[Aika Auto Aika Unicorn SHOW Original]
"If we advance the strategy we are taking now, then we don't need to set up a factory in China."
At this year's Paris Auto Show, Stellantis Group CEO Tang Weishi (Carlos Tavares) once again made a shocking statement. The group is considering implementing a "asset light" strategy for its brands such as Peugeot and Citroen in China. If the strategy is implemented, it means that Stellantis Group may completely stop its automobile production plan in China. In July this year, Stellantis Group also said the same thing when it terminated the Jeep joint venture in China, GAC Fick .
Compared with Tang Weishi's repeated slogan "will not give up the Chinese market" that has been repeated to the outside world in the past two years, the current transformation of "full asset light in China" reveals the bitterness and helplessness of Stellantis losing China, the world's largest electrified market, . But Tang Weishi did not realize the problem and was still making mistakes. In this issue of "Aika Unicorn SHOW", let's talk about the "light assets" of the French system and what are the ways to do in China.
Tang Weishi - put down the bowl and curse
Tang Weishi is a typical figure of "controlling costs and continuous profitability" in the comments of relevant media around the world. This is closely related to his 30 years of work experience at Renault after graduation, and is also greatly influenced by his mentor Ghosn. He graduated from the same university and grew up in the Portuguese context. This is Ghosn's secret to saving , Renault , and it is also the way for Tang Weishi to succeed in PSA.
Therefore, from Renault to PSA, to the Stellantis Group after the merger of PSA and FCA, Tang Weishi has been able to gain a foothold in the global car world for many years, and it is impossible for him to have a few brushes. It is such a "ruthless" Tang Weishi who can push him to the forefront with just a few words.
1, "Europe should learn from the United States to give strong subsidies"
This is beyond the scope of the Chinese automobile industry, and we will not comment.
2, "China's market policy intervention is too strong"
The "policy intervention" mentioned here, Tang Weishi refers to new energy policies. However, in recent years, when domestic consumers mention new energy vehicle , why do they think of Chinese brands first? The main consumption is also centered on Chinese brands, not joint venture models? The main reason is that the product power has far surpassed that of European electric vehicles. Traditional old European automakers use the " oil-to-electric " model and set high prices to wait for the money to collect, which is difficult to fool Chinese consumers.
Speaking of the fuel vehicle field, the story of the same THP engine of BMW has been told for more than ten years, and BMW has also updated two generations of products. French car companies, have you really developed good products for the Chinese market?
3, "China tends to be local brands but is not friendly to foreign brands"
Perhaps every Chinese consumer and Chinese automobile user has a say in this regard.
Peugeot, Citroen and Volkswagen were the first foreign car brands to enter China, but the development history of the three is very different. Fukang , Santana , and Jetta were once ranked as the third in the early years in the Chinese automobile market. Guangzhou Peugeot 505 is also a very classic intermediate car , leaving a strong mark in the Chinese automobile market. However, when Peugeot Citroen's reputation as a joint venture to a factory and put into production without the support of the national government and banks, it has gained a foothold in China and has been on par with Jetta Santana for many years.
What is sad is that after years of hard work in the domestic market, French cars have left a label of "arrogance" in the minds of Chinese people. This arrogance is not only reflected in the pricing of models, but also insidious and conservative views on model and technology iterations over the years.
French models have also experienced the wonderful time of "foreign brands eat meat, Chinese brands drink soup, and count money while lying down", but when the product is not good, they "put down the bowl and curse."
4, "Appointment to the European government to restrict Chinese brands from entering the European market"
What the French are most reluctant to see and admit is that the wave of electrification and intelligence is irreversible. At the Paris Motor Show, Chinese brands represented by BYD , Weipai, and Ora have entered the European new energy market. NIO 's self-operated car rental business in Europe. BYD has won the order business of 100,000 cars in Europe for the largest car rental company, which has stimulated the French people's nerves.
If you can’t sell your own things, you must restrict others’ things from you. Is this the logic of a child?
Tang Weishi - put down the bowl and curse
PSA What is the dilemma of China?
1, product weakness
Time goes back to the 2019 Shanghai Auto Show, and then CEO of PSA Group Tang Weishi called out to Chinese partners from a distance: "PSA products are first-class, and the problem lies in marketing and management." However, anyone with a discerning eye knows that since he took office in 2014, the dilemma of PSA in China is that the product itself is . According to the data of
, from Fukang to Elysee , from 307 to 408, the sales of Shenlong Automobile reached its peak in 2015; on October 17 this year, Shenlong Automobile also released a good sales report. With the popularity of Versailles C5 X, Shenlong's cumulative sales this year are about 100,600 vehicles, which has exceeded the annual sales in 2021, and has achieved positive year-on-year growth for 23 consecutive months.
