We can "wait" for two years to "roll over" in the Chinese market

Every reporter Xing from Shanghai when the global auto giants are mostly at a loss, Fiat and Guangzhou Auto Group, the most profitable company in recent years, have come together and will invest more than € 400 million in China to formally set up a passenger car joint venture. However, in the face of Fiat's failure to roll over in China in the aftermath of Fiat's defeat, Paul Alberino, China's chairman of Fiat Group Meng Feixuan and Fiat Group's chief representative, said in a recent interview that the only market in the 1 million-tier market with double-digit growth Fiat will never leave the Chinese market without making significant investments.　　And the Midwest market is China's most growth market, Guangzhou auto Fiat settled in Hunan Changsha not only can enjoy the development of preferential policies in the Midwest, but also close to the future potential of the largest market, they do not worry about the prospects of Guangzhou auto Fiat. The common characteristics of "Guang-fei" In fact, after the end of the December 25, 2007 Fiat Fiat has not abandoned the Chinese market, the first quickly set up a service company, mainly to the existing 160,000 fiat owners to provide repair services and spare parts supply, and then introduce imported models, in the absence of domestic cars, To ensure that dealers have car sales.　　In the meantime, Fiat has been negotiating with Chery to form a joint venture. Meng Feixuan said the current joint venture talks with Chery have been suspended. As for the choice of GAC, he believes that Guangzhou Auto is one of China's most successful carmakers, the data show that GAC in recent years in the domestic auto industry, the highest profit margins, the highest absolute value, while Fiat recently in Europe is also one of the most profitable companies.　　So there is a lot of similarity between Fiat and GAC in the pattern.　　In addition, the cooperation between Fiat and GAC has progressed very smoothly, as a result of the rapid establishment of a high level of trust between the two sides in the process of prior technical cooperation, which is the reason for the rapid joint venture between Fiat and GAC. Fiat is bullish on the central advantage. On the eve of the joint venture, it was rumored that GAC's Fiat site was chosen in Guangzhou, but eventually Guangzhou's Fiat was settled in Changsha, Hunan Province, and Meng Feixuan said the choice of Hunan was also a common decision between Fiat and GAC. Because according to the current economic development data, Hunan's income per capita in the central region is lower than the coastal developed areas, for a start-up, advancing projects, the relatively low cost is a very important factor. In terms of long-term market development, the Chinese market is still a market with great potential for growth, and these cities in the central region have more potential to grow than mature markets in developed regions.　　In addition, Hunan Province itself has a good industrial base, with the continuous construction of infrastructure and the improvement of investment environment, will provide more facilities for joint venture companies, while in central China's Hunan Province has a good logistics and transportation conditions, which for the automotive industry's huge transport needs, very attractive. Meng Feixuan said that Hunan Province is one of the six provinces in the Midlands, which meansHunan Province and the West have the same level of preferential policies, may be the joint venture in the future control of costs is also an important advantage, so Hunan province This advantage is also Fiat made the final choice of considerations. The production of new cars will take two years according to the agreement content, the joint venture company's new factory production site area of more than 700,000 square meters, is expected to be put into operation in the second half of 2011, a production capacity of 140,000 cars, 220,000 engine units. Factory capacity will gradually increase to an annual output of 250,000 cars, engine 300,000 units.　　However, Fiat has broken up with NAC for 1.5 time, it will take another 2 years to produce a new car, which means Fiat missed the best time to develop in China for more than 3 years, with the recent development of small cars and Fiat's advantage in small-footprint cars, and how does Fiat deal with the loss of 3 years? Alberino that the loss of 3.5 of the opportunity is indeed very regrettable, but at present, the Chinese market is a continuous growth of the market, the Chinese market, the new regional market and consumer groups are emerging, so the development potential of the Chinese market is everyone can see. Fiat has conducted a survey of the market at the beginning of the project, drawing lessons from past Fiat in Nanjing. "Because in the past, some of our predictions and judgments about the market were based on internal resources and there was no scientific basis for judgment," Alberino said. In fact, prior to the project, the two sides through the third party experts, to a wider range of professionals to consult, together to make a scientific forecast of the market trends. "Ready to accept two years of losses," Meng Feixuan said as evidence: 2002 was the first year in China's passenger car market (sales were over 1 million for the first time), more than 1 million was a standard, and more importantly, China was the only 2-digit growth market in more than 1 million of the market.　　Passenger car sales must be close to or over 8 million this year, so it is obvious that we have maintained more than 1 million and the only mega-market. In China, he believes, every one months of delay is a pity. But since it is such a trend market, the market has maintained a long-term growth trend, even after two years in China to restore product advantage, but, "in order to pursue such a strategic outcome, we can accept the 2 years of not selling our products caused by the loss." "It is reported that Fiat has plans to continue to expand the dealer network in the future, Fiat currently has 30 distribution outlets, most of them are Nanjing Fiat era dealers, of which 8 are newly joined, such as in Shanghai, Suzhou, Wenzhou, Hangzhou, including the upcoming Nanjing, Beijing, Chengdu and other regions of the new distributors, These dealers are likely to join the joint venture's dealership network.