Hainan (hard development was eventually abandoned by foreign parties)
In the late 1980s, after the establishment of Hainan Province and Hainan Special Economic Zone, the local government hoped to develop its own automobile industry in this new hot spot. Hainan Automobile Stamping Factory, which has experience in automobile parts production, was supported by the government and bought a low-cost vehicle production line from the turbulent Philippines at that time. However, Hainan Factory, which was not supported by Ford of the United States, never had any models to produce. At that time, Japan’s economy declined sharply. In order to seek new profit points, Hainan Automobile Factory and Mazda hit it off, and the two sides decided to jointly produce Mazda models in Hainan. In October, 1990, the first Mazda 929 in Hainan Automobile Stamping Factory was successfully trial-produced.
In 1991, Hainan Stamping Parts Factory began to assemble Mazda 929 wagon (HMC6470) with small quantities of imported parts. However, due to the lack of necessary technical support and relevant production experience, the assembly technology of this wagon is far from that of overseas models. In August of the same year, Hainan Automobile Stamping Factory, Japan Mazda Automobile Co., Ltd. and Japan Itochu Corporation initialled the contract, with Japan holding 25% of the shares. In February 1992, Hainan Mazda Automobile Co., Ltd. was established by Hainan Automobile Factory and Japan Mazda Automobile Company, and HMC6470 station wagon was officially put on the market. At the beginning of the joint venture, China put forward the demand for localization, but due to the lack of scientific and rigorous localization work, although the localization rate of HMC6470 has reached 70%, it soon showed common quality problems after it was put on the market. In 1991 and 1992, Hainan Stamping Parts Factory produced 2.06 million stamping parts for Shanghai and realized a profit of 12 million yuan, which eased the survival crisis of Hainan Mazda at that time.
The fifth-generation Mazda 929, the flagship model launched by Mazda in 1991, was all the rage in China. The car was imported into China, and its frameless door and slender overall shape were unforgettable. What is unknown, however, is that Hainan Automobile Factory once imported parts of Mazda 929 in small batches for assembly production, and 26 cars were assembled and produced in the same way as Mazda 929 at the same time. However, the output of 626 and 929 produced in Hainan at that time was extremely low, and the logo of Hainan Mazda was not attached to the car body, which made these two cars used to be imported by some dealers for sale.
At that time, the central government hoped that Hainan Automobile Factory and Guangdong Samsung Group would jointly set up a commercial vehicle joint venture with China as the main body. At first, the foreign investor was selected as an American company, and then the government changed the foreign partner to a German automobile company. Mercedes-Benz put forward the condition that Hainan Automobile Factory could not jointly produce cars with Japanese Mazda. Since then, the project negotiations have lasted for three years, and finally Mercedes-Benz decided to abandon the joint venture project, and the cooperation process between Hainan Automobile Factory and Japan Mazda was also interrupted during the negotiations. In 1993, Hainan Automobile Factory successively assembled and produced Mazda E2000(HMC6440) and Mazda (HMC6450) in the form of CKD.
In 1994, Hainan Mazda launched the Hainan Mazda 323(HMC6430) based on the sixth generation 23. This car is equipped with a 1.3L four-cylinder with a maximum horsepower of 73 HP. Compared with HMC6470 station wagon, the assembly technology and vehicle quality of Hainan Mazda 323 have made a qualitative leap. Although the joint venture company has been established, Hainan Automobile Factory has not obtained the automobile production license issued by the state, and the cars it produces can only pass through Hainan Province. Even though many Mazda models made in Hainan can be seen all over the country at that time, this sales volume is a drop in the bucket for a car company. Hainan Mazda was on the verge of bankruptcy in 1997. In order to obtain the qualification of automobile production, the Hainan provincial government agreed to be affiliated with a large state-owned automobile enterprise. In November, 1997, the Group and Hainan Provincial Government formally signed an agreement, and the two sides realized asset reorganization by means of free transfer of state-owned assets.
In January 1998, Hainan Mazda officially joined FAW Group, and FAW Hainan Automobile Co., Ltd. was put into operation. The models produced by this company can finally be sold in the national market. However, Hainan Mazda, which belongs to FAW Group, has not received financial and technical support from FAW, but only obtained the qualification to produce cars. In March 1999, HMC6470 station wagon produced by Hainan Automobile was approved for sale in the whole country. Two months later, Hainan Automobile introduced HMC6470 station wagon with domestic 4Y(491) engine, and its localization rate has reached 85%. In October of the same year, Hainan Automobile launched Mazda 323 car named CA7160, which was equipped with a 1.6-liter carburetor engine. Since more than 90% of the parts need to be imported, Hainan Automobile finally gave up MPV.
