Luxury car dealers ask subsidies for business events continues to ferment. Following BMW auto sales and auto manufacturers to negotiate issues of subsidies, Porsche dealers have expressed dissatisfaction with the company. The latest news that about 95% of Porsche dealers do not agree with subsidies in 2014 and 2015 Porsche proposed and organize a new round of negotiations plan.
Previously, due to continuous losses retailers, luxury brands Audi, BMW, Mercedes, Lexus has come up with large sums of money to subsidize the distributor, the distributor for losses. However, the high subsidies only meet their immediate needs, not a permanent solution. For licensing relationship does not change brand, the contradiction car prices with the dealer will continue in 2015, and has gradually intensified risk.
Aid forced auto companies
Recently, dealers Porsche Porsche and Chinese subsidies for 2014 and 2015 corporate policy disagreement, do not reach an agreement after several rounds of communication. Porsche Dealers said that if the differences between large, we will consider in January 2015 the company suspended the car.
It is reported that the companies involved in the "fight" in the number of distributors representing Porsche dealers Nearly nine communication platforms with Porsche Porsche Association distributors, the Council of November 2014 the annual meeting of China Association of Automobile Dealers in accommodation President Zhou Xiaobo Porsche 100 group profit in the first president of the Federation of dealers.
In fact, is not the first Porsche dealers car prices dare to challenge the luxury car dealer. In late November last year, BMW dealers began negotiations with manufacturers in 2014 and 2015 to subsidize trade policy issues. Manufacturers and distributors after nearly a month of negotiations, BMW subsidy program eventually released. Under the program, domestic vehicles, BMW is based on sales in the second half of last year, subsidies for 4000-5000 dollars per vehicle, imported vehicles, BMW will build on the last two months of October and November car sales 23,000 yuan subsidy.
Later, Audi and Mercedes-Benz dealer in 2014 the subsidy program was officially launched. During the interview, an Audi dealer told Beijing Daily reporter, at the annual meeting of Audi, the companies said that the amount of the subsidy in 2014 was 2.05 billion yuan. In addition, the assessment policy Audi is set, the evaluation system of 14 distributors in 2014 to reduce 6. Assessment system based adjustment, Audi has decided to reduce the results of the evaluation and assessment related discounts, increasing the proportion fixed repayment, the total amount of reimbursement has improved.
Under the proposed scheme Benz, cars Mercedes-Benz for subsidized imports of 4,200 yuan per vehicle, domestic subsidies for vehicle models 7,250 yuan, subsidies Smart models 800 yuan per vehicle, follow the latest sales 1- October in the store and on the number of cards in conjunction with local subsidies, subsidies will exceed 10 million.
In an interview with reporters in Beijing Daily, a number of Audi 4S stores official said that in the huge selling pressure on manufacturers to reduce their stress and burden subsidies manner in pricing.
Selling pressure on the wave of stock
Luxury car dealerships together companies to subsidize the movement highlights the enormous pressure from the sales of the luxury brand in China. Widely regarded by the process of fighting corruption in the government of China affects every luxury car brand in China last year, is struggling day.
According to data released by the State Information Center, in October 2014 the growth of the luxury car market fell to 16.8%, reaching its lowest point in 2014. The first quarter of 2014, market growth luxury car of 35.4% in the second quarter fell to 20% in the third quarter fell more than 19%.
In fact, behind the brand are based on high growth high dealer inventory for the price. Warning inventory of China Automobile Dealers Index Survey China Automobile Dealers Association, released last December showed that the stock index in November was 68%, the chain increased 11.4 percent, well above the 50 % lace. Imported cars, from the second half of 2014, China imported car inventory ratios continue to rise, in June last year industry shares of imported automobiles reached 3.05, higher than the warning value more than doubled in September this coefficient reached 4.05 months rose to 3.74,10 November amounted to 4.22, a record. Furthermore, the data show that China Automobile Dealers Association 2014 had 28.7 percent of the dealers profit, 41.5% unchanged, and the remaining 29.8% at a loss only.
