Recently, it was reported that Stellantis Group is considering selling its ultra luxury car brand Maserati to Chinese automakers, and the Italian government is currently in talks with Chery Holding Group (hereinafter referred to as "Chery") regarding cooperation. In this context, news of Chery becoming a potential buyer for the ultra luxury brand has been widely circulated.
Regarding this, reporters from China Business Daily recently confirmed with Chery and Stellantis Group respectively. The relevant person in charge of Chery told reporters that they are not clear about Chery's acquisition of the Maserati brand. The person in charge of Stellantis Group's China region told reporters that the company acknowledges that the ever-changing market and temporary conditions may lead to fluctuations, but Stellantis Group reiterates its commitment to its 14 iconic brands. At the beginning of the group's establishment, the company stated that each brand had a 10-year time window to build their sustainable and profitable business
Meanwhile, the reporter noticed that Stellantis Group had previously stated in a statement that it had no intention of selling Maserati and would not push for its merger with other luxury brands under its umbrella.
Maserati's sales in China are experiencing a downturn
Although rumors of taking over the ultra luxury brand Maserati have been denied by both parties involved, the leakage of relevant information is not without reason.
According to Stellantis Group's 2024 semi annual report, the operating revenue of Stellantis Group in the first half of this year was 85 billion euros, a decrease of 14% compared to the same period last year. Stellantis Group stated that this was due to a decline in sales and poor structure; Meanwhile, the company's net profit was 5.6 billion euros, a decrease of 48% compared to the same period last year. Stellantis Group stated that this was due to the adverse effects of declining sales, foreign exchange factors, and restructuring costs.
Meanwhile, Stellantis Group's performance in the Chinese, Indian, and Asia Pacific markets has also declined. In the first half of 2024, its operating revenue reached 1.072 billion euros, a decrease of 914 million euros year-on-year. The adjusted operating profit was 57 million euros, a decrease of 237 million euros from the same period last year. The adjusted operating profit margin decreased by 9.5% year-on-year to 5.3%.
Maserati's performance was also not satisfactory. Maserati's shipment volume, net revenue, adjusted operating profit margin and other indicators have all declined in the first half of this year. Among them, the shipment volume decreased by 8800 vehicles compared to the same period last year, only 6500 vehicles; The net revenue decreased by more than 50%, a decrease of 678 million euros from the same period last year, reaching 631 million euros, and the adjusted operating profit margin turned from positive to negative, a decrease of more than 200 million euros.
According to data released by Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, Maserati's import sales in the Chinese market from January to June 2024 were 214, 89, 129, 140, 109, and 96 vehicles respectively, totaling 777 vehicles, with a cumulative growth rate decrease of 70%.
In response, Stellantis stated that despite macroeconomic uncertainties, the company reiterated its business goal of achieving double-digit adjusted operating profit margins and positive industrial free cash flow by 2024.
Unlike Stellantis Group, Chery has been performing well in sales recently. According to official data from Chery, approximately 195800 cars were sold in July, a year-on-year increase of 30.1%. Among them, 90200 vehicles were exported, a year-on-year increase of 16.8%; The sales of new energy reached 45400 units, a year-on-year increase of 254.5%. From January to July, Chery sold a total of 1.2964 million cars, a year-on-year increase of 45.4%.
Meanwhile, according to data from the China Association of Automobile Manufacturers, the retail sales of narrow passenger cars in July this year showed a negative year-on-year growth of 2.2%. However, Chery achieved a year-on-year growth rate of 30.1% in July this year, becoming the only automobile company in the industry to achieve "dual growth" of new energy vehicles and fuel vehicles, as well as "dual growth" in domestic and overseas markets in the first half of this year.
Chery's transformation is under pressure
Despite continuous growth in sales, Chery has also been facing significant performance pressure recently.
According to relevant media reports, in July this year, a Chery employee revealed that there was mandatory overtime behavior within Chery, with weekly overtime hours exceeding 20 hours and no overtime pay, only a subsidy of 10 yuan for meals. At the same time, employees' overtime compensatory time is strictly limited, and the last place will be eliminated based on the length of overtime.
At that time, Chery responded to the above-mentioned incident by stating that the information regarding Chery's "illegal overtime" and other content was unconfirmed and false.
Meanwhile, Chery's "345" strategy has also attracted public attention. A screenshot of an article on the spirit of Chery's management committee meeting in July recently circulated online, which mentioned the need to establish a human efficiency model for the business sector in terms of improving the efficiency, work quality, and work ability of researchers. Remember not to understand it as simple addition and subtraction, truly achieving three people doing five people's work and receiving four people's wages.
Regarding this, the relevant person in charge of Chery responded to the reporter, stating that the above content is true, but many online comments have ignored these backgrounds and connotations, completely misinterpreting the direction.
Chery Group spokesperson Jin Yibo said that the company has become one of the fastest-growing companies in the automotive industry, and has repeatedly encountered excessive attention in the short term, causing negative impacts. This may also be an inevitable "lesson" in Chery's rapid growth process.
However, in the opinion of Zhang Xiang, Secretary General of the International Intelligent Transport Technology Association, overtime and the "345" strategy will not have a serious impact on Chery, but improvements need to be made. At present, there is a widespread overcapacity in the automotive industry, and many factories have insufficient orders. Overtime is not the crux of the problem
The reporter noticed that according to the recently released 2024 Fortune Global 500 list, Chery made its debut on the list, ranking 385th. Despite being listed in the Fortune Global 500, Chery faces significant pressure in terms of sales targets and new energy transformation.
In addition, the Zhijie S7, a member of the HarmonyOS intelligent vehicle jointly developed by Chery and Huawei, has also had relatively average sales performance since its launch. According to official data from Hongmeng Zhixing, the monthly sales of the Zhijie S7 have remained at around 2500 units since its launch at the end of 2023. By comparison, the monthly sales of the Wenjie M7, a collaboration between Huawei and Serys, have reached approximately 16600 units.
Chery Chairman Yin Tongyue stated in January this year that Chery Group will prioritize operational quality and continue to maintain high-quality development beyond industry growth on the basis of rapid growth in 2023. The goal is to achieve a sales growth rate that exceeds the industry by another 10-20 percentage points.
According to the China Association of Automobile Manufacturers, the total sales of automobiles in China are expected to exceed 31 million units by 2024, a year-on-year increase of over 3%. Based on this data, Chery Group's sales growth rate target for this year will reach 13% -23%. In other words, Chery Group's annual sales target is between 2.126 million and 2.314 million vehicles. As of now, Chery Group has achieved approximately 61% of its annual sales target.
Maserati's sales are very poor, with long-term losses. Stellantis Group has too many brands in its hands, while Chery lacks high-end brands. If the deal is reached, it will benefit both parties Zhang Xiang expressed this to the reporter.