Chapter 189: The shuffle begins

The Chinese Confucian cultural circle has long occupied the center of world civilization, and it is no exaggeration to say that the countries in this cultural circle are all positive and good children in the global village.

Hard work and advocating education are the common denominator of everyone.

Looking back on the past 100 years, first Japan took the lead in becoming a developed country after leaving Asia and joining Europe, then the rapid economic take-off of the Asian tigers created a miracle, followed by the Oriental dragon China's reform and opening up to become the main engine of world economic growth, and finally ASEAN took advantage of China's economic take-off to start the journey of integration, it can be said that the road to the revival of the Chinese Confucian cultural circle has been fruitful.

Compared with the integration of the European Union and the North American Free Trade Area, the Chinese Confucian cultural circle in eastern Asia has not been effectively integrated and is relatively fragmented.

Against this backdrop, China, Japan and South Korea have taken the lead in planning the establishment of a free trade zone to achieve economic integration. Think about it, Japan and South Korea, the two developed countries, have a population of nearly 200 million, plus China's 1.3 billion people, accounting for 20% of the global GDP, as long as the three countries cooperate, they can form a free trade area comparable to the European Union and North America. If the 600 million people of the 10 ASEAN countries are included at that time, the picture is really too beautiful to look at, and it is enough to become the most important pole of the world economy.

However, due to historical reasons, China, Japan and South Korea have differences in many issues, which has become an obstacle to the establishment of the trilateral free trade area.

Just when Japanese automakers led by Toyota Motor Co., Ltd. were planning to support joint venture partners in China, relations between the two countries suddenly cooled rapidly due to territorial and island disputes, triggering a surging boycott of Japanese products in China.

This dispute was triggered by some radical politicians in Japan, and it is difficult to say that there is no other black hand behind it, which is to disrupt the establishment of the China-Japan-South Korea Free Trade Zone.

The sales of Japanese automakers in China have declined at a rate that is visible to the naked eye, and the dividends transferred have been divided between the two giants, Chunghwa Group and Volkswagen.

You must know that China is the world's largest auto market, and if Japanese companies abandon it, it will be tantamount to giving up sufficient market share and a huge source of profits.

Without the Chinese market, Toyota will fall from the position of global hegemon and become the second group player. You must know that Volkswagen and Zhonghua Group are not fuel-efficient lamps, and they have been eyeing the world's No. 1 annual sales for many years.

Just as the military serves politics, the economy must also make concessions to politics.

In the current context, the decline in sales has led to a loss crisis, and it is difficult to see a return if we increase investment. Toyota's helmsman, Akio Toyoda, has opted for a low-key approach, first halting the support program with Chinese partners and then suspending the introduction of new models to China.

Although we know that this will give up market share in China to German, American and Chinese competitors, it is also a temporary move that has no choice but to do so. As for exiting the Chinese market, it is absolutely impossible.

With the boss taking the lead, other Japanese automakers have followed suit, adjusted their Chinese market strategies, and suspended plans to arm local joint venture partners.

You must know that automobiles are the leading companies made in Japan, and if they are stirred up now, they will not be able to recover in China in three or five years. The main competitors, Chunghwa Group and Volkswagen, will not wait still and will only eat into the market share of Japanese manufacturers step by step.

The snipe and the clam compete, and the fisherman profits.

Chunghwa Group and Toyota are caught in the whirlpool, and of course it is the third party Volkswagen that benefits.

Since Chunghwa Group announced that it has lowered its sales target this year due to product replacement, and Toyota's sales in the Chinese market have plummeted due to the turmoil, Volkswagen has seen that the world's No. 1 throne is beckoning to itself.

After enduring humiliation for many years, witnessing the American king General Motors and the Japanese boss Toyota fall from the throne of the world's No. 1, the German representative Volkswagen finally got what he wanted to replace him.

However, in contrast to the happy Volkswagen, the Chinese auto market has ushered in the first foreign brand ready to withdraw from China.

As we all know, Peugeot had divested from GAC back then, but then soon came back to find a marriage with Dongfeng Group. After Fiat broke up with Nanqi, it formed an alliance with GAC in lightning. The two brands can be said to have only announced their separation from the joint venture, but they have not publicly withdrawn from the Chinese market. This history took place during the formative period of China's auto industry, when China's auto market was still very small, and it was not comparable to the world's largest annual sales of more than 20 million vehicles.

