“Whether it can survive in the current unfavorable market situation and make its own sales team able to make money and prevent them from dying is actually a key link for manufacturers to save themselves.†On November 15, Deputy Director of Department of Industrial Coordination, National Development and Reform Commission Chen Jianguo held the "2008 China International Automobile Industry Development Forum" in Tianjin. He hopes that manufacturers will make new trade-offs on the balance between sales network management, sales policies, prices, and profits.
Some dealers hang a line
"It is estimated that more than half of the heavy truck companies will not complete sales plans this year, and some companies may also suffer losses. However, there is no problem with first-line brand profits." Tan Xiuqing, an expert from the China Automobile Industry Association, told the "Commercial Automotive News" reporter. It is understood that although sales peaked in the first half of this year, unfavorable factors such as the State III switch, Olympic production restriction, and the financial crisis intensified in the second half of the year, resulting in a rapid dip in the commercial vehicle market and the “golden nine silver ten†became a bubble. There are also many cars.
A brand heavy truck dealer in Hongdong County, Shanxi Province, told the reporter: “In the second half of the year, we basically did not sell cars and the after-sales service was not large. Now we rely on the company’s transportation company to maintain the entire company’s operations.†“We anticipate that The market was bleak, but did not expect the market to be so light. At present, we still have a backlog of 670 vehicles, which are estimated to be difficult to digest by the end of this year.†Another heavy-duty truck dealer in Jiaozuo, Shanxi Province, also stated: “This batch of vehicles has pressured more than 10 million of us. Yuan's funds, there are now more than 60 employees waiting to eat, and the bank's loans to return, the funding situation is indeed very tight."
At the same time, with the reduction in the number of international orders, the coastal SMEs stopped production and restricted production, and the sales of light trucks in coastal cities were greatly affected. “At present, our sales volume has dropped by 67.0 percent compared to the same period of last year. What is even more frightening is that the impact of the financial crisis has not yet fully manifested itself. At present, China’s real economy has not been affected yet. Once it is impacted, the market will continue to explore. A long period of market recovery may eliminate many dealers, said Mr. Liu, a light-card brand dealer in Dongguan.
“At present, micro-substances are not yet directly affected by the financial turmoil, but many dealers also have difficulties in sales in the second half of the year, and even sales show a negative growth,†said a micro-retail dealer in Zhejiang.
Company's position to support distributors
Commercial vehicle companies themselves have not had a good day. An industry source told the "Commercial Automotive News" reporter: "At present, most of the heavy-duty truck companies have begun to restrict production or even stop production. The industry is also rumored that a heavy truck company will lay off 5,000 people."
Due to the rapid development of the past few years, heavy truck companies have updated their production lines. In the first half of the year when the market was booming, some employees were recruited and caused a greater burden on the company. The person in charge of the market department of a micro-corporate company also stated: “We have turned the rhythm of production from three shifts to the normal working rhythm.†More thorny is, “Although the country has introduced a series of policies to stimulate domestic demand, it still stands On paper, this 'cold winter' may be very long." Tan Xiuqing introduced.
In this unfavorable market situation, companies have expressed their full support for distributors. "The sales terminal and the enterprise are closely related. Our support for the terminal will not change. We currently do not change our policy on dealers because we have difficulties. The next policy is under discussion." Minister of the JAC Light Truck Market Network Wang Guangyu revealed. Yang Dayong, vice president of marketing at Chongqing Chang'an Automobile Co., Ltd., said: “This year, the sales of micro-offers in the coastal areas are worse than expected. We are also considering lowering the sales targets for dealers in Guangdong and Zhejiang, but we have not yet introduced sales targets. Specific measures.†“We have been strengthening communication with distributors and trying our best to help companies sell cars. We have given support in terms of technology, processes, and policies to unite and work together to survive the winter.†Assistant to the General Manager of Shaanxi Automobile Group Sales Co., Ltd. Liu Keqiang, Minister of Marketing, said. It is understood that Shaanxi Automobile has already held a training course for salespersons. The general manager of Shaanxi Automobile Sales Co., Ltd. personally serves as a training lecturer and communicates with marketing staff from local offices. The management of other companies also rushes to the frontline to visit the market.
More dealers to "self-reliance"
Fortunately, many dealers soberly recognize their relationship with manufacturers and take the initiative to consider themselves and the company as one. "We have difficulties to manufacturers, manufacturers who have difficulties to it? Hard times we have to spend together." Guangdong Hualing heavy truck dealer Liu Niansong said. Mr. Liu, a light truck dealer in Dongguan, said: “At present, companies are also in a difficult situation. We need policies now, which is to add chaos to them. Now we are mainly adopting a method of compressing expenditures to carry out self-rescue, in order to retreat into the expectation market, and now we have laid off about 30% of our staff. Now we have adjusted the price of after-sales service to stimulate users to maintain our service here and gain more revenue in service."
Dealers with better market conditions in some regions have taken another approach to rescue. Mr. Liu, a Jianghuai light truck dealer in Beijing, said: “Beijing will restrict the “Yellow Label Car†in January next year. This is a business opportunity. At present, we have added another outlet to prepare for next year’s sales. This time all costs are We are responsible for ourselves and do not increase the burden on manufacturers. At the same time, we continue to train our sales staff in marketing, market management and other business knowledge, so that companies can worry less.†Dongfeng Xiaokang distributor Mr. Wang told reporters: “Although This year's sales performance is still good, but the manufacturers' production may be affected. Therefore, we will fully support the company and do its utmost to sell more cars as quickly as possible. This is the best support for manufacturers."
China Automotive Industry Association expert Tan Xiuqing:
Only by joining hands can we "overwinter"
Heavy trucks are most affected by the macro environment, and the heavy truck market is already approaching the freezing point. In this “cold winterâ€, dealers and companies can only “warm up†for safe “winteringâ€.
At present, most distributors and companies have recognized the idea of ​​jointly “heating up.†The key issue is the insufficient “heat source†for joint heating. Currently, there is no demand for car purchases in the market, and large-scale outages occur in some provinces. The new car market and service market are relatively weak, and the “heat source†for “heating†is limited.
In this unfavorable market situation, only by working more closely can we safely “winterâ€. The top priority for the joint effort is to digest the inventory vehicles as soon as possible. In general, heavy trucks can be returned to the company if they do not sell for 3 months. Enterprises must not only provide dealers with the most efficient technical support, but also keep the channels for returning vehicles open. Otherwise, once the dealers close down, the company will pay a bigger price than it does now.
The second is to increase service income. Enterprises can give dealers certain discounts through their scale advantages, and distributors can increase service revenues through a series of measures such as improving service quality and reducing service prices. Dealers and companies can concentrate their limited “heat sources†only if they “think with one mind and work with one placeâ€.
After experiencing rapid development in previous years, the current market has provided companies and distributors with a rare opportunity to adjust. Enterprises and distributors can carry out some basic work at this time. For example, companies can provide some training for dealers and work hard to improve them. Internal management and product quality of the company. These jobs will allow companies to run faster when the next opportunity comes.