Behind The Masses Of The Yangtze River Huaihe River: The New Path Of Foreign Capital'S Electric Strategy In China

In May 29th, Volkswagen and Jianghuai motor signed a strategic joint venture cooperation agreement in the Great Hall of the people of Beijing: Volkswagen Group plans to invest 1 billion euros to win 50% of Jianghuai Automobile controlling shareholder and to increase the shareholding of the joint venture company to 75%.

The trading plan will be implemented before the end of this year. The Jianghuai Volkswagen is expected to become the first Chinese and foreign auto joint venture to change the stock ratio earlier than BMW brilliance.

In October 2018, BMW announced that it would increase its stake in brilliance BMW, a Chinese joint venture company, to 75%, creating a pioneering position for foreign capital holding joint ventures in China. However, shareholders of BMW brilliance plan to complete the change of equity adjustment in 2022.

According to the special management measures for foreign investment access (negative list) issued by the Ministry of national development and Reform Commission and Ministry of Commerce in June 28, 2018 (2018 Edition), the automotive industry will be open to different types in the transitional period. In 2018, the restriction on foreign capital shares of special vehicles and new energy vehicles was abolished in 2018. In 2020, the ratio of foreign capital shares of commercial vehicles was abolished. In 2022, restrictions on the ratio of foreign capital shares to passenger cars and the limitation of no more than two joint ventures were abolished. The opening of China's auto industry joint-stock shares has opened up, and the share ratio game has become the focus of attention in the industry.

In BMW brilliance, BMW announced the adjustment plan. In 2019, Tesla's sole proprietorship was established in China. The industry generally believed that there would be other car companies to follow up.

It is worth noting that the public has become the major shareholder of Jianghuai Automobile parent company while increasing its share of the public. In addition, it is also planning to become the largest shareholder of the power battery supplier in Hefei, China, so as to establish a more complete new energy industry chain system in China.

"BMW's holdings of brilliance BMW aim to seek control and grasp more discourse power so as to import new technologies and products, which are more technical aspects of the layout. The background of the public's stake in Jianghuai is the strategic transformation of the global automotive industry towards intellectualization and electrification. The masses are different from Jianghuai and brilliance BMW. The former is not a simple technical layout, but a layout based on deliberation and rising to the long-term strategic level. In May 31st, Fu Yuwu, honorary director of the China Automotive Engineering Society, said in an interview with the twenty-first Century economic report reporter.

It is worth noting that among the major multinational companies, the popular electrification transformation is very firm. China is the world's largest new energy vehicle market, and is also the most important market in the world.

"We are now prepared to cope with the change of China's automobile market in the future, and our overall business needs to be adjusted and adapted." In May 29th, Volkswagen Group CEO Dixie accepted the twenty-first Century economic report reporter telephone interview.

For China's auto companies, the changes in the industry structure brought about by joint venture stocks deserve more attention. The logic behind a series of actions of the public also provides a new way of thinking for the joint venture company at the crossroads.

Another electric path.

There are three main joint ventures in China. Founded in 1984, SAIC Volkswagen, SAIC and Volkswagen share 50% respectively. FAW Volkswagen, founded in 1991, FAW Group and Volkswagen and Audi respectively held 60%, 30% and 10% respectively. The Jianghuai Volkswagen, founded in 2017, specializes in the production of new energy vehicles, and each side owns 50% of each stock.

The public first disclosed that the plan to change the joint-stock ratio was in March 2019. At the annual meeting of Volkswagen Group at wolf's headquarters in Germany, dice revealed in an interview with the economic news reporters in twenty-first Century that the public wanted to raise the share ratio of joint ventures in China. However, he did not say which joint venture it would be.

However, at present, a series of initiatives by the public in Hefei are not just as simple as adjusting the shares of a joint venture company.

Every step of the layout is designed. At the group level, it formed a 50% to 50% equity allocation. But in terms of electrodynamics, Volkswagen wants to hold 75% of the Jianghuai people. Besides, there is also a battery that has the final say, so it has been invested in the national high tech company. These moves are based on the strategic judgement of the electric transformation and the strategic choice made under careful consideration. Fu Yuwu said.

Das said that increasing the shareholding of the Yangtze and Huaihe masses is a very important step for the long-term development of the public in China.

First of all, by increasing the shareholding of Jianghuai shares, it will enable the masses to get management rights. This will have far-reaching significance and convenience for the future implementation of the strategy in China. Secondly, it can expand the public's patent pool, have more research and development capabilities, patent pools and technology reserves, and will lay a good foundation for the next big step in the development of the Chinese market; in addition, it can better upgrade in China. The layout of the electric strategy development speed up the process of electrodynamics and bring more yuan's strategy and brand.

In addition, Hefei's national high tech company in the same place, its battery capacity, resources and capacity can be shared by three partners in China, so as to get a good resource reserve on the battery level.

