Opel Auto returns to the Chinese market "Tao and Shu"

With the joint support of Stellantis Group and Dongfeng Motor Group Co., Ltd. (hereinafter referred to as "Dongfeng"), Opel Automobile may return to the Chinese market with a new attitude.

Recently, Dongfeng Motor Group Co., Ltd. (hereinafter referred to as "Dongfeng Group Shares", 00489.HK), a Hong Kong-listed company under Dongfeng Company, announced that it is currently negotiating with Stellantis Group on a new business arrangement of Dongfeng Dongfeng Automobile Co., Ltd. (hereinafter referred to as "Dongfeng Motor"). However, Dongfeng Group shares also said: "The final terms of the final agreement must be further negotiated by both parties." The Company will make further announcements on the progress of the consultations in due course. ”

In the eyes of industry insiders, the above business may involve Opel Motors' plan to return to the Chinese market with electric vehicles. Previously, it was reported that DPCA would introduce the Opel brand. At that time, the head of the strategic planning department of Dongfeng Company responded that according to the new strategic alliance agreement, the development right of the Opel automobile brand in China has been handed over to DPCA, but there has been no clear news on when and how to import.

At the same time, Stellantis Group said at the "Long-term Strategic Development Plan" conference held recently that the Chinese market will shift to planning an asset-light business model to reduce fixed costs, and net revenue will reach 20 billion euros. By 2030, the Stellantis Group will have more than 75 pure electric vehicle models, with annual sales of pure electric vehicles worldwide, including the Chinese market, reaching 5 million.

In this regard, the relevant person in charge of Dongfeng Company told the "China Business Daily" reporter: "At present, no detailed confirmation information has been received. "In the view of automotive analyst Ren Wanfu, Dongfeng Company and Stellantis Group have their own plans for Opel's return to the Chinese market." Dongfeng hopes to strengthen the strength of its joint venture brand, and Stellantis Group also values the development prospects of the Chinese market and hopes to better open up market space. ”

Plans to return to China have been repeatedly rumored

According to relevant information, Opel Motors was originally a subsidiary brand of General Motors and was one of the early foreign brands that entered the Chinese market. It is understood that as early as 1993, Opel Motors had entered the Chinese market as an imported car, and imported models such as Insoya, Sefglioli and Merina, but due to internal competition with the Buick brand under General Motors, sales were difficult to improve for a long time, and finally withdrew from the Chinese market from January 1, 2015.

In 2017, PSA Group (PSA Group), the predecessor of the Stellantis Group, acquired Opel from General Motors for 2.2 billion euros and turned a profit the following year. In fact, when PSA Group announced its plan to restructure Opel Motors, it pointed out that it would expand its sales scope to the global market outside Europe. "Opel's global expansion means that the Opel brand will produce cars at Peugeot Citroën's Chinese plant and even sell them in the United States." PSA Group's then-chief executive, Carlos Tavares, said.

Since then, Opel's return to the Chinese market has also been put on the agenda many times. According to the new strategic alliance agreement signed between Dongfeng Company and PSA Group, it is agreed that Dongfeng Company, as a shareholder of PSA Group and a joint venture partner in China, will have priority over PSA Group's brands in cooperation in China.

At the end of 2019, the relevant person in charge of Dongfeng Company publicly responded: "For the brand of PSA Group, in principle, DPCA Automobile has been granted exclusive rights, and the Opel brand must also be among them." But everyone is paying attention to whether the current market is a suitable time for the introduction of new brands, which is still under unified arrangement. ”

Since then, Grégoire OLIVIER, executive vice president of PSA Group, president of China and vice chairman of DPCA Motors, also said in an interview with media reporters: "Dongfeng Company and PSA Group are closely discussing the introduction of the Opel brand into DPCA Automobile. With the introduction of Opel models, while expanding the Group's new energy product matrix, it will also provide new growth for the Group. ”

On July 16, 2020, with the formal merger of PSA Group and FCA Group (Fiat Chrysler Automobile Group) to form the Stellantis Group, Opel Automotive was able to enter the new group brand sequence.

