Dongfeng Yueda Kia recently carried out equity restructuring, Dongfeng Motor will be 25% of the 25% equity of Dongfeng Yueda Kia Automobile Co., Ltd. listed for 297 million yuan, after the listing of the shares were obtained by Jiangsu Yueda Automobile Group Co., Ltd., so that the left hand to the right hand of the equity transfer, so that Dongfeng becomes history. After the share reform, the new enterprise name was renamed "Kia Automobile Co., Ltd.", Kia will lay out the layout of Jiangsu Yancheng, after the restructuring, Jiangsu Yueda Investment Co., Ltd. holds 50%, Kia Co., Ltd. 25%, Jiangsu Yueda Automobile Group Co., Ltd. 25%. It can be seen that the new Kia will be responsible for capital increase and share expansion by Jiangsu Yueda Investment Co., Ltd., and Kia Co., Ltd. will be responsible for accelerating the introduction of global models and the layout of new energy models.
Due to the poor performance of Korean cars in the domestic market in recent years, the original Korean cars that have been focusing on cost performance have slowly lost their competitive advantage in the era of the rise of domestic independent brands, and the market share has declined year by year, according to the data released by the China Association of Automobile Manufacturers, the market share of Korean passenger cars in China in January this year is only 1.7%, which is less than 2% of the market share, so that Dongfeng has lost interest in the Kia brand.
Dongfeng department in time to get rid of the Kia brand, really want to let Kia fend for itself, combined with the state of Kia's operation in recent years, 2017-2020 in these 4 years, Dongfeng Yueda Kia net loss of -1.123 billion yuan, -492 million yuan, -1.299 billion yuan, -4.750 billion yuan, the first three quarters of 2021 net profit -1.715 billion yuan, four and a half years of cumulative loss of 9.035 billion yuan, many years of losses make Kia stretched, into 2022 after the chip crisis made Kia worse.
The reason is that at the large level, Korean cars are easy to be affected by the relationship between the two countries; at the product level, the replacement of Korean cars is relatively slow, especially in the development of new energy vehicles, Korean cars basically have no decent new energy products can be taken out and domestic independent brands and Japanese cars to compete; and the number of domestic brands continues to increase at this stage, not only the old car companies are seeking change, the new forces of car manufacturing are also booming, and recently even Xiaomi has announced that it will cross-border car manufacturing. From the aspect of product preservation, the retention rate of Korean cars in the second-hand car market has been low for a long time, and there has always been such a "military rule" in the second-hand car market, one does not buy Korean cars, two do not buy French cars, which shows that the living space of Korean cars is shrinking from bottom to bottom.
Beijing Hyundai, which is also a Korean brand, is also very depressed, and the Beijing Hyundai factory has been in the ' Quasi-suspension of production' state, although in the domestic Hyundai and Kia are relatively sluggish, there is a saying that they will withdraw from the Chinese market, but the author believes that the Koreans are reluctant to China's big market, remember that there was a car show at the author interviewed the manufacturers of Korean cars, they are very optimistic about the proportion of the domestic market, just to the Shandong market that year, it is more than the entire Korean local market, after all, the Chinese market is too big, a province will exceed their three thousand miles of rivers and mountains, as long as they compete a little, come up with more sincerity to treat the Chinese market, back to heaven is still hopeful 。
In fact, the sales of Korean brands in the world are still growing, after all, the foundation is still there. In order to recover, at the beginning of March this year, Hyundai Motor officially announced its medium- and long-term electrification development strategy and financial goals, accelerated the transition to electrification, and strived to achieve the "2045 Carbon Neutrality Declaration" goal. By 2030, Hyundai Motor plans to enrich its electrification product matrix, optimize its manufacturing capabilities, and strengthen its hardware and software competitiveness.