From 1 Oct, joint venture of Fuji Heavy with Pang Da Group "Subaru cars (China) Co., Ltd." (hereinafter referred to as SOC) will takeovers all the Subaru shops in China, which means that the end of its regional agency mode. Subaru sales and marketing will be takeover by SOC totally.
It has been 9 months from 17 Jan that Pang Da Group has announced that found sales joint venture with Fuji Heavy Industry. Staff settled step by step after the new company found. After the kickoff director of board meeting, new company wills takeover all terminators on 1 Oct.
As it known, SOC, which adopts new system, appoints Qinghua Pang as president, who is president and general manager of Pang Da Group as well. Masami takes general manager position of new company. Register capital is found by both sides, which rose from 600 million Yen to 2.95 billion Yen. Fuji Heavy Industry invests 60% and Pang Da invests the other 40%. Meanwhile, employee plans from 80 to 200.
As reporter known from market, South China office has found already and put into operate in Sept. General manager is taken by Japanese who can speak very frequently Chinese. There are four supervisors below. Different from other brand, they are in charge of dealers. Besides, all four supervisors coming from original dealers, such as Jianke CHEN comes from Yimeifen Subaru marketing and development planning Dept., and Chao DONG comes from Guang Zhou Huichengyang 4S shop.
Dealers have received task that to digest inventory ASAP, and they will take new KPI assessment from 1 Oct. Subaru does not have monthly, seasonally, or annually sales volume requirement. Or it is only for 4S shops. Under the policy, dealers are not willing to take discount, but chase for margin profit.
As people known, Subaru terminal price is stable. Normally it does not be influenced by outside atmosphere. It rarely discounts more than 10 thousand even. Just like an inner staff told reporter that as he known, Subaru only promoted once that during period that Japanese car influenced by political event, but it was only for Outback.
Joint venture will change the mode. As it known, it has assessments such as monthly sales, seasonally sales, inventory rate, takeaway rate, finish rate and customer satisfied degree etc. Besides, SOC will provide around 50% subsidy for advertisement investment and exhibition, just like other brands do.
At present, dealers some rejoice some worried under new SOC management. As disclose by inner staff of Yimei China that every 4S shops have inventory, it will take more than half year to sell out all inventory. However, with the SOC sales task allocating, dealers are under pressure. As reporter known that Subaru Shenzhen and Dongguan dealers already starts price wars with each other which trigger panic of other dealers. Dealers are worried about price war will push small dealer died without regional price limitation.
