After several years of substantial growth in the Chinese auto market, the number of foreign automakers has peaked in China. However, as the market environment continues to slump, some of the world's largest automakers are struggling to survive in China, and sales have not only stagnated. And there has been a sharp retreat. After Suzuki announced the complete withdrawal of the Chinese joint venture company, it also officially opened the prelude to the reshuffle of the Chinese auto industry.
A few days ago, the US "Wall Street Journal" reported the situation that China's foreign automakers were seriously idle in China. For example, the joint venture factories of Ford Motor Company, Peugeot Citroen Group and Hyundai Motor Co., Ltd. in China experienced a decline in sales after the opening of a new factory in Daxie. In addition, the situation of the Chinese auto market has fallen, so the situation has become very bad.
According to reports, in a factory in Peugeot Citroen, skilled workers are washing floors or taking related courses, and two of the four factories are idle. According to Ford employees, the shifts of workers at a factory in Ford have been reduced to a few days a month, and many workers have to send couriers or taxis to make money.
Therefore, the joint venture company faces a dilemma, either choose to abandon these large-scale investments, or invest more funds in the context of uncertain market conditions to reverse the factories that are on the verge of bankruptcy.
Peugeot Citroen
According to reports, during the period of rapid development of the Chinese auto market, Peugeot Citroen opened four factories in China. In 2015, new car sales peaked to 705,000 units, and then quickly fell. In 2016, sales fell to 600,000 units. There were only 378,000 vehicles, which dropped further to 240,000 in the first 11 months of this year.
At a web forum, workers at the Peugeot Citroen Wuhan plant described how they cleaned, painted the walls of the factory, or spent time attending relevant courses. According to them, since October, two of the company's four factories have been idle, and the other two are only partially operational.
The PSA Peugeot Citroen spokesperson did not directly respond to the problems encountered by the factory, only that the company is optimizing its business model and cutting costs significantly.
Ford
The Changan Ford Harbin production base was officially put into operation last year. The plant was built on the basis of the acquisition of the original Hafei Automobile Factory. The investment was 6.597 billion yuan for upgrading and upgrading, with an annual output of 200,000 units, which will increase Ford's production capacity in China to 1.6 million. Car. This is also the seventh factory of Ford in China.
Ford's sales in China reached a peak of 1.27 million in 2017, but sales in the first 11 months of this year fell to 695,028 units, down 34% year-on-year.
The report quoted a technician from Hangzhou Ford Factory as saying that the factory was very busy in the past, but there are still few monthly shifts. Although there are no layoffs, some workers now only receive a monthly salary of around 1,500 yuan, which forces many people. Start a second career such as a courier or a taxi driver. As for the reason, the technician said: "We are expanding too fast and too fast."
A Ford spokesperson responded that Ford and its joint venture partners have made production arrangements based on market demand. A series of new models will be launched in the next few years as part of the company's strategy to reverse the situation.
Hyundai Motor
Hyundai Motor, which suffered from the storm last year, resolutely put into operation the Chongqing plant, which has an annual production capacity of 300,000 units. This is the fifth passenger vehicle production base in China, with eight factories and an annual production capacity of 1.65 million units. However, Hyundai Motor was reduced to 785,000 in China last year, and only 525,600 in the first three quarters of this year.
According to the report, Hyundai Motor spokesman did not answer questions about overcapacity.
Overcapacity and sales continued to decline, and the dilemma caused most manufacturers to respond. Today, the Nikkei News reported that Nissan and Mazda will also reduce China's production capacity by 20%.
Nissan's sales in China in November decreased by 9.2% to 150,000 units, down for three consecutive months; Mazda fell 42.8% in November, and the decline continued to expand.
The Wall Street Journal reported that the Chinese auto market has continued to grow rapidly in the past few years, attracting global automakers to flock to the Chinese market, even if they are required to make joint ventures with the local. Analysts said that some companies were too confident in this upsurge, thinking that growth will not stop, and the opportunity is easy to grasp, but this year the growth suddenly disappeared.
Data show that in 2017, China's auto sales increased by only 3%, and in the first 11 months of 2018, it fell by 2%, and the first sales decline in 28 years. In the face of the market slowdown, foreign brand joint ventures and local car companies are under pressure, but the car companies that misjudged the situation were the most affected.
In addition, China vigorously promotes new energy vehicles to further deepen the overcapacity of traditional car companies.
According to incomplete statistics, the total production capacity of Chinese automobiles has reached 43 million, but the actual annual output is about 28 million.
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