But in the midst of a gold mine of 20 million vehicles, there are joint ventures that can't make money, so that foreign auto brands have begun to retreat.

If it weren't for the wave of resisting Japanese goods, maybe Suzuki would have had to struggle a little more. Suzuki Motor announced its official withdrawal from the Chinese market, as it was unavoidable that sales continued to shrink sharply, and that there was no hope for future success, and that the relationship with its joint venture partner Changan Automobile was not well coordinated.

It is better to come early than to come by chance, you must know that in the 80s, Suzuki was the first foreign brand to enter the Chinese auto market, but a good brand was messed up.

At that time, Han Hao also went to Japan to ask Suzuki Shu, the head of Suzuki Automobile, for advice, but he didn't expect that in less than 20 years, the students had defeated the teacher and become the new market overlord.

Those who do great things should follow the trend.

In layman's terms, it is to try to be a pig above the tuyere, and although it is very heavy, it can still fly.

Under the trend of global automobiles to SUVs and medium and large cars, Suzuki Motors still adheres to its own boutique car proposition, which can be said to be out of touch with market demand. Not only in the Chinese market, but also in the global field.

Suzuki, who focuses on small cars, can be said to be good at creating "small but practical" boutique cars. In today's three major automobile markets in the world, Chinese love SUVs, Americans love pickup trucks, and they are all fans of big car culture. Only Europe is where small cars prevail, but Suzuki is not allowed to enter the country and cannot gain a foothold there.

Without the fig leaf of the second-largest sales figure in the Indian market, Suzuki would have fallen even worse. At present, Suzuki can only be trapped in the local market, and has a certain presence in India, and the world is in a situation of retreat, and the total sales last year barely exceeded 1.5 million units.

Since you can't beat the Zhonghua Group in China, and you are forced to lose your armor by the other party's cheap boutique cars, it is better to withdraw in time to avoid greater losses.

Suzuki will transfer all of the Japanese shares in the Changan Suzuki joint venture to the Chinese partner for 1 yuan, and Suzuki has officially withdrawn from the Chinese market.

To this day, the 82-year-old Osamu Suzuki is still the chairman and CEO of Suzuki Motors, firmly controlling the Suzuki empire in his own hands.

It's a pity that the back waves of the Yangtze River push the front waves, and there are talented people in the country.

Suzuki Motors, which has lost its sense of smell in the market, has a lot to do with its helmsman's inability to keep up with the trend of the times.

If it cannot achieve overtaking in the Indian market and continues to be widened by the Chunghwa Group, then the god of a generation of management, Osamu Suzuki, is very likely to step down.

If Lifan's switch to real estate did not attract much attention, then Suzuki's withdrawal from China is really big news.

China's auto industry has always been a gold mine, and any car company seems to be living a very nourishing life. But Suzuki, which has a good reputation, had to withdraw from China, which made everyone begin to understand how fierce the competition in today's automotive industry is.

Suzuki was the first, so who will be next?

As we all know, all the world's mainstream nameless car brands have entered China, making more or less money during the last golden decade.

But now times have changed, and brands that have no product competitiveness will be eliminated from the market.

In fact, the second foreign brand that may withdraw is very easy to guess, and you only need to start from the bottom of the car sales list.

Fiat and Chrysler, the two major brands that are difficult to sell in China, have not been able to increase their sales in China, and it is even more coincidental that they are part of the Fiat Group, and they are considered the best candidates to leave after Suzuki.

When domestic brands change careers one after another, foreign brands withdraw in turn, the signal given is that China's auto market is ushering in a major reshuffle.

Japanese automakers collectively operate conservatively, giving up at least 2 million units of market share between one entry and one exit.

For the sudden big fat meat, competitors rushed to fight.

Zhonghua Group began an all-out offensive posture, downwards to the independent brand to reduce the dimensionality, upward to the joint venture brand began to break the wall.

The wall-breaking attack relies on a sharp weapon like the new generation of Zhonghua "Tang" to lead the competitiveness of products, as well as the subsequent replacement of the sedan Zhonghua "Qin", breaking through the technical ceiling of domestic cars, and forming a maximum pressure blow to the joint venture brand with new models and new technologies.

