Sino-US trade friction US car companies are "injured"

Recently, Tesla signed a pure electric vehicle project investment agreement with Shanghai Lingang Administrative Committee and Lingang Group. According to the agreement, Tesla will wholly develop a Tesla super factory integrating R&D, manufacturing and sales functions in the Lingang area. The project plans to produce 500,000 pure electric vehicles per year, which is the largest in Shanghai's history. Foreign-invested manufacturing projects. Some people believe that Shanghai has become the big winner of this cooperation. In fact, the real biggest winner should be Tesla. As a representative of the American luxury electric car, Tesla has been counting a lot of powder since its birth. Wherever its founder Elon Musk went, he all set off a whirlwind of Tesla. But in stark contrast to its super-popularity, Tesla has been struggling in the quagmire of losses. The news that Tesla settled in China quickly changed people's pessimistic expectations for Tesla. Last year, Tesla Motors sold 103,000 vehicles worldwide, including 14,900 vehicles in China, accounting for 15% of the total. China has become Tesla's largest overseas market. Since China is the world's largest automobile production and sales market, especially the new energy vehicles are doubling every year, once Tesla is localized, sales will reach a huge jump. At the moment, compared with China's need for Tesla, Tesla needs the lifeline of the Chinese market. Therefore, Tesla is the biggest beneficiary and not abrupt. In fact, the American car companies that benefit from China are far from the Tesla family. From the US Jeep, the first Sino-foreign joint venture of Chrysler and BAIC Group, to Tesla today, American auto companies have earned a lot of money in the Chinese market. According to the data provided by the Chinese parent company of the six joint ventures, the average sales profit rate of American car companies is 8.6%, which is significantly higher than the overall level of 7.1% of the industry. Taking GM Group as an example, in 2017, GM's global total sales revenue was 94.72 billion yuan, with a loss of 10.98 billion yuan; and GM's two joint ventures in China (SAIC GM and SAIC-GM-Wuling) achieved sales revenue of 367.4 billion yuan. The realized profit was 27.99 billion yuan, and GM obtained a profit of 13.33 billion yuan from the dividend. Affected by the international financial crisis, in 2009, General Motors officially announced its application for bankruptcy protection, and its various brands were abandoned or sold. Surprisingly, GM went out of the bankruptcy protection process faster than anyone thought. After 39 days of the application, the GM asset sales transaction, the "New GM" car company was formally established, and the US government became its largest shareholder. -- The Ministry of Finance holds 60.8% of its equity. At the same time, SAIC also acquired a 1% stake in SAIC-GM. This insignificant share of equity not only solved the rush of GM's capital, but also exchanged GM's opportunity to continue to explore the Chinese market. Due to the huge consumption power of the Chinese auto market, GM's sales in China have not only been affected by bankruptcy and restructuring, but have become popular all the time. According to the data, in 2013, GM sold 1.715 million vehicles worldwide, and the Chinese market contributed 3.16 million units, surpassing the US and becoming the largest single market for GM. Coupled with the full enjoyment of China's various preferential policies, China has become the most profitable market for GM in the world. In recent years, its annual profit contribution rate has exceeded 50%. A car is a highly globalized industry. Products need to be sold in places with high technology, low-cost production, and large market sales. Therefore, the development of the automotive industry is more dependent on the global integration of the economy. Sino-US trade frictions, the most injured car companies in the United States, German car companies, Japanese car companies benefited. According to statistics released by the China Association of Automobile Manufacturers, passenger car sales in June increased by 2.3% year-on-year to 1,874,200 units. Among them, the sales of American cars in June decreased significantly by 22.9%, Japanese cars increased by 3.5%, and German cars increased by 4.9%. Even the Japanese media began to pay attention to this change. The July 12th issue of the Nihon Keizai Shimbun reported that "Chinese consumers are avoiding the psychological enhancement of purchasing American products due to Sino-US trade friction. General Motors (GM), Ford, etc. US car sales fell by 20%." "Sino-US auto cooperation is absolutely beneficial to the US. If there is no development in the Chinese market, the three major auto companies of the United States, Ford and Chrysler will become second-rate companies." Dong Yang, executive vice president of the China Automobile Association, is not the last words. Alarmist.

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