In recent months, the “contradictions†between dealers and car companies have suddenly escalated. The deeper reason is that manufacturers are blindly expanding in channel construction, and they are disregarding the profitability of dealers.
At the same time, the era of rapid growth of China's auto market has gradually gone away, and dealers' operating conditions have continued to deteriorate. The "Automobile Brand Sales Management Implementation Measures", which is expected to improve the relationship between factories and businesses, will force manufacturers to make more concessions from the policy level.
Retirement, pressure storage, price upside down... All along, reports on the survival dilemma of auto dealers are common in newspapers. However, in recent months, the “contradictions†between dealers and manufacturers have suddenly escalated. A number of automobile brands have appeared in dealers to ask for subsidies, as well as requests for changes to business policies, etc., industry associations also stood up and shouted. What's more, some media refer to 2014 as the "first year of dealer revolution."
Dealers jointly defended rights, industry associations screamed during the 2014 Guangzhou Auto Show, 32 BMW dealers jointly submitted a petition letter to BMW Grand China President and CEO Ange, hoping to receive an additional rebate of RMB 6 billion and BMW China after each year The sales task volume must be negotiated with the dealer to determine the requirements. On January 5, 2015, BMW finally agreed to provide a subsidy of 5.1 billion yuan to its Chinese distributors.
Or affected by the BMW dealer event, Mercedes-Benz and Audi have taken the initiative to give dealer subsidies. In December 2014, Mercedes-Benz China gave dealers an additional bonus of about 1 billion yuan in the name of “Special Sales Quality Awardâ€. Audi gave an annual subsidy of 2.05 billion yuan to the dealers, and announced the cancellation of six evaluations such as CSS service and CSS sales. From the previous 14 assessments to 8 reductions, increase some fixed rebates, reduce assessment rebates, and increase total rebates.
Following the joint petition of BMW dealers, about 90% of Porsche dealers disagreed with the Porsche 2014 subsidy policy and the 2015 business plan. He also said that if the two sides communicated, they still have great differences and will consider suspending their entry into the vehicle.
On January 8, 2015, the media exposed the news that the Import Volkswagen Dealer Association sent a letter to the importing public and put forward a series of requirements to improve the living environment of dealers and get fair treatment.
At the same time, some industry associations also deeply participated in the dealers' rights protection. On November 17, 2014, the National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce issued an open letter in Beijing, proposing six initiatives to urge auto suppliers to take practical measures to solve the problem of car sales price inversion. At the same time, the Chamber of Commerce also stated that it will take legal measures on behalf of dealers to collectively defend their rights with auto suppliers.
On December 1, 2014, Jiangsu Automobile Deal Management Association released the “Report on the Survival Status of FAW Toyota Jiangsu Distributors†on its official website. The report pointed out that "FAW Toyota's domineering and unequal business policy has made the dealer's living conditions particularly harsh and worrying."
On December 26, 2014, China Automobile Dealers Association sent a letter to FAW Toyota, on behalf of more than 500 FAW Toyota dealers to propose nine points, including the manufacturer should give the dealers a subsidy of not less than 4,000 yuan per car (the total value is about 2.2 billion yuan) and so on.
Market environment changes, dealers continue to lose money JDPower data shows that from 2012, the profitability of Chinese distributors continues to deteriorate. In 2012, 40% of dealers were in a loss state. In 2013, the dealers' loss rate was over 30%. The most optimistic situation in 2014 was that the loss rate was the same as in 2013.
The deteriorating business situation has made dealers have to hold a group to "warm." The deeper reason is that in the process of rapid development of China's auto market, manufacturers are blindly expanding in channel construction, and disregarding dealers' profit margins. According to data from the China Automobile Dealers Association, the cumulative number of Chinese auto dealerships in 2010 was 16,000, and by the end of 2013 it had exceeded 22,000.
At the same time, in the context of the overall slowdown of the Chinese economy, the era of rapid growth of the Chinese auto market has gradually gone. In addition, the policy scope of restrictions on purchases and restrictions has been continuously expanded. At that time, it was still able to withstand the pressure of the library, and now it is like the "last straw", which may cause the dealers to collapse.
Although the "game" between manufacturers and dealers has been around for a long time, the contradiction between the two sides seems to have never been so intense. If it is not the point of "life and death", how can dealers dare to "be as good as water and fire". After all, the dealers have to "sit life" under the manufacturers.
The new "Measures" will force manufacturers to make more concessions to be expected to improve the relationship between factories and businesses. The revised version of the "Automobile Brand Sales Management Implementation Measures" (hereinafter referred to as "the Measures") will not be officially completed in 2014. Baked out." In the last two weeks of 2014, the Ministry of Commerce again publicly solicited opinions. As soon as the news came out, industry insiders realized that the revised version would be postponed.
Different from the old "Measures" introduced in 2005, the Ministry of Commerce has significantly increased the importance attached to dealers in the process of amending the "Measures." An industry insider who has been involved in the revision of the automobile brand management method said that although the new "Car Brand Approach" retains the manufacturer's authorization mechanism, it has weakened the brand, focusing on some fair trade principles and some breaking the monopoly principle. For example, tying and manufacturers strongly require dealers to complete the number of sales and other regulations are involved.
The contradiction between dealers and manufacturers, the reason is still from the pressure of the market. The implementation of the new "Measures" will force manufacturers to make more concessions from the policy level to ease the deteriorating business conditions of dealers. At the same time, in the face of the slowdown in market growth, dealers and manufacturers should also establish an effective communication mechanism based on equality and mutual benefit, continuously improve the technical level, optimize service quality, and practise internal strength and go through difficulties.
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