The hottest Double Coin Michelin remarriage cooper

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On September 5, the WTO Appellate Body issued a ruling report on the WTO dispute case of China v. the U.S. tire safeguard measures, maintaining the U.S. tire safeguard measures. Luo Xiaoming, director of the China Association of international trade and vice president of the Tianjin Institute of international trade, said that the implementation of the special safeguard case, in addition to directly affecting China's tire exports to the United States, may also lead other countries to follow the example of quoting the special safeguard case of the United States to impose sanctions on the export of China's tire enterprises

China's tire market has growing space, but it is also facing an increasingly bad international trade environment. There are only two ways for Chinese tire enterprises to speed up mergers and acquisitions or cooperate with foreign-funded enterprises. Under the two paths, the pattern of China's tire market is also quietly changing

Recently, Michelin China and shuangqian group () said that they decided to establish a joint venture with shuangqian group (Anhui) Huili Tire Co., Ltd. to produce and sell Huili brand cars and light truck tires in the Chinese market. According to the agreement, Michelin will invest 667million yuan (about 75million euros) to hold 40% of the shares of the calibration certificate returned by the new company, and China will hold 60% of the shares

in fact, as early as 2001, shuangqian and Michelin jointly established Shanghai Michelin Huili Tire Co., Ltd., with Michelin holding 70% and shuangqian holding 30%. However, Michelin Huili company has failed to live up to expectations, with a cumulative loss of 1billion yuan over the past eight years. In February, 2010, shuangqian shares had to be listed for sale. According to relevant sources, the important reason for the failure of the first "marriage" between the two sides is that shuangqian shares lacks the management and supervision power of the company, and is only a participant in Michelin Huili company

since the sale of the equity of Shanghai Michelin Huili company, due to the loss of Michelin, the cooperation signboard, shuangqian shares has appeared blank in the passenger car tire market. How to effectively build passenger car tires has become a top priority for Double Coin tires. In December, 2010, shuangqian announced that it would fully contribute to the establishment of Anhui Huili company with a registered capital of 1billion yuan

now, Michelin is holding hands again, and the focus of cooperation is still cars and light truck tires. According to the relevant person of shuangqian shares, "shuangqian shares is not bad for money, and Michelin's 10% stake is better. We hope to cooperate with Michelin in terms of capital and technology, but mainly in terms of equity. This is very beneficial to enhance the core technical strength of the company and improve the influence of Huili brand."

Zhao Yu, an automotive analyst at Huarong securities, believes that the development of passenger car tires by shuangqian can effectively avoid the risk of a single product structure. Especially in the face of the God given opportunity that Jinhu tire has lost its market share, the possibility that shuangqian shares have lost its market share cannot be ruled out

public data shows that Jinhu tire has a market share of more than one-fifth in the domestic passenger vehicle field. After the tire problem was exposed, the market share fell sharply. The loss of this part of market share makes some enterprises eager to try, and shuangqian shares is one of the representatives

"it's hard to say whether shuangqian (shares) can seize the opportunity of the troubled tire market. After all, the opportunity is fleeting. Moreover, Jinhu is not really a complete failure. However, shuangqian's decision to enter the passenger car tire market is not wrong." In order to avoid accidental injury or death, yanjinghui, deputy general manager of the Beijing Beichen Asian Games Village Automobile Trading Market Center, said, "it is suggested that shuangqian should actively strive for the supporting qualifications of domestic well-known automobile manufacturers in the early stage, and design the supporting tires in the same step according to the year-on-year growth of the whole vehicle by 4.6%, 3.4% and 1.1% respectively, so as to obtain a stable market income."

pattern changes

the return of shuangqian to the passenger car tire market is not unrelated to the profound changes taking place in the domestic tire market

according to the relevant data of China Rubber Industry Association, China's tire market is currently the fastest growing in the world, with a market size of about US $8billion, accounting for 9% of the world tire market share. However, in the face of the continuous high prices of raw materials such as natural rubber and steel, as well as the adverse circumstances of the Sino US tire warranty case, the growth rate of operating revenue and net profit of the tire sector are narrowing

"the special safeguard case implemented by the United States in 2009 has made the export volume of China's tire enterprises continue to decline." Luo Xiaoming said that in 2010, after the implementation of the China US tire warranty, the number of tires imported by the United States from China decreased by 23.6% compared with 2009, and its import volume continued to decline by 6% year-on-year in the first half of 2011

while the sales volume is declining, the profits of the tire industry are also shrinking. Zhao Yu, the above-mentioned analyst, said that compared with vehicle production, the concentration of the auto parts industry is low, and the overall profit margin of domestic auto parts enterprises is only about 7%; In contrast, the sales profit margin of wholly foreign-owned/joint ventures is about 11%. "Therefore, for domestic auto parts manufacturers, the introduction of foreign high-end brands will be an effective means for enterprises to break out of saturated competition."

Ju Hongzhen, President of China Rubber Industry Association, also held similar views with Zhao Yu. Ju has publicly said that local brands will apply the advanced tire design and production technology originally applied in overseas markets to tires sold in China, and improve the cost performance of products by strengthening brand construction, developing marketing channels, improving additional services and other measures, which will show a strong competitive advantage

in fact, as early as the quality problem of Jinhu tires was exposed, the market pattern of Chinese tires began to undergo subtle changes. In May this year, affected by the "Jinhu gate", the German mainland's Ma brand tire stopped its OEM project in China

(tire industry) the reshuffle should not appear in a short time. Before the worst of the market, the after-sales market can provide a source of profit, but export-oriented small and medium-sized enterprises may be impacted. " Wu Shuocheng, editor in chief of "Gaishi automobile", analyzed

"on the one hand, the 'special warranty case' directly restricts the export of Chinese tires to the United States, but on the other hand, it also improves the ability of Chinese tire enterprises to adapt to market changes and survive." Luo Xiaoming said, "only when market competition changes and improves can tire enterprises realize the need to improve technology content to reduce product costs."

now, Jinhu tire has lost the city, and shuangqian shares are eyeing it. The competitive tire market is becoming more and more attractive

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