Non-monopoly game: Shanghai GM home price disposal dealers

Last year promulgated the "Anti-Monopoly Law," given the auto dealers autonomy to determine the price of vehicles, after-sales service prices, cross-district sales and other rights, automobile manufacturers have no right to interfere in dealer sales. However, it is understood that the Anti-monopoly Law, which has been implemented for nearly a year, has not fundamentally changed the attachment between dealers and manufacturers, and pricing power is still firmly in the hands of automobile manufacturers. One of the appearances: the current market price of the mainstream models quietly rising prices. Dealers without price cuts? No! Auto market into 2009 after all the way higher. In April, the sales volume of domestic passenger cars increased by nearly 40% over the same period of last year, and the sales volume of 831,000 units in a single month hit a record high. A series of national preferential policies contributed to the booming auto market in the first four months of this year. However, many consumers who ran away with preferential policies found that the actual market prices of many hot-selling models have secretly recovered. The booming auto market is usually the most stringent price control for automobile manufacturers. Dealers themselves lower prices, manufacturers will often lead to severe penalties. Shanghai GM dealers revealed that not long ago, a large dealer because of its secondary network to the new Regal promotion, and was Shanghai GM punishment, from March 17 to April 30 to stop the new Regal, Angkre The supply of resources, but also informed criticism. "The new Regal, Angkre, which is currently the dealer two most profitable models, the loss is not small ah." The dealer boss laments. The reporter called the dealer, but the relevant staff said: "There is no such thing, we are all normal." Shanghai General Public relations department also denied the matter, saying "never heard of such a thing." Informed sources, the dealer denied the punishment of the matter, mainly worried about the manufacturers will be subjected to more sanctions. "After all, the relationship between manufacturers now, manufacturers in a strong position, dealers are subject to more restrictions." The above said. A FAW-Volkswagen dealer also said that the manufacturer's control over the dealer price, especially the price control is phased, but much higher than the fare increase. When the general automobile market is good, the manufacturers resolutely do not allow dealers selling prices lower than the minimum price, the end of the year or when the automobile market is not good, the dealer will generally control the price cuts loose, or even turned a blind eye. The price is still in control In the hands of manufacturers, the "Anti-monopoly Law" formally implemented in August last year was considered to help car dealers get more autonomy, because according to the "Anti-Monopoly Law," "prohibit operators from setting a minimum price, may not Split the market "and other terms, car manufacturers can no longer set the lowest car sales price, after-sales service prices, prohibit cross-selling. After the implementation of the "Anti-Monopoly Law," auto makers responded positively. Guangzhou Toyota took the lead to abolish the minimum price, the final sale price by the dealer at its own discretion. Subsequently, FAW-Volkswagen, FAW Toyota, Dongfeng Nissan, Guangzhou Honda and other companies have also responded to the abolition of the commercial policy with the "anti-monopoly law" the minimum price limit the restrictions on cross-regional sales, control of parts and components distribution channels practice . However, car dealers quickly discovered that even if the manufacturer made it clear that they would give up the "limit price limit," manufacturers still have other ways to firmly control pricing power and regional sales rights in their own hands. Shanghai GM dealers said privately, Shanghai GM for various sections of the models still have a minimum price, especially hot models, if the dealer price cuts, manufacturers will be punished after the discovery. Shanghai General Public Relations Department of the "minimum price" policy has not denied, and explained: "We do this is to protect the interests of consumers, if consumers find our products and found the price dropped sharply, he certainly felt unfair, Will also lose trust in our dealers and brands. "A FAW Toyota dealer said that manufacturers now have no minimum price requirements for them. But this does not mean that the price by the dealer himself. "Each time the promotional activities of the magnitude, time, model, dealers need to negotiate the members to discuss the decision." FAW Toyota Motor Sales Co., Ltd. PR official introduction FAW Toyota Association is a voluntary organization by the dealer, self-management, In two levels, a third-level association to the province