[News-Oxcart Network]
On February 7, Kia Co., Ltd. (hereinafter referred to as "Kia") signed an investment expansion agreement with the People's Government of Yancheng City and Jiangsu Yueda Group (hereinafter referred to as "Yueda").
Kia and Yueda plan to set up a new joint venture and will release the new company name in April this year.
The new joint venture plans to increase capital by USD 900 million and rapidly increase vehicle sales and capacity utilization through expanding investment, introducing new models, developing new energy vehicles, and setting up an export base.
Liu Changsheng, general manager of Dongfeng Yueda Kia, said in an interview with the media that the new joint venture will integrate the whole into Kia's global management system, including organizational structure, products and technologies, and gradually fully integrate with Kia's global standards.
In fact, the new joint venture between Yueda and Kia will be renamed after the equity adjustment and capital increase of the original Dongfeng Yueda Kia.
In December last year, Dongfeng transferred 25% of the equity of Dongfeng Yueda Kia for 297 million yuan, officially withdrawing from Dongfeng Yueda Kia, and the joint venture company changed from a three-party shareholding to a two-party shareholding of Yueda and Kia.
However, as for the announced capital increase of 900 million yuan, the amount of capital increase of Yueda and Kia, and the shareholding ratio of Yueda and Kia in the future new joint venture, Dongfeng Yueda Kia said: "Internal approval is required and will not be announced for the time being." ”
However, it can be seen that the equity adjustment of Yueda Kia occurred under the policy background of the official lifting of the shareholding ratio restriction of the automobile joint venture from January 1 this year. Based on this, the withdrawal of Dongfeng at the end of last year is considered to be a prelude to Kia's hope to increase its shareholding ratio in the joint venture, and in the new joint venture, Kia's equity increase or even holding or high probability event.
Here's the highlights for analysis:
1. Build a new management team, and after stabilization, a large number of localized talents will be used
Liu Changsheng told the media that during the reform transition period, Dongfeng Yueda Kia will take the lead of the Korean side and establish a management decision-making system that is consistent with Kia's globality, and each department will have only one person in charge, and there will no longer be a double-signature system.
After the transition period is over, the new company will follow Kia's other overseas markets, using a large number of localized talents within the company, and even the general manager may be Chinese.
2. Build a global production base, the new Yueda Kia will face the world
Kia said it set a target of more than 4 million vehicles in China over the next decade.
At present, Dongfeng Yueda Kia has a total of 3 factories in China, with a total design capacity of 900,000 vehicles, one of which has been leased to the new power car company Huaren Express in 2019, and the total production capacity of the remaining two factories has reached 600,000 vehicles.
Dongfeng Motor released data show that in 2021, Dongfeng Yueda Kia sold 163,400 vehicles in China, and Kia sold nearly 3 million vehicles in 21 years, after the establishment of the new joint venture, Kia will transform the second plant into a global export base according to the global business needs and production capacity layout, alleviating the company's overcapacity pressure.
3. Clarify the development plan of new energy, introduce the E-GMP pure electric platform, and push a new pure electric vehicle every year
Kia will focus on promoting the introduction of global strategic models and new energy vehicles.
In 2023, From Asia will introduce ev6 electric vehicles based on the E-GMP platform in China, and by 2027, Kia will launch new electric products in the Chinese market every year, building a pure electric product matrix composed of 6 electric models.
Compared with volkswagen group launching nearly 10 new energy models in China in 2021, Kia's pace is still a little slower.
4. Enhance brand image and maintain user experience
Liu Changsheng said that from 2022 onwards, it will maintain the rhythm of one fuel vehicle and electric vehicle per year to launch new products, and abandon the practice of multi-generational co-ownership, the product system is consistent with the world, and more attention will be paid to the precipitation of product brand equity.
In addition, Kia will also discontinue production of models under 100,000 yuan as soon as possible.
In addition, Kia said that in terms of dealer channels, the new joint venture will focus on the location of dealers, strengthen regional marketing, and effectively increase the contact points of consumer brand experience; at the same time, continue to carry out "door-to-door test drives" and "door-to-door services" throughout the year, so that consumers can test drive new cars at home and meet the basic after-sales service.
At the same time, the new SI (Terminal Image System) will be applied to all 4S stores and city exhibition halls.
Dongfeng Yueda Kia insider said: "From 2022 onwards, our dealer store image will be upgraded, and there will be no more corporate names on the storefronts in the future, only the brand name Kia Motors, which is the future direction." ”
summary:
Dongfeng Group withdrew, Kia, Yancheng, Yueda three parties continuously increased, based on Yueda Kia, the construction of Yancheng Auto City has just begun!