Looking back at the 2014 China automobile circulation field, phrases such as “returning the netâ€, “requesting additional rebatesâ€, “pressing the warehouseâ€, and “dealer joint anti-pressure†frequently appeared in the newspapers. Zhu Kongyuan, secretary general of the National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce, described 2014. It is "a year in which the contradiction between automobile factories and merchants has been concentrated," and it is believed that this situation will continue in 2015.
On January 26th, the National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce (hereinafter referred to as the "Commerce Chamber") held a media communication meeting in Beijing, and released the "China Automobile Dealer's Supplier Satisfaction Survey Report (2014)". The report shows that despite the steady growth of the domestic auto market in the past year, auto dealers have been on the ice, and the dealers who have sustained losses in the past three years are as high as 29%. Zhu Kongyuan believes that "if the industry legal system is not perfected, the manufacturer's contradictions will continue to erupt in 2015. The Chamber of Commerce recommends that relevant departments refer to the experience of the United States to formulate the "China Automobile Distribution Industry Franchise Law."
More than half of the dealers sell new cars and unprofitable car companies forcibly press the Chamber of Commerce. The survey covers 47 major passenger car brand dealers, including independent, joint venture and imported brands. The sample size is 449, covering all levels of cities in China. The scores of dealer satisfaction scores show that most dealers are most dissatisfied with the business policies formulated by car companies, and have the highest satisfaction with brands and products.
The Chamber of Commerce compiled all the sample data of this survey and found that 29% of the dealers have been losing money for the past three years, 55% of the dealers' new car sales are not profitable, and 74% of the dealers said that the car companies have tying the slow-moving models. Forcing presses and other behaviors, 61% of the products sold by dealers were upside down, and 57% of dealers said that when the outlets lost or the profits were below average, the manufacturers still forced the expansion, and 83% of the dealers complained that the licenses signed by the car companies did not Withdrawal of compensation clauses... It can be said that it is the “crime†of these “small and difficult books†that caused the dealers to “explore the uprisings frequently†in 2014. The main reason is that the dealers “do not make moneyâ€.
In this regard, Dr. Ji Xuehong from Huazhong University of Science and Technology believes that domestic car companies adopt planned production methods to schedule, are too optimistic about the market situation, and set higher sales targets, resulting in repeated occurrences of pressure storage. This is the main reason for the intensification of vendor conflicts. Of course, the dealers themselves also have shortcomings such as weak operational capabilities and lack of financial strength.
It is recommended to enact the "China Automobile Distribution Industry Franchise Law"
The reason why car companies are so strong is because the automobile industry lacks a perfect legal system. The Chamber of Commerce has called for the completion of the revision of the "Automobile Sales Management Measures" as soon as possible, and announced the implementation as soon as possible.
Zhu Kongyuan believes that only the "Measures for the Administration of Automobile Sales" is not enough to change the status quo. "After all, the "Measures" is not a law. To build a fair, open and fair competitive environment for the automotive industry, we should formulate the "China Automobile Distribution Industry License" with reference to the experience of the United States. Business Law."
In December 2014, the Ministry of Commerce collected opinions from all parties on the revision of the Measures for the Administration of Automobile Sales. Wang Wei, assistant secretary-general of the National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce, revealed to Sohu that the biggest change was that the revised "Measures" name has been changed to "Automobile Sales Management Measures" and the word "brand" was removed, which means business. The Ministry allows both authorized and non-authorized forms to coexist. In August this year, the State Administration for Industry and Commerce announced that it would “stop the implementation of brand filing for auto dealersâ€. The new “Measures†will cancel the registration of auto brand dealers.
In addition, the emphasis on car sales must be in the form of 4S stores, encouraging chain operations and diversified development of car sales models is also a highlight of the new "Measures." Not long ago, Sohu Automobile learned that the huge group established a “car supermarket†in Zhangjiakou, Hebei, which can be seen as an exploration of different business models by domestic dealer groups.
In fact, as Zhu Kongyuan said, the binding effect of the "Measures" is limited, and only legislation can make the market work in a healthy way. The win-win situation of manufacturers is the most ideal situation. And all of this requires the active efforts of all parties in the society to achieve.
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