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With the continuous loss of many markets in the world, the Chinese automobile market has become one of the best and has made brilliant achievements. As a result, billions of U.S. dollars of investment have plunged into the Chinese market. In this battle of multinational auto companies in China, can American cars find their way back to the Chinese market?
Due to the sluggish economy in the United States, the global auto market was in a downturn, and auto makers had to resort to price cuts in the face of unsuccessful efforts. So this year's US car "spreads a license card" to start with, to make a big breakthrough in the historical record, this move makes the American car sales in the global market crawl a few steps, but to the "Autumn afterwards" At the time, the surplus fell behind the loss anyway.
The Chinese market has always been the hope of American auto makers, but it is a pity that this seductive “big cake†has already been left “bite†by Germans and Japanese who have already taken the lead. Relatively speaking, if the American chariot, which does not have an advantage in quality and performance, wants to compete with one another, it will have to come up with some "hard guys" to satisfy the Chinese people.
As early as September of this year, Schlumer, chairman and chief executive of DaimlerChrysler AG, announced that it would produce "Benz" in Beijing. On November 4, General Motors Chairman and Chief Executive Officer Wagner announced in Beijing that Shanghai will be the only overseas production site for Cadillac.
In fact, American cars arrived in China very early, but unfortunately they did not know how to cherish this "poor country."
An independent writer and auto reviewer Zhong Shi recalled that as early as the mid-1990s, the Chinese government had purchased tens of thousands of American cars, including the GM Chevrolet series and Ford's Tianba series. There were Chrysler's ram models, but there were many problems with accessories, services, etc. when they were later used. “At that time, the reputation of the American car was very bad.†When it comes to this matter, security professionals who once worked as car salesmen at a multinational company frequently shake their heads.
It is said that at that time, the three major automobile companies in the United States were in a period of low market. “For the sake of trade, many inventory backlogs were sold to China,†Zhong said. Although they obtained certain benefits in the short term at the time, this has affected the long-term brand influence of American cars in China.
Afterwards, other competitors of the American car brought the eye-catching products to the Chinese: In March, September and December of 1999, Guangzhou Honda Accord, FAW-Volkswagen Audi A6 and Shanghai Volkswagen Passat were successively introduced. At that time was called "representing the most advanced and best-selling international-level models." The foreign partners of these joint ventures have thus established their dominant position in the Chinese automotive market.
Twenty years later, when American talents awakened, they began to reflect. "Why did Ford come to China very early and grow slowly?" Bill Ford said, "The lessons of the past must be learned, but I don't want to spend more energy to look back. I would rather look ahead." The missed opportunity is American cars. Unwilling to mention the past. After losing China’s opportunities in the 1980s, American cars were strongly impacted by Japanese cars at home.
Building a car in China is indeed a business that enjoys high profits brought about by high trade barriers. Cao He, former secretary of the board of directors of China National Automobile Industry Corporation, said that in today's world auto market, the operating profit of an ordinary car is about 5%, that of luxury cars is 10%, and that in China is 20% to 30%, and even more. high.
“The chances that American cars have lost are unlikely to be filled in the short term. It was not only the Chinese market but the Chinese consumer’s perception of American car brands.†Zhong explained.
Everything now makes Americans rush. “The American automobile manufacturers have increased their investment in China, but Germany and Japan, which have already taken the initiative, are also making efforts in China. In addition, other countries in Europe and South Korea in Asia do not show weakness.†Zhong Shi said.
On the 15th of this year, Puchsried, chairman of Volkswagen AG, stated that Volkswagen will invest in Shanghai and Changchun. The first batch of capital increase amounts to 6 billion euros, of which 60% is new product input. At this time, the registered capital of Shanghai Volkswagen has increased from 160 million yuan at the time of its establishment to 6.3 billion yuan now, which has increased by nearly 40 times; and Toyota Motor Corporation has been using a series of elaborate strategic arrangements to clear the way for the past 12 months. The main obstacle in the Chinese market. On September 9th, Toyoda President Toyoda Toyoda celebrated the "Bulge" of FAW and Toyota's latest achievements; Korean Hyundai was busy creating the "Modern Miracle of Beijing" - Beijing Hyundai December 2002 The first new car was off the assembly line on the 23rd, and it began to make profits in three months...
The aggressiveness of rivals has put a lot of pressure on American cars. What worries Americans is that many Chinese people are skeptical about American car quality and cost-performance.
When Bill Ford was head of business strategy at Ford Group in 1990, he quickly demonstrated his vision for being a member of the Ford family: he proposed that a small number of manufacturing plants could be established in developing countries. This proposal greatly reduced the overall cost of Ford Motor Co. . He once said to his wife, "Today, when you arrive in Europe, you will see the past and see the present in America. But after you come to China, you will see the future."
This sentence implied that some developing countries, including China, are becoming a new trend to replace the United States, Japan's new auto consumption.
Sure enough, today's auto consumer credit is rapidly developing in China. In 1999, 80% of cars in China had already been purchased by individual consumers.
In the face of the temptation of the Chinese market, American cars could not sit still. But it wasn’t the first to enter Ford, but his fellow brother, General Motors, that really brought back a few faces for American cars.
The GM Buick imported car has already entered the Chinese market first, but the response is not good. What many people did not expect was that the joint venture Buick had been selling for only half a year after it was launched. It was mainly due to the successful marketing strategy adopted by U.S. GM, such as the fine-grained operation of pricing principles and tracking services.
"GM is using global resources to integrate the Chinese market, and its strategy has been used to make up for the inherent deficiencies of products," said Zhong Shi.
"Ford is not afraid of competition, and we are not without hardships." Ford China Vice President Xu Guojun firmly said: "We do not say now, waiting to see the 2004 car market."
However, the challenges American cars face in China are not easy.
According to Zhong Shi’s analysis, American cars do not have the advantage of Japanese cars in terms of product or strategic layout. Japanese cars now show stronger momentum than German cars and Korean cars.
The design of American cars has always been rooted in local culture. In the past, the number of foreign exports has been very small. Relatively speaking, the design of Japanese cars is more suitable for the consumption habits of Chinese roads and Chinese people. Moreover, at the beginning of the 1970s, the Japanese car had a unique understanding of the Chinese market, through the non-governmental cooperation to open up the Chinese channel, so that the Chinese people knew the Japanese brand early on.
Although American cars continued to improve vehicle quality in the late 1990s, they are still inferior to Japanese cars. Recently, according to the famous American investigation company J. D. Power's survey on the major automotive brands in the US market and the publication of a "Vehicle Reliability Research Report 2003" on the "Vehicle Dependance Study", referred to as "VDS? Snow"-have received the most praise from Japanese cars, followed by American cars, and row In the end is the European car.
In the North American market, American cars are suffering from the fate of Japanese cars eroding market share. In August 2003, Japan’s Toyota Motors had already controlled 11.1% of the U.S. auto market share, hitting a record high, which undoubtedly hit the three major U.S. auto companies.
"What happened in the US market will also happen in the Chinese market in the future," said Zhong Shi. "Because both markets are open, highly inclusive markets, and geographically continental, they all have huge consumption potential. â€