Sales fell sharply FAW - Volkswagen decryption "crisis"

Posted on 6/24/2015 4:47:29 PM

Recently, the National Passenger Car Market Information Co and China Association of Automobile Manufacturers (hereinafter referred to as the Automobile Association) has released the latest sales data, showed FAW - Volkswagen in May sales of 125,200, down 22.04%; but the FAW - Volkswagen also released during this period of official statistics, saying that May sales of 137,300 vehicles, down 14.49%. Obviously, the above disclosure data regardless what the reason which led to the inconsistent caliber, you can not deny the fact that: FAW - Volkswagen is really on a more substantial year on year decline.
"FAW - Volkswagen sales decline in May, is the result of several factors working together, but this situation is actually within expectations, the company can not panic, FAW - Volkswagen did not fall into the so-called crisis and, According to the company at the beginning of planning, months, next FAW - Volkswagen sales may also appear similar ups and downs. "FAW - Volkswagen's public relations director, spokesman Li Pengcheng in the" China Business "reporter responded to a recent exclusive interview sales issues.
"Change sales in a single month is not even a quarter of the FAW - Volkswagen's focus, we are more concerned about the long-term implementation of the strategy in accordance with the established plan, the company is still on track to be a series of adjustments.." Pengcheng said.
Despite the recent all kinds of sound heard, but the FAW - Volkswagen in addition to official data released outside, never guess the outside world sales, brand management, trust and other "crisis" for further instructions. On the current situation, the recent sales trend appears early in the FAW - Volkswagen expected.
"For some of its development plans and the overall judgment of the situation, FAW - Volkswagen auto market situation this year is cautiously optimistic because of this, the FAW - Volkswagen's sales target for this year was set at 1.85 million, up The growth was less than 4% "Pengcheng, said:" In this context, sales for May can be said to be within expectations and, although the FAW - Volkswagen sales in May have fallen sharply, but the rank and market share. The change is not large, visible of this decline is only relative. "
According to the Automobile Association of previously published data, from January to May, the FAW - Volkswagen sales were 191,500, 111,600, 135,900, 132,200 and 125,200, monthly sales of passenger cars as a whole in accounting for 9.40%, 7.99%, 7.27%, 7.92% and 7.78%. In the passenger car sales rankings, FAW - Volkswagen has always been in the top four, a substantial decline in sales in May, also just behind Shanghai Volkswagen, ranked second.
In addition, Li Pengcheng opinion, FAW - Volkswagen overwhelmed by the decline in sales was due to both internal and external interaction of multiple factors: First, the FAW - Volkswagen production in May is not high, because the platform is proceeding as planned overhaul for the new Production models for device adjustment, which is one of the most important internal factors, but also the current situation in the "within expectations," the main reason; secondly, FAW - Volkswagen's product line distribution of some defects in the faster-growing SUV and MPV markets lack the layout, so car sales fell 10.08 percent in May, the FAW - Volkswagen by a larger impact; and third, this year's auto market as a whole showed a downward trend, a number of mainstream car prices are ups and downs on the sales FAW - Volkswagen naturally spared; Finally, unlike the situation this year, an increase of passenger cars and sedans last year were 13.85% and 7.26%, FAW - Volkswagen has thus with 160,600 sales achieved in 2014 May's passenger car sales champion, for this year, the previous year's high base in the same period, resulting in a large decline in May.
For these reasons, the FAW - Volkswagen aspects do not think they're facing a crisis.
In some of the industry view, the overall downturn in the automotive market this year, FAW - the current situation in the context of public really can not be called a "crisis." But for its part, has a sales target of nearly 1.85 million this year, much of "Strategy 2020" proposed "re-scale", FAW - Volkswagen 1 to 7.59 percent in May year on year decline still results in increased challenges.
"For the full year target, the actual pressure is not, because this is the case, taking into account the target sales and downs of the second half of the set. In addition to external factors, this year's capacity adjustments will continue to affect sales. Following the May After the platform access, in July this year to July next year, FAW - Volkswagen's main models will have different degrees of replacement and updating of each model, whether it is small change or a new replacement will involve adjustments to the platform. "Li Pengcheng told reporters, has to stay out of the vehicle when updating annual sales target this year of certain buffer credits.
According to informed sources, the car prices on the adjustment of the yield is more complex, usually takes two to six months or so to coordinate the production cycle. Because parts of the upstream industry chain and other raw materials are supplied according to plan, it is impossible to achieve cuts in the short term. At this point, the FAW - Volkswagen should indeed "well prepared." While the reason for "sacrifice" sales growth this year of large-scale models of the new generation adjustment, but also to achieve long-term strategic goals.
In accordance with FAW - Volkswagen director, general manager Pi-Jie saying, "Strategy 2020" core objective is above 2020 annual sales in the Chinese market three million, "the scale of reconstruction" scenario is based on the foundation to achieve this goal .
To this end, in addition to the upgrading of the main models, FAW - Volkswagen also layout a series of adjustments to make up for their deficiencies. According to FAW-Volkswagen Secretary of the Board, General Manager's Office Sunguo Wang said, FAW - Volkswagen has planned a complete product line, including SUV, MPV and A0-class sedan, etc., the current SUV's Volkswagen brand products have been in research and development, will be the fastest Posted on year.
In addition, FAW - Volkswagen adjustment also involves a number of levels, including the DSG and Sagitar events reflect the brand damage repair. It is reported that FAW - Volkswagen has long been rumored equity ratio change has also been put on the agenda, it is still ongoing asset evaluation, there is no specific timetable.
"FAW - Volkswagen, although currently the adjustments in accordance with planning, for sales and downs this year, has also been prepared, but the uncertainty which this year will face more, including the company's headquarters personnel changes, organizational structure of the overall adjustment. In this case, the second half of this year, sales are likely to exceed its ups and downs expected range, and ultimately affect the achievement of the annual target. As a result, will inevitably lead to '2020 strategy' pressure shift back a few years. " An industry analyst said frankly.

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