And when the bonus of the 408 and Versailles C5 X disappeared, the decline of PSA also came. It can be said that in recent years, except for the 408 and Versailles C5 X, almost all PSA products have been unacceptable in China. So to a certain extent, Tang Weishi's words at the 2019 Shanghai Auto Show have reflected huge cultural differences. Another reason for the cliff-like decline of
from selling 700,000 vehicles annually to selling 50,000 vehicles annually is the conflict of management concepts between China and France. If Shenlong Automobile takes China as its absolute leading position and fully utilizes its local advantages in products, operations and services, Shenlong may also return to its former glory. "Whether a company is good or bad, managers are the key." Zhang Zutong, member of the Standing Committee of the Party Committee and deputy general manager of Dongfeng Company, said bluntly when analyzing the reasons for Shenlong's previous poor business.
2, "Two bedrooms and one living room" has no following
At the beginning of this year, Stellantis Group intended to contact Dongfeng Group , hoping to create a "two bedrooms and one living room" solution in China, that is, China will lead the Citroen brand and France will lead the Peugeot brand, and share public resources and fields including manufacturing. However, so far, there is no feasibility or accuracy of this plan. Moreover, during the more than half a year of waiting, Dongfeng Group continued its previous plan to reduce its holdings in PSA shares and multiple times. The amount of the original PSA Group and Stellantis shares that Dongfeng Group reduced its holdings has reached 1.495 billion euros . At the same time, the Opel brand has also stopped its expansion plans to the Chinese market.
3, Financial warfare between Dongfeng Motor and PSA
In Tang Weishi's perception, the biggest factor affecting the operation of Peugeot and Citroen brands in China is not the product, but the long-term pull between Stellantis Group and Chinese investors.
It is reported that in 2014, Dongfeng Motor acquired a stake in PSA. At that time, Dongfeng Group acquired 14.1% of the equity of the French PSA Group for 800 million euros, ranking as the largest shareholder with the French government and the Peugeot family, saving the PSA Group, which was in a financial crisis. The following year, the double convenience during the honeymoon period also hit the peak annual sales of the above 700,000 vehicles. However, given the influence of multiple factors such as the chaos in management of Chinese and foreign investors and the slow introduction of product technology, Shenlong Automobile is on the verge of decline, and currently only rely on Versailles C5 X to barely stick to it.
’s global problems are also prominent
Even though Shenlong Automobile’s sales in China have exceeded 100,000 units this year, in the eyes of shareholders, without a new car plan and a strategic layout of new energy, the development prospects of Stellantis Group in the Chinese market are still very vague. The strategy in China is not clear, and the same problem is also very prominent in the world.
brand is too scattered, there are many models and outdated, there is no main best-selling model , etc., and the staggered alliance situation lasts too long, it is inevitable that is inverted and internally consumed by .
In terms of new energy strategic layout, in view of the poor performance of the fuel vehicle market, Stellantis Group is eager to find a breakthrough in the new energy vehicle market. According to previous plans, PSA Group will achieve full electrification by 2025. However, there are still three years left before the target. With the current results of PSA electrification, is still in the stage of "oil to electricity" , and there is no new and independent electric vehicle exclusive platform. In contrast, traditional automobile companies such as Toyota and Volkswagen have accelerated their electrification process in China and bet on the Chinese market. General has retreated from Europe, with the core focus on the Sino-US market. It is extremely difficult for the Stellantis Group to achieve such a grand goal in three years.
Full text summary:
With the advent of the era of electrification, one of the competitors of Stellantis Group, Volkswagen Group has sold more than 3 million vehicles in China in one year, making the former difficult to hide its shyness. The rise of traditional Chinese automobile companies such as BYD and Great Wall, as well as a number of new car-making forces such as Ideal and NIO, has made this French brand unable to move forward in the Chinese automobile market. Compared with traditional automobile companies such as Toyota, Volkswagen, and General Motors that are highly dependent and fully bet on the Chinese market, Stellantis Group's business in the Chinese market has always been sluggish, and its global sales share is not high, and it has even suffered losses for many years.
As the leading figure of Stellantis Group and the "troll" in the global automotive circle, Tang Weishi does not respect the times very much, and is stubborn and domineering. It is the biggest weakness of managers, and Tang Weishi has it. cannot face the leaders of history and reality. Misjudgment of the future of the industry may directly ruin the French brand in the Chinese market.
review of exciting content:
PSA CEO Tang Weishi: There is no demand for pure electric vehicles in the market
GAC accused Stellantis Group of disrespect for the Chinese market
Stellantis and GAC Group negotiated to terminate GAC Fick
PSA’s dilemma in China?
