The final outcome of the international iron ore transaction price negotiations was finalized: it rose by 65% ​​on the basis of 2007. Since February, the price increases of major steel companies in the world have been frequently exposed. In China, more than 20 steel production companies have raised the price of their products in February again on the basis of price increases for steel products in January. Under the pressure of increasing manufacturing costs such as steel, the price of automobiles “is rising or falling†has become a focus of attention in the near-term.
Square
The price of the car must rise
Reasons: The crazy price increase of steel has brought huge cost pressure to the auto manufacturing industry. According to preliminary estimates by relevant parties, after the “layered dams†of the iron and steel enterprises and parts industries buffered some of the energy, the purchase cost of the stamped parts and steel originals of each A-class sedan increased by approximately RMB 1,000, and even the B-class or C-class vehicles even Will be more. For the “large steel users†commercial vehicles, the cost of each feed will increase by more than 3000-5000 yuan, and the price increase is imperative.
Viewpoint 1 The price of the lowest price car is the most likely
Rao Da, chairman of the National Passenger Vehicles Association, believes that low-end vehicles with small profit margins may increase prices. In recent years, manufacturers have continuously reduced their costs and their profits have been greatly reduced. Since 2007, the CPI has risen rapidly, causing manufacturers to suffer from their enemies. To ensure efficiency, some manufacturers may increase prices. Some manufacturers will use new cars to increase their pricing strategies.
Point of View 2 Long-term price reduction does not conform to economic laws
Su Hui, general manager of the Beijing Beichen Asian Games Village Automobile Exchange Market, also stated that: In 2007, all commodities were subject to price increases, and only cars were lowering prices. The raw material costs and labor costs of automobiles were all rising. Therefore, the long-term price reduction of automobiles does not conform to economic laws. Theoretically, cars have the potential to increase prices.
Viewpoint 3 No price increase business will lose money
Vice President of Changan Suzuki, Wang Wei, said in an interview with reporters that domestic small and medium-displacement vehicle prices are now 20% or even 40% lower than the international average. Now that steel prices have risen by 65%, I predict that this year's mid- and small-displacement vehicle prices will likely rise. Li Shufu, chairman of Geely Group, is more direct. He believes that economic cars should increase prices because steel and auto parts prices have been rising. If the economy car does not increase prices, the company will lose money.
Opposition
Price increase is unlikely
Reasons: At the end of November last year, Baosteel announced that it would raise steel prices in the first quarter of 2008 by 4.3%-8%, but the price of cars at the beginning of this year has remained stable. In addition, the National Development and Reform Commission price monitoring center also predicted that due to factors such as supply exceeding demand and intensifying competition, the auto market price will continue to decline this year, and the decline will exceed 2007, reaching more than 5%.
Viewpoint 1 Manufacturers digest high costs in other ways
The well-known car analyst Jia Xinguang said in an interview with reporters that although Chinese automobile manufacturers are facing the pressure of steel price increases, the market competition is fierce, and the possibility of direct car price increases is not high. The increase in cost only squeezes the unit's entire vehicle. Profit space. The increase in the cost of steel caused by rising steel prices has already been digested by manufacturers in other ways.
Opinion 2 Most big groups react coldly to price increases
In the near future, U.S. General Motors stated that it will raise the price of some of the 2008 models, while European and Japanese car giants are relatively calm. Toyota’s president, Watanabe Watanabe, stated that in the current situation, it is difficult to pass on the rising costs to finished cars. In China, although all parties believe that the continuous increase in costs has seriously threatened the profitability of auto companies, due to the specific circumstances of each company and the competition in the market, there has been no consensus on increasing the price. Those who support price increases are mostly private auto companies and analysts; and auto groups and joint ventures with higher market share are less responsive.
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