Editor-in-Chief | Zhang Kehuan
Edit | Zhang Li
Author | Fu Yu
Reports from The GreatAuto
When the competition becomes more intense, the market puts forward more stringent requirements for those who have fallen behind, whether to turn over by the waves, or to disappear and become their ultimate destination. As one of China's three major joint venture car companies, DPCA Motors, which slipped to the tail of the car, may choose the way of "drawing salaries from the bottom of the cauldron" to win the opportunity to regain a high position.
Innovation and reform
"Two bedrooms and one living room" into a new choice of Shenlong
Recently, the news about the reform of "two rooms and one hall" of DPCA automobile has become one of the topics discussed by all parties in the automobile circle. This reform refers to the division of the group's peugeot and Citroën brands into Chinese and French-led brands, respectively, while the shareholding ratio remains unchanged, and the two will share the technology and industrial production of each other's shareholders. It has also been reported that DPCA will increase China's equity in Citroen to 75% and The French side's equity in Peugeot to 75% on the basis of maintaining the sino-French equity ratio of 50:50, and the French side's equity in Peugeot to 75%, to some extent, the latter coincides with the content contained in "two rooms and one hall".
At the end of December 2021, the National Development and Reform Commission and the Ministry of Commerce issued the Special Administrative Measures for Foreign Investment Access (Negative List) (2021 Edition) and the Special Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2021 Edition). The release of the policy has further opened up the freedom of joint ventures in the Chinese market, in fact, at the beginning of 2022, some companies have successfully completed the reform of the share ratio, and the foreign party has increased its equity to 75%, occupying an absolute dominant position in the original joint venture.
Unlike the completed share ratio reform, the "two rooms and one hall" model issued by DPCA this time is more like a new exploration. This structural reform is necessary for the current DPCA, and it is also an opportunity for it to turn around in the current period of instability in the Chinese auto market before the storm. In the past 2021, DPCA has just experienced a "dead escape", and sales have returned to the 100,000 mark, an increase of 100.07% year-on-year.
Although this achievement is still a long way from the DPCA that was once in its peak state, in the years when DPCA fell to the altar, its own brands, including Geely, great wall and other independent brands, began to break through the million sales mark, while DPCA lagged behind for a while, lagging behind from time to time, and after entering the first-line camp of joint venture brands with 700,000 annual sales in 2015, it began to cut one after another.
In the face of today's ever-changing Chinese auto market, not only the group of independent brands that have grown up, but also the status quo of new forces car companies began to divide the cake, the ace of the early joint venture car companies that have been in the army for nearly 30 years and more car companies in the same position as it, the most important thing is how to survive, and the reform of the almost "bottom of the barrel" style may be an opportunity. In the case of whether the current model will be implemented, we will not explore its possibilities, and in terms of this reform, is it good or bad for the current situation of DPCA?
Rejuvenate
Brothers can also become "opponents"
In fact, in addition to the rebound in sales in 2021, at the beginning of 2022, the sales volume of DPCA in January also achieved another good result, exceeding 13,000 units, and the last time there was such sales was four years ago. Whether it is the whole year of 2021 or the beginning of 2022, sales have begun to pick up, which is inseparable from the localization efforts made by DPCA. Whether it is a more Chinese product, such as versailles C5X, and more localized services, such as "Five Hearts Guardian Action", and the previous shelved French high-cold queen, in 2021, the DPCA has begun to be grounded.
The more localized operation has brought DPCA a continuous month of positive sales growth, which also has a conclusion invisibly: the reform of Sinicization may be necessary. Indeed, as the world's largest automobile consumer market, China's auto market is not lacking in reform, whether it is the current global leading energy reform, which is in full swing, or the more thorough joint venture equity ratio reform that will usher in in 2022, which is a key node that will be faced in the law of market development.
And reform has always been a means, not an end. In the reform that DPCA may soon launch, the two brands share the resources of the shareholders of both sides, which can not only get the experience of the Chinese side in the fields of intelligent interconnection and 5G, but also learn from the profound heritage of French cars.
In addition, in the case of the stock ratio not moving, the form of "separation" is equivalent to giving the two brands an opportunity for internal competition, and the form of division is easier to mobilize the enthusiasm of the two brands. After sharing resources, the two brands almost stand on the same running line, which is like the 100-meter race, when we are both standing in the starting position, we are confident to be the first runner to cross the line, and the passion and vitality brought to the competition are far incomparable to other facilities or external conditions. Different from other personnel reforms and other adjustments, the drastic reforms and the new vitality they bring are one of the magic weapons that DPCA has won in the first phase of the Long March in 2021.
In addition, the issue of ownership of both brands is equally significant. Peugeot is managed by the French side, and Citroën is managed by the Chinese side. From a historical point of view, Citroën created a representative model of Fukang as early as 1998, which is also the precedent of Citroën's localization in China. In the near future, Citroën has also come up with an annual winning magic weapon in 2021, that is, versailles C5X, coupled with the slogan of "Made in Chengdu, Global Sales" shouted behind it, it has also laid the foundation for the localization of its brand, which is also one of the key factors for DPCA to launch a counterattack.
In fact, after the "separation", in a short period of time, the two brands or will form the most direct internal competitive relationship, and in the long run, whether it is Citroën's Chinese management is better, or Peugeot's French management is better, in the next thirty years, they can also learn from each other and "keep up later" in each other's model.
Write at the end:
Having entered the "poor alley", why not "draw salaries from the bottom of the cauldron". DPCA, which is already standing on the edge of the cliff, has begun to have a good situation in 2021, and under its accumulation of experience and the face of the next more severe market competition, it continues to maintain the existing situation and strives to move upwards is the problem that DPCA needs to face. In the face of the goal of guaranteeing 170,000 yuan in the next 2022 and striving for 200,000 sales, steady progress in the reform may become the keyword of DPCA. Whether it is the "two-bedroom and one-room" model or the way of stock ratio reform, broader resources and more direct internal competition will bring new vitality and vitality to DPCA, and promote the renewal of its products and marketing channels.
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