Prediction 2018: Can the New Joint Venture Tide Reproduce

The many joint ventures that were born in 2017 broke many rules and conventions and opened a new era of automotive joint ventures. Can it be extended to 2018?

On automotive joint ventures, 2017 may be an important year after 1984. If the number and type are much larger than in 1984.

The automotive joint ventures established this year were: Jianghuai VW, Zotye Ford, Great Wall Yu Jie, Guangqi Weilai, Collar, and Brilliance Renault, and the most eye-catching SAIC Audi has not had any more than a year.

More importantly, the above-mentioned new joint venture company broke a rule and practice almost every time it was established, creating a new industry structure and future space, which is quite rare in the history of the entire Chinese automobile industry.

Let us look one by one.

Jianghuai VW

Volkswagen Jianghuai broke the iron rule of “a foreign company can establish two or less domestic joint ventures to produce similar vehicle products in China”. Volkswagen became the first foreign car with three joint venture partners since the opening of the China Open Auto Joint Venture in 1984. Enterprise.

JAC and Volkswagen signed a joint venture agreement on June 1, 2017. On June 28, the National Development and Reform Commission and the Ministry of Commerce jointly issued the “Foreign Investment Industry Guidance Catalogue (Revised in 2017)” to pursue its legality in terms of policies: The guideline list is still listed as an industry that restricts foreign investment, except for pure electric vehicles.

This is another real encouragement and support from the Chinese government and automobile management departments to promote the electric vehicle industry.

It must be mentioned that from the establishment of Shanghai Volkswagen in 1985 to the first to bring a luxury car to China and then to become a joint venture of new energy, Volkswagen has frequently become a person who eats crabs in China. Its commercial acumen and courage are bold. And government resources are not comparable to other foreign car companies.

Zoty Ford

Ford Zhongtai broke the auto industry joint venture only foreign companies and state-owned enterprises joint venture this mode of practice, becoming the first foreign companies and private enterprises joint venture vehicle company.

One is a global auto giant that has brought about tremendous changes to the entire industry and has a history of 100 years. One is a privately owned brand that bears stigma and savage growth. The combination of Zhongtai Ford has left many people puzzled. The direct driving force is the double-integration policy. The managers are simultaneously deepening their efforts to encourage electric vehicles and spur fuel vehicles. Finding a supplier of new energy points is a solution many foreign companies have to take.

However, the number of domestic companies looking to make a difference in new energy sources is limited, and most of them will be bound by joint venture partners. Ford’s joint venture partner, Chang’an, has huge sales of its own fuel trucks. Take care of Ford. Zotye is the reality that Ford has to accept, and even if the shot is late, Zhongtai may be preempted.

Similar to JAC Volkswagen, Ford has already owned two vehicle joint ventures in China, Changan Ford and Jiangling shares, and Zhongtai Ford is also the third company.

Great Wall Yu Jie

Great Wall Yu Jie is the first joint venture between China's private enterprises and Chinese private enterprises in the automotive industry, filling the gap in the joint venture model.

Great Wall's motivation is similar to that of Ford. After the implementation of the double-integration policy, the Great Wall, which has almost all its products as SUVs, is the car company with the greatest pressure for compliance, and none of them. Therefore, looking for a partner who can provide new energy points and can best cooperate with electric vehicles is the top priority of Great Wall. Xingtai, 250 kilometers from Baoding, is the most easily captured ally in the Great Wall.

It should be pointed out that Yu Jie is not just the “low-speed electric vehicle leader” that many people think. Low-speed electric vehicles and new energy vehicles have already been separated from each other. Low-speed electric vehicles have been assigned to Hebei Yujie Times Automobile Co., Ltd. The new energy automobile business is undertaken by Hebei Yujie Vehicle Industry Co., Ltd.

In the new energy automotive sector, Yu Jie achieved a 6-character qualification at the end of 2014. In July 2017, Yu Jie’s first 7-head product YGM7000BEV entered the “Announcement of Road Motor Vehicle Production Enterprises and Products Announcement” (No. 298) of the Ministry of Industry and Information Technology and finally obtained the Qualification of the 7-character head (car).

Guangqi Weilai

At the end of 2017, Guangzhou Auto Co., Ltd. was established as a joint venture between a large state-owned auto group and a pioneer new venture company. It is not a product that can't be done in order to deal with policy compliance, and it is a joint initiative to deal with future industry trends. In this regard, Guangzhou Automobile is also a different kind.

The joint venture plans a total investment of 1.28 billion yuan and a registered capital of 500 million yuan. Shares are 45% larger than Guangzhou Auto, 45% are Weilai, and 10% are entrepreneurial teams. It can be seen that Guangqi Weilai is also an exploration of mixed ownership.

Collar

In August 2017, Volvo became a shareholder in the lead market, so that the original lead of Geely's own brand became the Sino-Swiss joint venture. This is also the most special joint venture in the Chinese automotive industry: the parent company of the joint venture is the same Chinese company.

The question arises. Why is there a joint venture in 2017? What trends are reflected? Will the new wave of joint ventures continue in 2018?

First of all, this is a good news for the entire auto industry chain. The managers' support for the auto industry has reached an unprecedented level, and they are equally treated and co-hosted by foreign capital, state-owned assets, and private capital.

With regard to foreign investment, the two joint venture partners have been removed from the restrictions and the new energy sector can be renewed. Faced with the new situation, large multinational car companies are actively seeking change and making a new round of layout.

For the state-owned assets, the joint venture between state-owned enterprises and state-owned enterprises, state-owned enterprises and private enterprises was created, which provided a mixture of ownership and other forms of exploration to stimulate the vitality of state-owned enterprises.

For private capital, industry entry thresholds have been greatly reduced. Nine of the 15 new companies that have obtained the NDRC's qualifications are private capital. This is in stark contrast to the tragic situation in which private enterprises could not obtain a permit for livelihood 20 years ago and shouted "The opportunity for the country to give me a failure."

Second, managers have a clear understanding of the direction of change in the automotive industry, and policy orientation is clear at a glance.

In April 2017, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology issued a notice on the "Medium-term and Long-term Development Plan for the Automotive Industry", which laid out a development path for the Chinese auto industry from the top-level design.

The plan mentions that "cars are transforming from vehicles into large mobile smart terminals, energy storage units and digital spaces". These three positionings of automobiles are even more advanced and clearer than many companies.

The phrase “new energy vehicles and intelligent grid-linked vehicles are expected to become the breakthroughs for catching up and catching up with the development” in the plan is also the top-level design’s expectations and goals for the Chinese auto industry. It can explain the starting point of some policy measures and can also explain The reason for the new joint venture boom.

Since it is a mid- to long-term development plan, the continuity of policies can be guaranteed, and whether the new joint venture can continue in the future depends on the agility of the company and how many opportunities remain.