Although Audi has reached an agreement with dealers to suspend negotiations on the joint venture with SAIC. But Chen Hong, chairman of SAIC, immediately said that there will be no major changes in cooperation. Is what Chen Hong said true? Where does his confidence come from? Why doesn't Audi speak up at this time?
The reason why Audi dealers can force the negotiation of the joint venture between Audi and SAIC is three reasons, one is that the dealer has about two months of inventory cars, if from December 1 really do not mention the car, then the dealer can at least last until the end of January next year. If this phenomenon occurs, it will become the biggest news in the global automotive industry. Second, Audi holds hands with the car, which means to open a new marketing network. The franchise dealer agreement signed by Audi and Chinese dealers clearly stipulates that they will be responsible for selling all imported and domestically produced Audi cars. If you do hold hands with SAIC, it will constitute a breach of contract. Dealers launch lawsuits against Audi, and Audi will lose. Third, if the trouble continues, not only will Audi's task this year not be completed, but even next year's sales contract will not be signed.
As a result, on November 30, Audi reached an agreement with the dealer, which clearly stated: "Audi Ag agrees to suspend negotiations with SAIC on sales and networking." In the case of long-term and stable profitability of the existing dealer network, and after reaching a consensus with the dealer association, the next step of negotiations will be carried out with SAIC Motor. However, Audi AG is not 'terminating' the SAIC Audi project, and the time node given is before March 2017, When Audi, SAIC Group, and FAW Audi Dealers Association will discuss again, and FAW Group will also be invited to participate. At this point, the hanging heart of Audi dealers has been slightly calmed.
The signing of the agreement, some people think it means that Audi's cooperation with SAIC has suffered a reversal in the protests of dealers. But can it really be reversed? Or is this agreement just a delay strategy between Audi and SAIC? According to reports, on December 1, at the shareholders' meeting held by SAIC Motor Group Co., Ltd., Chen Hong, chairman of SAIC Motor, told shareholders: "The joint venture with Audi Automobile will not change." SAIC will announce the details of the cooperation between the two sides in due course. Some confident dealers do not agree with what Chen Hong said, but it seems that Chen Hong's calculations are more in place.
According to the analysis, first of all, by March 1, Audi distribution should be able to get compensation, no matter how much, at least solve the problem of temporary losses, dealers "rebel" pressure is reduced. Secondly, the dealer's inventory has been almost digested, at least can be restored to normal levels, the dealer "stop picking up" threat is not as big as now. If you threaten to "not mention the car", some dealers may not even be able to hold out for a month. Third, before March 1, the dealer and Audi have negotiated a sales agreement for 2017, and the dealer is unlikely to regret it.
As far as the cooperation between Audi and SAIC Motor is concerned, the cooperation between the two sides does not violate industrial policies or laws and regulations, and only needs to be filed in Shanghai. The cooperation between two independent legal persons is not affected by a third party, which is guaranteed by law. In other words, after March 1, Audi and SAIC can continue to promote cooperation without scruples, and the original hidden operation can be made public, which will be more conducive to attracting investors and establishing independent dealer channels. Placed in the authorization contract between Audi and the original dealer, let Audi find a way to change it, and how much money is lost is Audi's business, and saxo has nothing to do with it.
Therefore, Chen Hong has enough confidence to say: "The joint venture with Audi Automobile will not change." "It's just that it is not known whether the negotiations with Audi are still continuing. According to this, it is not surprising that by March 1 there will be news of the progress of Audi's cooperation with SAIC. At that time, the most passive were Audi dealers and FAW Group. The so-called "Audi Ag is not 'terminating' the SAIC Audi project, and the time node given is that before March 2017, Audi, SAIC Group, FAW Audi Dealers Federation will discuss again, and FAW Group will also be invited to participate." Among them, the word "participation" is just a fictitious word, and participation does not mean that there is decision-making power. Giving a chair to sit on the side and listen to the opinion that it will not affect the process of cooperation in the slightest is also a form of "participation" in a broad sense. At that time, Audi dealers and FAW Group could only listen to luck, because dealers and FAW Group were neither superiors to Audi nor SAIC, nor their controlling shareholders, nor even a dime relationship. Therefore, from a legal point of view, neither the dealer nor the FAW Group has the right to interfere with the cooperation between Audi and SAIC. No matter what kind of organization Audi dealers form, no matter how strong the economic strength and social influence, and whether FAW is the "eldest son of the republic", on the issue of cooperation between Audi and SAIC, it is only empty fists.
For Feng Derui, director of marketing and sales on audi's board of management, the completion of Audi's hand-in-hand car will be in the annals of Audi history. But if the hand-holding car is yellowed by the dealer, Feng Derui will not only become a laughingstock in Audi's history, but even a sinner. Therefore, on the issue of holding hands with the car, if Audi and SAIC join hands in a desperate bet, it is absolutely in the interests of both sides to have a "bully hard bow".
Once the two sides are successful in forcibly holding hands, the stores in the audi dealership that are in poor operating condition and have just entered the network may have more serious losses and may even close down. Under this predicament, in order to avoid greater losses, it will be very normal for some dealers to abandon FAW-Volkswagen and turn to SAIC Audi. This situation is in the interest of SAIC Audi and helps it quickly build a new network.
About the Author:
In 1979, he studied automobile repair, successively engaged in automobile repair and automobile manufacturing, and in 1993, he turned to China Business Daily, successively engaged in a number of media, participated in the establishment of automobile editions, and successively served as reporters/editors, editors-in-chief, and chief reporters. During this period, he engaged in consulting work and developed a cost-effective analysis system and a passenger car market economy index analysis system. More than half a hundred years old, resigned to start a business to join the Internet, and is currently the president of "Car Selection Network"
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