German Volkswagen finally announced its own performance in the Chinese market in 2004, and the decline in sales and share is a foregone conclusion. The share of the two mass enterprises in China has completed triple jump: from 50% to 30%, and then to 27% in 2004. Among them, the number of models with Volkswagen's trademark dropped to 23%, and only Audi's performance is unsatisfactory. However, the public is soberly aware that only the Chinese market is the Noah’s Ark that can currently save the Group’s operating performance. In terms of profitability, in the final stage of the Ark, in 2002, Volkswagen Group had a total profit of RMB 7 billion from Shanghai and Changchun Plants, of which Shanghai Volkswagen had more than RMB 4 billion. In the blowout of the automotive market in 2003, the two masses produced a total of 600,000 vehicles, and their profitability increased by double digits. In 2004, when the market fell, it produced an additional 30,000 vehicles. Although its average profitability rate of 8% to 12% was affected by price wars and inventory in 2004, it still ranked second in the annual sales ranking. The two public bases are like double insurance, allowing the Volkswagen Group to taste a bit of sweetness as global business declines. Despite this, Volkswagen’s China’s Ark is also facing problems. The high rigid costs and the shortage of new products that are suitable for the market have caused the public to feel sad that its diarrhea has also been transmitted to China, and that the companies supporting the Shanghai base are unwilling to reduce Costs, the lesions of companies in China appear to be harder to heal. According to foreign sources, sales volume of Volkswagen in China in 2004 fell by 6% from the previous year, and its market share also dropped from 31.7% a year ago to 26.4%. The cost of the disease, "Phaeton is a development cost that costs US$1 billion, and most consumers only think it is an enlarged Passat." In China, although the luxury model Phaeton does not produce, the number of imported luxury cars including Bentley does not Big, but the decline in global profitability inevitably led to the contraction of investment across the board. In 2005, what kind of products should be put into China is appropriate, and the company’s flights to the end of the business trip are cheap. The public is re-researching. , Strive to calculate carefully. This has, to a certain extent, constrained the pace of development of Chinese joint ventures. Especially in the high-end products, it is very difficult for the public to decide when to produce the Passat B6. It is very clear that the luxury luxury cars cannot be sold. It is the main reason that they have lost the city in the past two years. Because money is invested in high-end cars, The main low-end products are underdeveloped, and their competitiveness has also declined. Now, if China blindly engages in high-end products, ordinary cars, such as Polaris, Polo, and Golf that have already faced severe challenges in the Korean, Japanese and American models, are at risk of being overthrown by their opponents. Therefore, it is imperative to increase the middle and low-end products in the Chinese market. Competitiveness. On the one hand, the public should introduce new products, such as the new Bora and Polo based on the A5 platform. On the other hand, Shanghai's new engine plant will be equipped with new engines for the PQ35 platform. The choice of what kind of engine is appropriate is also a headache. If new technologies such as FSI are used, the cost is likely to exceed expectations, if production is still mature. The engine will not fall into the consumer market again, "do not take the latest product" question? In-depth Reasons Volkswagen's dominance in the Chinese auto market is already in jeopardy. However, to complete the breakthrough in the Chinese market, it is necessary to make full use of the article itself. In the Volkswagen headquarters, a business plan called "Go all out"? ForMotion? has quietly started. According to the contents of the plan, Volkswagen will achieve the goal of further cutting the cost of EUR 2 billion by the end of 2005. But experts do not seem to be optimistic about this. "The direct reason for the decline in profits may be sluggish sales of products, large inventories, and high costs, but the underlying reason may be the public's understanding of the Chinese market." CCID Consulting Co., Ltd. Automotive Consulting Division Chen Yusong, general manager and famous automobile analyst thinks. "Now China's auto market needs rapid market response capabilities, accurate understanding and understanding of policies, and optimization of the value chain, so as to ensure that the company is in an invincible position." Chen Yusong believes that unlike Shanghai GM and Guangzhou Honda, The general public has adopted a product strategy where new and old products coexist, which may cause harm to products and brand management. "Like Bora's replacement of Jetta, if Volkswagen stopped Jetta at the same time as Bora, Bora inherited the advantages of Jetta's "durable and durable", and added the meaning of "Driver's Car", which made the market competitive. Will it be enhanced?†Of course, the optimization of the value chain cannot be ignored either. According to Chen Yusong's analysis, due to historical reasons, the public's supplier and distributor channels are very complicated and there are many management levels, which virtually increase the operating and management costs. Does the public need to implement drastic "surgical operations" in 2005 to turn a corner?
