholders of Dongfeng Yueda Kia signed a memorandum of understanding on the withdrawal of Dongfeng Motor Group;
● In November, it was rumored that Dongfeng Motor would transfer its 25% shareholding;
●Sure enough, on November 21, the Shanghai United Equity Exchange listed the Dongfeng Yueda Kia 25% equity transfer project, with a bid price of 297 million yuan;
●On December 18, the transfer was completed, and the 25% equity transfer project was delisted, and the transfer price was 297 million yuan.
In the end, it is still uncertain who will spend the 25% stake, and the final result is expected to be announced in April next year.
Dongfeng Yueda Kia is a tripartite joint venture jointly established by Dongfeng Motor Company, Jiangsu Yueda Investment Co., Ltd. and South Korea Kia Motor Co., Ltd., with a shareholding ratio of 25%, 25% and 50% respectively, and the operating period is from September 12, 1992 to September 11, 2022.
If you do the math, there are less than 9 months left before the joint venture period. This may be one of the opportunities for Dongfeng Group to choose to withdraw. Of course, the more important reason is because of the market and vested interests.
Korean cars have lost one after another in the domestic market. At the beginning of this year, everyone was saying that Dongfeng Yueda Kia hit a new low in sales in 2020, selling a total of 249,000 vehicles in China, down 16% year-on-year.
However, its sales performance in 2021 is more general, with the latest sales figure in November being 12,300 units, not to mention compared with car brands that sell more than 100,000 units a month, and even inferior to the monthly sales of many single models. From January to November this year, Kia's cumulative sales were only 136,900 units. Counting down, the average monthly sales this year are about 10,000 units, and the total annual sales volume is bound to be inferior to last year's.
Yueda Investment 2020 financial report
Of course, this state of decline did not begin in 2020, and from 2017 to 2019, its sales have fallen from 359,000 to 289,800 units. Its highlight moment dates back to 2014-2016, and even achieved annual sales of 650,000 vehicles in 2016, with an average annual sales volume of more than 600,000 vehicles in three years.
In the early years, Korean cars sold well, largely because it was high in appearance and cheap, and the cost performance was significantly higher than that of German cars and American cars. Later, independent brands learned this essence, resulting in a huge change in the market wind direction.
This was followed by a decline in sales and a shrinking market share, resulting in lower revenue and profits. For Dongfeng Yueda Kia, the current situation is not only the reduction of profits, but also the more critical problem is the annual loss. According to the data exposed by the network, since 2017, Dongfeng Yueda Kia has lost a total of 9.035 billion yuan.
In fact, in 2021, Korean cars are also trying to turn over. Kia has launched many blockbuster new cars, including the new Kia K3, Kia SmartCar Ace, Kia K5 Kaiku and Kia Domestic Jawa. Under the supervision of Li Feng, last year, Dongfeng Yueda Kia cut less than 100,000 yuan of models, and the average factory price of models increased by more than 20,000 yuan year-on-year.
However, some analysts in the industry believe that the increase in the premium of bicycles is related to the marketing of the package price of Kaiku K5, K3 and other models, and its package price has included insurance and purchase tax and other expenses. In fact, the brand has not been achieved upwards, but there has been a decline in brand recognition, which may mean that the work is half the work.
Therefore, Dongfeng's choice to withdraw from Dongfeng Yueda Kia is not a difficult thing, and it is always right to look upwards. Moreover, as far as Dongfeng itself is concerned, in addition to the good performance of Dongfeng Nissan and Dongfeng Honda, Dongfeng Yulon, Dongfeng Renault, and Dongfeng Dongfeng Auto are not worry-free cubs.
Dongfeng Renault failed to survive the past spring; Dongfeng Yulon also applied for bankruptcy liquidation last year; and DPCA recently reported the news of equity adjustment negotiations. After the withdrawal of Dongfeng Yueda Kia, Dongfeng can also be regarded as a relaxed body.
In the future, the direction of Dongfeng and Kia is not easy to say, and I hope that they can develop better if they are lightly armed.
End