Return of the "Shanghai" brand

The fratricidal sales - SAIC Roewe or upgrade to Shanghai brand?

Beijing Unicom the Longfu car sales Services Limited Manager Fan, 2011 the day is going to hell. He told "investors" reporter, the shop which sells its own brand SAIC Roewe monthly sales in 2010 of about 100, but last year fell by half, the average is only maintained at between 40 and 50. In January this year to catch up with the Spring Festival sales is even worse. "

Manager Fan distress reflected in the earnings of SAIC, is a bit ugly own brand sales data. An SAIC insider told investors "reporter: SAIC Roewe sales in January over 7000, fell 30 percent."

SAIC's independent passenger cars has two brands: Roewe and MG. According to the statistics of the Joint Committee of the National Passenger Car Information, 2011 Roewe and MG sales of 162,000, accounting for 4% of the sales of SAIC. But compared with the other Big Three auto groups, SAIC the industry boss a little embarrassed. FAW, Changan and Dongfeng 2011 own brand passenger car sales were 478,000, 215,000, 161,000, respectively, accounted for 18.3 percent of the sales of their respective groups, 10.3%, 5.3%. Obviously, the SAIC's own brand behind.

More embarrassing was SAIC high hopes for Roewe, market performance is not satisfactory. The Roewe 2011 sales of 113,000, down 13.5%. Among them, the flagship model of the Roewe 550, sales of 40,000, fell 50%. The same period, China's own car brand is the total sales of the top ten enterprises declined by only 0.7%.

Single restricted product

Manager Fan Roewe sales decline due to policy. He said "Investor News" reporter, last year's Beijing the Yaohao car policy, a direct result of the decline in car sales.

Assistant Secretary-General of China Association of Automobile Du Fangci "investors" Reporters analysis Roewe sales decline in the environment of the automobile market as a whole, including the limit line of the purchase of loans to tighten a number of reasons. "Of course, the Roewe sales rate of decline than the overall rate of decline of the independent brands have their own reasons."

In 2011, the Roewe brand sales of 113,000, down 13.5 percent, far beyond its own brand fell 2.5 percent the environment.

"The price of foreign brands is gradually declining, with a heavy blow to the end of the car in its own brand." Tangible car market branch president of the China Automobile Dealers Association, Su Hui told investors "Reporters, due to the slowdown in the overall auto market to Camry Rui, Passat B-Class markdowns, which makes targeted at high-end Roewe exerted pressure.

"Roewe, the cost is higher than the foreign product, but after the price reduction of the foreign products, this advantage does not exist." The SAIC who said "Investor News" reporter. Roewe is an six-year history of the brand, the historical accumulation of very few surviving a certain gap in core technologies and foreign brands, it is impossible to compete with Toyota, Volkswagen and other brands. These foreign brands is gradually sinking to small and medium-sized car, the force of the Corolla, Polaris and other products, so that the flagship high-end products Roewe bear the brunt.

Su Hui Roewe the technology is not backward, Roewe technology flat cars for the British Rover Roewe gap is a single product line. Usually have multiple models in the international auto giants with a brand in the Roewe its only three main models, which gives consumers the right to choose relatively small.

In this regard, the SAIC, SAIC brand is actively promoting the development of new models this year will launch three new models, namely, MG 5, the Roewe R95 and the new Roewe 550. "Of MG5 the new listing will give SAIC brand to inject new vitality."

For SAIC Roewe, the pressure not only from the environment changes, the foreign brands price dropping but also his brother MG can not bypass the resistance.

Brothers and grievances

Roewe 4S shop, "Investor News" reporter met Mr. Wang to come to counseling. He told reporters that he intends to buy a Roewe 750, but found the car and MG7 in appearance, technically very similar to, the MG7 price is lower than the Roewe 750. This allows the car will be shaken.

Not difficult to see Roewe one of the main competitors in the domestic automobile market, is its own brand of SAIC - MG. In 2004, SAIC acquired British Rover core technology, and flat cars to launch a new own brand Roewe; 2005, NAC acquired the flat cars, automotive technology, Rover and MG brand. The end of 2007, the SAIC merger NAC, MG and Roewe an SAIC brand, but because of technology, performance and price homogeneity, the two companies in any case not open around the "fratricidal" vicious competition.