Mass Forces Dangerously "Noah's Ark" is getting smaller
German Volkswagen finally announced its own performance in the Chinese market in 2004, and the decline in sales and share is a foregone conclusion. The share of the two mass enterprises in China has completed triple jump: from 50% to 30%, and then to 27% in 2004. Among them, the number of models with Volkswagen's trademark dropped to 23%, and only Audi's performance is unsatisfactory. However, the public is soberly aware that only the Chinese market is the Noah’s Ark that can currently save the Group’s operating performance. In terms of profitability, in the final stage of the Ark, in 2002, Volkswagen Group had a total profit of RMB 7 billion from Shanghai and Changchun Plants, of which Shanghai Volkswagen had more than RMB 4 billion. In the blowout of the automotive market in 2003, the two masses produced a total of 600,000 vehicles, and their profitability increased by double digits. In 2004, when the market fell, it produced an additional 30,000 vehicles. Although its average profitability rate of 8% to 12% was affected by price wars and inventory in 2004, it still ranked second in the annual sales ranking. The two public bases are like double insurance, allowing the Volkswagen Group to taste a bit of sweetness as global business declines. Despite this, Volkswagen’s China’s Ark is also facing problems. The high rigid costs and the shortage of new products that are suitable for the market have caused the public to feel sad that its diarrhea has also been transmitted to China, and that the companies supporting the Shanghai base are unwilling to reduce Costs, the lesions of companies in China appear to be harder to heal. According to foreign sources, sales volume of Volkswagen in China in 2004 fell by 6% from the previous year, and its market share also dropped from 31.7% a year ago to 26.4%. The cost of the disease, "Phaeton is a development cost that costs US$1 billion, and most consumers only think it is an enlarged Passat." In China, although the luxury model Phaeton does not produce, the number of imported luxury cars including Bentley does not Big, but the decline in global profitability inevitably led to the contraction of investment across the board. In 2005, what kind of products should be put into China is appropriate, and the company’s flights to the end of the business trip are cheap. The public is re-researching. , Strive to calculate carefully. This has, to a certain extent, constrained the pace of development of Chinese joint ventures. Especially in the high-end products, it is very difficult for the public to decide when to produce the Passat B6. It is very clear that the luxury luxury cars cannot be sold. It is the main reason that they have lost the city in the past two years. Because money is invested in high-end cars, The main low-end products are underdeveloped, and their competitiveness has also declined. Now, if China blindly engages in high-end products, ordinary cars, such as Polaris, Polo, and Golf that have already faced severe challenges in the Korean, Japanese and American models, are at risk of being overthrown by their opponents. Therefore, it is imperative to increase the middle and low-end products in the Chinese market. Competitiveness. On the one hand, the public should introduce new products, such as the new Bora and Polo based on the A5 platform. On the other hand, Shanghai's new engine plant will be equipped with new engines for the PQ35 platform. The choice of what kind of engine is appropriate is also a headache. If new technologies such as FSI are used, the cost is likely to exceed expectations, if production is still mature. The engine will not fall into the consumer market again, "do not take the latest product" question? In-depth Reasons Volkswagen's dominance in the Chinese auto market is already in jeopardy. However, to complete the breakthrough in the Chinese market, it is necessary to make full use of the article itself. In the Volkswagen headquarters, a business plan called "Go all out"? ForMotion? has quietly started. According to the contents of the plan, Volkswagen will achieve the goal of further cutting the cost of EUR 2 billion by the end of 2005. But experts do not seem to be optimistic about this. "The direct reason for the decline in profits may be sluggish sales of products, large inventories, and high costs, but the underlying reason may be the public's understanding of the Chinese market." CCID Consulting Co., Ltd. Automotive Consulting Division Chen Yusong, general manager and famous automobile analyst thinks. "Now China's auto market needs rapid market response capabilities, accurate understanding and understanding of policies, and optimization of the value chain, so as to ensure that the company is in an invincible position." Chen Yusong believes that unlike Shanghai GM and Guangzhou Honda, The general public has adopted a product strategy where new and old products coexist, which may cause harm to products and brand management. "Like Bora's replacement of Jetta, if Volkswagen stopped Jetta at the same time as Bora, Bora inherited the advantages of Jetta's "durable and durable", and added the meaning of "Driver's Car", which made the market competitive. Will it be enhanced?†Of course, the optimization of the value chain cannot be ignored either. According to Chen Yusong's analysis, due to historical reasons, the public's supplier and distributor channels are very complicated and there are many management levels, which virtually increase the operating and management costs. Does the public need to implement drastic "surgical operations" in 2005 to turn a corner?