Although there has been a few years’ gap with Japan’s Mazda, with the gradual recovery of Japan’s economy, Mazda also urgently needs to seek partners after seeing the huge business opportunities in China market. Hainan Auto once again hit it off with Mazda. However, due to its previous investment in China, the cautious Japanese decided to adopt technical cooperation this time. In May 2001, Mazda’s compact MPV(Premacy) was officially launched in FAW Hainan. Due to the relative shortage of domestic MPV models at that time, Prima produced by FAW Hainan Mazda quickly occupied the dominant position of domestic compact MPV once it was launched. By the end of 2001, Hainan Mazda Prima had sold more than 10,000 vehicles.
The success of Prima increased the confidence of FAW Hainan Mazda in introducing new models. In July 2002, Hainan Mazda introduced the eighth generation Mazda 323, which was born in 1998, into China, and the domestic Mazda 323 was named as. Hainan Mazda initially did not give Familia the 1.6-liter and 2.0-liter engines used in overseas models, but chose the same 1.8-liter naturally aspirated engine and two gearboxes as Prima, which effectively controlled the manufacturing cost of Familia. Familia was quickly recognized by consumers after its launch. Since then, the listed products and Familia have been called the "new three" of China automobile market.
In August, 2003, Hainan Automobile established the Automobile R&D Co., Ltd. in Shanghai. The hot sales of Prima and Familia made Hainan Mazda become the mainstream automobile production at that time in the following years, and also made Japanese Mazda see the great potential of China automobile market, which made it have greater ambition to expand China automobile market. As the saying goes, it is good to enjoy the cool under a big tree. At this time, Mazda is no longer satisfied with the profits brought by technical cooperation with Hainan Mazda. Since then, Mazda has directly thrown the olive branch to the stronger FAW Group. In March 2005, FAW Group, FAW Car Co., Ltd. and Japanese Mazda Automobile Co., Ltd. jointly established FAW Mazda Automobile Sales Co., Ltd., and mazda 6 was put into production in FAW Mazda soon.
After mazda 6 was "won" by FAW, the automobile group, Ford Motor Company and Mazda Motor Co., Ltd. jointly established Changan Ford Mazda Automobile Co., Ltd. in February 2006, and Familia’s successor Mazda 3 was officially put into production shortly after the establishment of the new company. Hainan Mazda once again encountered the embarrassing situation that there were no new models to introduce. After passing by two new models, Hainan Mazda had no choice but to continue to support itself in the increasingly competitive domestic market with Prima and Familia. It is in this embarrassing situation that Hainan Automobile turned from a joint venture to a road of building its own brand, and Haima Automobile was established during this period. Although many models launched later were still based on the original Mazda models, the logo of "Hainan Mazda" never appeared on these models again.
Changhe (started smoothly but failed to maintain its advantage, and the model was delayed and forgotten by the market)
In February, 1984, Chang ‘an Factory and Suzuki Company of Japan formally signed a technical and trade cooperation agreement to cooperate in mini-car and engine projects. On November 15th of the same year, the first batch of Changan brand SC112 minivans and SC110 minivans were officially rolled off the assembly line, which also marked the official transformation of Changan Factory from a military enterprise to a civilian vehicle manufacturer. Thanks to the domestic demand for low-end passenger and freight vehicles at that time, Changan brand mini-series vehicles were quickly recognized by the market once they were launched. At the same time, many automobile manufacturers in China, such as Changhe Aircraft Factory and Harbin Aircraft Factory, successively obtained technical support from Suzuki Company or produced Suzuki Carry as the prototype by self-imitation. For a time, various domestic minivans and minivans were popular all over the country.
Following the joint venture between Changan Automobile Factory and Suzuki of Japan in 1993, Jiangxi Changhe Automobile Co., Ltd. and Jiangxi Changhe Aviation Industry Co., Ltd., which had experience in producing Suzuki Carry mini-cars, jointly established Jiangxi Changhe Suzuki Automobile Co., Ltd. with Suzuki Co., Ltd. and Okaya Steel Co., Ltd. in June 1995. The Chinese side holds 51% of the shares and the Japanese side holds 49%. Changhe Suzuki continues its early business model of producing mini-cars, and its main products cover mini-vans, economical cars and engines. Changan Suzuki will be the first model to be introduced into China. Changhe Suzuki failed to launch its first model after its establishment, and finally they set their sights on Suzuki’s+in 1997.