According to DIS, Jianghuai Volkswagen will have different brands with FAW Volkswagen and SAIC Volkswagen, and the market segments it aims at will also be different. From the characteristics of Jianghuai people, small and pure electric vehicles will be the starting point for the masses.

Insiders admit that although the public does not have the market driven electric products like Tesla, but with its technological accumulation and large-scale R & D layout, it has the opportunity to get some market cake in the mid end market.

It is worth noting that the public will see Hefei as an important base for the next stage of intelligent and electrodynamic development in China.

Last May, Volkswagen's first smart city project in Hefei was set up in China. The public's wholly owned subsidiary intelligent driving technology is developing and testing future mobile travel related projects.

It can be seen that in the public's strategic thinking of China's electrodynamics, it is no longer the traditional way to import products by joint ventures, but to set up an electric path, forming an industrial chain closed loop in China. Not only did we grasp the shareholding power of the joint venture company, but also invested in China's parts enterprises.

Volkswagen electric vehicle MEB platform will be put into operation in SAIC Volkswagen Anting factory and FAW Volkswagen Foshan plant in the second half of this year. According to the information previously disclosed, the battery supplier of MEB platform in China is Ningde era. "In view of our huge demand for batteries, we need many suppliers, and we are also controlling the risk of supply chain." In May 29th, Volkswagen China CEO Feng Sihan, in an interview with the twenty-first Century economic report, said that in the future supply of batteries and batteries, Volkswagen is an important part of China's Volkswagen's future, and will supply batteries to three joint ventures in China.

In recent weeks, the share price of Jianghuai Automobile and Guo Xuan hi tech company rose all the way, and experienced multiple trading boards. Despite the fact that the public is already a major shareholder of two A share listed companies, Feng Sihan, a popular Chinese CEO, told the twenty-first Century economic report that the public can not intervene or intervene heavily in the operation of Jianghuai vehicles, and will focus on joint ventures. From the perspective of Volkswagen Group, it is not necessary for them to intervene in their management, but to help them further consolidate their market position.

Jianghuai's way out

For Anhui Province, the two investments of the masses can boost local employment, contribute taxes, stimulate the economy, and more importantly, drive and support local enterprises.

Guo Xuan hi tech is the third largest power battery manufacturer in China, but it has obvious technical level and market gap with Ningde era and BYD. In the field of power batteries in China, the market concentration has been constantly improving, and Japan and South Korea's battery has entered China vigorously.

Although China has many cooperative car companies in China, it mainly supplies to China's own brands, concentrating on low-end products. In the long run, there is no small bottleneck for development. After relying on the public, the company has the opportunity to expand its market scale and invest more funds and resources into research and development. For the second echelon of national Xuan Gao Ke, this is a powerful means to enhance product competitiveness at this stage.

Jianghuai Automobile was originally a full range of fully autonomous local state enterprises, started with commercial vehicles, and cut into the field of passenger cars in recent years. However, due to intensified market competition in recent years, the market performance of Jianghuai is not satisfactory.

"Industrial transformation is also electrification, mixed economic reform, and further expansion of reform and opening up. These three opportunities have been seized by Jianghuai. If we give up and lose these opportunities and do not grab the window period, Jianghuai is likely to be out in the next round of competition. Fu Wu said.

The automotive industry is undergoing tremendous changes. The Chinese auto market is also full of changes, showing a clear pattern of survival of the fittest and polarization. For enterprises such as Jianghuai that do not have enough market competitiveness, cooperation with multinational companies is also looking for a way out for enterprises in the future.

"Jianghuai does not have its own special technical reserves, and its cooperation with large transnational giants is much less risky." In June 1st, senior automotive media bell division received an interview with reporters in twenty-first Century economic report.

It is worth noting that, with the liberalization of the joint stock ratio, foreign enterprises have gradually adjusted the share ratio of the joint venture companies in China. The Chinese auto companies must wake up to the fact that the competition will be intensified and the industry is facing a complete reshuffle, which will push the reform and adjustment of the state-owned automobile enterprises. In particular, the process of motorized cars makes this problem even more urgent.

"Large foreign companies have plenty of capital and billions of dollars are easier to get. Unlike the new force of the car industry, it is difficult to persuade and mobilize people to face the financing problem. In the electric vehicle market, competition is fierce. Apart from technological competition, capital competition has intensified. In June 1st, An Qingheng, director of the China Automotive Industry Advisory Committee, told reporters on twenty-first Century economic report.

On the one hand, China further reforms and opens up the automobile industry as a landmark industry. On the other hand, in the open environment, enhancing the competitiveness of independent brands is the current problem facing China's auto industry.

To strengthen the auto industry, independent brands must participate in international competition. In the end of the first World War, this "war" has arrived. We must meet with a fighting attitude and a learning attitude. We must have confidence and improve ourselves at the same time and improve our core competitiveness. This is what China's local car companies are going to do now, and can't give them 5 or 10 years. Fu Wu finally said.

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