The joint venture stock ratio is open to the ground, and bmw brilliance's first shot is fired, which has since become "BMW Brilliance"?
On February 11, the BMW Group officially announced that from now on, bmw's shares in bmw brilliance joint venture company will be changed to 75%, and the remaining 25% of the shares held by China Brilliance will be extended to 2040. This is the first big move of a joint venture company in China after the opening of the stock ratio policy.
On this matter, there are different views inside and outside the circle:
Some people congratulated BMW, finally stayed up, no longer have to sit against the indisputable pig teammate Brilliance.
Some people feel sad for Brilliance, obviously holding good resources that other independent brands can't get, but in the end they will play a good deck of cards.
Some people have a long-term vision and believe that the change in bmw brilliance's stock ratio represents the end of the era of technology exchange market for domestic joint venture car companies.
In the author's opinion, the change in the joint venture relationship ratio of BMW Brilliance can only show that brilliance itself has collapsed, and does not mean that the "Chinese" collective in the joint venture system is coming to an end.
It has to be admitted that for more than 30 years since the opening up of the joint venture policy, foreign investment still has a firm grasp of the heart and products and technologies. However, even if foreign investors are strong, as outsiders, they are inseparable from the support and preferential policies of the local government in China. Because of this, many Chinese parties have an indispensable position in the joint venture system by virtue of their right to speak in the market and sales.
For example, SAIC's sales companies account for more than 50% of the relationship between saic and savoy-volkswagen and SAIC-GM, and the control of the marketing end is absolute. The sales strategy of Japanese joint venture brands in China has always adhered to the principle of 55 open, of which FAW Toyota's Chinese share is more than 50%.
Ford China began with the release of the 2.0 strategy, re-integrating its product lines and sales organization in China, and China has become the main helmsman.
Among luxury car companies, the Chinese representative of Beijing Benz has always been the dominant player in the sales company. Although FAW Audi was also exposed in the first two years to adjust the 46 opening ratio, it has not been able to dust down, and the foreign side is obviously not so strong, otherwise it will not find another way to support SAIC Audi in these two years. As for Volvo, the relationship with the Chinese side of Geely is more delicate and deep.
In contrast, Brilliance's "status" in the joint venture relationship is the lowest one, and there is no one. Not only have marketing and imported products never been handed over to the Chinese side, but even on BMW Brilliance's official website, it is difficult to see the words Brilliance.
What is more exaggerated is that for a long time before the change in the joint venture stock ratio, Brilliance was at best counted as a "drag oil bottle" in the joint venture relationship.
Relevant data show that since 2012, the profits generated by BMW Brilliance's joint venture have contributed more than 100% to Brilliance China itself. In other words, if it were not for the profits of BMW Brilliance, a cash cow, Brilliance China would have been losing money year after year, in other words, BMW Brilliance would also feed back the losses of Brilliance China.
Chengtian relies on the money earned by foreign parties to transfuse blood, from the core technology to the channel, sales, service links can not play a practical role, resulting in the result is that Brilliance in the stock ratio discussion can not have any power and chips, after all, it will only drag its feet.
So, where will BMW Brilliance go after the change of the share ratio?
From a strategic point of view, this is certainly a good thing for BMW's development in China. In the case of the previous 50:50 share ratio, BMW may not completely let go of its hands and feet due to the distribution of benefits and technical security concerns, but in the case of 75:25, it is naturally confident and more willing to accelerate the pace of investment in the Chinese market.
After the share ratio change agreement was reached, bmw signaled that the group would increase its investment in the renovation and expansion project for the Shenyang production base by 3 billion euros. In addition, it is reported that BMW has also promised to introduce European parts companies to Shenyang for production and increase the localization rate of parts in China.
In addition, BMW released the 2022 new car plan, in the Chinese market is almost unprecedented huge product planning, the total number of new products reached 26, new energy products will be expanded to 7, the newly listed includes a pure electric flagship model, and two plug-in hybrid models, and by the end of 2023, bmw group will provide 13 pure electric products in the Chinese market. As for the much-anticipated domestic BMW X5, it will also be officially released in May this year.
What about Brilliance itself? From a purely financial point of view, BMW is expected to implement the equity delivery on February 18 this year, and the transfer price of the agreed adjustment of the equity will be 27.941 billion yuan, which will be paid by BMW in cash at the time of delivery. Judging from the profit of BMW Brilliance's average annual output of more than 10 billion yuan in recent years, it is definitely not profitable for Brilliance.
From the perspective of Brilliance's own development, although we do not exclude the agreement on the adjustment of the stock ratio, BMW may agree to continue to support brilliance's development to ensure that Brilliance does not become a simple "parasite". But what Brilliance needs to think about is that in the case of the unfavorable development of its own automobile brand, it should seriously consider the future development plan and open up new business and segments.
After all, the purpose of the opening up of the national policy reform share ratio is to force the Chinese enterprises in the joint venture to accelerate the upgrading of their own business and technology. If China can find its own foothold, whether it is 25% of the shares or 50%, the joint venture model still has significance. For those who have been "sitting back and enjoying their success" for a long time, for those Who are declining, the survival of the fittest in the market will be further aggravated.
Like the SAIC joint venture, Ford, Mercedes-Benz, Audi and Japan mentioned above, the reason why the two sides can reach a stable situation and effect of "strong alliance" is that china has a strong enough foundation of strength. Otherwise, once the joint venture agreement expires, along with the accumulation of more mature localization experience by foreign investors, and gradually digesting and completing the transformation, the weak party will quickly lose its right to speak.
Of course, this matter not only sounded the alarm for Brilliance China, but also for other joint venture car companies, and everyone is exactly the same.
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