Beijing Commercial News reporters Zou Cheng Jushi Fangjing and found it to digest inventory, dealerships later introducing huge incentives. Some of them are luxury cars discount rate level mark D has reached 30%. Most dealerships luxury brand that reflects the number of car dealers may now but to sell one loss.
Before a large dealer inventories, venture capital strand breaks, China Automobile Dealers Association, the Ministry of Commerce and the Ministry presented a "Report on the movement of cars inventory of high distributors, causing great losses" in the hope automakers can monitor the productivity, reduced sales targets, reduce dealers Yaku behavior. Report to be prepared to deal with the manufacturers and distributors of ready market downturn, you need an accurate picture of the true dealer inventory, distributor inventory levels above the alert level, marks the largest loss manufacturers should take effective measures, if necessary, should give subsidies to certain distributors and dealers share market pressures.
It is noteworthy that although the luxury car brand of his own money to subsidize dealers, help dealers through the "winter", but the results do not let the dealer satisfaction. As of press before the press, Porsche dealers have not reached an agreement with the companies. Number of Porsche dealers said the pressure of big sale, but did not want to be too rigid and corporate spin, the two sides are still negotiable.
An official said the China Association of Automobile Dealers, Porsche dealerships in December last year to 5,500 vehicles sales tasks, the data that the Porsche last 11 months before the average car sales nearly 3680 50 percent, is unable to complete the task in the eyes of the bank, in order to reach a new sales tasks and business policies with manufacturers, Porsche dealers have been suspended from manufacturers to consider lifting car, and will be presented in the original notification automotive consumers months delay mention cars.
Brand licensing business faces change
In fact, dealers and luxury brand manufacturers to open collective bargaining, and the new "auto brand sales management approach" next (hereinafter, the "Regulations") are not related. It is understood that since 2005, "measures" to implement, in the regulation of behavior, while distributors of the brand phenomenon Yaku some car prices with the dealer to enforce price upside down, so miserable distributors.
"The automakers to survive the crisis in an even more serious strong political tied, companies increasingly intensify conflicts". Asian Games Village Automobile Exchange Market Yan Jinghui, vice president believes that "the role of car to buy a good seller conversion dramatic changes in the market, manufacturers are marketing a solid foundation suppliers to sell cars, good money, all shares companies obey orders. Under state buyer's market, businesses that sell cars difficulties, loss of losing money if the usual strongest manufacturers, suppliers of play will open, violent oriented ".
Currently, state departments began to review the new "approach" and hoped that was introduced earlier this year. The dealer wants to improve their fundamental right to speak, and I hope the new "approach" could undermine the business model of brand licensing, reducing the absolute control of the automakers.
In automotive marketing expert Zhang Zhiyong seems blind car manufacturers to develop sales goals and ample extranet, Yaku and other irrational behavior, resulting in high costs of operating distributors, dealers generally along with a loss, conflict broke out between them at the end of the final. Focus of "New" "to the right of many automakers were limited, but also allows the dealer to see the hope, and the manufacturer has put forward higher requirements, reduce operating costs authorized dealers to pressure build new relationship mutual support. "said Zhang Zhiyong.
It is reported that the dealer openly against the action has caused great concern in the community. For more initiative in the game and manufacturers, China Automobile Dealers Association configure multiple brand dealers Association. The introduction of subsidies for auto Mercedes-Benz, the Automobile Dealers Association, an affiliate of the Federation of Mercedes-Benz dealers play a certain role.
Yan Jinghui believes that the current implementation of subsidies granted to the dealer by the manufacturer, demonstrating that manufacturers began to pay attention to the signal distribution losses. After a slow growth market in the standard, with the setting of the "measures" sales pattern cheqi strong to start changing relations between producers and distributors, or will undergo fundamental changes position.