When the epidemic strikes, what can car companies do for dealers?

The novel coronavirus pneumonia epidemic has had a huge impact on everyone’s work and life. This unexpected "black swan" incident also caused China's automobile industry to be hit again in the New Year of 2020 after experiencing a big turning point in 2019.

The impact of the epidemic on the automobile industry is still being discussed. However, relevant agencies and industry insiders estimate that considering the traditional off-season situation during the Spring Festival and the impact of the epidemic, domestic car sales in February are expected to decline by at least 30% month-on-month, and both OEMs and dealers will face severe challenges.

Correspondingly, for the entire ecological chain of the automobile industry, the impact on the dealer level is considerable. For dealers who are "too far south", how car companies respond at this time and what kind of brand policies and customer service plans they give dealers have become an important foundation for future development. So, how do various large and small car companies do it?

Appease dealers? Lower targets

At this time, because most companies have postponed their start-up time to the 10th, dealers originally opened around the 3rd or even during the holidays. The plan to open on the fourth and fifth day of the Lunar New Year basically came to nothing. The reporter also learned that in order to avoid the second 14-day cycle, some companies (in other industries) in Shanghai even postponed their opening times to the 24th.

In addition, even if it opens normally on the 10th, many places are closed and users are automatically quarantined at home, the traffic of 4S stores will not return to normal soon, so the entire February and March should be greatly affected. Influence. As for the assessment indicators in February, including whether to adjust the indicators for the whole year, this is a question that OEMs must think deeply about.

Many car companies have already come up with plans. An Audi dealer friend of this reporter previously said that FAW Audi is considering adjusting the assessment indicators for February, but the principle is that dealers will never be allowed to Loss. According to recent information, Audi has canceled its February indicator assessment. Moreover, just yesterday, Audi sent a letter to dealers expressing its attitude of supporting Audi dealers. This also gives dealers reassurance.

Volvo, another joint venture, also became the first car company to announce that it would waive dealer sales assessment tasks during the epidemic. In addition, in order to reduce the financial pressure on dealers, Volvo also directly provides dealer staff with personnel subsidies totaling more than 10 million yuan. These pragmatic measures are undoubtedly a timely help for dealers. In addition, Volvo Cars has also provided some auxiliary policies, including stepping up negotiations with banks and reducing the due repayment risks of a small number of dealers.

As for FAW Besturn, it has also provided dealers with measures of "six policies including burden reduction, second support, and three guarantees" and "two cleansing, two timely care and four services" for users. In terms of sales indicators, FAW Besturn It has been significantly reduced. "On the principle of ensuring the operating status of dealers, the prerequisites and target assessments of incentive policies have been completely cancelled. All policy incentives are given at the highest level to reduce the burden on dealers and ensure the maximum interests of dealers."< /p>

In addition, GAC Trumpchi has also canceled the car pick-up task for dealers. As long as you pick up the car, you will immediately enjoy the car pick-up reward. It also provides a 30-day interest-free period for dealers' inventory financing, and provides assistance and special processing by financial institutions for vehicles that need to be redeemed when their repayments are due, striving to ensure the turnover of dealers' funds.

BYD soon issued a "Letter from BYD Automobile Brand to All Dealer Partners", exempting WES dealers nationwide from assessment from January to February in the first quarter, canceling service quality assessment or delaying re-inspection. wait. Moreover, dealers can independently plan the pace of car pickup in February based on sales volume.

Also, Li Xueyong, general manager of Jietu Marketing Center, told reporters that Jietu reduced dealers’ quotas for February by 50% and postponed the repayment of dealers’ funds by one quarter. This will relieve the pressure on dealers. He believes that the impact of the epidemic will last at least one quarter, that is, the three months from February to April. Because Jietu's dealer pick-up target is set on a monthly basis, this time it will be reduced from February, and then appropriate adjustments will be made to March based on market trends and conditions.

For the auto companies in Hubei that are most affected, Dongfeng Nissan released the "Guidelines for the Start of Construction in the New Year of 2020" on January 28.

A Hubei Dongfeng Nissan dealer interviewed by the reporter said that the current overall sales target adjustment policy has not been released yet, because the store opening has been postponed to the 14th and has to wait for government notification, so Dongfeng Nissan is expected to release a final policy after the lockdown is lifted. policy. However, the dealer also emphasized that compared with task indicators, post-holiday after-sales revenue is the challenge.

Where is the "opportunity" of the sales model?

With the advent of the epidemic, customers visiting stores have become an unprecedented problem. The online sales model that previously caused great headaches for car companies has changed this time. It may be "unintentional planting of willows and willows to create shade". The reporter learned that many car companies have plans in this regard. This is also one of the "opportunities" brought by the "crisis".

For example, the FAW Besturn brand stated that FAW Besturn will take the opportunity to strengthen online services and strive to allow consumers to experience more convenient and efficient car purchasing services. In addition, it has set up 24-hour online customer service to answer questions, and opened online flagship stores such as Tmall, Suning, and Zhijia Auto, and helped most dealers open VR showrooms and VR car viewing services to help users in all aspects. Cars and consultation.

GAC Honda has launched four major countermeasures, including: viewing cars online and ordering online and offline to enjoy exclusive gifts; strictly managing the in-store environment, cleaning it daily, and implementing disinfection procedures in all service areas according to high standards. In addition, it provides customers with necessary anti-epidemic supplies; establishes an all-weather exclusive car consultation group to provide online services; some special city stores provide door-to-door pickup and delivery services; provides 24-hour rescue services to ensure the supply of spare parts, etc.

