·Jaguar relies on China to monopolize and return to life

"This car has been sold a bit lately. People who buy cars are watching and see if the anti-monopoly can hit the price. Land Rover has cut prices, and we estimate it is faster."

In the Asian Games Village Automobile Trading Center, an imported car dealer Liu Ming is guarding the storefront of the door, waiting for the general dealer's possible price reduction notice.

Since June 2014, anti-monopoly investigations against the automobile market have culminated. On August 1, Jaguar Land Rover announced a price cut. On August 20, 12 Japanese companies “claimed” a fine of 1,235.4 million yuan, which is the largest amount of fines since China implemented the anti-monopoly law in 2008. On September 1, Beijing Benz, Guangqi Honda, Lexus China, Jaguar Land Rover and other car companies almost simultaneously announced the full reduction of spare parts prices.

Liu Ming, who has been in the car market for many years, told reporters that the “anti-monopoly investigation” needs to face not only experienced multinational auto companies, but also local rules that are not forward-looking: “The auto market monopoly is partly due to the management of the year. The side effects left by the method. The "Anti-Monopoly Law" was born only 6 years ago, and many industry rules and management methods were formulated before it, such as the "Automobile Brand Sales Management Implementation Measures" (hereinafter referred to as "Measures") that have far-reaching influence on the automobile market. ), this "Measures" gives the general dealer the only power, this "Measures" to regulate the market as the original intention, so that the monopoly has soil."

An imported car quota has been fired to 110,000

Liu Ming's store is located in the Beijing Asian Games Village Auto Trading Market (hereinafter referred to as the Asian City), except that the current Asian market is no longer in the Asian Games Village, but in the Beiqijia Town of Changping District.

It was once located in the Asian city on the south side of the Olympic Sports Center. It opened in December 1995 and was the only large-scale automobile trading market under the guidance of the government planning and municipal comprehensive department. “At the peak, the Asian market accounted for 50% of the total sales of the entire Beijing auto market.” Liu Ming said with pride that many Beijingers’ car dreams began in the Asian market. Now the Asian city is still an important part of the Beijing auto market, but Beijing citizens buy a car, in addition to going to the Asian city to buy a car, they will also go to the 4S shop of major brands to choose a car.

“In the past, the Asian market was like a big supermarket selling cars. It was multi-brand and multi-class. Everyone was as free to choose as a supermarket. But now, the single-brand 4S store does divert some of the car buyers.”

Liu Ming said that China's imported car sales started in the 1990s. At that time, companies like the China Import Automobile Trading Center (hereinafter referred to as Zhongjin Automobile Trade) were the major sellers of imported cars. According to the data provided by Zhongjin Automobile Trade, from 1990 to 1993, due to market demand and profiteering, China’s automobile imports have skyrocketed, but there are a large number of smuggled and assembled vehicles. From 1993 to 1996, the number of car imports plummeted because of severe crackdowns on smuggling and assembly. After 1996, due to the strict management of the import quota system, imported cars showed a steady rise.

“Our car import quota is a restriction on the quantity of imports, and the purpose is to protect local enterprises in the same way as tariffs.” In the late 1990s, quotas became the scent of the imported car market. At that time, imported car dealers became popular. : Whoever has mastered the quota will have the resources. "Quotas cannot be bought or sold. However, in the black market, they have been fired into securities. An import license (quotation) can be up to 110,000 yuan."

Multinational car companies take advantage of the monopoly

In 2001, with China's accession to the WTO, the import quota system was "dying out after a short transition period." In 2005, the “Implementation Rules for the Issuance of Automatic Import Licenses for Automobile Products” was issued, and the issuance system replaced the quota system for imported automobiles. China also officially canceled the restrictions on the number of original advanced ports and implemented automatic import license management.

The management method that really changed the entire automobile sales market also came into effect in 2005. The “Measures for the Implementation of Automobile Brand Sales Management” jointly formulated by the Ministry of Commerce, the National Development and Reform Commission, and the State Administration for Industry and Commerce was officially implemented on April 1, 2005.

“In the past, the large-scale sales market such as the Asian city was the mainstream of sales, and the after-sales maintenance was undertaken by the maintenance companies at all levels. The sales market was free, and there were some mixed things. The auto repair enterprises had state-owned enterprises and private enterprises, and the level was different. Once the introduction, the development of automobile brand sales and service network planning, business forecasting, network layout plan, network construction progress, software and hardware standards, after-sales service standards and other rights are all controlled by a company, that is, the general distributor. This is clearly clear responsibility Rights, regulate the market."

Liu Ming said that the original intention of the "Measures" was to regulate the market. The starting point was good, and it also objectively gave birth to the rapid spread of the current 4S shop model.