MG7 sales in 2011 jumped 15-fold, to 24,000, while the Roewe 750 sales decline 30%, less than 5000.

January 30, 2007, SAIC announced the planned selling price of the Roewe 750 sedan. The same day, the NAC unexpectedly MG brand repositioning, "rapid heartbeat" slogan instead of "modern gentleman", which is similar to the positioning of the Roewe. Therefore, the media these days as the NAC and SAIC began a landmark time in the real thing.

SAIC Roewe, SAIC and NAC struggle, the result is detrimental to the still in their infancy, NAC MG is not conducive to the initial open market and find new growth areas, both sides are beginning to realize: together the two , fighting Liangbai. Thus began the journey of the "South" cooperation.

However, the Roewe and MG in the production and marketing strategies to achieve a unified, but not open around the product homogeneity, and still there is fierce competition for these two brands. In 2009 launched the MG6 and Roewe 550 is very small, differences in appearance and dynamic configuration with 1.8DVVT spontaneous combustion inspiratory and 1.8T turbocharged engine, matching a five-speed tiptronic automatic transmission and 5 speed manual gearbox . The same technology, same appearance, but the Roewe 550 is slightly lower in price, which can give two products fight. The fight result is the Roewe and MG of the shift, instead of growing together.

"This year's listing of the new 550 on the powertrain will change, and equipped with dual-clutch technology with full intellectual property rights combined with the previous brand heritage, the Roewe 550 will gradually heavy volume, but in view of the auto market this year empty, the objectives set by the SAIC Roewe is a slight increase of "the SAIC said.

Renamed Shanghai Brand

According to SAIC sources, the foundation has invested 23 billion yuan, SAIC during the "12" continue to invest 22 billion yuan for the Roewe and MG product research and development. However, due to SAIC's own brand has been lagging far behind other companies, the SAIC eager to revitalize their own brands, and its action is also more than the development of the Roewe and MG.

According to reporter understanding, SAIC will set out to restore the production of the "Shanghai". Brand car in Shanghai will also introduce a common platform with the Roewe 750 and will be located in high-end commercial vehicles and the Chief car, its configuration and price will be slightly higher than the Roewe 750.

Dong Yang, secretary general of the China Association of Automobile Manufacturers, said in an interview with the "Investor News" reporter, Shanghai brand's comeback will definitely give SAIC's own brand to increase its strength. But when reporters asked about the other two own brand pressure Shanghai license back will allow SAIC, Dong Yang said: "If I had to plan, the original 'Roewe brand' should be called 'Shanghai brand'."

This implies that SAIC is necessary to improve the quality and sales of own car without the need to carry too many brands. Su Hui believes that companies should ensure the continuity of a brand, rather than creating multiple brands. Hyundai Motor, for example, on the basis of the Sonata, launched a pilot flying brand, playing with toys. However, based on the collar Xiang, Hyundai has launched the eighth generation Sonata was an instant sensation. "Consumer awareness of the brand will take some time, companies have to maintain the continuity of the brand."

Some industry insiders believe, SAIC brand need to do now is to raise the level of core technology, rich Roewe's product line, rather than recreating a brand on the basis of the existing technology platform, only to distract their own competitiveness.

"Shanghai brand's comeback is just a brand intention, product, production planning and has not been put on the agenda, its own brand of focus is the Roewe and MG above SAIC to tell the reporter of the" investors ".

From the Roewe R95, the Shanghai brand to build the "SAIC Audi"?

New car catalog recently issued by the Ministry, the figure of the "Shanghai card" out there, new car CSA7200, CSA7300 and CSA7240. Therefore, the "Shanghai sedans came back" message for a time became the focus of attention of the industry, and caused great concern of the media and consumers.

