E-car original 2022 is definitely a constructive year for the automotive industry, joint ventures in China have entered the first year of the opening of the stock ratio, and with the opening of different car companies due to their own different development conditions have expressed a completely different attitude towards this, there is a substantial expansion, there are also continuous wait-and-see, of course, there are other ways, then the full liberalization of the stock ratio will usher in a major change in the car market?
First, the large expansionist:
BMW - BMW Brilliance
On February 11, the BMW Group announced that the new joint venture contract with BMW Brilliance has officially come into effect, and the validity period of the joint venture cooperation has been extended to 2040. According to the new joint venture contract, from February 11, 2022, the BMW Group's shareholding in BMW Brilliance will be changed to 75%, and the remaining 25% of the shares will be indirectly held by its partner Brilliance China Automotive Holdings Co., Ltd.
BMW Brilliance 3 Series
BMW needless to say, its want to increase the equity ratio in the joint venture is an open secret, the reason is that BMW's position in the joint venture is too strong, and for Brilliance, the revenue of the joint venture BMW Brilliance Zhonghua Chen has even accounted for the vast majority of its overall revenue, and Brilliance Auto's own brand business is very weak, so Brilliance is very dependent on BMW.
For BMW, to share the profit income with such a weak partner, it is naturally not very happy, and brilliance does not have much say in the face of BMW's strength, with the complete liberalization of the stock ratio, IT is natural for BMW to further expand the share ratio to 75%.
Kia-Dongfeng Yueda Kia:
In November last year, it was reported that Dongfeng wanted to break up with Kia and transfer all the shares held by Dongfeng Yueda Kia, and in the equity structure of Dongfeng Yueda Kia, South Korea's Kia Co., Ltd. held 50%, Jiangsu Yueda Investment Co., Ltd. and Dongfeng Motor Group Co., Ltd. each held 25%, and the joint venture period of the three parties was terminated until September 2022.
Dongfeng Yueda Kia became history
At the end of last year, Yueda Investment issued an announcement that the 25% equity held by Dongfeng Group has been held by Yueda Group, and the Dongfeng Yueda Kia Tripartite Shareholding Company will become a two-party shareholding company of Yueda Kia, with Kia's shareholding in the new company reaching 75%, and the new company name was announced in April, or Yueda Kia or Kia China.
Dongfeng Yueda Kia Smart Run
In fact, Dongfeng withdrawal is not surprising, the most fundamental reason is that Dongfeng Yueda Kia's performance in China is really average, taking 2021 as an example, Dongfeng Yueda Kia's annual sales are only 150,000 units, less than the monthly sales of some brands, and even less than the annual sales of many hot models, cars are even less than the sense of existence, K3 annual sales of less than 20,000 vehicles, K5 is only 10,000 vehicles, such a performance in the overall territory of Dongfeng basically belongs to the last stream, there is not much value to speak of, So giving up may be a better option.
From Kia's point of view, Hyundai Kia Group's global sales are still remarkable, looking at Hyundai Kia's global sales in 2021, although affected by the epidemic and chips and other aspects, Kia's sales reached nearly 2.78 million vehicles, an increase of up to 6.5%, and after further improving the domestic joint venture Kia share ratio in China, the enthusiasm will also be more improved, Kia said that in 2022 will strengthen brand building, so that joint ventures in China will be integrated into the global system, increase chinese market resource investment, In addition to launching products that are more suitable for the Chinese market, it will also be more efficient and reasonable in terms of operation and management, so the new joint venture is full of hope for Kia.
BYD Denza
At the end of 2021, Daimler Greater China Investment Co., Ltd. and BYD Automotive Industry Co., Ltd. signed an equity transfer agreement on adjusting the structure of its joint venture company, Shenzhen Denza New Energy Automobile Co., Ltd., to complete the equity transfer between the two parties in Denza. After the completion of the transfer, BYD will hold 90% of Denza's shares, with Daimler only 10% left, and the related matters are scheduled to be completed in mid-2022.