However, because of the lack of forward-looking, the "Measures" also laid a groundwork for monopoly.

Article 8 of Chapter 2 of the Measures stipulates that one of the conditions that a general automobile dealer must possess is “to obtain the written authorization of the automobile manufacturing enterprise and to have the right to distribute the specific brand automobile alone”. Yan Jinghui, deputy general manager of Asia City, said in an interview: "This kind of space is used by multinational car companies. Branches of multinational car companies set up in China have registered as the general distributors of imported brands in China, for example Mercedes-Benz China, Volkswagen China, etc., the connection between them, needless to say everyone knows." "Measures" did indeed regulate the Chinese car sales market in the past ten years, but also improved the service level. However, the total dealers control both resources and channels. This unique right is easy to create a monopoly.

It is understood that the total dealers now have the pricing power of imported cars, and some brand distributors actually take the car from the general dealer at a price of 5% off, and the distributor actually has only 5% profit margin. In addition, some brands have about 3% of rewards, but 3% is not easy to get.

Every sale of a Land Rover is about 750,000 profit

In the imported car sales stores in Asia, more than one million luxury cars can be seen everywhere. The general dealers give these luxury cars the status of “Bai Fumei”, and the “local tyrants” from all over the country are keen to chase “Bai Fumei”.

Some media commentators even believe that “many money is more” has pushed China to become the most expensive car market in the world. Liu Ming feels that face is a culture that has existed since ancient times and has a long history. No one can avoid it. "Isn’t it to say that climbing, at least not to lose face, I think this kind of thinking is normal. Multinational car companies are using China. Consumer psychology, the vehicle is packaged as a symbol of identity with high prices. In some resource-based cities, or some rich people, there are some pursuits of luxury cars, even buy up and not buy, the more the price increases, the more you buy Not the more I feel the precious malformation of this car."

For example, a car company like Jaguar Land Rover, which is on the verge of bankruptcy, has set a high price through monopoly status and has hunted huge profits in China.

In 2008, Jaguar Land Rover was acquired by Tata India for $2.65 billion. But by 2012, Jaguar Land Rover had a profit of 1.5 billion pounds, equivalent to $2.42 billion. The hot market in China has brought Jaguar Land Rover back to life. According to 2012 data, Jaguar Land Rover delivered a total of 73,347 vehicles in China, a year-on-year increase of 74%. Take the Range Rover 5.0-liter V8 S/C Vogue SE petrol version as an example. The price in the US is 99,100 US dollars (equivalent to RMB 691,900 yuan), while the official guidance price in China is 2.438 million yuan. Entering China, the total after-tax price was 1,570,770 yuan, while the price of Jaguar Land Rover's wholesale to dealers was 2,321,900 yuan, and Jaguar Land Rover made a profit of 751,100 yuan (because the tax rate fluctuated between China and the United States, the specific price may differ).

Buy 12 new cars for all car parts

On August 1st, Jaguar Land Rover could not hold back the pressure and announced price adjustments for its three models, with the highest drop of 300,000 yuan.

However, in Yan Jinghui's view, similar price cuts generally belong to the “attitude type”, while the anti-monopoly investigation is not only for the whole vehicle price, the real core is too high “zero ratio”. The zero ratio is the ratio of the sum of the prices of all the parts and components of the commodity to the selling price of the complete commodity.

In April this year, the China Insurance Industry Association and the China Automobile Maintenance Association disclosed the zero ratio of 18 common models for the first time. The data shows that Beijing Benz C-class W204, the zero ratio is as high as 1273%, this coefficient shows that if you replace the full cost of this car, you can buy 12 complete vehicles.

"Now the vehicle sales and after-sales maintenance have been intertwined. The profit of the whole vehicle of some models has been very low, even in the loss of sales, but after-sales maintenance can make money. The spare parts of imported cars are not allowed to flow into the auto parts market. It can only appear in the specialty store. In this way, the zero-to-high ratio of the car to the consumer is a great increase."

On June 30, the Ministry of Communications issued the “Guiding Opinions on Soliciting the Transformation and Upgrade of the Automobile Maintenance Industry to Improve Service Quality (Draft for Comment)” on its official website, and publicly solicited opinions from the public. Liu Yan believes that "this is a real trick."

The "Opinion Draft" focuses on the specific method of breaking the monopoly of auto repair parts. The first is to encourage the original parts to enter the independent after-sales market, which is to encourage the original parts companies to sell their parts to the independent after-sales market. The second is to encourage the development of "homogeneous accessories", which is the same quality as the original accessories.

Yan Jinghui said: "This is to break the monopoly of spare parts channels. Once successful, not only will the expenses of our people repair the car come down, but the marketing model and service quality of the entire industry will change."

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