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Following the exposure of the Infiniti Dalian plant, the localization of Renault has also been reported recently with the latest “Sex scandalâ€. It is reported that Renault will establish a joint venture with Dongfeng, but the two sides will no longer invest in the construction of an independent new factory in China, but will directly start production at the Dongfeng Fengshen Wuhan plant.
Insiders said that once this move is completed, it will become a new model for domestic automobile joint ventures. The reporter recently confirmed the reliability of the news from related sources, and learned that Renault’s domestic schedule was set for 2014, which was earlier disclosed by Renault-Nissan Alliance CEO Carlos Ghosn in public. "Realization of domestic production in 2016" was completed two years in advance.
There is a reason for "borrowing a child"
Why did Renault, which originally planned to invest in China to build a factory, turn to Dongfeng Fengshen to “bear a child� This problem does not seem to be difficult to answer. The reality is that, on the one hand, Renault Automobile hopes to promote domestic matters as soon as possible, and on the other hand, due to changes in macroeconomic policies and market conditions, the difficulty of foreign brands entering the Chinese market is increasing. It is reported that at the beginning of January this year, the National Development and Reform Commission and the Ministry of Commerce jointly issued the new "Foreign Investment Industry Guidance Catalogue (Revised in 2011)" showing that foreign investment in whole vehicle items was removed from the encouraged investment category; With regard to industry considerations, key components and related industries for new energy vehicles have been added to the encouraged category. This means that the difficulty of the approval of foreign investment in the entire vehicle project will greatly increase.
Obviously, under the background that the Chinese government has gradually raised the threshold for new joint-venture projects, Renault Motors will not be able to go through long negotiation and project approval processes, but will use the Dongfeng Fengshen plant to start production more quickly. What's more, Dongfeng Fengshen also has this need. The data shows that in 2007, Dongfeng Fengshen laid the foundation in Wuhan. At that time, the planned production capacity for the first phase was 160,000 units. As of 2011, Dongfeng Fengshen’s sales volume had not yet exceeded 30,000 units, and the production capacity was severely shorted. It is reported that Dongfeng Shenfeng is currently planning A60 models, is to use Renault Megane Renault - Nissan passenger car C platform, Renault domestic projects into the Dongfeng Fengshen, obviously the development of Dongfeng own brand Bring good things. It can thus be seen that the cooperation between Renault and Dongfeng can be described as one hit and one meet each other's needs.
Anxious to make domestic only for production
In the previous interview, Chen Guozhang, president of Renault Automotive China, once said that Renault will invest in building domestically in China, and that there is no certain amount of sales support that cannot be achieved. Renault’s sales threshold should no longer be a problem if he succeeds in “birthingâ€. What is the intention of Renault to advance the domestic schedule? After an interview with the reporter, he discovered that due to the rapid expansion of Renault in China in recent years, the number of dealers has soared and the problem of insufficient capacity has become imminent. It is understood that since Renault China implemented the "3-year revival plan" in 2009, Renault's imported car sales network has reached 80 at the end of last year and it will increase to 115 this year.
According to a relevant person in charge of a Renault dealership in Guangzhou, Renault’s sales volume in the Chinese market was 24,000 last year, and this year’s target will increase to 40,000. What is most worried now is the supply problem. Due to the earthquake in Japan last year, Reynolds became more and more serious about the problem of production capacity. The stock of dealerships was seriously insufficient, and the arrival speed could not meet the customer's demand for ordering in time. This year's situation is also very difficult to be optimistic, due to the increase in the number of dealers, the resources assigned to each store is certainly difficult to guarantee. If Renault can achieve domestic production as soon as possible, it is certainly a big plus for dealers. The person in charge of the car dealer stated that before Renault realized domestic production, the dealers could only continue to “keep going†despite the tight supply.
Do not repeat the same mistakes in the "two palaces"
In fact, Renault’s desire to achieve domestic production in China is already its “secondary houseâ€. It is understood that as early as 1993, Renault signed a joint venture agreement with China Sanjiang Space Group to assemble and produce light commercial vehicle Tafik in Xiaogan City, Hubei Province. In December of the same year, Sanjiang Renault JV was established.
In 1994, Sanjiang Renault began production, but more than 4,000 vehicles were sold for more than eight years. Since then, Sanjiang Renault has been gradually falling into production. It is reported that Renault will set up a joint sales company after the Dongfeng Fengshen plant is put into operation, and will sell in an independent brand, independent store, parallel channel, and shared network. Many people in the industry have raised doubts about this. The biggest doubt is how do two different brands, Renault and Aeolus, share resources? How does Renault's original distributor benefit?
In this regard, the reporter believes that although the current use of Dongfeng Fengshen idle capacity to achieve domestic production, is indeed a wise choice for mutual benefit, but the need for careful choice in the way of cooperation, to avoid the impact of the chaotic marketing issues in China in recent years laid the brand basis.
Today, Renault has gained a certain reputation in China as a cost-effective imported vehicle, but it is not comparable to the gold content of luxury brands such as BMW and Mercedes-Benz. Once domestically made, "how the brand should be positioned" will be a real problem placed in front of Renault.
What's more, at present, Renault’s sales in the Chinese market are more than 90% dependent on the SUV model Klein, which is also an indisputable fact. How to strengthen the brand's reputation and increase the sales volume of other models is probably more pressing than solving the problem of localization.