leadWord | It’s still increasing the price, so it’s destroyed?
To be honest, among all luxury brands, the service attitude of the center is the most commendable, and the training is even better than that of the center.
This "hindsight" American luxury brand has had a somewhat anticlimactic market performance since its high-profile entry into China in 2014. In 2017, it handed over the best answer in China: 54,000 wholesale vehicles.
But this should be ashamed in front of you, and it is even more incomparable. According to statistics, the cumulative wholesale of vehicles in China in the first half of 2018 was 25,000, and considering the tariff issue in the second half of the year, the whole 2018 may not be expected to exceed last year’s level.
Recently, Che Jujun visited a center to understand the end point sales of the brand and share it with readers.
First, it is not affected for the time being
In May, China’s tariffs were lowered to 15%, and all import brands cheered. But less than two months later, due to the impact of the trade war on July 6, 25% tariffs were imposed on products originating in the United States, raising the US tariff to 40%.
The X5, X6, GLE, GLS and other models are non-American brands, but due to their origin in the United States, they have also been affected by tariffs, and their prices have been raised by varying degrees.
As an all-import American brand, it naturally bore the brunt and was labeled "annihilated" by the media. Indeed, it is currently an all-import, but not an all-American import.
Of the models on sale, the MKZ is native to Mexico, and the MKX is native to Canada, which is not affected by the trade war for the time being. The MKC,,, and three models are all produced in the United States. Among them, the MKC and the MKC are produced at the Lucieville plant in Kentucky, while they are produced at the plant in Michigan.
Therefore, at least the two main models, MKZ and MKX, will not be affected by the tariff increase for the time being. And it is a niche model, and its price adjustment has little impact on overall sales.
According to the sales introduction, the stock of new cars declared by their stores before July 6 is sufficient, which will not affect the sales in July and August. But starting from September, the impact of tariffs will be highlighted. But the specific impact will be adjusted according to the manufacturer’s pricing strategy.
Che Jujun visited the store this time, and still saw consumers coming to inquire. Currently ordering all models, the price is the same as usual.
Will Lincoln’s price increase?
According to the sales statistics of different models in the first half of the year, the highest number of wholesale vehicles sold in a single month was the MKC, with a total of 7,503 units from January to June, making it the best-selling model in the brand.
The MKC, and MKC, made in the United States, accounted for about 57% of all sales in the first half of the year. If the price of these three cars rises, it will still be a big blow to sales.
This may not be the case. At present, all models, in addition, have purchase tax subsidies ranging from 2 to 40,000. In fact, it is a discount. When I entered China, I sold cars strictly according to the official guide price.
For example, the 2.0T version of the subsidy 33,000 or so. The lowest two-wheel drive exclusive version guide price 418,800 (the price after the tax reduction), after the subsidy is about 355,800; while the MKZ starting price 261,800, the subsidy 20,000 or so, so that the price fell to 230,000.
This year’s sales volume is precisely achieved by making profits. The question is, will prices increase in the future in response to the 40% tariff? When brands such as,,, and others raise prices, they still stay put.
Che Jujun believes that the next price increase is very unlikely.
First, because they are sold at the guide price, the so-called preferential treatment is interpreted as "subsidy"; after the tariff increases, the additional costs may be borne by the buyer to maintain the current transaction price; at most, the subsidy is only reduced;
Second, because of the dismal sales this year, the current price reduction sales are barely maintained, let alone the price increase.
III. It will not be annihilated.
There is still a chance to turn around. From the end of 2019 to 2022, there will be domestic, MKC, MKZ, and one model one after another. In the new car planning, pure electric and plug-in models are also undertaken.
With product expansion and localization, the "Chinese Dream" is close at hand. After all, in the Chinese market, the American department is relatively absent, and there is only one facade. Che Jujun also hopes to have a second choice when choosing the American department.
If the price is self-aware after domestic production, it is expected to become the second. After all, in terms of luxury, Che Jujun thinks it is still better.
But turning over still depends on the product. Now it can’t be sold, and it’s not all the fault of branding impression, mainly because the product is not good. Che Jujun tested the 500,000 MKX, but there is no automatic start and stop function. And sales are selling the combination lock configuration over and over again.
It can be said that the overall lag in technology has seriously limited the play. Today, spend 500,000 buy one, with the case of yes, except that is.
And some technical inputs are full of selling points, and now they have begun to promote Super Cruise assisted driving; from the book data, it is also much higher, making it difficult for Chinese consumers who pay attention to comparison parameters.
A good example is that the same as the 300,000 class B car, there is no threat to it at all. The people who buy this car are generally young people, like luxury to buy BBA, like big rear drive, of course, choose, and ATS modification space is also large.
When consumers heard that MKZ was based on, they lost interest. But it doesn’t matter. After all, there are some craftsmanship and configuration, but these two cars are exactly the same. What do you want consumers to think?
At least MKZ and MKC are in the young market, how can the "way" be more competitive than the big + 8AT?
Car Gathering Summary
In the view of Che Jujun, the only successful model in China is the monthly sales of about 200 units. According to the sales introduction, this car is currently sold at a price increase of 15 to 200,000, usually selling 1 or 2 units a month, but it sold 8 units in July.
The reason is very simple, it is the most distinctive product and the only car of this kind in the luxury brand. 5355mm, bigger than GLS. People will only have the confidence to stand up to BBA when driving.
In fact, from the perspective of configuration, the current model is still cost-effective, but many functions are more "off-the-door", such as remote start, combination lock, induction rear trunk, etc.
BBA models in the same price range do not have such a rich configuration, because these brands have a premium price, and the product power is also concentrated on the powertrain, display screen and intelligent configuration.
The salesperson said: "When we get up, there will be a premium."