"Shanghai" brand car was born in 1958, is a landmark product. In the last century 0's, the Hongqi car of FAWGroup, and SAIC 's Shanghai car go hand in hand, saying there was "North red flag, the South Shanghai. The movies of the seventies and eighties of the last century, the high rate of appearance of the sedans. However, with the external environment changes, the "Shanghai" brand cars in the November 1991 shutdown. In recent years, with the development of the domestic automobile market, as well as to enhance the level of China's auto industry, "Shanghai" brand car resumption of production has also been mentioned by more people. In particular, the revival of the "Shanghai card" after the success of a new generation of independent brands of SAIC Roewe car industry focus.

Shanghai license first model will be the Beijing auto show in April to meet with you. "Recently, SAIC Passenger Vehicle Company, a staff member told reporters that the passenger car company has been Roewe and MG brands, it is not possible for the "Shanghai" brand re-design models. The first model of the Shanghai license will be the flagship model of the Roewe R95 B + grade for the target market, the flagship product into the C-level camp, the goal is to become a the 'SAIC Audi', a series of high-end public and commercial markets. "

From the disclosure of information, the body size of R95 4996mm/1857mm/1502mm, wheelbase 2837mm, consistent with the new LaCrosse, leading to the same level models. From the outside, face a new car before the continuation of the Roewe 350/550 styling, transverse multi-chip network is the atmosphere, elegant and there is no lack of brand characteristics. From the spy, before exposure, high-equipped models will be equipped with LED daytime running lights. Tail logo from the point of view, the 2.0L and 2.4L models will fly the Roewe logo, while the 2.4L high with 3.0L models will hang up the "Shanghai card" logo are the name of the R95 launch.

It was revealed that the R95 based BP31 platform development, the printing of messages called common technology from Epsilon II platform, led by SAIC-GM Pan Asia Design Center to create. From access to the chassis spy, a new generation of 750 on the rear suspension structures is indeed based on the Epsilon II Jun Vietnam is very similar. It is noteworthy that, in the power, the R95 and the new monarch more share power systems, the introduction of 2.0L, 2.4L and 3.0L three naturally aspirated engines are used the most advanced the TGI intelligent direct injection technology, not only have better fuel economy, while significantly reducing emissions, respectively, the maximum power of 113kW, 137kW and 195kW. In addition, the engine uses the latest aluminum lightweight durable at the same time, greatly reducing the body weight.

"Bus procurement in China has been mainly based on the Audi-based joint venture brand. Recent years, with the support and attention of public opinion and the relevant government departments for its own brand of bus procurement will be its own brand tilt." Industry believe that the "Shanghai card" to select a revival at this time, is a very good historical opportunity, described as "the timing, location, and". "Despite the national policy to encourage bus procurement priority to its own brand, own brand in the field of high-end public and commercial vehicles has always been the lack of representative products, Roewe R95's to fill this gap in the market."

"Shanghai brand back in the future will not only be limited to R95, SAIC's new energy of the fuel cell and hybrid vehicles after the listing will enable brand." SAIC has also said that as a representative of the most high-end of the own brand Roewe R95 will follow Audi's approach, the main government public business market. It is understood that R95 in the vehicle configuration are the top high-tech technology, not only the whole system comes standard EPS electric power steering system, Touch the Access Smart keyless entry function, a key of EPB electronic parking brake system, high version with First Class luxury seating system and a lot of comfort configuration. In addition, taking into account the public and business users on the demand of the rear space, the Roewe R95 is equipped with rear reading lights, massage seats, a series of high-end public business setting.

However, industry sources also said that although the policy procurement priority to its own brand, own brand must live up to expectations. Previously, the Hongqi HQ3 FAW large amount of money to build has not been entering the ranks of the official car procurement is mainly due to the high-speed stability is no standard. Therefore, the old brand back, must pay attention to product quality and quality can win consumer acceptance. Directly grafted mature Shanghai brand Roewe models, regarded as a wise and prudent approach. "

MG7 sales in 2011 jumped 15-fold, to 24,000, while the Roewe 750 sales decline 30%, less than 5000.

Roewe its only three main models, which gives consumers the right to choose relatively small.