Volvo also stated that it will strengthen its recent online marketing investment and support. Dongfeng Yueda Kia dealers meet users' requirements for worry-free purchase without leaving home through online car purchasing. Dongfeng Nissan believes that the epidemic has stimulated customers' demand for private cars, but how to allow customers to "purchase safe cars with confidence" is the most important issue at the moment.

Li Xueyong, general manager of Jietu Marketing Center, proposed in this regard that dealers will be fully supported in conducting online sales. Among them, the first point is to make full use of the existing Jietu smart showroom platform, because this platform does not require face-to-face contact, and can directly book cars online through programs. The second is to fully expand the existing online platforms for gathering customers such as Autohome and Bitauto, and even place more advertisements.

In addition, Jietu is also negotiating with an organization to open an online 4S store. The functions of online 4S stores include new car sales, loans, replacement of used cars, etc., and their functions are more powerful. The ultimate goal is to better integrate the three aspects and form Jietu's online marketing platform.

Of course, the online sales model has not yet brought more realistic sales results. However, as various models such as live streaming of "cars", VR 360° car viewing, and online car sales become more and more mature, the offline sales model dominated by 4S stores is under constant impact.

We know that as a successful case and a pioneer in the industry, Tesla has pursued an online sales model from the beginning. Moreover, in China, at the end of January, Tesla also established several WeChat groups with hundreds of people through Moments, and conducted two live broadcasts of several hours on Douyin every day. Store shopping guides or old car owners were invited to comment on car performance, official website reservation methods, Charging warranty, smart summoning and other aspects will be demonstrated. These new models and practices have given useful tips to domestic car companies.

So, although the epidemic is a "crisis", it also stimulates car companies and dealers to look for new "opportunities". The downturn that began in 2020 has given many car companies and dealers a warning that they need to work together to prepare for a difficult future.

The impact of the epidemic on car companies

According to past experience, the Spring Festival period is the lowest point in sales for the whole year. Generally, the sales targets of car companies in February are not high. However, this epidemic will definitely seriously affect the sales performance from February to March.

According to market research firm IHS Markit, Shanghai, Guangdong and Wuhan will reduce the production of at least 150,000 vehicles during the epidemic. Although the final economic losses still lack specific estimates, the entire The damage caused by the incident to the automobile industry will far exceed that of the SARS epidemic in 2003.

Joseph Massaro, chief financial officer of U.S. parts supplier Aptiv, expressed concern that after the entire industry chain extended holidays and shut down work due to the epidemic, China's full-year automobile production will decline by 3%. %, production in the first quarter will be reduced by 15%.

Cui Dongshu, secretary-general of the Passenger Car Association, also said that it is inaccurate to simply use the high sales volume in the second quarter of 2003 to prove that the SARS epidemic promoted the market. The market situation in 2020 is more complex. In terms of terminals, the manufacturer's inventory dropped by 150,000 units in 2018 and 220,000 units in 2019. The inventory of manufacturers and dealers was originally supposed to be replenished in February 2020, but it seems to be difficult at present. In particular, the inventories of some Japanese car companies are low and it is difficult to resume production as planned in the short term. This time, they should also suffer major losses.

However, some people in the industry are optimistic, believing that as car companies gradually begin to formulate more favorable car pickup policies for dealers, reducing the task and burden of picking up cars, prices will naturally be reduced to attract buyers. consumer. Moreover, after the epidemic, the recently suppressed or suppressed demand for car purchases will be released. After the epidemic, some people's enthusiasm for owning a private car for safety reasons will be unprecedentedly high.

Therefore, many car companies are not pessimistic about the future. For example, BYD Auto believes that there may be a sales climb in March. From the perspective of annual sales, the impact of the epidemic on the car market will be limited.

The reporter interviewed a relevant person from Changan Automobile. He told the reporter based on internal feedback, “The impact of the epidemic on Changan Automobile’s production is mainly reflected in the company’s production rhythm. Changan Automobile responded to the national call and will resume work. The date has been postponed to February 10. At present, the production start time of Changan Automobile's best-selling models has been greatly affected: for example, the original planned production start time of Auchan X7 has been postponed to February 10. , CS35PLUS needs to be postponed from February 1 to February 10. However, through our recent series of layout adjustments, the overall risk is controllable.”

However, Changan Automobile also mentioned that it is very important. Three points, especially in the logistics chain: First, the resumption of work of major supply chain partners has been delayed, and there will be greater challenges in meeting the delivery time of vehicle production materials; second, Changan and supply chain companies All are affected by uncertain factors such as the return rate and return time of employees after the resumption of work, which will affect production capacity and efficiency; thirdly, the recovery of the national logistics chain after the resumption of work will still take a certain amount of time, and the on-time rate of logistics delivery will be affected. Influence.

With the advent of the epidemic, the quarrel between car companies and dealers has become more obvious. Therefore, we should strengthen support for dealers, encourage dealer partners to fight, and face the current situation together with a win-win attitude. The difficulty is what all car companies should do and are doing. We have also seen that car companies are indeed actively and spontaneously contributing to the fight against the epidemic at the first time and considering reducing the burden on dealers. We believe that after the epidemic, we can usher in a healthier and more prosperous market.

Text/Wang Xiaoxi

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This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.