In July 2021, Opel Announced that it will undergo electrification in the future. According to the plan, starting from 2024, all models of the Opel brand will launch electrified versions, and by 2028, Opel will be electrified in the European market throughout the year, becoming a brand that produces pure electric vehicles. CEO Michael Lohscheller also expressed his expectations for the Chinese market: "We will return to China and bring 100% Opel electric vehicles. ”

Ren Wanfu said in an interview with reporters that although Opel Motors was recognized by some consumers when it first entered the Chinese market, it generally ended in failure. "In the future, as a pure electric vehicle to enter the Chinese market, consumers will inevitably associate with the previous Opel fuel vehicles, or have a certain impact on performance."

Or will borrow the power of the DPCA automobile production line

In recent years, China's new energy vehicle market has flourished. According to data from the Ministry of Public Security, by the end of 2021, the number of new energy vehicles in the country reached 7.84 million, an increase of 59.25% year-on-year. According to the statistics of the China Association of Automobile Manufacturers, from January to February this year, the production and sales of new energy vehicles in the mainland reached 820,000 and 765,000 units, respectively, an increase of 1.6 times and 1.5 times year-on-year; from the perspective of market share, the market share of new energy vehicles was 17.9%.

According to the February 2022 production and sales express report recently released by Dongfeng Group Co., Ltd., from January to February this year, the company's passenger car production and sales were 412144 units and 445043 units, respectively, an increase of 23.0% and 30.3% year-on-year. Among them, the cumulative production and sales of new energy passenger vehicles in the same period were 42,012 units and 34,662 units, a substantial increase of 371.0% and 313.2% respectively year-on-year.

Although China's new energy vehicle market is vast and full of potential, the layout of Stellantis Group's brands in the Chinese market has progressed slowly, and how to revitalize the Chinese market has become an urgent problem for Stellantis Group.

According to public information, Stellantis Group has released the new manta-e concept car of the Opel brand in July 2021. At present, Stellantis Group has four new electric platforms of STLA S, STLA M, STLA L and STLA F, covering small and medium-sized models and pickup trucks, with a mileage of 500 to 800KM, and Opel is about to use the above platform to create new products.

It is understood that Stellantis Group owns two joint venture companies in the Chinese market, DPCA and GAC FCA. Stellantis Group said at the "Long-term Strategic Development Plan" conference held recently that the Chinese market will shift to planning an asset-light business model to reduce fixed costs, while net revenue will reach 20 billion euros.

On the other hand, Stellantis Group and Dongfeng Company also reached an agreement on the adjustment of the share ratio of Dongfeng Peugeot and Dongfeng Citroen, the two joint venture brands of Dongfeng Peugeot and Dongfeng Citroen.

Although the above long-term development strategy did not mention the specific matters of the Opel brand entering China, the press conference also revealed that in the future, DPCA will open the manufacturing field to third parties. According to Stellantis Group insiders, Opel Motors will return to the Chinese market as a domestic producer, and its models will be co-produced with Dongfeng Peugeot and Dongfeng Citroen under Dongfeng Peugeot and Dongfeng Citroen under Dongfeng Citroen, and will be built on the same platform.

Some analysts pointed out that as one of the Salesantis Group's Chinese market improvement plans, this move aims to effectively revitalize idle capacity and improve capacity utilization. "The introduction of the Opel car brand can reduce the pressure of idle production capacity on the one hand, and further develop the pure electric vehicle market on the other hand."

However, in Ren Wanfu's view, Opel's entry into the Chinese market may not be a good time now. "Although the Stellantis Group is pushing for the electrification of its brands, the urgent problem now is to get existing brands such as Peugeot and Citroen to gain a foothold in the Chinese market before introducing Opel Motors. In the current situation that the operation of the brands of the Stellantis Group in the Chinese market is not very good, whether the introduction of the Opel brand will lead to increased operational risks is a problem that it needs to face. ”

Ren Wanfu further said: "From the perspective of the brand, Opel Motors' popularity in China is relatively low, coupled with the fact that it has withdrawn from the Chinese market for many years, even if it returns to the eyes of consumers, I am afraid it will not be able to shake the existing pattern." It may be better to invest relevant funds in the existing brand of DPCA and gradually introduce new brands. ”

(Editor: Zhang Jiazhen Proofreader: Yan Jingning)