Changhe Suzuki looks dear to Suzuki and does not want to invest in new products from Changhe


As Changhe Automotive took the "road to independence," Suzuki Motor's development strategy in China also began to enter a period of in-depth adjustment.

On August 13th, an executive from Changan, ChangHe Auto’s “independent” heart, revealed to reporters that Suzuki had been reluctant to launch new products to Changhe Suzuki and had always wanted to end its joint venture with Changhe Suzuki. The source stated that since November 2009, Suzuki has expressed its desire to China Changan to hope to end its joint venture relationship with Changhe as soon as possible.

For current Suzuki Motors, in the face of unsatisfactory performance both at home and abroad, finding a way out for development in China as soon as possible is a “rescue” to save the global market. This is also Suzuki Motor’s choice of “Changchanghe Chang'an”. The key reason. However, Suzuki's successful implementation of this approach is still a question mark at this stage.

Have you decided to go?

"First of all, whether Changhe Auto's 'independence' event can be reached, and from the standpoint of Suzuki Automobile, it will certainly not put any new products in the Changhe Suzuki system in the future," said the senior Changan executive.

As of the press release, Suzuki China has not responded to the above statement. For Suzuki Motor’s “abandoning,” Wang Shuhong, director of the Changhe Automotive Public Relations Department, said: “Current cooperation between Changhe Suzuki is continuing in accordance with the JV’s articles of incorporation and no cancellation agreement has been heard. At the same time, Changhe Suzuki has a new car in September (referring to "Change car" is listed." However, according to a person close to the Changhe Automobile, he admitted to reporters: "Suzuki has indeed been reluctant to provide new models to Changhe, and the future of Changhe Suzuki can only rely on itself and find new ones. Partners to develop."

According to the reporter’s information from the Jiangxi Provincial Administration for Industry and Commerce, the establishment of Jiangxi Changhe Suzuki Automobile Co., Ltd. was established on January 23, 1995, and the company’s operating period is valid until 2025. If the above sources are true, This means that in the next decade or so, the joint venture between Changhe and Suzuki will face challenges.

As for Suzuki's suspension of the introduction of new models for Changhe Suzuki, automotive industry analyst Zhang Zhiyong stated: “Suzuki does not have the R&D capabilities of Volkswagen and Ford. Its products are not abundant, and it is impossible to supply products to the two joint ventures at the same time, which ultimately leads to It balances between the two joint ventures."

In fact, in recent years, Suzuki Motors has gradually reduced its investment in Changhe Suzuki. In addition to the micro-vehicle sentiment to fly Changhe’s own brand logo in 2011, Suzuki has no new models in Changhe. Suzuki goes into production.

Although Changhe Motor also tried to save the partnership, the result was not helpful. At the Changhe Automotive Business Conference in February of this year, Tong Zhengrong, general manager of Changhe Automotive (click to view the latest figures), said that the company will further promote the joint venture with Suzuki and continue to introduce new products to create Changhe Suzuki brand. But now, it may only be Changhe's “wishful wish”.

Hard to return

In the eyes of the outside world, the reason why Suzuki is eager to slow down its cooperation with Changhe is that, besides Changhe itself, the company's frequent and complicated structural adjustments are also an important cause of Suzuki’s "unpleasedness."

In fact, since the end of the 1990s, AVIC II Group (Changhe Automobile's original parent company) has continuously reorganized Changhe Automotive. Due to the changing management and frequently changing corporate strategy, Suzuki could not be able to develop with Changhe Automotive. Consensus of ideas and behaviors. It is reported that Suzuki had promoted the expansion of the Changhe Suzuki factory in 2004 with great fanfare and intended to introduce Liane and other models to expand the strength of Changhe Suzuki. However, Changhe’s own poor management structure coupled with its lack of marketing capabilities has caused Lana’s poor performance. Changhe Suzuki also began falling into a multi-year loss situation in 2006. According to public statistics, the annual report from 2006 to 2008 shows that the net profits of Changhe Suzuki were -2.92 billion yuan, -7.68 billion yuan, and -3.93 billion yuan respectively. After the joint venture company suffered huge losses, Suzuki Motors had lost its right to speak in daily operations, in addition to technical input and guidance to Changhe Suzuki.

