Volkswagen faces a series of challenges you can expect the new energy

Posted on 6/15/2015 9:54:00 AM

A series of bad news for the market to let Volkswagen CEO Martin Winterkorn (Martin Winterkorn) renewed commitment to China appear to be more important.
This has been long dominated the Chinese car sales champion carmakers, are now facing a series of challenges. Volkswagen in May has just announced that its Changsha factory production, capacity planning is 300,000, but the first four months of this year, Volkswagen's sales in China grew by only 0.2%.
In this context, the Volkswagen Group in Berlin announced a new investment plan for China to try to boost confidence: it will invest 1.2 billion yuan in cooperation with SAIC developed a pure electric car. Allegedly, this car will be based on Shanghai Volkswagen Lavida model development.
Volkswagen also plans to put into operation in the next four years in China, 15 new energy vehicles - This program involves the transformation of mass production base in Shanghai Anting, renovation costs are estimated at 6.5 billion yuan. But the public did not announce new energy vehicles planning capacity. Prior to this, it is not produced in China new energy vehicles.
4 production of 15 new energy vehicles, which is a program looks quite aggressive - except in the global hybrid car market to take advantage of Toyota, Honda, Nissan, BMW, General Motors and other companies do not produce more than one made in China 5 new energy vehicles program.
Over the past two years, the public's competitors have gradually increased the investment in the new energy vehicles: Toyota set up a R & D center in Changshu in China, announced the key components and battery motor and other hybrid models will be in three years localization; Nissan's joint venture Dongfeng Nissan Kai Chen brand of pure electric vehicle production Morrowind; BMW and joint venture partner Brilliance China set up a special new brand promise to promote electric vehicles.
Volkswagen announced six years ago, "2018 Strategy", a modular platform strategy shared repairer, lower manufacturing costs, is directed at the global car prices Volkswagen sales champion the core strategy, which was proposed in the Chinese market strategy, and No mention of new energy vehicles.
But Volkswagen executives began to change in the past two years, the conservative attitude of the new energy vehicles. In the 2014 Frankfurt Motor Show, Winterkorn said that if market demand is sufficient, Volkswagen will produce 40 pure electric vehicles and plug-in hybrids. This includes the expansion of the plug-in for product line on the Chinese market. 2014, Volkswagen will import pure electric car electric up! Into China.
Volkswagen would reverse attitude and China will soon implement stringent regulations related. Best Garriott consulting firm Global Partners Peng Bo that regulations on the public has an important role to make the decision. Peng Bo said legislation means that last year the Ministry of Industry and Information Technology issued a mandatory document. It stipulates that by 2020, every passenger car sales average hundred kilometers to less than 5 liters. Europe announced a similar standard, the plug-in hybrids and pure electric cars is rapidly becoming the protagonist of the show on. From the regulatory point of view, the Chinese government is rapidly moving closer to Europe.
But circumvent the policy of punishment is only one motivation for public investment, and the other reason is that he believes that China's new energy auto market will grow rapidly.
Key public betting volume is not that China's new energy auto market, but its growth rate. Last year, the media called China's new energy auto market year: pure electric car sales in 4.5 million, an increase of 208%; plug-in electric car annual sales of 30,000, an increase of 878 percent, China in 2014 years sold a total of 75,000 pure electric and plug-in hybrid cars.
On the basis of more and more cities to join the purchase of cars, the Chinese government has increased the purchase of new energy vehicles for consumers of incentives and subsidies in 2014. In addition, the charging facilities for construction of up to 1 billion investment to stimulate the rapid expansion of this small segment of the market.
Currently subsidy for electric vehicles are now up to 54,000 yuan, plug-in hybrid car allowance of up to 31,500 yuan. The subsidy program ended in 2020. China and Germany to cooperate in electric vehicle charging standard is seen as another positive for the German car company.
Currently Volkswagen Group's new energy vehicles main products include cordless electric vehicles, plug-in hybrids, compressed natural gas powered vehicles and ethanol-powered vehicles. 2014, VW said in the year 2015 in order to import the Audi A3 Sportback etron way into China, Audi A6L etron towards plug-in hybrid made in 2016.
. "Full production of new energy vehicles on this day will come, of course, but no car company will be optimistic to do that in 5-10 years," Peng Bo that the decision made by the public still faces many uncertainties - even if the new energy vehicles rapid growth last year, this segment still accounts for only 0.3% of the total passenger car market sales. This means that the public needs a period of time and other car brands incubated assume the role of the market.
In mid-May this year, the Volkswagen when it comes to expectations of future sales for China's new energy vehicles, the Volkswagen Group (China) President and CEO Heizmann (Jochem Heizmann) expressed optimism, he said, "is expected by 2020, China new energy vehicles will reach annual sales of hundreds of thousands of scale. "
In addition to plans for new energy vehicles, Volkswagen announced this, which also includes the production of new cars and SUV models. Shanghai Volkswagen will be high-end cars, the Audi A6L in size approaching a mid-volume production next year. There is no product in this class of models of Shanghai Volkswagen's sequence.
Prior to the public in accordance with the plan, it will be put into operation in the next four years, five products in China to cover large, medium and small three-level SUV segment. There are unconfirmed rumors that had never produced SUV models FAW-Volkswagen will produce future compact SUV Volkswagen brand cars.
"Taking into account the family car growth slowed, these new models will help the public to remain strong in China, and increase profits." Peng Bo to the "First Financial Weekly" he said. Just-released 2015 first quarter results, the Volkswagen brand's profit margin is only 2%.
Volkswagen accelerate investment in new energy vehicles and the production of new models, and many decided to bet huge, this may give its Chinese partner how much confidence - but China's auto market is facing downside risks when the public still needs to prove itself in the direction of chips bet It is correct.

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