Commercial vehicle "long warranty" suspected of unfair competition?

The "long warranty" approached the bottom line of profits, and the domestic commercial vehicle market rang up with an "anti-price war."

Recently, Foton Motor launched the "Worry-free" service promotion campaign throughout the country. Its core is to provide users with "over 200,000 km long warranty." This move caused a sensation, and the industry believes that Foton Motor, by virtue of its size and strength, disguised its “price edge” to run against small and medium-sized competitors. Many auto companies responded strongly, claiming that Futian’s profit-sharing rate was too large, reminiscent of the prelude to the fierce price war in the home appliance industry. There are even auto companies that will call on relevant departments to intervene in this behavior that may cause vicious competition and avoid the commercial vehicle industry from prematurely entering a new round of reshuffling.

Question: The first brand of light trucks must play a "price killer"?

It is understood that Foton Motor announced: "Within three months from June 15th, where the purchase of its Auman, Ao Ling, landscape, Sapu brand products, will enjoy up to 39 kinds of key components 200,000 km warranty , also sent a full free maintenance once, "is the question is provoking the "price war" fuse.

"Truck products have such a long warranty period and have never been in China," said senior automotive critic Jia Xinguang. As commercial vehicles such as trucks, which are production tools, are far more likely to be damaged than passenger vehicles, domestic trucks are generally guaranteed within 100,000 km. This warranty period will exceed the warranty period, and companies will have difficulty in maintaining high costs. bear. This is also why, although consumers have been calling for an extension of the warranty period for commercial vehicles, which is in line with international standards, the reasons why domestic companies have been slow to incite change.

A truck driver with 20 years of driving experience estimates that after 100,000 kilometers, the cost of the light truck warranty as a production tool may reach 8,000 to 12,000 yuan in the next 100,000 kilometers, and the heavy truck will be even higher. According to this calculation, now Foton Motors will extend the warranty period to 200,000 kilometers, and also send all free maintenance, etc., is undoubtedly a disguised price reduction of more than 10,000 yuan, of course, consumers are happy, but the profits of car sales must be greatly reduced, with It is the "profit-for-market" trick.

The person in charge of the market department of a light truck manufacturer bluntly stated that Foton Motor’s “long warranty” directly pushed profits to the bottom line. According to this standard, most commercial vehicle companies with relatively small sales volume in China simply “make no money”. Fukuda began to play the "price killer" of the commercial vehicle industry.

Worried: "Long warranty" is the beginning of vicious competition?

Analysts pointed out that the current domestic truck market has already gone through a period of windfall, especially after the domestic truck industry suffered a “cold stream” last year, and sales have fallen significantly. Many truck products that have been performing well have also started to cut prices, leaving room for profit, and market prices. It is already more real.

Now Foton Motors has sent a “long warranty”, plus the costs of R&D, production, sales, and after-sales services, will really pull the industry’s profits to the bottom. Fukuda Motor adopts this approach to stimulate consumers. In fact, it is trying to forcibly raise service standards, squeezing and forcing opponents to sacrifice interests and follow the intention to initiate and lead an industry reshuffle through services.

The dealers at the forefront of the market feel the most sensitive to this pressure. A Foton Motor dealer stated that after the launch of the “very long warranty”, the number of people who came to see the car was more than doubled. The adjacent light truck dealer of another brand is forced to make suggestions to the brand manufacturers it distributes, request an extension of the warranty period, or significantly increase other supporting service measures to deal with it.

“We are fully aware of the cost pressure of the long warranty period, and SMEs can’t afford it. If Foton Motor sells cars with ultra-low profits in order to compete for the market and run its competitors with lower power, it will start the price war. It is very likely that it will become the beginning of vicious competition in the industry. I think the relevant departments should interfere in this kind of behavior." The head of a well-known domestic commercial vehicle manufacturer reluctantly said.
Argument: There is no truth in the "long warranty"

For the allegedly stirring up the allegation of provocative "price war", Song Tianshan, the deputy general manager of Foton Motors Marketing Corporation, appeared very angry in an interview. He said that this was a plagiarism for which the competitor had no reason and deliberately distorted a normal market competition. "Europe The warranty period for trucks is more than 600,000 kilometers. Are all vicious competitions?"

Song Shushan said that the launch of Foton Motor's "long warranty" is by no means a malicious attempt to run a small and medium-sized competitor, but is based on the quality upgrade of Foton Auto's products. This year, Foton first signed a series of cooperation agreements with Cummins Power, Weichai Power, Germany's BOSCH, and Austria's AVL to integrate advanced international technologies with a chain-innovation advanced model, creating a truly internationally advanced product. On this basis, it became the first domestic commercial vehicle company to launch a "long warranty", and it is a normal behavior of Foton Motor to move closer to the international advanced level in service, and it is also based on its self-confidence and responsible attitude toward customers. The introduction of the "violent competition" argument is entirely the result of malicious slaughter by the competitor, and behind it is the forced recognition and inability to pursue Futian auto products and services.

Song Shushan also welcomed the supervision of the relevant departments to see whether Futian sells cars at ultra-low profits and engages in a "vicious competition" of running. According to Song Shushan's explanation, Foton Auto's product quality is excellent, and the warranty period will not substantially increase the cost of the extension. Moreover, it has the nation's largest service network and can not only provide rapid service, but also reduce service costs, plus Futian Light Commercial Vehicles for eight consecutive years. The first sales volume, even if the bicycle profit is reduced a little, the overall profitability is still very strong. "Buying and losing money," Fukuda will not do the sale, "provoke price war", "vicious competition" These arguments are also difficult to stand firm.