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Following Changan Suzuki and Changan Peugeot Citroen, Dongfeng Renault became another joint venture automobile company that was dissolved.
On April 14, Dongfeng Motor Group Co., Ltd. (hereinafter referred to as "Dongfeng Group") announced that in view of the decline of the domestic automobile market and the operating conditions of Dongfeng Renault, both shareholders intend to reorganize Dongfeng Renault. French Renault intends to transfer its 50% stake in Dongfeng Renault to Dongfeng Group, and Dongfeng Renault will stop the business activities related to Renault brand (fuel passenger car), and the subsequent factories and channels will be taken over by Dongfeng.
But this does not mean that Renault will withdraw from the China market. Just like PSA, Renault will not give up the China market easily.
On the same day, Renault released a brand-new strategy in China, announcing that it will focus on light commercial vehicles and electric vehicles in the China market in the future, and the two major businesses will be carried out through its other three joint ventures-Renault brilliance jinbei Automobile Co., Ltd., Yi Jie Texin Energy Automobile Co., Ltd. and Jiangling Group New Energy Automobile Co., Ltd. In addition, Renault will continue to provide after-sales service to 300,000 Renault owners through the existing dealer network and alliance.
As for the relationship between Renault and Dongfeng, "husband and wife" will also be "friends". Renault Group said that in the future, the company will provide Dongfeng with spare parts, diesel engine licenses and cooperation in the field of intelligent networked vehicles. Dongfeng, Renault and Nissan will continue to strengthen cooperation in the future.
After the dissolution of Dongfeng Renault, people in the industry speculated that Shenlong Automobile would be the next "abandoned child".
"Split" between shareholders
At present, for the shareholders of both parties, Dongfeng Renault seems to have no need to exist.
From the establishment of 20 13 Dongfeng Renault to the launch of the first product on 20 16. In the following three years, Dongfeng Renault only imported four models: Kolega, Koleo, Kolebin and Enoch. After six years in China, Dongfeng Renault failed to grasp the dividend period of high growth in China automobile market. The products are few, the launch speed is slow, and the brand awareness is low, which can never satisfy the tastes of consumers in China. A series of realistic thresholds push Renault to the edge of China market step by step.
Dongfeng Renault has been in the China market for four years, and after reaching the peak of more than 70,000 vehicles in 20 17, its sales volume began to decline year by year. In 20 19, the sales volume of Dongfeng Renault was only 18600, down 63% year-on-year. At the same time, the market share of China legal brands is shrinking. From June 5438 to February this year, the market share of French brands was only 0.3%. Dongfeng Renault is powerless to return to heaven.
For Renault Group, the last value and significance of Dongfeng Renault's existence is probably only to reduce costs.
20 19 Renault lost money for the first time in ten years under the situation of accelerating the reshuffle of the global auto market. Renault's financial report data shows that Renault's operating income in 20 19 was 55.537 billion euros, down 3.3% year-on-year. Operating profit was 2 1 100 million euros, down 30% year-on-year, and net profit was only190,000 euros, down 99% from 3.5 billion euros in 20 18.
In February this year, foreign media said that Clotilde Delbos, interim CEO of Renault (Clotilde? Delbos) publicly stated that Renault will push forward the cost reduction plan, cut at least 2 billion euros of structural costs within three years, evaluate the assets of the joint venture company in China, and discuss closing the factory to control costs.
This news makes the outside world more convinced that Renault will withdraw from China. However, the public relations staff of Renault Group denied this rumor with the response that "Renault Group has a long-term development strategy in China". In fact, in recent years, with the weaker joint venture brands such as Suzuki and Fiat gradually withdrawing from China, and the gradual decline of French brands in the China market, there are also many voices criticizing Renault. In 2020, Dongfeng Renault's "divorce" rumor never stopped. The sudden epidemic in 2020 became a catalyst for the breakup between the two sides.
Will Shenlong be the next "out"?
As far as Dongfeng Group is concerned, Dongfeng Renault's increasingly low sense of existence and insignificant contribution can no longer meet the development needs of the group.
According to the announcement, as of 20 19 12 3 1 fiscal year, the proportion of assets and income of Dongfeng Renault in the total assets and income of the group was 1.0% and 0.5% respectively, and the pre-tax profit of Dongfeng Renault in 20 19 was negative. Compared with Dongfeng Honda and Dongfeng Nissan, which are growing against the trend, Dongfeng Renault and Shenlong Automobile have become the two major "drags" of Dongfeng Group.
"Consolidate and improve the good development trend of Dongfeng Nissan and Dongfeng Honda, and focus on solving the development difficulties of Shenlong Automobile and Dongfeng Renault." Dongfeng Group clearly stated in its recent 20 19 financial report. In fact, in order to lay out the future and enhance its competitiveness, Dongfeng Group has "slimmed down" for itself many times before. It is not surprising that Dongfeng Renault was cut off this time.
According to the business goal and future development strategy of Dongfeng Group to achieve "two 40 billion yuan" in 2020, after Dongfeng Renault, people in the industry have speculated that Shenlong Automobile will be the next goal of Dongfeng Group.
Such speculation is not groundless. In April this year, according to foreign media reports, due to the global epidemic, PSA's share price "halved" or damaged Dongfeng Group's equity income, and the two sides are renegotiating Dongfeng Group's share reduction plan, which will further affect the merger of FCA and PSA. But at the same time, it is also reported that the issues discussed by both sides also include the "separation" plan. "The stock price is just an appearance, and there may be ambiguity in strategic cooperation." An industry insider believes.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.