South-South Cooperation Boosts China's Automobile Industry


On December 26 last year, the Diaoyutai State Guesthouse in Beijing, Hu Maoyuan and Wang Haoliang were held together by two “masters”, and SAIC and Nanjing Automobile Group became the “one family”. The reason why all sectors of the society are optimistic about the "new consortium" is that these two companies are completely state-owned enterprises. The merged new enterprise has become the largest auto group in the country. This will change the pattern of China’s automobile-based joint ventures, adding to “Made in China”

"A fire."

The birth of the auto group known as the "Car Carrier" in the industry will surely advance the original joint venture's ranking among the world's top 500 companies and narrow the distance from the world's automobile powerhouse. Only in this way can it be worthy of a name. Despite the difficulties, the competition will be extremely cruel, but the advantages are still obvious. Mainly reflected in the following aspects:

First, "spell" sales - re-segmented the "market" of annual sales of 8 million.

According to relevant industry associations, China’s auto production and sales capabilities have made remarkable progress. In 2008, the national automobile production and sales volume was around 8 million vehicles. Due to the strong performance of Volkswagen, General Motors, Toyota, Honda and other brands, the market is almost the world of joint venture brands. The German, Japanese, and American models have always dominated the market. Although the self-owned brands and small brands are also growing, they are obviously insignificant compared to these old companies. The scale of the combined production of 2 million vehicles a year will re-divide the existing market.

The second is that "fighting service" - service projects are closer to the national conditions and are conducive to fostering brand loyalty.

Nowadays, selling cars is selling services, and incomplete reoccurrence of the "fairy of selling cars and selling Chinese cabbage is no different". The auto salesman must not only have qualifications for practice, but also pay attention to humanization after-sales service. The services of joint venture brands are based on the standards of the global system, and generally do not establish special policies for a region. The self-owned brand is different. You can decide for yourself. For example, the Rongwei sedans have implemented a quality assurance period of three years or 80,000 kilometers since September last year, which is a year or 2 to 40 thousand kilometers more than other brands. Some experts predict that this measure can save car buyers a cost of about 10,000 yuan. The combination of physical services will extend this kind of real-world preferential services to the brands under its jurisdiction, undoubtedly increasing the popularity index.

Third, "Fighting quality" - to welcome its own brand "spring"

As soon as Chinese people mention their own brands, they will think of Chery. Chery is considered by many to be the national car. However, Chery's flagship economy car, the joint effort to promote Roewe, MG high-end cars, not only enriched the independent brand's market competitiveness, but also to improve the quality of their own brand car products to provide a guarantee, is conducive to the formation of "self-brand team." In recent years, despite the emergence of new brands, due to the “national circumstances”, sales of self-owned brands have also gradually increased. With the advancement of the South Cooperation, independent brands are expected to further expand their market share, thus “rising”, Become a "dark horse."

The fourth is “Fighting Product Lines” - enriching product lines and consolidating the basis for competition

The commercial vehicle is a bright spot in the cooperation with Shangnan. Due to the presence of Nanhua Iveco and Yuejin, the consortium also has light passenger and light truck products in addition to the sedan, which completes the entire series of SAIC's original products. This is any domestic automobile company. Incomparable, they are either passenger vehicles or commercial vehicles, while the combination is both. Iveco, in particular, is recognized as a "business model," involving policing, justice, finance, logistics, and other fields. The expansion of the sales radius equals an increase in the customer base. These high-quality resources are a “better tiger” for the consortium.

In short, what inspires the people is that the Commonwealth will establish the position of one of China's largest, world-class, and internationally competitive automobile groups. I remember that one industry expert once expressed his concern that "China's auto companies were over-abundant" and they couldn't bear the "first priority." The model of the South-South cooperation changed this passive situation to a certain extent and re-shuffled the Chinese car. The group will promote the "dream come true" that Chinese people have passed on from generation to generation.


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