Core Tip: Industry analysts believe that in April Shanghai Volkswagen started the first shot of price cuts, and other joint venture brands quickly followed up until recently the general action of Shanghai GM, indicating that the joint venture car companies collectively confirmed the weak market this year. Shanghai GM's intention is very obvious, that is, in the case of competitors' price cuts and concessions so that the profits are not up to the expectations of consumers, then the bottom of the market, and take the opportunity to establish a new competitive advantage.
On May 12th, Shanghai GM announced that it will lower the price of the three major brands of Buick, Chevrolet and Cadillac, 11 main product series and 40 models. The minimum price of a single model is 10,000 yuan, the highest drop is 53,900 yuan. This is the first mainstream joint venture car company that has lowered the manufacturer's guidance price and the largest reduction, and the most involved models, after Shanghai Volkswagen and FAW Volkswagen lowered the manufacturer's guide price or introduced various preferential treatment measures.
In recent years, the terminal sales prices of most passenger car brands have continued to decline, and dealers have given more than 10% of cash discounts and various gift packages have become the norm. In addition to the tight models of individual brands, there are almost no dealers selling cars at the manufacturer's guide price. Manufacturers not only default, but even give the dealers huge subsidies in order to seize market share, and manipulate the price war behind them. Either the manufacturer forced the dealers to collectively fight against water, and was forced to give huge compensation afterwards.
The media and consumers have been asking questions. Is it so difficult for automakers to lower the “official price” when the manufacturer’s guidance price and actual transaction price have already been seriously deviated? According to the reporter's understanding of the situation, in fact, the manufacturers' mentality is very contradictory, they want to lower the guidance price, but they are worried about the brand damage; no one wants to pick the head, they hope that the competitors take a step forward.
The competitor's guide price should reflect the market price. Now it is undoubtedly tentative to see Shanghai Volkswagen take the lead in lowering the manufacturer's guide price for two non-main selling models. Shanghai GM is indeed awkward, and it has lowered the manufacturer's guidance price of its products at one time. It has not only cast a blockbuster in the current depressed market, but also made the price reduction and promotion of its competitors become a foil.
Of course, careful analysis of this price reduction table, Shanghai GM is also struggling. Cadillac 4 models do not include the lower-priced ATS-L long-axis version; B-class cars Regal, LaCrosse do not include the main sales models 1.6L and 1.6T, Yinglang and Mai Ruibao are not in the price cut; A-class car Cruze only Limited to the 1.5L model, Excelle's sales are sluggish, with only a thousand vehicles in April (selected car network). In comparison, the price reduction of Shanghai GM “real gold and silver” should be three SUVs with good sales, such as Angola, Copac, and Chuangku. The intention is not difficult to speculate: January to April this year, domestic SUV The market has grown at a high speed, and the sales of independent SUVs have overtaken joint ventures. Shanghai GM has not wanted to expand.
Does this mean that Shanghai GM’s sincerity in reducing the manufacturer’s guidance price is not enough? Or another mystery? This is a very complicated issue, and it is not easy to draw conclusions from the background of the current automobile market. The most important thing is that Shanghai GM's price reduction models and price cuts may not meet the expectations of all consumers, but it can take the lead in this step, which is enough to convey the positive energy information of several industries: First, the manufacturer's guide price The market price should be more realistic. Second, for consumers, the price of the car should be transparent. The price of the manufacturer is lower than that of the dealers with a wide range of names. It is more certain and stable. Consumers do not have to seek more. Low prices collect and compare dealer information; thirdly, for dealers, lowering the manufacturer's guidance price is equivalent to lowering the wholesale price, helping to solve the long-standing existence of zero-upside, dealer loss, and passive requirement for factory subsidies. Wait for long-standing thorny issues. Fourth, manufacturers have lowered the wholesale price, and the dealers have more room for the market. This is a good thing for both parties and sales, and for consumers.
More importantly, under the general trend of the overall market downturn, auto manufacturers have lowered the manufacturer's guidance price without damaging the brand. Instead, they can increase the brand's influence and increase the brand's affinity by increasing sales.
So, what do we think about the choices of Shanghai Volkswagen and Shanghai GM when lowering the manufacturer's guidance price? Jia Xinguang, a senior auto person, believes that it is not difficult to understand that the car is the lifeblood of the joint venture brand. Shanghai Volkswagen and Shanghai GM's A-class and B-class cars are almost the best in the market segment, and there is no downward revision of the manufacturer. The possibility of guiding the price. In the weak environment of the automobile market, the profits of the joint venture car companies will definitely be affected, which is also the factor they should consider when determining the price reduction models.
The joint venture car enterprises are bearish on the four major points of the follow-up impact of this year's auto market. This time, Shanghai Volkswagen's tentative pick and Shanghai GM comprehensively lowered the manufacturer's guide price. An important background is that the domestic auto market suddenly suffered a cold spell. According to the data of the China Automobile Association, in the first quarter of this year, the sales volume of domestic passenger cars remained basically the same as that of the same period of last year, but in April, there was a rare situation in which mainstream joint venture brands led the decline: Shanghai Volkswagen, FAW-Volkswagen, Shanghai GM, Dongfeng Nissan and Beijing Hyundai's sales decreased by 5.6%, 16.9%, 16.7%, 14.3%, and 0.8%, respectively.
A number of joint venture car companies are puzzled. They would rather believe that the stock market surge since the beginning of the year has curbed or delayed car consumption. Cui Dongshu, secretary-general of the National Federation of the Federation, believes that the data for the first quarter only indicates that it is okay. In fact, the sales volume began to decline in March, mainly due to the end of the “long tail effect” of the Spring Festival, plus the end of the factory in December last year, the dealers in previous years. It takes at least three months to consume the inventory. This year, due to the indirect impact of the stock market “sucking gold”, it may take longer. The weak market is not expected to improve before the gold nine silver ten.
How do you view Shanghai GM's downward adjustment of the manufacturer's guidance price? Cui Dongshu believes that in April Shanghai Volkswagen started the first shot of price cuts, and other joint venture brands quickly followed up until recently the general action of Shanghai GM, indicating that the joint venture car companies collectively confirmed the weak market this year. Shanghai GM's intention is very obvious, that is, in the case of competitors' price cuts and concessions so that the profits are not up to the expectations of consumers, then the bottom of the market, and take the opportunity to establish a new competitive advantage.
Based on various factors, the Shanghai GM showdown should have such aspects in the near future: First, Shanghai Volkswagen lowered the manufacturer's guidance price, Changan Ford followed up the fastest and took the initiative to act as an “imaginary enemy”. follow up? In April, Changan Ford outperformed, sales increased by 6%, and its sales target this year is 1 million. Now Shanghai General Motors showdown, these two American joint venture brands may have a fierce fight. Second, Shanghai GM lowered the official price of compact and small SUVs or triggered follow-up of competitive products, or indirectly put pressure on independent brands. Third, if other joint venture brands follow the example of Shanghai GM's downgrade of its high-end sedan, the price of the entry-level model of the luxury car camp may be difficult to live with. Fourth, Cadillac's strength should not be underestimated. In the first quarter of this year, Cadillac sold 20,000 units, surpassing Volvo and Lexus in fifth place in luxury car sales. Cadillac and the German top three are not a heavyweight, but it will reduce the price of the four main models, which will undoubtedly enhance its position in the second camp of luxury cars.

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