Xuan He moment Xiali, served as a "national car" for 18 consecutive years occupied the top spot in car sales in the domestic economy. However, since 2002, FAW acquired nearly 51% of its shares to seize the initiative, FAW Xiali in the domestic market losing ground, now even heard delisting news.
July 20, a source close to the industry Xiali Yangtze Daily reporter said that the decline may be because Xiali targeting the low road, leading to decline in brand value, if sales continued to slump, more likely from the FAW "pawn "become a" sacrifice. "
FAW Xiali "abandoned child theory" is not an alarmist. July 15, FAW Xiali 2016 half-year results published notice, its net loss attributable to shareholders of listed companies 475 million to 575 million yuan, a loss of 537 million yuan over the previous year. In the domestic stock market "Manniu" Practical, FAW Xiali (000927.SZ) suffered "Phi Star hats" in 2015 due to government subsidies was able to protect shell.
Long-term research in the automotive industry to more people Shixiao Yangtze Daily correspondent said that despite FAW Xiali has decided to vigorously research and development, the introduction of A-class vehicles, electric vehicles, but has missed the golden period of development, "Xiali as an old brand can be play 'nostalgia card' to help boost performance. "
Wuhan sales narrowed only a 4S shop
"Twenty years ago, anyone who has a leased private car license can be regarded as 'rich'." Li Jianhua has 32 years of driving experience was a brother of Wuhan, July 20, he told Changjiang Daily reporter, "at that time filled Xiali taxis, the appearance of red conspicuous in the street. good quality car, the price is fair."
Yet 13 years ago, Master Li chose other brands of cars when change, "At that time onwards, Xiali car price advantage gone slowly."
According to the description of Master Li, back in time to 1988, when a Xiali TJ7100 price of 10 million, called the domestic luxury cars, has become the family car of the 1990s "trump card." Xiali has become a "national car", and in the history of China-made cars and wrote an indelible mark: In 2002, its exports of China-made cars to open a precedent, the car sold in the United States; in 2004, as the first production of over a hundred Wan national car brand, "Charade" went to its peak.
Passage of time, now can only find brilliant Xiali in "stacks of paper" in. July 12, FAW Xiali disclosed in June 2016 to produce sales in the first half total sales of three series of 19 033 more than last year's 37,348, a drop of 49.04 percent, close to the cut. Three series, in addition to "K" series in June year on year increase in sales in 1156 amounted to 261, the "Xiali" and "Chun School Series" are substantially reduced. Among them, "Chun School Series" June sales last year from 1881, down to even the "odd" are short of a length of only 515. In the first half of the production, FAW Xiali also fell significantly, reduced from 39,602 last year's 20,785, which "Charade" series from 2585 down to only 450, less than one in five even.
Long-term research in the automotive industry to more people Shixiao Yangtze Daily reporter said that in the automotive industry, is generally considered 400 000 domestic brands of subsistence, FAW Xiali significantly less than this, and there is no impact sales of classic cars , not to be optimistic about the market outlook.
Despite flagging sales, but just from the price point of view, compared with other sections of the model Xiali brand and no significant disadvantage. FAW Xiali released almost at the 2016 half-year results notice at the same time, July 13, 2016 FAW Xiali announced Chun sent D60 models listed. Yangtze Daily reporter learned that Chun sent D60 1.8 displacement type in Wuhan market price of about 93,000 yuan, the price of the SUV is not high.
"In addition to price, but also the quality and service." July 19, Master Li told reporters that he intends to go about car route network, however, Xiali still within his range of options.
Indeed, the direct result of the decline in sales 4S shop to reduce the after-sales service are also affected. In the central city of Wuhan, July 22, FAW Xiali distributor responsible person to Wuhan Changjiang Daily reporter, at present in the city leased 4S shop in Hankou Zhuyeshan only have one, "If you live in Wuchang, only to located Jiangxia secondary dealership to look at cars. "
Vietnam Shaw said the current market reaction, the new models FAW Xiali has not been highly concerned about the market, but similar SUV, many are priced less than $ 80,000 competition remains very intense, "more importantly, Xiali reputation can not then in the same breath. "
Low end brand value as before
Annual sales from less than twenty thousand to half a million sold, leased a downward turning point in the performance of the cliff in 2002. That time, Tianjin Automobile Group Company transferred its 50.98% shares of Xiali company's total equity holdings to the FAW.
