Written| by Zhang Dachuan and editor | Hezi
In the domestic automobile market, due to insufficient brand power or product strength, there are many idle automobile production capacity. The revitalization of these production capacities through market-oriented operation methods is the most in line with the interests of the whole society. But from another point of view, cars, especially smart electric vehicles, are still an area of policy encouragement and support. Whether it is a traditional vehicle company or other capital, there is still an impulse in the heart to expand production capacity and occupy a place in the domestic market. Only by continuing to grow bigger and stronger can we avoid being eliminated by the rapidly developing market.
Southeast trades equity for technology
The introduction of Chery commercial vehicles in the southeast is obviously of a betting nature. Chery Commercial Vehicle will introduce the Jietu brand and related technologies to Southeast Automobile in exchange for an 80% stake in Southeast Automobile. However, at present, Chery has no way to put this part of the equity into the pocket, and only after the various business objectives agreed upon in the later period are achieved, Chery can truly complete the delivery of the 80% equity. From the perspective of Southeast Motors, since Mitsubishi began to tilt its resources to GAC-Mitsubishi, Southeast Motors has no provider of technical input, and its sales have been declining, and it has been in an extremely marginalized situation. The introduction of mainstream enterprises such as Chery in domestic independent brands, through the investment of technology and system capabilities, can revitalize related assets and bring immediate GDP, taxes and employment opportunities to the local area, which is the only way for Southeast Automobile to come back to life.
Holding Southeast Automobile through technology output is a shortcut for Chery to make it bigger. Under this model, Chery does not need to invest in a larger scale to set up factories, and can complete the increase of Jietu's production capacity. Chery's price is simply to export relevant technology to southeastern cars and leave the associated GDP and taxes locally. In fact, the output technology is still retained within the Chery system, if the later business objectives are achieved. From the perspective of this cost-effective model, relying on Chery's brand appeal and product strength accumulation in the three major parts, as well as the cost-effective positioning of the Jietu brand itself, it is not difficult to achieve sales of 100,000+. At present, Chery's voice volume in domestic independent brands is not in an advantage. The fuel vehicle market, Geely, Changan, great wall, etc. have left Chery far behind. In the field of electric vehicles, BYD and a number of new forces are also leading Chery a lot. In this case, Chery also urgently needs to expand its own business basic disk in a short period of time to ensure its share in the domestic market.
Yinyi reorganized Zhidou to refer to the micro-electric vehicle market
As a well-known car company in the domestic micro-electric vehicle market, Zhidou's development in recent years has not been satisfactory. After leaving the Geely system, sales of Zhidou began to decline rapidly. Especially after the new domestic forces and a number of mainstream independent brand car companies have begun to enter the micro-electric vehicle market, Zhidou, which does not have much advantage in technology, is also slowly being marginalized. The reorganization of Zhidou by Yinyi is actually a transformation. Yinyi has also acquired the ARC Group of the United States, The Belgian Bunch and the Japanese Ellifu, and is also a well-known player in the field of domestic auto parts. However, due to the fact that the general technical strength of these enterprises is not strong, it has been providing supporting facilities for relatively weak vehicle enterprises for a long time. With the deepening of the domestic automobile market reshuffle, these vehicle companies may not look up to the products of Yinyi as a whole to improve the quality like Geely, or be completely marginalized like Haima Lifan and no longer need Yinyi's products, and eventually the revenue of the auto parts business sector of Yinyi will continue to decline.
Through the injection of 400 million yuan into Zhidou, Yinyi acquired almost all the core assets of Zhidou, including the land and factories of Zhidou Automobile in Ninghai, Ningbo, Linyi, Shandong and Lanzhou, Gansu, as well as the new energy vehicle production and manufacturing qualifications owned by its wholly-owned subsidiary Lanzhou Zhidou, and the determination to transform into a micro-electric vehicle is very large. On the one hand, with the introduction of stricter laws and regulations for low-speed electric vehicles such as "Old Man Le", this considerable market share has begun to switch to micro-electric vehicles, including Wuling, Changan and Chery in this segment have achieved good sales, not to mention that the technical threshold of this segment itself is relatively low. By injecting funds into Zhidou to develop a new generation of models, it is not completely without opportunities in the micro-electric vehicle market. On the other hand, although the profit of operating a micro-electric vehicle itself is not large, the current demand for new energy credits in the domestic market is expanding with the increasingly strict double integration policy. In 2021, it is rumored that a new energy credit on the market is as high as 3,000 yuan. So in general, Yinyi is in the case of its own lack of abundance, with 400 million to leverage a micro-electric vehicle market that many mainstream OEMs may not look up to, and hopes to drive its own auto business sector out of the predicament.
The Southeast and Zhidou experience worth promoting
Whether it is Southeast Automobile or Zhidou Automobile, it is difficult to make up its mind whether it can usher in rebirth. But I have to say that Chery and Yinyi have the meaning of four or two thousand pounds in these two moves. With a small investment, we will be laid out in the entry-level market in order to obtain a return in the shortest possible time. The traditional car companies that have now been marginalized are not worthless. Perfect factory facilities and industrial workers require time and continuous capital investment to obtain. What's more, behind Southeast Automobile and Zhidou Automobile, there is also the hope that local governments can revitalize these assets and bring greater vitality to the local economy.
I have to admit that the conditions given by Chery and Yinyi are actually not good enough, the brand and technology of Jietu are not leading, and Yinyi has only invested a mere 400 million yuan, and I believe that the research and development cost of SAIC-GM-Wuling to develop a Wuling Hongguang is more than 400 million yuan. However, at present, the capacity utilization rate of the domestic automobile market, whether it is new energy vehicles or fuel vehicles, is not high. Therefore, we must not only strictly restrict the newly started vehicle projects at the top level, but also actively encourage all kinds of capital to merge and reorganize the existing production capacity through market-oriented means. For these reorganizations, the green light of the policy can be turned on, and as long as it can achieve a win-win situation for all parties, various preferential conditions can be given.
Comments
Chery's momentum in recent years is not as big as that of the heads of its own brands, but at least it has not fallen behind, and it is moving forward step by step. In particular, the recent acceptance of Qingdao Wudaokou by Luxun Precision to participate in Chery's mixed reform may also indicate that Chery Automobile will have a great opportunity to become the OEM of Apple Automobile. If you can catch up with Apple's car, it is undoubtedly a major positive for Chery. This time, in the case of almost no large cost, to obtain 80% of the equity of Southeast Automobile, it also shows its determination to become bigger and stronger. This is almost the same as Geely, Great Wall participating in Lifan and Zotye asset restructuring. And Yinyi Automobile is also deeply in trouble, hoping to be able to fight. It doesn't take long, at most, a year or two, to revisit what effect these two deals can have.
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