The most popular BMW shares than the shackle termi

2022-07-22
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BMW has become the "shackle terminator of share ratio", and the automotive industry is about to usher in "great changes"

after the liberalization of the joint venture share ratio policy, there have been repeated rumors that BMW will increase its share in brilliance BMW. This time, BMW officially took the controlling stake, becoming the first enterprise to obtain the controlling stake of a joint venture car enterprise. This has caused great controversy in the automotive industry. Is it a good thing or a bad thing to open the stock ratio? What great changes will the automobile industry face next

on the evening of October 10, a big news came from the car market. BMW Group will acquire part of the equity of BMW Brilliance at the cost of 3.6 billion euros, raising the shareholding ratio to 75%. The news was soon officially confirmed. In the meeting between the premier and the chairman of BMW Group, Mr. Kruger said: "BMW holds more than 50% of the shares in Chinese joint ventures, which is the 'first example' of China's opening the share ratio of joint ventures to foreign-funded automobile enterprises.". This is the first official confirmation that BMW will increase the share ratio of joint ventures in China

this means that the long rumored "foreign auto companies' share ratio improvement" of the electric cylinder piston through the slider and rocker link has been completely settled. The joint venture policy of not more than 50% foreign shares that has lasted for more than 30 years has been completely ended, and the development policy of China's automobile industry has undergone major changes

what is the impact of this joint venture on Chinese industry

Tesla and Lexus may be quickly approved

1 The foreign 50% shareholding limit has been completely broken, which means that China's automobile joint venture policy has undergone a qualitative change, and the Chinese market has become more open and confident. The first joint venture automobile enterprise in China was established in 1984. At that time, BAIC Motor Corporation and American Automobile Corporation established Beijing Jeep Automobile Co., Ltd., which has since opened the curtain of China automobile joint venture

in the following three decades, the joint venture has become the dominant policy of China's automobile industry, while maintaining an insurmountable red line, that is, the foreign shares shall not exceed 50%. This red line, like the high-voltage line, has become the basis of the joint venture policy. No matter Mercedes Benz, Volkswagen, Toyota and GM, they have all bowed below the red line for more than three decades. Today, BMW's share in the joint venture company rose to 75%, which means that 50% of the joint venture shares are dead. In Premier Li's words, "BMW is the first beneficiary of the Chinese government's relaxation of the restrictions on the share ratio of foreign investors in the automotive industry to invest in China, which can be said to be 'one horse in the lead'."

2. After BMW takes the lead, it is almost certain that it will encourage more foreign shareholders to follow suit. Before BMW, Volkswagen, Audi, Mercedes Benz, Toyota, etc. all tried to break the 50% share ratio of joint ventures, but the policy was stronger than people. They were limited by the policy high-voltage line and got electrocuted one after another. The successful qualification of BMW this time will almost instantly activate the desire of foreign shareholders to increase their equity. The most typical example is Daimler, which almost immediately put raising the stock ratio on the agenda

3. It is conducive to the localization of Tesla and Lexus. As we all know, Tesla has always wanted to enter the Chinese market, but it does not want to share its "top secret technology" with others as a joint venture. Another example is Lexus. Lexus sold 16101 vehicles in China in September, with monthly sales of more than 110000 vehicles, making a lot of money. At the same time, it is also facing great domestic pressure. But Lexus doesn't want to share the huge profits with its partners. It just wants to be a sole proprietorship. In other words, the localization of Tesla and Lexus could not be realized theoretically before the liberalization of the joint venture share ratio, but after the liberalization of the share ratio, the biggest obstacle to their localization has actually been eliminated

independent brands are the biggest beneficiaries

the above is good for joint ventures and foreign shareholders. The liberalization of share ratio is the result of foreign capital's persistent efforts for many years. After the liberalization of share ratio, foreign capital also obtains de facto benefits. However, if we think that the liberalization of the share ratio is only beneficial to the joint venture, it obviously does not conform to the actual situation, and greatly underestimates the positive significance of the liberalization of the share ratio. If we take a longer view, we will find that in fact, the independent brand is the biggest beneficiary of the liberalization of the various types of experimental machines in the experimental machine industry

1. First of all, after the joint venture shares are opened, the national teams of independent brands will be forced to develop their own, activate their competitive awareness and unlock their sealed skills. As we all know, in the joint venture era, the national teams including FAW, SAIC, GAC, Dongfeng, BAIC and so on, rely on the joint venture with Volkswagen, Toyota, GM and Nissan, almost lie back and make money. They can make a lot of money every year just by relying on the joint venture. Although money has been earned, the ability to compete in the market has also been sealed. If you can make money lying down, who is willing to work hard

however, after the liberalization of the joint venture share ratio, the national teams' golden rice bowl of making money will be destroyed. They will have to transfer their energy from the joint venture sector to the independent sector, and take advantage of the strength, financial resources and identity of these national teams. When they start to make efforts, they will certainly change the power ratio between foreign investment and independence, and independent brands will receive strong support

2. It is a great benefit to the traditional grassroots autonomy of great wall, Geely and BYD. Over the past three decades, China's automobile industry policy has always focused on joint ventures, and the interests of joint ventures have been given priority in the formulation of all policies, while the grassroots autonomy of great wall, Geely, BYD and so on has actually been suppressed and curbed. For example, great wall and Geely, each of them had a very difficult experience in obtaining the production qualification to develop such materials

as a pioneer of China's automobile industry, Mr. luguanqiu did not get the license to automatically return to the original point and automatically store production after testing until his death. However, when the share ratio of joint ventures is released, it means that the government will no longer take joint ventures as the core of industrial policy. In this way, great wall, Geely and the strangled Wanxiang will receive equal national treatment with joint ventures in terms of policies, which is undoubtedly a great benefit to the independent grassroots. Li Shufu, chairman of Geely Holding Group, was outspoken. "Only by liberalizing the share ratio can the automotive industry have a fair competitive environment."

3. In addition, a more important point is that only when the ratio of joint venture shares is liberalized, or even foreign-funded enterprises are allowed to build factories, can it mean real market competition. When BMW can control BMW Brilliance, when Lexus can be established as a sole proprietorship, when Toyota and Volkswagen lose the protection of the policy and break the restrictions of the policy, and operate in China as an independent identity, their strength can be truly reflected and the Chinese auto market can be truly integrated with the global market. Such independent brands as great wall and Geely will be more authentic and reliable in such a market, and can also warm up in advance for the future large-scale struggle in overseas markets

it's a pity that it's a little late to achieve win-win results. In short, the liberalization of the share ratio of the joint venture is expected by everyone. The people have been waiting for a long time, and all stakeholders have achieved win-win results. For the government, after liberalizing the share ratio, it is tantamount to removing the target of trade protection that is frequently attacked by foreign countries, so that it can stand up when negotiating with foreign governments

for the foreign partners of the joint venture, they have obtained fairer opportunities and broader market access

for the Chinese partners of the joint venture, their great energy sealed by the joint venture will be activated and released

for the self owned brands of great wall and Geely, they will be given real equal opportunities, and their second-class citizens and discriminated identities will be deleted

Tesla and Lexus, which do not have domestic enterprises, will gain fair market access...

the greater benefit lies in the overall industry. China's automobile market has become more fair and open, and the competition among automobile enterprises has become more comprehensive and fierce. The biggest beneficiaries are consumers, who will buy their favorite cars at a more appropriate and reasonable price

the only regret is that the time for the release of shares is a little late. Of course, even if it is late, it is better than nothing

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