The battle between car dealers and manufacturers broke out around New Year's Day in 2015. The "forced palace", which was launched as a vanguard by BMW dealers, has already jumped out of the game within the brand, highlighting the embarrassing situation of the entire industry.
The Qianjiang Evening News reporter learned from the BMW dealers in Hangzhou that on the first day after the New Year's Day, the BMW China and BMW Dealers Association went through arduous negotiations and finally reached an agreement with the two parties to increase the subsidy by 4 billion yuan.
In just one month, the “compassion and entanglement†between manufacturers and dealers continued to ferment. In addition to BMW’s additional subsidy of 4 billion, Mercedes-Benz’s additional subsidy of 1 billion dealers, Lexus subsidized dealers, Audi will also issue 1.5 billion fuzzy rebates for distribution. Business. Manufacturers actively subsidized channels and became the hottest topic in the New Year. Insiders pointed out that in the future, the relationship between auto dealers and manufacturers will be reshaped, the auto market is expected to be healthier, and consumers can get better service.
4 billion BMW dealers receive additional subsidies "The latest developments are seen in the circle of friends." On Monday, a BMW 4S store deputy in Hangzhou cautiously expressed concern about recent events. He said that in the latter part of last month, it was indeed notified by the company headquarters that it would suspend the purchase and only sell the current car. However, these two days have resumed entering the car from the factory.
“I heard that the person in charge of a store in Hangzhou is the leader of the dealers in Southeastern BMW. In addition to the individual foreign investment background and the choice of local dealers, nearly half of the dealers in Hangzhou participated in the BMW Dealers Association.†disclose. The parties chose to be silent in the face of interviews with reporters.
The "BMW Dealer Association" is a fresh word that has only recently appeared in the news. At the end of November 2014, the BMW dealer group including Yongda, Zhengtong, Baoxin and Rundong jointly requested BMW A total of RMB 6 billion subsidy in the name of “BMW Dealer Association†and proposed BMW China. The sales target must be negotiated with the dealers, and the KPI assessment cannot be used as a reason to increase the number of batches or to build a slow-moving model.
On the last day of 2014, the negotiations failed to reach an agreement. The BMW Dealers Association will rebel against the upgrade and stop getting into the car from the factory.
BMW China's response is fairly rapid, the contradiction has just escalated, and the first day after the festival reached an agreement: an additional subsidy of 4 billion yuan, a total of 5.1 billion yuan, was paid off in February 2015. Regarding other appeals such as the signing of business tasks in 2015, negotiations are still going on. If successful, BMW dealers will resume picking up the car.
The rift was caused by the end of the automobile profiteering era, especially the luxury car brand. It once passed a period of "standing on the wind, even the pigs can be blown away".
At that time, as long as you get the brand agency, it means getting the cash cow. The newly opened 4S shop has an investment of 670 million yuan, and when it is crazy, it can recover the cost in 2 to 3 years. "The best time is that a store can earn 30 million yuan a year." A BMW dealer in the north of the city told reporters that the profit of selling cars has declined year by year. In 2014, Hangzhou suffered a limit, and the car market was even worse. Only one X3 car has a small profit, and other models are losing money. "The most serious number is 7 systems, and each sale will cost more than 200,000 yuan."
This is a common embarrassment encountered by the automotive industry, not only unique to BMW. An Audi dealer told reporters that in addition to the Audi Q5 and other individual models to make money, the rest of the models are losing money. The reporter was informed that individual luxury car brand dealers even lost a hundred million yuan in sales a year.
"The competition is too fierce. You look at a city as small as Hangzhou. BMW has sold nearly 14,000 vehicles a year. Together with Audi and Mercedes-Benz, it is not a second-tier luxury car brand. The market capacity of these three brands is more than 30,000. The price of the car has fallen below the cost..."
In 2014, it was a stressful year for most car dealers. According to the "2014 CADA Auto Dealer Satisfaction Survey Results" issued by the China Automobile Dealers Association, only 30% of auto dealers were profitable in 2014, and 40% of dealers had an average monthly inventory of more than 2 months. The estimated inventory of dealer terminals is about 2.29 million, of which about 1.63 million are reasonable stocks, which exceeds the reasonable inventory level of about 660,000, and the capital occupied is about 92.4 billion yuan.
When the former profiteering industry suffered a profit bottleneck, there was a crack between the former allies. The reporter was informed that in addition to BMW, Dongfeng Honda, FAW Toyota and Porsche dealers expressed their dissatisfaction with their car manufacturers in different forms.
“The high losses of Chinese dealers for three consecutive years have made them unbearable,†market participants pointed out. “The first year is a loss of tolerance; the second year can be bitten again; by the third year, the volume changes qualitatively. Nowadays, the pressure on the dealers has begun to be released, and the requirements of the car manufacturers are raised."
Hangzhou BMW car dealers to build subsidies for subsidies for BMW manufacturers, most of the BMW car dealers in Hangzhou expressed satisfaction. "If you add subsidies, the company can make a few small profits. In fact, after the Hangzhou limit this year, the manufacturers canceled the mandatory task assessment for us. We also understand that if the New Year sales task is too low, the service after the repair is also There will be influence." Some market participants believe that BMW China has a series of measures, which are enough to break through and deal with the dealer's "forced palace." The reason for the final increase of 4 billion subsidies is to express enough sincerity to the dealers.
“This is an opportunity. In 2015, we will accelerate the construction of new stores.†A head of the dealer group that owns the BMW brand told reporters that the group will build three new BMW 4S stores in the province in 2015, among which The new store on Shandong Road will soon be opened. “In 2014, manufacturers took out 250 million yuan to subsidize new stores. Calculated, the newly opened stores in 2015 can be subsidized up to 10 million yuan!†He said that it is rare for new stores to have such a relaxed environment; more importantly, In the current market situation, outsiders are no longer daring to enter the auto industry. For the profitable old stores, it is a good time to expand.
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