Cool and smart automobile

Xiang Jie Honda profits are so high in China

Automobile market fierce competition, many automobile enterprises profit decline, Honda's two joint ventures in China, the profit has remained very profitable. Although the two Guangzhou Honda and Dongfeng Honda Automobile Company in the domestic car sales are not where most enterprises, but the profits are highest in the high-profit has become fact, but what is the reason for Honda in China has led to a high profit?

Honda in China, the most profitable

Guangzhou Honda sales in 2006, is not the first, but the total profit is the first, and the profit cycle up to 2.3 million yuan, while the automobile industry in 2006 the average profit of 1.0643 million bicycles. With Dongfeng Honda Civic and CR-V two cars in 2005, profits as high as 1.2 billion in 2007 sales target is 12.5 million units, I am afraid that the total profit will be higher. Behind the figures reflect the joy of insiders Dongfeng Honda, Dongfeng Honda's sales growth in the double, Dongfeng Honda, a finance officer who disclose their profit contribution of Dongfeng Group, more than DPCA.

Cars and European cars in the United States profits plunge the case of layers, while the profits of Japanese cars has continued to rise, Honda in China, high-profit for many reasons. Dongfeng Honda and Guangzhou Honda, why access to such high profits? Following the Toyota created the myth after another profit. In particular, Dongfeng Honda, its only two cars - the Civic and the C-RV, can create such high profits?

Why is Honda's most profitable?

At one time, some media reported that Dongfeng Honda engines in the industry the most profitable, with the establishment of Dongfeng Honda Automobile Company, Dongfeng Honda Engine profits with the correspondingly. Why is the engine of Dongfeng Honda profits so high, in addition to Honda, Guangzhou Honda and Dongfeng vehicle sales in the higher, many other auto companies have also introduced the engine of Dongfeng Honda Engine Co., Ltd., Dongfeng Honda Engine abnormally large production scale, large-scale effects are obvious . The core part of a vehicle, the engine for the province of Guangzhou Honda and Dongfeng Honda, a large part of the money, which is Dongfeng Honda and Guangzhou Honda Automobile, high-profit first reason.

Honda's two auto companies, high-profit joint second reason is that Honda's car sales in China, the price is not the Philippines, due to lower cost of domestic repairer, but the price even higher than the developed markets of Europe and the United States is much higher prices and profits is not high come from? And, after domestic car configuration have carried out the reduction of distribution, such as the original listing of Dongfeng Honda Civic just after the brake drum brake is also used taping, by the public acrimony after the Civic was replaced by disc brakes. The high purchase price and low cost - low-cost engine, labor costs and other raw materials in the middle of the price difference is the two Honda's profits.

Honda's high-profit third reason is that the high localization rate, unlike the other auto companies Honda Motor operation so that they will be implemented first parts business, before the formation of a joint venture automobile company, which is why Honda localization rate is very Gao, Dongfeng Honda, the localization rate as high as 78% in the industry are quite high, while Germany's Daimler-Benz and BMW cars have a minimum localization rate. The high localization rate to create a low-cost, but also planted the seeds of quality problems, which is why there Dongfeng Honda CR-V chassis sinking problem, and Civic are also a collective phenomena such as quality problems occur at the same time, Guangzhou Honda because of quality problems recall the number of vehicles is also one of the largest auto companies.

In fact, from Honda and Toyota also revealed the localization rate of the high side of a question, which is why Toyota's sales in North America, more than the number of vehicles for sales of more than. This also indicates that a high localization rate of parts due to the quality of certain domestic problems, finally led to the emergence of vehicle quality problems. Even the Accord, paragraph 08, the localization rate of the localization rate of the old models Accord is also high, most of the supporting parts business from the original Japanese-funded enterprises to Shanghai and other areas of local enterprises, which means lower prices as much as in previous about 50,000 yuan Accord, the Accord on the 08 models when the profit would be even higher. Dongfeng Honda Civic and the C-RV has been a price cut is also up to 3 million per, so lower prices, Dongfeng Honda enterprises still highly profitable, it shows how much the middle of the price difference!

At present, the public 4S shops are all parts of the announced price, so that prices appear to be relatively clear, and Honda Motor in China, the previous high amount of price reduction, but profits are still less impressive. Apart from stating that the price is not enough transparency in addition to Honda parts, this also creates opportunities for high profits, because the public does not know how many spare parts prices, there is no way to measure how much a specific price until a suitable vehicle.

Of course, 4S stores announced the price component is only a reference factor, the cost of purchasing a larger vehicle manufacturers are also lower the price by calculating the components can be seen about every vehicle there is room for a profit. At one time, there Guangzhou Honda insiders revealed that the profit cycle Accord up to 5 million, even now, the profit cycle will not be too low, or else Guangzhou Honda's 4 cars, with an average profit of how cycling, reaching 2.3 million?

Honda on the two high-profit business, there are a number of reasons, the main three reasons. Of course, this is also the other car makers should learn from, why is Honda's profits are higher, while the other car makers low profits? In addition, it is hoped that a similar Dongfeng Honda, Guangzhou Honda and Toyota and other car firms, while guaranteeing high profits, but also ensure the quality not the issue, but quality is the fundamental automotive business survival.

Finally, I hope the domestic automobile business be able to vehicle prices can be transparent, so that consumers buy to understand!

Core Recommended car of America text:
After strip comparison: Who is a high performance vehicle safety
Japanese cars VS German cars: Which is more cost-effective
Germany's Volkswagen: blocking the ambitions of technology 30 years after the
2008 JETTA, the how could save you
Santana 4000 to copy the legend's footsteps
New Excelle compact automobile market will provoke a sensitive nerve
Auto Motor Show in 2008 with the previous difference of philosophy where the Dodge front extends beyond the quality of blood
08 Beijing Auto Show Top Ten Platysternon Model cars
Beijing Auto Show Model cars the art of black and white photo
"The Forbidden Kingdom," a mutilated film "Iron Man," a no nutrition but very tasty hamburger

Zhang Ziyi is how to shoot Mercedes-Benz SLK ads