Denza X
In addition, BYD and Daimler intend to increase the capital of Denza New Energy by 1 billion yuan, which is mainly used for the daily operating funds of Denza New Energy to provide financial support for Denza New Energy to create better and more competitive products. The Denza brand will also launch new models in 2022 to further develop the market.
In such a situation, BYD has increased the publicity and exposure of the Denza brand, the recent Denza Automobile Sales and Service Co., Ltd. business license has been issued, the rebuilding of high-end services and experience is about to begin, combined with its identity, BYD will make great efforts to reshape Denza.
In terms of product progress has also accelerated, Denza will launch 3 new cars this year, including medium-sized SUVs and medium and large SUVs and MPVs, a few days ago Denza MPV has been exposed, the length of the car is expected to exceed 5 meters, according to previous news, Denza MPV will provide pure electric and plug-in hybrid versions, is expected to be unveiled during the Beijing Auto Show in April.
Compared with BMW's capital increase, BYD's capital increase for Denza is more like Kia, because Denza's performance in the domestic market in recent years has also been unsatisfactory, and as a joint venture brand with Daimler, Denza will be more suitable for BYD in terms of related technologies and concepts in the future than to establish a new brand that has no visibility at all, starting from scratch.
Stellantis Group - GAC FCA
GAC FCA Jeep Free Light
Gaqi FCA, which was established in 2010, is another joint venture car company of Stellantis Group in China in addition to DPCA, but from the data point of view, GAC FCA's performance in China is not satisfactory, from the peak of 222,000 vehicles in 2017 to gradually decline, to 125,000 vehicles in 2018, 73,000 vehicles in 2019, 40,000 vehicles in 2020 and then to 20396 vehicles in 2021, showing a cliff-like decline every year, even close to the waist, if not changed, GAC FCA's presence will become more and more diminishing.
From the official statement of The Stellantis Group in early March, it has decided to increase its stake in GAC FCA to 75%, compared with the split of DPCA in two, the increase in GAC FCA makes people see Stellantis's optimism about the future performance of GAC FCA, then will GAC FCA fully pick up or even create a new high?
Second, the status quo faction:
Dongfeng Nissan, FAW/GAC Toyota, etc
Let's first take a look at the sales of these multinational car companies in 2021, Dongfeng Nissan a car company to achieve annual sales of 1.0813 million units, Toyota joint venture in China FAW Toyota annual sales of 831,900 units, GAC Toyota annual sales of 828,000 units, respectively, ranked tenth and eleventh, Honda's joint venture in China Guangqi Honda annual sales of 78.04 vehicles, Dongfeng Honda sales of 761,800 vehicles, ranked thirteenth and fourteenth respectively, if the north and south Toyota and north Honda are added, The North-South Toyota sells about 1,659,900 units a year, and the North-South Honda sells about 1,542,200 units a year, ranking second and third only to Volkswagen.
Dongfeng Nissan Xuanyi
Dongfeng Honda CR-V
FAW Toyota Corolla
These car companies in China for many years of hard work, to achieve such results is not easy, through years of painstaking management, groped out the right way to survive and develop in China, many models have become explosive models, such as Dongfeng Nissan Xuanyi annual sales of nearly 500,000 vehicles, Qashqai about 160,000 vehicles; Toyota Corolla about 310,000 vehicles, Camry about 210,000 vehicles, Rongfang about 200,000 vehicles; Honda Accord about 200,000 vehicles, CR-V about 200,000 vehicles, XR-V about 190,000 vehicles, Civic about 160,000 vehicles, a hundred flowers bloom and balanced development That's definitely good news for Toyota, Honda, and Nissan.
