Anti-monopoly big club will be squeezed to the dealers profit margins will be squeezed

Compared with the past, the automobile industry in 2014 had one more keyword: antitrust.

This keyword became a hot topic at this year's Chengdu auto show. During the Chengdu Auto Show interview, the reporter learned that many auto makers and distributors still believe that the anti-monopoly form is more important than the actual role, and that the manufacturer’s sales model price has not been lowered.

"Currently, manufacturers will lower the price of unsaleable models or models that are already subject to high official pricing. In fact, due to market factors, even if manufacturers do not take the initiative to lower prices, they will also cut prices when they sell. Parts are also scarcely available. Need to replace the price adjustment." Some do not want to be named a luxury car brand dealers told reporters.

Even under the pressure from regulators to lower terminal parts prices, automakers also passed on lost profits by forcing them to tie parts to dealers. Many dealers, including Mercedes-Benz and Volvo, have told reporters that after the price reduction of parts and components, the dealer’s price drop from the manufacturer's office is limited, resulting in a much lower profit for after-sales maintenance.

Outside the dealership, it could have been a bystander’s own brand or had been accidentally injured. For reporters mentioned foreign brand car prices, spare parts prices, will make their own brand sales more difficult, Zhang Baolin, president of Changan Automobile Co., Ltd. said, "yes, but will also force their own brands to catch up."

Antitrust form is greater than the actual role?

In July, as the National Development and Reform Commission successively “invited” relevant responsible persons of some auto companies to “drink tea”, the anti-monopoly of the auto industry officially kicked off. Subsequently, luxury brands Jaguar Land Rover, Audi, Mercedes-Benz have adjusted prices of cars and spare parts one after another, and even common joint-venture brands Guangzhou Automobile and Guangzhou Automobile Honda have followed suit.

Even if the auto industry's anti-monopoly is still in full swing, some vehicle companies have not yet imposed the penalty amount, but many auto makers and distributors do not think that the auto industry has monopolistic behavior. “Monopoly means having ownership in commodity pricing. Absolute pricing rights and discourse powers need to be defined in terms of definitions. Currently, the concept of monopoly does not include automobiles. It cannot be said that monopoly in the auto industry is just a business model. There are actually many opportunities for consumers to choose. Can choose not to buy, this business model exists in other industries." The above luxury car dealers told reporters.

Another car company Chery Automobile related parties bluntly said, "The manufacturers are not stupid, the main sales model will not cut prices. China's auto market development is already relatively mature, anti-monopoly can not make the mainstream market changes in a large area."

"From the point of view of accessories, a car has tens of thousands of parts and parts, and prices cannot all be adjusted downwards. Companies may lower the prices of several parts that are not easily damaged. For example, the probability of replacement of an engine is almost zero. The actual significance is not great. This policy is too easy to get the loophole." The luxury car dealer said frankly.

In his view, at present, anti-monopoly has a small impact on car companies, and it has more formal meanings and has little practical effect.

With regard to the role of anti-monopoly in the end, the views of the industry are not consistent. The anti-monopoly “just started” has little effect on the key objects of anti-monopoly and individual luxury car brands with large volumes, and it still needs to look at the direction of follow-up policies.

“Anti-monopoly is imperative, and the Anti-Monopoly Law will make anti-monopoly to become the norm in the automotive industry in the future. Such things should always be done after the industry has reached a certain stage of development.” Zhang Baolin is accepting reporters Said during the interview.

Dealer profit margin squeezed

“Anti-monopoly has actually affected the interests of dealers. Manufacturers will reduce the price of spare parts, but it is still very small compared with the price reduction rate that terminal distributors sell to consumers.” said the above-mentioned luxury car dealers.

A Mercedes dealer in Chengdu added: “After the price reduction of the parts and components, the decline rate of the dealer’s profits should be relatively large. The downturn of the parts is divided into two parts. The first is the purchase price of the distributor, for example, the purchase price of a certain part before. At 20 yuan, it is now down to 18 yuan; second is the price of parts and components sold by dealers to the owner, which can be sold for 40 yuan before the limit, and may now only sell for 30 yuan. Dealers' profits are more sacrificed."

For most 4S stores, most of the parts used will need to be sourced from automobile manufacturers. The proportion of dealers who purchase independently is very small. At the same time, if dealers are found not to purchase corresponding parts and components from the after-sales department of the company, they will be punished. Not too light. For example, if FAW-Volkswagen finds that the distributor has the above-mentioned conditions, it may impose a fine of more than one million yuan on the distributor or deduct the rebate at the end of the year.

“Some manufacturers not only strictly require the procurement of spare parts, but also the accessories of the car will be sold to dealers. The price of these decorations is much higher than the market price, and the quality is also very poor. If dealers are found to be selling decorations, they are not Manufacturers who purchase goods will face fines,” said a person in charge of a distributor group that operates several automobile brands.

In his opinion, if the NDRC can investigate the vertical monopolistic behavior of manufacturers' spare parts and vehicle maintenance prices, it will be of great benefit to dealers.

Beijing Modern dealers also very much agree with this view. He said that "anti-monopoly investigation of the supply of monopoly parts for OEMs is a good thing, manufacturers can not do whatever they want, and dealers can also relax. Parts procurement can be completely market-oriented."

However, there are also Jeep dealers who believe that “supply of spare parts from manufacturers is also aimed at safeguarding the interests of consumers. If 10 dealers have one company that does not purchase genuine spare parts, a problem has been complained by the customer. How can this be done? This will affect To the entire brand image. From a standard, safety point of view, manufacturers supply is good, of course, does not rule out that some brands of dealers to mix true and false accessories to sell."

Or accidentally hurt their own brand

It must be said that the city gates have caught fire and fish ponds. More than once, their own brands have accidentally become "fish."

Originally, antitrust was initiated by foreign brands, especially luxury brands in foreign capital, which had nothing to do with independent brands. However, at the same time that various foreign brands actively lowered the price of automobiles, the joint reaction of the market caused the independent brands to be accidentally injured. Now.

“The downgrade price of luxury cars will not affect their own brands. The price cuts for joint venture brands such as Toyota and Honda will not be the same. If this downgrade drives down the price of the entire market, plus the factors such as upper limit purchase and upgrading, consumers will choose. The probability of owning brands in the low-end market will become even lower," said the luxury car dealers.

“This kind of monopoly of the auto industry is naturally formed by the market. The auto brand itself is a kind of monopoly, and the independent brand has no basis for monopoly. If public opinion leads consumers to think that the car has to lower prices, it will have an impact on self-owned brands. "The above Chery manufacturers said.

“Whether it is a joint-venture brand or an independent brand, it cannot do anything against the laws of the market, and automobile anti-monopoly is also very powerful in the West, but it has only been on the right track through long-term development. Whether it is an independent brand or a joint-venture brand, the road will definitely go. Pay the price." Changan PSA executive vice president should be open-minded.