Editor's note: The rise in the euro is not a good thing for domestic automakers, which still rely on imported parts.
Sources said that due to the rise in the exchange rate of the euro, there was a problem with the supply of spare parts for domestic automakers. Some parts of Fukang's models began to increase prices recently, while Shanghai Volkswagen also affected the entire vehicle production due to the limited number of imported parts and components. To this end, we interviewed several major manufacturers and distributors to understand the development of the situation.
Limited impact on imported parts
For the recent incident reported by the media about "Fukang's imported parts prices," Dongfeng Citroen Propaganda Department Minister Xu Zhiqin said that it is a fact that accessories have risen, but it should be viewed from a more objective perspective. Due to the impact of the exchange rate of the Euro, the proportion of imported parts with high proportion of accessories will be affected. In the case of Dongfeng Citroen, the number of components that rose was about 1,000, but there were more than 15,000 components and less than one-tenth of the components for price hikes. This component price increase was accompanied by price cuts for some components. Some parts with a large supply have been made domestically, and the prices have been adjusted downwards. From the perspective of the proportion structure of the components for this price increase, these parts are not commonly used parts, and the chance of replacement by consumers is very small.
The Shanghai Mass Market Army also denied the rumors that "Shanghai Volkswagen's parts will affect vehicle production." He said that he has not yet heard from the company about this.
The marketing department staff of major brand dealerships like Zhongyi Da also stated that the consumer’s response was very calm and there has been no feedback from this aspect. Chen Bin, marketing manager of Beijing-Tianjin-Hebei Shenlong Sales Co., Ltd., said that although some parts are subject to price increases, they are not commonly used and have not had a significant impact on consumers.
The manufacturer bears the price increase burden
Although the euro caused imports of spare parts supply problems, but the interviewed manufacturers have stated that, from the vehicle production point of view, the manufacturers have not yet supply pressure, nor will it shift the pressure on consumers, the car prices will not be affected.
According to Guo An, manager of the public relations department of Changan Ford Motor Co., the company has made adequate preparations for the rise of the euro exchange rate. Through hard work, the company’s production has not been affected at present. Orders of hot models like Mondeo are in the hands of many dealers. Over a thousand, the company will work overtime to increase production. As for the maintenance of spare parts for consumers, there has not been any change in price yet, and they will notify the dealers once they have changed.
Peugeot 307, which has been offline, although its localization rate is still unknown, from the historical experience of joint venture vehicles, it is believed that a considerable portion of spare parts will still depend on imports. For the recent changes in spare parts supply, the company’s marketing staff It said that the rise of the euro will affect all automakers, but the company believes that Peugeot's joint venture, Shenlong, has a strong industrial base and its localization advantage over other brands. The implication is that there is no concern about spare parts supply, but whether it will affect the market price of 307 announced in June is still unknown.
Dongfeng Citroen's Minister Xu said that the supply of spare parts will not affect the company's vehicle production. For example, the localization rate of the company is very high, but the impact is still relatively small. Even so, the company will reduce its own profit margins and will not pass it on to consumers.
In this regard, Zhong Zhi, general manager of Shanghai Zhize Vehicle Consultation Co., Ltd., believes that the current domestic auto market competition is fierce. The rising price of auto parts will not drive the vehicle price, but it may increase the use cost.
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