The thought that trees are good shade, but the restructuring while filling Xiali lost operational autonomy. July 20, a source close to the industry Xiali Yangtze Daily reporter said that the decline of Xiali is not an overnight thing, you can now experience the dilemma but closely related and restructuring, has many brands seem to pay more attention to the joint venture FAW brand "Charade is just a piece of its industrial chain, producing more cars to economy cars, is taking the low road, the brand value as before. Therefore, research funding, establish a brand image on every great length difference. "
Moreover, the Yangtze River Chinese Commercial News reporters Fa Xian and Kong Gu FAW Group subsidiary - FAW Car (000800.SZ), the brand positioning and Charade quite similar. Perhaps because "two monks carry water to eat," FAW 2016 half year results notice equally embarrassing. Data show that FAW loss from 790 million to 850 million yuan in the first half. Even more surprising is that only a minimum profit of FAW Car cycling 224.6 yuan.
Two "malnourished" children make FAW Group embarrassing situation, and announced the commitment in June 2011, we will strive date of completion of the acquisition within three years, at a reasonable price and completely legal way to solve this problem, according to the above commitment, FAW shares should solve the problem in the latest prior to April 5, 2015. However, in commitment expiring in April 2015, publicly announced FAW Xiali, FAW shares not in the above date, solve between FAW Car, FAW Xiali and FAW shares of affiliated companies with the competition, as well as FAW and FAW Xiali the competition with the industry. FAW shares to be when conditions are ripe to start this work.
June 3, FAW shares once again that the solution and its subsidiary FAW Car, FAW Xiali competition with the commitment can not be fulfilled, a further three-year extension. However, this decision was immediately opposed to small investors, and announced that it would boycott.
The proximity Xiali said that if not because the two are listed companies, the possibility of mergers and acquisitions is still relatively large, "But if sales continued to slump, then, FAW Xiali, or from the 'pieces' into a 'sacrifice'."
Insiders: turnaround within two years of the possibility of a small
In addition to the product positioning is very awkward, the FAW Xiali stock market performance is not satisfactory. 2013 and 2014, as attributable to shareholders of listed companies net profit FAW Xiali negative for two consecutive fiscal years, in accordance with the relevant provisions of the Shenzhen Stock Exchange, the company's shares since April 2, 2015 was implemented delisting risk warning special processing securities referred to by the "FAW Xiali" changed to "\ * ST Charade."
"Phi Star hats" Charade if it is not profitable, will face delisting situation. April 1, 2016, * ST Xiali announcement said, according to the 2015 annual audit report, the company 2015 annual net profit of 18.9896 million yuan, net profit attributable to shareholders of listed companies 18.0518 million yuan. * ST Xiali Annual Report 2015, the company recognized in profit or loss of government subsidies of up to 563 million yuan, this figure is much higher than 113 million yuan in 2014 and 2013 of 062 million yuan. This also means that the 2015 Xiali rely solely on government subsidies, only to be "shell continued life insurance."
However, the Yangtze Daily reporter also found in the domestic stock market "Manniu" Practical, FAW Xiali half basic earnings per share for loss of 0.2978 to 0.3605 yuan.
In fact, FAW Xiali not unaware of their own problems. FAW Xiali released in 2016 half year results notice at the same time, the company will be the main reason for losses attributed to the product in which market segment for many years to decline, product upgrading and structural adjustment did not keep up the pace of rapidly changing market demand requirements, production scale has been greatly affected. FAW Xiali also said the company is actively engaged in product upgrading and structural adjustment, will be launched A-class cars, electric cars, A-SUV and other new models, constantly optimize the product structure to meet the market needs, enhance profitability.
"Whether it is A-class car or electric vehicle research and development, other brands are at the forefront." Vietnam Shaw said to miss the golden period of the Xiali, the new car from R & D to market requires a cycle, which also means the performance of at least two years will not be a big improvement. Under the premise of the current slowdown in the overall growth of the domestic automobile market, to a survivor is not easy. Vietnam Shaw suggested that, as the old brand, Xiali can use their own advantages to play "nostalgia card", may be able to help the performance of the moment.