In such a good situation, all parties are very satisfied, and breaking the existing pattern undoubtedly requires a lot of courage, if the performance decline caused by breaking the status quo is absolutely not worth the loss, so although these car companies have the intention to expand the share ratio, but it is obviously difficult for Chinese companies to agree, compared to the adverse impact of internal friction on the relationship between all parties and long-term development, it is a good thing for everyone to upgrade and improve under the existing system and continue to win-win in the future.
Alternative Approaches:
Dongfeng, Stellantis Group - DPCA
Of course, in addition to the above two situations, if the benefits of the joint venture company are not satisfactory, but the Chinese side is not willing to reduce the share ratio, it will also carry out some new attempts, which are more representative, that is, DPCA.
According to the previous view, the interior of DPCA seems to have been turbulent, there is relevant news that Dongfeng and Stellantis will adjust the internal structure of Dongfeng Peugeot by the French side, Dongfeng Citroen is led by the Chinese side, and DPCA will be retained as a production base and open to third parties.
Speaking of DPCA, as a joint venture brand established for more than 30 years, it has launched classic models such as Fukang, Elysee, 307, etc., and there have been highlight moments, but in recent years, sales have declined year by year, we have also analyzed the reasons for Citroen and Peugeot's "water and soil dissatisfaction" in China, and in order to solve such problems, Dongfeng Citroen and Dongfeng Peugeot have also proposed a new corporate strategy to deal with, but now it seems that the effect is not satisfactory.
For Shenlong, what is more special is its dual representation system, that is, the establishment of Chinese representatives and method representatives, and after the PSA belongs to Stellantis, coupled with the liberalization of the domestic stock ratio policy, the separation of families seems to inherit some of the "essence" of the past.
Dongfeng Peugeot 508L
Dongfeng Citroen Versailles C5 X
But there are also corresponding problems, separation of families or the current compromise, but perhaps not the intention of both sides, if such a plan is really adopted, then in the future Stellantis or will pay more attention to the French-led Dongfeng Peugeot, to the Peugeot to introduce more models, and Dongfeng Citroen may have new models of confusion in the introduction, of course, this is just an idea, the future development needs to continue to pay attention to.
Ford - Jiangling Ford Technology, Changan Ford
In addition, Ford's strategy in China seems to be changing, and on January 26, Jiangling Ford Automobile Technology (Shanghai) Co., Ltd., which was jointly funded by Jiangling Motors Co., Ltd. and Ford Motor Company, was officially established with a registered capital of 200 million yuan, marking a new chapter in the development of Jiangling Ford Technology passenger cars.
Jiangling Ford Lingrui
Last year, Ford increased the product launch progress for Jiangling Ford, following the previous collar, Lingyu, and launched a new model Lingrui, this model as a five-seat medium-sizeD SUV, between the above two models, the lowest price or 130,000, improve the Jiangling Ford model matrix, so that its product distribution in the field of SUVs is more refined, competitiveness is further enhanced.
With the support of Ford's China 2.0 strategy, Jiangling Ford, which currently has four SUV models, will increase its efforts to develop the passenger car market. In terms of channel construction, Jiangling Ford's Family Space home is rapidly advancing its layout, opening 181 in 152 cities in China at the end of last year.
Changan Ford's new Mondeo
Changan Ford EVOS
In contrast, the previous ford in China's highlight Changan Ford action is not too much, last year's Shanghai Auto Show Mustang Mach-E listed, priced at 26.5-37.99 million yuan, medium-sized coupe SUV EVOS Guangzhou Auto Show listed, priced at 19.98-25.98 million, the new Mondeo has also been released in January, of course, according to relevant news, Changan Ford will intensively launch new cars in the next few months, including the new Focus, the new Explorer and the new sharp world, but overall, It is still a modification of the existing model.
Of course, for now, Ford in China for Changan Ford and Jiangling Ford Technology two car companies as a whole has been close to the level of equilibrium, but to know that before the Jiangling Ford compared to Changan Ford is not much comparable, in the role of Ford's future strategy, Jiangling Ford Technology may also play a more role, which can also be seen as another way of "another way" it.