as a unit, covering the province-wide distributors, two associations to the city as a unit, from a city-wide distributors. Committees around the world meet regularly or irregularly to study the market situation, discuss countermeasures and formulate promotion plans. Sometimes manufacturers' sales representatives also attend meetings of associations and give guidance on behalf of manufacturers. Although FAW Toyota PR people said the sales price is determined by the dealers according to the market conditions, FAW Toyota dealers said that the major market measures of the association are basically carried out in accordance with manufacturers' guiding principles and the autonomy of the local associations is more To reflect in a number of charitable activities, owners of recreational activities. "In the past to carry out promotional activities is received after the notification dealer dealers their own actions, and now is a place where dealers gather together to discuss and act in unison. The phenomenon of promotion alone can not appear in violation of the Charter is to be punished "The dealer said. Industry veteran, Su Hui, general manager of Asia that the current auto manufacturers in the case of dominance, the dealer can not have the price autonomy. Even with such a dealer association, its autonomy is not high color, more according to manufacturers guide. "Dealers under the factory-led organization is unlikely to increase the autonomy of dealers, but will become a good helper for manufacturers to control the terminal market prices." Su Hui said. Avoidance of "Antitrust Law" A FAW-Volkswagen dealer in Beijing said that after the implementation of the "Anti-Monopoly Law," automobile manufacturers did not diminish their efforts in price control of distributors, but the method became more obscure. As Shanghai GM some dealers because of unauthorized price cuts things, "It is still very common, not only a Shanghai GM, other brands have also occurred." The CEO revealed that manufacturers have a lot of means to control the dealer price. For example, in the annual business contract signed, the price there will be many detailed and strict terms, these provisions will be very good to circumvent the anti-monopoly law. Such as the violation of regional alliances and related commitments, there is a non-standard quote and decoration discount, the market, brands and partners adversely affected. "A variety of reasons, at any time can find the terms of punishment dealers." A self-branded manufacturers in the "Anti-Monopoly Law" last year after the implementation, and privately signed an agreement to evade the "Anti-Monopoly Law." Even if the dealer does not promote in a big way, quietly under the price cuts, it is inevitable manufacturers scratched the "pigtail." In order to prevent the dealers privately engaging in "tricks", manufacturers will hire third-party companies to buy cars at various dealers, once the dealer to buy the lowest price below the manufacturer's car models, the third-party companies will be rewarded, The dealer is "unlucky". The typical method of punishment is to allow the dealer to buy the car at a factory direct price (much higher than the manufacturer's lowest limit to the dealer) and impose a fine of tens of thousands of yuan per car. Also like the above Shanghai GM dealers, as a certain period of time, cancel the sale of hot models, maintenance rights, as well as spare parts supply. Although dealers know manufacturers such a practice is price monopoly, but even if not fined sound. The reason is: "dealers do not have much voice, can not offend manufacturers.Other manufacturers of remote information network, the dealer can not see any vehicle information, but also how to carry out sales and maintenance business? Or cancel the dealer authorization, In that case the dealer is completely dead. To put it plainly, manufacturers want to close the dealer, it is a breeze thing. "A dealer in the phrase. However, companies do not let go of price control has its own concerns, worried that once the dealer will release the price war, the distribution channel is difficult to control, thus affecting the quality of after-sales service and brand image. However, dealers do not agree with this, the Shanghai GM dealers said: "Dealers are also to make money, consider the long-term development, unless you do not want to rush to get back the funds, or who are not willing to price war." Countries Xu Changming, director of Information Resources Department of Information Center, believes that in the short term, the dominant price of manufacturers will not change. "If you let the dealer pricing, there may be price chaos, dealers arbitrarily increase or price cuts, is not conducive to market order and brand maintenance .Especially the price is too low, the car after-sales service is difficult to be guaranteed." (This article Source: Economy Observer author: Geng Huili Wang Qiufeng car)