In the years after China's accession to the WTO, there was no lack of Chinese self-owned brand cars and its own trademarks in the new joint ventures, but it was difficult to manage.
With SAIC and Yuejin all-round cooperation, can the two brands “Roewe†and “Mugs†compete with each other, and use integrated management to fully collaborate and develop together?
"'Roewein' and 'Mugs' have great sharing in technology and parts and components," said Chen Hong, president of Shanghai Automotive Co., Ltd.: "When MG ROVER was in operation, the MG brand was biased towards sports fashion, and Rover was relatively Emphasis on the noble and robust. These two positioning is basically a basis for our determination of the positioning of the two brands, 'MGC' and 'Roewe'."
“Chinese-funded auto companies are building their own brands and are currently in a relatively decentralized state of competition,†said Zhang Boshun, Secretary-General of the China Automobile Association’s Market and Trade Commission on January 2. SAIC and Yuejin’s comprehensive cooperation is expected to exert their advantages in agglomeration and accelerate their ability to independently innovate. , to create an independent brand with international competitiveness.
According to the "Eleventh Five-Year Plan for Development of China's Automobile Industry", the company's own brand refers to the brand owned by the company with independent intellectual property rights. The acquisition of independent property rights can “through independent development, joint development, or commissioned development†or through “original innovation, integrated innovation, digestion and absorption, and re-innovation†to “develop technologies and products with independent intellectual property rightsâ€. .
Large Group's Autonomy
According to Zhang Boshun, at present, domestic auto companies (groups) of their own brand automobile projects (mainly passenger cars) are not placed in joint ventures.
It is understood that the "red flag" was born in 1958. In 2006, the brand value reached 5.828 billion yuan. FAW Car Co., Ltd., which produces the "Red Flag", was established in June 1997, and 63.63% of FAW Group Holdings. The "Red Flag" upgraded products Pentium and HQ3 were built by FAW Car Corporation.
In July 2007, Dongfeng Motor’s Passenger Vehicle Division and Wuhan Plant were established one after another, and the self-owned brand cars entered a substantial construction phase. The products will cover B, C, and D-class models, and the first product will go offline in early 2009.
Although both Shanghai Volkswagen and Shanghai GM’s Pan-Asian Technology Center have strong localized design and development capabilities, SAIC is investing RMB 1.8 billion in three phases to expand the Automotive Engineering Research Institute and strive to build a leading domestic technology engineering development center by 2010. Provide sustainable technical support for the creation of independent brands.
Shanghai Automobile Passenger Vehicles Branch was established in February 2006. It is a professional company that Shanghai Automotive Co., Ltd. has made its own brand “Roewe†series of cars.
“After the cooperation between SAIC and NAC, SAIC R&D in the UK and NAC’s organization in the UK will have to integrate. In the future, there will be three platforms in the UK. One is a R&D platform, one is a production platform, and the other is a marketing platform.†Rainbow said.
Chen Hong also said that after the South Africa cooperation, the first step is to strive for the early restoration of production in the United Kingdom. The first is to carry out restorative production of the original old products, and also to introduce improved products so that “our business in the UK can embark on a better track of developmentâ€.
The confusion of the brand of the joint venture
Hu Maoyuan, chairman of SAIC, pointed out recently that “we would like to continue to expand cooperation with Fiat or Fiat’s Iveco company. SAIC also has a mini vehicle in Liuzhou, Guangxi, which is currently the first in the country. Now we add this commercial vehicle to Nanjing Auto. We have more models and series of commercial vehicles."
It is understood that in January 2007 after the Nanjing Yuejin brand commercial vehicle was incorporated into the joint venture Nanjing Iveco, the foreign party not only recognized and retained the Yuejin brand, but also invested 60 million yuan in the joint venture company to integrate Iveco's core technology into the Yuejin light truck. Make it meet European standards.
Can joint venture auto companies own and operate their own brands? Zhang Boshun believes that in the few years after China’s accession to the WTO, there was no lack of China’s own brand cars and its own brand in the new joint ventures, but the operation was quite difficult.
For example, SAIC-GM-Wuling’s “Wuling†and “Chevrolet†(Spark) implemented dual-brand operation, in which sales of own-brand “Wuling†accounted for more than 90% of total sales of joint ventures.
"Liuzhou Wuling has provided Wuling brand and trademark to joint ventures for free, which is regrettable." Zhang Boshun said: "We should strengthen our awareness of protecting our own brands."
According to another report, the triumph car jointly developed by Shenlong and France PSA, the entire vehicle intellectual property belongs to Shenlong Company. After triumphant production began in Argentina in April 2007, it has begun sales in South America. In the fourth quarter of 2007, it was officially listed in Spain to open the door to the European market. However, Triumph's overseas production is led by the PSA Group. Shenlong Company is only responsible for some auxiliary work.
It was also learned that FAW and Mercedes-Benz began negotiations on the joint venture of the Liberation Project in 1999. Xu Yanhua, deputy director of the Planning Department of FAW Group, once said that "FAW wants to use a joint venture with Mercedes-Benz to get a high starting point and integrate into the world's high-end heavy truck market as soon as possible." However, because "the joint venture may dilute the 'liberation' brand, the two sides did not finally negotiate." "Liberation" brand value reached 11.462 billion yuan in 2006.
The autonomous path leads to the same goal
"We must stand at the height of the 'national development strategy' and look at the cause of building a branded car of its own," Zhang Boshun said.
According to the “Eleventh Five-Year Plan†of China’s auto industry, the market share of self-owned brand cars in the domestic car market “strives to reach 50%â€.
At present, major domestic automobile groups have made achievements in building their own brand cars.
“At the same time as we are doing the alliance, this base in Shanghai, including the entire vehicle, including the independent brands, has already done a very good arrangement. We will do our best to solve the problem when the assets of the first half of Nanqi Automobile came in. Some of the influences have come to indirectly protect the interests of social shareholders,†Hu Maoyuan said recently.
According to reports, Guangzhou Automobile invested RMB 3.8 billion in the first phase and laid the Panyu R&D base in November 2007. It plans to enter the market for mid- to high-end cars of its own brand in 2010. In August 2007, Chery’s 1 million automobiles were off the assembly line. Chery Automobile Co., Ltd. has owned independent R&D capabilities, independent intellectual property rights, and core technologies for complete vehicles, engines, and some key components. It has become China’s largest independent brand passenger vehicle R&D, Production, sales and export companies.
According to Zhang Boshun's analysis, by the end of the “Eleventh Five-Year Plan†period, there will be major changes in the car structure of the Chinese car market, forming a new pattern of independent brands and foreign brands on the sedan market. Among them, the self-owned brand sedan market is built by Chinese-funded enterprises such as “Roeweâ€, “Red Flagâ€, “Charlieâ€, “Changanâ€, and “Cheryâ€, “Brillianceâ€, “Geelyâ€, “BYDâ€, “JACâ€, and “ "Great Wall" and other companies' product lines are the mainstay.
Representatives of the self-owned brands in the joint venture will be the brand cars that Guangzhou Honda launched from Guangzhou Honda Automobile Research and Development Co., Ltd. in 2010. It is a brand model that China has fully owned independent intellectual property rights.
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