For a long time, Suzuki also tried to make adjustments to its own strategy in China and wanted to promote the sales and network planning of Changan Suzuki and Changhe Suzuki to realize the integration of product resources. However, Changan and Changhe did not want to cooperate because of this adjustment. Unable to implement. Even after Chang'an officially merged and reorganized Changhe in 2009, Suzuki’s idea of ​​“combining the two into the same” was finally delayed because of Changhe’s boycott.

Until Changhe’s “strikes” broke out in January 2012, Changhe began to break away from Changan’s auto control and seek “independence.” In spite of this disappointment, Suzuki began to further clarify his position in addition to being disappointed. A previous Suzuki China insider once admitted to reporters: "At present, Suzuki's top priority is to maintain a good relationship of cooperation with China Chang'an." It is also in this thinking, under the leadership of Suzuki and China Changan Changan Automobile Limited The cooperation of the company (000625.SZ) is also getting closer.

According to reporters from the Changan Suzuki project, the relevant department of Chongqing Banan District Government learned that the Changan Suzuki No. 2 plant laid in April 2013 will be put into operation by the end of this year. After the construction of the second phase of the project is completed in 2015, the plant will The annual production capacity of the vehicle will reach 250,000 units, and the annual production capacity of the engine will be 300,000 units, which will double the capacity of Changan Suzuki. In addition, according to Chang'an Suzuki's plan, from this year to 2015, it will launch seven models in succession, improve the product layout from economical cars to mid-size cars, and will vigorously expand the distribution network to achieve the rapid development of Changan Suzuki.

Dilemma to be solved

Obviously, accelerating the cooperation with Changan is the most wise choice for Suzuki to rescue its current predicament.

The data shows that in the first half of this year, Suzuki achieved a total of 125,333 auto sales in the country, a year-on-year decline of nearly 15%. Among them, sales of Changan Suzuki and Changhe Suzuki were 81,300 and 43,000, respectively, and the sales volume of the two joint ventures also showed a year-on-year decline.

The slump in the Chinese market has also caused Suzuki in trouble to suffer from global market performance. According to data released by Suzuki, the company sold 44,000 cars in Europe in the second quarter, a 17% decrease from the same period last year. At the beginning of this year, Suzuki Motors also announced that it had withdrawn from the US auto market due to its low sales, and plans to withdraw from the Canadian auto market next year. In this case, Suzuki's Asian market contributed about 60% of its sales in the second quarter of this year, and its poor performance in China caused Suzuki's global sales in the second quarter to drop by 6.4%, with sales of only 336,000 vehicles.

Obviously, Suzuki can only put its hope of growth on the Chinese market after exiting the US market and failing to see the prospect of the European market. Jia Xinguang, a senior analyst in the automotive industry, believes: “Changhe Motors has no funds to invest in, and it needs no technology. If the future is uncertain, Suzuki can only bet on China’s Chang’an.”

In addition, Zhang Zhiyong also said: “Although the performance of Changhe Auto has been improved for the past two years, there are still relatively few funds, technologies, and other aspects. The strengthened cooperation between Suzuki and Changan Automobile can benefit from the strong R&D capabilities and relative strength of Changan Automobile. Its financial strength.” It is reported that China’s Chang’an, China’s fourth-largest auto group, sold 1.956 million vehicles in 2012, with assets of 116.2 billion yuan, total operating revenues reached 129.2 billion yuan, and total profits reached 4.963 billion yuan. yuan. Changhe Automobile's current asset is only 5 billion yuan, and its net profit for the year from January to March is -91.56 million yuan. Obviously, from the data point of view, China Chang'an and Changhe Auto are far from one level.

However, it can be expected that Changhe Motor Co., which is supported by the local government, feels helpless, but it is absolutely unwilling to be unilaterally “abandoned” by Suzuki. Perhaps the next three parties will emerge new conflicts in the cooperation relationship. .

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