Changhe Suzuki finally made Wagon R+ domestically in 2001. This Suzuki car was originally equipped with a 1.0L engine. In 2004, it launched a 69-horsepower 1.2L engine with a maximum of 95N·m and a 5-speed. Low price and spacious interior space are sought after by working-class consumers and some individual merchants. In 2005, Changhe Suzuki replaced the Big Dipper with a 1.4L engine with a maximum power of 95 HP. Over the past few years, Changhe Suzuki has only made some minor configuration adjustments to the Big Dipper, and its appearance has always been the same. Although the replacement model of Wagon R+ was launched in overseas markets in 2000, Changhe Suzuki never considered this matter, and the Big Dipper has been continuously "upgraded" and sold.
In November, 2005, Changhe Suzuki introduced a domestically produced model that is extremely important to it. The prototype of this car is Liana introduced by Suzuki in overseas markets in 2001, and Suzuki introduced a domestically produced modified model of Liana listed overseas in 2004. Although it was launched one year later than the prototype, it is a very timely new product for Changhe Suzuki compared with the old Big Dipper. The Liana version was first launched, with four models priced at 102.8 to 117.8 thousand yuan, equipped with a 1.6L engine with a maximum power of 95 horsepower, equipped with 5-speed manual and 4-speed. In March, 2006, Changhe Suzuki launched five more versions of Liana, but compared with Changan Suzuki and other models that were popular at that time, the sales of Liana could not satisfy Changhe Suzuki.
In order to enhance the competitiveness of products, Changhe Suzuki upgraded the power system of Liana, and the maximum power of the 1.6L VVT engine was increased to 109HP. The original Changhe automobile was famous for its production, and Changhe Suzuki launched a high-profile one in May 2007. This car is equipped with a 95 HP 1.4L four-cylinder engine. In addition to the standard 5-speed manual transmission, Changhe Suzuki even introduced a 4-speed automatic transmission, which was definitely an extremely bold decision in the domestic micro-market at that time. In addition, Changhe Suzuki has even launched a system of Langdi. Although Langdi is very competitive in the micro-market, its sales volume is not ideal due to the over-supply of micro-surface, which is mainly commercial. After several years of hard work, it finally withdrew from the market.
At the end of 2009, Changhe Suzuki was planned to be a subsidiary of Changan Automobile Group. Changhe Suzuki, which was already on the edge of the market, gradually stopped using Suzuki logo in 2011 and replaced it with a brand-new Changhe Suzuki "Three Rings" logo. In November, 2011, Changhe Suzuki introduced the last Suzuki model made in China, and officially met with consumers based on the Suzuki Splash launched by Suzuki in overseas markets in 2008. Suzuki Splash in overseas markets is equipped with 1.0L three-cylinder and 1.2L four-cylinder with code K10B and K12B, and a 1.3L four-cylinder, while Paixi in China uses 99HP and 101HP 1.4L four-cylinder engines with code K14B-C and K14B-G (with VVT technology).
The positioning of Changhe Suzuki Paixi is similar to that of Changan Suzuki Swift, but it may be due to the fact that Suzuki logo is not used, and the market recognition of Changhe Suzuki itself is not enough, resulting in the highest monthly sales of Paixi after listing, which is quickly forgotten by consumers. Due to the poor management of Changhe Suzuki, there was no energy and funds to introduce new models to revitalize the enterprise after Paixi stopped production. Changhe Suzuki was finally reorganized by BAIC Group in November 2013. Since then, the restructured Suzuki has no longer received technical support from Suzuki, and the models produced since then have also been developed on the basis of the original Big Dipper and Liana, and Changhe Suzuki has since withdrawn from the China market.
Conclusion:
Looking back at these car companies that have withdrawn from China, many car companies have the advantages of favorable weather, geographical location and human relations. After several years of smooth development, the situation has turned sharply. This is more because of overconfidence, whether it is for our own products or for the market. However, the competition in the domestic automobile market has always been cruel. Once you have the idea of living on your laurels, you are doomed to be abandoned by consumers. Looking back at these car companies that have withdrawn from China, most of them are because of this. Nowadays, the competition in the domestic automobile market is more intense. If you want to gain a foothold in the market, you must come up with excellent products and quality services, otherwise it will be a matter of time before you "leave" … (Photo/Text Li Haopeng)
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