In 2017, for some auto brands, it is a "life and death year." Declining sales figures allow companies to start planning for future survival. In the "life and death" juncture, some car companies have chosen to sell their qualifications for transformation; some car companies hope to reborn through joint ventures; and other car companies are in no help at all, and are facing enormous risks of exiting the market.
Among these car companies, Zotye Automobile is a "lucky child." On November 8th, Zotye and Ford Motor China issued an announcement that the two parties had signed a 50:50 joint venture agreement and agreed that the duration of the joint venture would be as long as 50 years. The Chinese name of the joint venture company was tentatively scheduled to be Zhongtai Ford Motor Co., Ltd., mainly Production of pure electric passenger cars.
(Zhongtai and Ford will set up "Zhongtai Ford" to produce pure electric passenger cars)
With Ford in hand, the industry is seen as an important breakthrough in the transformation process of Zotye. This year, Zotye’s days have not been better. According to statistics, from January to October this year, Zotye’s cumulative sales volume was 217,000 units, a year-on-year decrease of 16.46%, and only completed 54.25% of the annual sales target of 400,000 units. As the sales pillar of Zotye Auto, the decline in SUV products is more than 18%. However, because of the new energy vehicle business that was laid out in advance, Zotye won a “ticket†in this year’s joint venture of new energy vehicles.
Leverage new energy joint venture transformation
In recent years, Zotye Automobile has emerged as a dark horse in its own brand and its sales have soared. In 2015 and 2016, Zotye's sales reached 223,000 units and 333,000 units, respectively, representing a year-on-year increase of 33.8% and 50% respectively.
However, in 2016, apart from the bright spot of the new energy business, a number of Zhongtai’s main models all entered the down channel at the same time. "In addition to the joint venture with Ford, the most important thing is that it can bring technical support to Zotye to enhance its core technology R&D capabilities." Cui Dongshu, secretary-general of the National Passenger Vehicle Market Information Association, accepts "per In an interview with a reporter from the Nihon Keizai Shimbun, a joint venture with Ford is crucial to the future development of Zotye.
Some industry insiders believe that the lack of technical strength is the root cause of Zotye's decline in sales. With the marriage with Ford, Zotye is expected to regain a new life in the new energy automotive market. The data shows that in 2016 Zotye's new energy vehicle sales exceeded 37,000, accounting for 15% of the pure electric segment.
In fact, there are not only Thais but also Jianghuai who want to rely on new energy joint ventures to achieve rebirth. According to sales data released by JAC, from January to October this year, JAC's cumulative sales volume was 427,000 vehicles, a decrease of 19.93% year-on-year. Among them, Jianghuai passenger vehicles sold 182,000 units, a decrease of 38.9% year-on-year, and only completed 45.5% of this year's sales target. The sales volume that once served as the Ruifeng S3 fell from more than 20,000 units in December last year to more than 1,000 units with the lowest monthly sales this year.
One of the highlights of JAC's financial statements is pure electric passenger cars. According to statistics, in the first 10 months of this year, the sales of pure electric passenger cars by JAC reached 21,000, an increase of 74.11% year-on-year.
It is precisely because of its first-mover advantage in the new energy automotive business that JAC attracted the attention of Volkswagen. According to the official news of the China Automobile Dealers Association, various work of the new joint venture project of Jianghuai Volkswagen has been fully carried out, and recruitment of dealers is about to begin. Some analysts believe that under the endorsement of the Volkswagen brand, New Energy may become the most important business segment and new profit source for JAC in the future.
Sell ​​equity curve for survival
In addition to the new energy joint venture to seek business breakthroughs, this year's non-mainstream car brands have another survival route - selling equity.
On November 6, FAW Xiali announced that its controlling shareholder China First Automobile Co., Ltd. had received a phone call from the State-owned Assets Supervision and Administration Commission of the State Council. The State-owned Assets Supervision and Administration Commission of the State Council has agreed that FAW Co., Ltd. agreed to transfer its holdings through a public solicitation agreement. FAW Xiali has 394.5 million shares, accounting for 24.73% of the total share capital of FAW Xiali. After the equity transfer is completed, the shareholding ratio of FAW shares for FAW Xiali will be reduced from 47.73% to 23%, and the ratio of new shares held by the new takeover party will be slightly higher than the 23% shares held by FAW shares, and will become the first of FAW Xiali. A major shareholder.
From the past, when the national car was synonymous with the sale of equity, FAW Xiali or only waiting for new arrivals is likely to start again. Currently, FAW Xiali is still struggling in the quagmire of losses. Its financial report shows that in the first three quarters of this year, the net profit of the shareholders of the listed company of FAW Xiali was a loss of 1.123 billion yuan; in the third quarter, the company’s operating income was approximately 374 million yuan, a year-on-year decline of 20.26%. At the sales level, from January to October this year, the cumulative sales volume of FAW Xiali was 21,000 units, a year-on-year decrease of 31%.
(First-quarter net profit of FAW Xiali was RMB 1.123 billion)
In addition to Xiali, this year expects to introduce new investors, as well as Guanzhi Auto. According to the statistics, the cumulative loss for the three-year period exceeds 6 billion yuan. The major shareholder Chery Automobile is also stretched out in terms of funds due to poor sales. Under this circumstance, the introduction of strategic investors to alleviate the huge funding requirements has become the current The most realistic rescue plan.
(Obviously, the status of the equity holders may be disclosed at the end of the year)
In mid-July, the “25.5% equity transfer of shares of Guanzhi Automobile Co., Ltd. announced by the Anhui Changjiang Equity Exchange announced that Wuhu Chery Automobile Investment Co., Ltd., which holds 50% of the shares of Guanzhi Automobile, intends to transfer its 50% stake. Although Guanchao’s bewildering equity transfer has continued for more than six months, Guanzhi’s relevant person in charge recently said in an interview with “Daily Economic News†reporters that all mysteries will be announced before the end of the year.
An auto industry analyst once told reporters that Chery and Qoros have a lot of stigma attached to the system. The introduction of strategic investors may enable them to rejuvenate.
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