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Suzuki Brand Integration Problems Encountered in China By Lanbo Jiang

  in Marketing | Published 2011-07-12 04:59:30 | 165 Reads | Unrated

Summary

When it was agreed that the Chang'an Suzuki and Changhe Suzuki verge of merger, the Changan Automotive Group and Suzuki but had begun playing the "Tai Chi" Chang'an Suzuki aspects of the merger with the two joint venture companies avoided the issue, but stressed that only seek to present a unified s ales, while for the merger of his previous high profile merger of Suzuki brand in China is undergoing a delicate line changes

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When it was agreed that the Chang'an Suzuki and Changhe Suzuki verge of merger, the Changan Automotive Group and Suzuki but had begun playing the "Tai Chi." Chang'an Suzuki aspects of the merger with the two joint venture companies avoided the issue, but stressed that only seek to present a unified sales, while for the merger of his previous high profile merger of Suzuki brand in China is undergoing a delicate line changes.As Japan's largest minicar maker Suzuki's plant in dozens of countries around the world, and made in India, 90% of the market. However, Suzuki's success in the Chinese marke
t has been unable to open their mouths. In 2009, Changan Suzuki and Changhe in two joint venture companies sold only 200,000. Which, although Chang'an Suzuki sold 150,000, but net profit margin was only 0.9%.

Last year in November, soldiers loaded the Group restructuring Air Group's automotive assets to be included in Chang'an Changhe Suzuki Group. Suzuki's Chinese joint venture objects, from the Changhe, Changan, into the same Changan, Changhe Suzuki and Changan Suzuki has become the de facto "family."Chang in the industry on its two joint ventures combined voice, the Suzuki does not seem eager to push Chang'an Suzuki and Changhe Suzuki integration.

Suzuki (China) General Manager of bottles of the Koji said: "Suzuki regardless of how many partners, both in the Chinese market with a unified brand image marketing, Suzuki's principles and policies will not change the number of partners to change." This Chang'an Suzuki and Changhe Suzuki to the prospects for the merger became increasingly vague.However, it is certain that in Changan internal integration of the two joint venture companies there are disputes, although the Group CEO Chang Ping Xu stay once in the last year made clear that the two will certainly be re Suzuki joint venture, but after a lapse of 4 months later, the attitude of Changan Group has become cautious.

"Suzuki joint venture future of the two 'combo' claims and no real progress, after all, under a master group, together with the sub is not the main thing, currently the most important thing is do Chang'an integration within, and for joint venture will depend on whether the merger ultimately benefit. "one analyst said.In addition, the Chang'an, the most pressing issue right now is a joint venture with PSA negotiations entered a critical stage, internal and Hafei, Changhe has no substantive progress in the integration, which allow Suzuki brand in China is at a standstill merger .

It is understood that, in Chang an internal, although the Chang'an Suzuki and Changhe Suzuki's sales channels, joint procurement and platform sharing ?? integration has put on the agenda with the integration of the brand without formation of a clear program Yi Zhi.However, in Chang'an and Suzuki did not take the next step before, the market situation has quietly shifted. Changan Auto to the latest sales data shows that a quarter of total sales of 706,900 Changan Automobile, up 75.92 percent. Following the first two months later, still firmly holds runner up position of China's auto rating. The Chang'an Suzuki and Changhe Suzuki Chang'an guards are still shouldering the heavy responsibility of small car market. Of these, Changan Suzuki in March sales of more than 18,000, a quarter of the total sales of more than 53 000; Changhe Suzuki are also continuous over 10,000 monthly sales.

As the bottle The Koji said, "a joint venture partner, brand image is very easy to establish. But there are two partners, sales on the increase." Clearly, in front of the brand image, focusing on the development of the Suzuki mini car sales more want to see the improvement.The industry believes that the merger Suzuki brand in China may be a double edged sword, if Chang'an Suzuki and Changhe Suzuki was unable to push forward the integration, do not rule out the possibility has been vacant for a Suzuki car has once again ended the idea of marriage, and, already Suzuki, Volkswagen cars for joint will be expected to choose rival Changan SAIC and FAW, which appears to Chang'an not want to see.

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