Crazy price tag: Commercial vehicles are betting with their lives
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In 2004, car dealers made hard money, and it was even harder for manufacturers to make more money, but the hardest part was not cars, but commercial vehicles represented by buses. In 2003, Geng Xinyong's Suzhou Golden Dragon made great efforts to expand its construction and Zhengzhou Yutong threw money and mergers in Chongqing and Lanzhou. The industry can seldom applaud, because in the past year, passenger cars have become the focus of all kinds of capital gathering, a lot of investment and production soaring, in exchange for price wars and thin profits, everyone is afraid of surface prosperity. .
Accounts turn into industry plague gross margins only cost of goods sold 1/40
During the Beijing Commercial Vehicle Show, Xu Liankuan, President of Zonda Group, was interviewed by the China Business News on the Zhongwei Bus Showcase he invested and produced. “Like the car next to me, the cost of sales is at least 400,000 yuan,†Xu said. “Same car, some manufacturers can sell low prices of 410,000 and 420,000. How can it make more than 10,000 profit? Many people know that home appliance companies often do this, cut their prices and pay them no wages, and they default on the suppliers’ payment, which is due to be paid by the end of the year next year.
The terrible thing is that this kind of illicit culture is being transmitted to the upper reaches of the industry like a plague. Since the OEM is in arrears, tier one suppliers can also default on the second and third grades of hardware, electrical appliances, plastics, and seat fabrics. Behind the golden age of the automobile is the resurgence of triangular debt. While the auto market is not very popular, and the annual sales of passenger cars are only over 600,000 units in 1999, everyone is still making money quietly. Today's red fire brings a dangerous edge that is almost no money to earn. There are funds under the bottom of raw materials prices
A leader of the China Automotive Industry Association’s bus industry branch said: “Everyone saw Zhengzhou Yutong’s eyes. In fact, it just accumulated some money. It was still early to be lifted from the real alarm. And other manufacturers are not as good as it.†Lack of money, this It is a common problem of commercial vehicles. In addition to Sichuan Toyota's eating in the market segments, light passenger car plants, including the boss Jinbei, are suffering from sales declines and cash flow losses.
When the market tightened and price competition thinned profits, the state’s frontal collision laws and regulations and two other mandatory regulations that forced light passenger companies to change their models were introduced. From time to time, from Iveco to Foton, from FAW Hongta to Jinbei, The passenger car factory once again tightened its belt and spent money to make changes.
Finally, the modified vehicles were introduced to the market, and a large amount of cash was recovered from consumers. When they wanted to buy raw materials to expand production, the procurement ministers also found that the tide of price increases by raw material manufacturers had not yet passed.
From August onwards, domestic prices of ordinary steel, steel, and wire rods have risen all the way to October and November. The average increase in the price of steel used in automobiles was 16.5%. Not only did the cost of the entire vehicle cover increase, but some of the injection molding machines in the second and third-tier supporting machinery plants were also forced to follow up prices. Commercial vehicle manufacturers use higher volumes of steel than passenger cars, and this impact from the following is even greater. Futures experts said that the two major reasons for the increase in steel prices are the rapid growth of the auto industry and the massive development of real estate. In addition, the country has closed down some small mines in succession, resulting in a corresponding increase in the purchase costs of the steel mills, which is also a factor in the price increase of steel products. According to the "Ningbo Daily" report, a veteran of a mechanical processing company in Ningbo City has already stated that their production value "despite the increase compared to last year, but the profits are all due to the increase in raw material prices, and it requires the government to come forward for administrative intervention." Above is the shortage of funds, the following is supporting plants, raw materials to discuss debt forced Palace, next year will be the most difficult time for commercial vehicle companies, how to get out of encirclement, they are more difficult than the car factory.