Geely sent knives to suppliers to bargain? The latest response from both parties!
Source: Securities Times Author: An YuFei Che Auto Enterprises not only send letters to suppliers to negotiate prices, but also "give knives"? Geely has clarified! Recently, the news that "BYD (01211.HK) and SAIC Datong are asking suppliers to reduce prices by 10%" has been fermenting. The incident of the general manager of Geely Automotive (00175.HK) parts purchasing company giving a knife to Chen Yudong, former president of Bosch China in 2023, has also been dug out, interpreted as Geely "sending a knife to negotiate prices." On November 29, Chen Yudong responded on his social media saying: "The knife is real, and the person who gave the knife is a good brother, not for price reduction."
Hefei issued 44 million yuan in consumer vouchers and Ideal launched a zero-interest financial plan. Local governments and car companies are competing for the year-end "consumption wave".
① On November 29, according to the Hefei Municipal Bureau of Commerce, from November 29 to December 8, 2024, new consumer vouchers for autos will be issued in Hefei, totaling 44 million yuan. ② On the same day, Li Auto announced a limited-time 0% interest policy until the end of the year. From now until December 31, users purchasing the Li L-series and Li MEGA can enjoy a minimum down payment financing plan with 0% interest for 3 years.
Hefei will start issuing 44 million RMB automobile consumption vouchers from today, with electric vehicles eligible for a maximum discount of 6,000 RMB.
The Hefei Municipal Bureau of Commerce announced that from today (28th) to December 8th, a total of 44 million yuan will be distributed for the "2024 Hefei Automobile New Consumer Voucher", with the highest discount of 6,000 yuan for new energy vehicles. There will be 336 automobile enterprises participating in the event. It is reported that individual consumers purchasing non-operational automobiles (including gasoline vehicles and new energy vehicles, excluding used cars) from automobile retail enterprises participating in the event can receive and use the consumer vouchers. During the event, consumers using UnionPay cards starting with 62 to pay for the car purchase at the participating automobile sales outlets using the designated POS machine can enjoy installment payments.
Troubles within and without for American car manufacturers: Trump's tariffs and the "price war" in the China car market.
Tariffs may lead to price increases and a decrease in demand. Meanwhile, the fierce price competition in the china automotive industry will pose challenges for usa car companies' operations in china.
China Automobile Circulation Association: From November 18 to 24, the average daily trade volume of used cars was 0.0655 million vehicles, a decrease of 1.76% compared to the previous period.
In the third week of November, the daily average trading volume of used cars was 65,500 vehicles, a decrease of 1.76% compared to last week, but an increase of 2.1% compared to the same period in October.
Progress on the Central and Eastern Europe electric automobiles anti-subsidy case: The Ministry of Commerce states that consultations are still ongoing.
Regarding the progress of the anti-subsidy case of Chinese and European electric automobiles, according to "Riyue Tan Tian" under CCTV, spokesperson He Yadong of the Ministry of Commerce responded that the Chinese and European technical teams have engaged in intensive consultations concerning the price commitment solution. After hard work, certain progress has been made, and the consultations are still ongoing.