at the end of 2019, China’s auto market, released along with a new ticket, and once again become less calm.
December 27, the State Administration of Toyota China market monopoly case issued administrative penalty decision, because of its Lexus brand vehicle sales price monopoly, Toyota China was sentenced to a fine of 87.613 million yuan, and ordered stop illegal activities. This time Toyota China quot; caught quot; suspected of anti-monopoly, the reason lies in Jiangsu Province unified dealer quotes.
a fine reason to control prices
According to the information market in Jiangsu Province Administration of Foreign issued for Toyota China’s anti-monopoly investigation lasted two years, Jiangsu Province Price Bureau in December 2017 Toyota China suspected monopolistic conduct a criminal investigation. In December 2019, Jiangsu Province, market supervision and administration of the case to make a decision on administrative penalties: Toyota dealer network in China’s reunification offer, limited dealer resale lowest price behavior, is reached with the trading counterpart and implement quot; fixed to third party resale price quot;, quot; quot defined minimum price for resale to a third party; monopoly agreement in violation of the provisions of Article 14 “anti-monopoly law.”
violations include: Toyota dealer China reached a limited dealer network and offer some models turn vehicle the sale price of the agreement, Toyota China implemented a limited dealer network protocols offer some models and vehicle resale prices. In addition, Toyota China price controls through a number of management measures, and the implementation of the price the dealer requirements. Since 2016, Toyota China require dealers to upload invoices party sales management system, the organization of specialized personnel to upload invoice check, beyond the required limit, the dealer must explain why. For low sales dealers, Toyota China Regional Sales Manager will be cut next month to inform the relevant models equipped car.
and about 88 million penalty is calculated from the 2 percentage of total sales in the year of 2016, Jiangsu Province, according to. Penalty decision said,Chinese combination of factors, the nature of violations, the extent and duration of Toyota, taking into account the parties to actively cooperate with the investigation, admitted existence of a breach “anti-monopoly law,” the active rectification, in accordance with Article 46 “anti-monopoly law,” the fourth 119 of the provisions, shall be ordered to stop illegal activities Toyota China, and decided to fine the previous year (2016 year) 2 percent of sales at the party, that is, 87.613 million yuan.
The question is will continue to occur
4S shop mode current model, we are familiar with mainstream car sales model, manufacturers and sellers is clear division of two individuals, the manufacturer is responsible production of cars, 4S shop for sales. So as to ensure the fastest car sold, sold to consumers.
both are indispensable, should not exist if the 4S shop, car manufacturing out of the hands of the user experience time very slow, not very good distribution. Toyota, in the early business practice vehicle production for the sale, the last fundamental to the brink of bankruptcy, and finally cooperation established sales company or find vendors selling automobile cooperation.
nothing is absolute, has its good side under the 4S shop mode, there are bad side, dealers there is a relationship of mutual checks and balances between car manufacturers, including car manufacturers the right to speak source of heavier hand. When market failures, too many bear the reseller channel, manufacturers passed on from pressure. And we will have the next part of the terminal price system.
to maintain a stable price system terminal It sounds simple, but not easy to do. The first is the level of manufacturers to ensure that their own models of product strength, so that in the fierce competition still able to maintain sufficiently attractive; secondly to ensure that dealers make money, so they will not lose money as a sales and marketing.
Of course, the current market situation, the sales under the 4S shop mode often do not make money, basically a sale at a discount. This is so, first, because under the fierce market competition, lack of product strength situations, only let dealers to attract potential customers; and second, the intensity is too large auto companies Yaku, dealers to ease the financial pressure, forced to cut prices in order to sell cars rapid return of funds; third is the official factory after the price has not to mention car dealer compensation, the latter stuck to sell at a lossCar situation.
problem Lexus currently appearing between many car companies and channels also exist, such as Changan Ford this year was fined, and the status of regional protection, regional prices, there is a lot of car companies, and now rely on survey fine behavior, obviously a temporary solution, because the dealer is required to survive in the sales cycle requires profit, a source had to cater to hand the car manufacturers.
Written in the last:
Lexus city supervisor was fined Bureau, more significance is a warning to others. Under the current model, only further standardize the market, but you can not put an end to covert operations between car prices and dealer channels in other forms. And in the short term, it does no good way to break the unspoken rules between the manufacturer and the reseller channel, after all the interests involved, to survive.
Of course, the market will eventually be eliminated naturally, when manufacturers tried to create a pricing system does not meet the laws of the market, that is, it will be punished decline in sales falling profits, even if the brand of thunder Masamori.