Among the joint venture brands, the first to be affected are the Korean brands, namely Hyundai and Kia, which are positioned close to domestic brands.

They rely on cost-effective and heap configuration routines, as well as the brand precipitation time is not long, and the appeal is limited, and they do not have any advantages compared with Zhonghua Group.

The Hyundai brand was able to survive the storm due to its location in the capital region, while Kia, a brother brand, was gradually lost in the market and forgotten by consumers.

The second is the French car that will always be unique in the pursuit of individual design, unlike the neighbor German Volkswagen who entered China and localized it like a fish in water, the French directly moved a set of Europe to China, and the confidence of the fan should be on par with the German price.

Peugeot and Citroen used to have many fans in China, but compared with other competitors in the market, the competitiveness of their products was limited and could not find bright spots. In particular, insisting on using the widely criticized torsion beam, the cost is not much lower than the mainstream multi-link suspension in the market, and the experience of both parties is actually similar, but it gives competitors an excuse to attack.

The needs of Chinese consumers are actually very simple, that is, I can do without, but you must have them, and you can't distance yourself from the mainstream of the market.

In fact, if the French car is directly copied according to the configuration of Volkswagen and placed on its own model, it is estimated that the sales will immediately double. However, the French just don't accept it and refuse to follow the local customs, which also shows that the Chinese side has a great lack of voice in the joint venture company.

There is no way, I can't support the wall with mud, I can only rely on the joint venture brand to make money, and the words I say naturally have no weight. If it is put to Zhonghua Group, Han Hao will teach them how to respect the Chinese auto market in minutes.

The BMW X3 has always adhered to the global "one BMW" standard, but under Han Hao's strong suggestion, it still follows the local custom to add the domestic X3L version, intending to compete directly with the Audi Q5.

You must know that as soon as the new domestic Volvo XC60 was launched, it quickly became popular, and began to sit on an equal footing with Q5, with monthly sales stable at more than 6,000 units, and the Mercedes-Benz GLK was out of breath when they joined forces.

"Only the Chinese know best what the Chinese think!"

The conclusion of the BMW headquarters shows that there is no shortage of flexibility in the rigid minds of the Germans, but that the French, who have always called themselves romantic, are as stubborn as marble in the Bastille.

The BMW X3 is about to be produced in China, and the X3L extended version is customized for Chinese consumers, and the luxury SUV market will soon usher in strong competitors.

The defeat of the Korean and French systems has appeared, and there are only two major opponents left in the market: the American and the German.

In the U.S., Ford Motor has finally recovered from the subprime mortgage crisis, but it has not responded enough to the changes in the Chinese market, and the Focus, Mondeo and even the newly listed Yihu have not made too many localization improvements, and the sluggish sales growth in China for many years is enough to explain the problem.

On the contrary, it is the first "China expert" to start localization, General Motors, which is okay in China. Both the Buick and Chevrolet brands have a number of popular models under their umbrellas, such as the Excelle, Cruze and Regal. The Cadillac brand has always prided itself on being on par with the BBA level because it came early.

But also due to the damage caused by the subprime mortgage crisis, GM's dominance has long been incomparable.

At the end of the day, Chung Hwa Group's biggest competitor is Germany, that is, Volkswagen. With the dual brand strategy of Volkswagen and Skoda, the Germans enjoy the emperor-level treatment in China, and even the Japanese top three cannot compete with it.

If there is no Chunghwa Group, then Volkswagen should undoubtedly be the hegemon of the Chinese market. But there is no if, Zhonghua Group's product power and appeal in the market are worthy of Volkswagen, and it has always firmly controlled the throne of the first sales volume in the domestic market.

Once with 150,000 yuan as the dividing line, Volkswagen was the dominant one up, and the Zhonghua Group was ruled down. But today both sides have begun to penetrate into each other's fields, and direct exchanges of fire are inevitable, depending on whose products are more in line with the appetite of the Chinese.

The eldest and second are fighting, and the other competitors behind them are all suffering.

This war will not end anytime soon, it may last for many years.

In the past 20 years, China Group has sounded the clarion call for a counteroffensive against the joint venture brand, and the decisive moment of China's automobile battle has come.