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Entering 2020, SAIC-Volkswagen continues to stall, sales have plummeted, inventory performance has declined, and the former champion car company is now struggling. SAIC-Volkswagen sold only 303000 new cars from January to April this year, down as much as 50.4% from a year earlier. Recently, many sources have pointed out that SAIC-Volkswagen has started a 40% discount for internal employees to buy cars.

The news that SAIC-Volkswagen employees bought cars at 6 prices in 2020 spread all over the Internet, which is another "crazy sale" mode after the 50% discount on car purchases during the national five-year switch period last year, even if the 40 percent discount is not as good as last year. But it's attractive enough.

From a specific point of view, on the basis of preferential car purchase prices for employees, SAIC Volkswagen also gives an one-time subsidy of tens of thousands of yuan. The one-time subsidy for some models is as high as 70,000 yuan, so the final purchase price of employees at the time of purchase is equivalent to about 5.5% discount.

The list of internal car purchases this time involves the Volkswagen brand and Skoda brand of SAIC-Volkswagen, covering almost a full range of models. Including SAIC-Volkswagen star product Passat, employees can apply for a 40% discount, the lowest naked car price is only 112000 yuan, and the comprehensive discount for high-end models is 105000 yuan, which is far below the market price, which is indeed very attractive.

Take the Passat model as an example, this model is the most well-known product of SAIC-Volkswagen, but it has been scolded by consumers because of the crash assessment incident of broken A-pillar, and its sales have also been greatly affected. Now there is a huge discount in the purchase of cars by internal employees. The new generation of Passat models from the 280TSI business version to the 380TSI premium version, the internal car purchase discount is about 40%, and the factory gives an one-time subsidy of 3.1-48000 yuan on the basis of the employee price, so the employees finally get the naked car price of 11.23-157000 yuan.

Another star product, SAIC-Volkswagen Tuguan L, is also sold at a 40% discount, with the 330TSI fashion version priced at 220300 yuan, with employees getting a naked car price of 131700 yuan, a comprehensive discount of 88500 yuan, while the high-end flagship version of 330TSI R-Line offers a comprehensive discount of 110000 yuan and 162000 yuan for naked cars.

The Lang Yi model is 65% off in the discount for internal employees, and the 1.5L automatic fashion version with a guide price of 126400 yuan is now priced at 82000 yuan, while the naked car with a top Lang Yi 1.4T model costs only 104000 yuan.

In the SUV model, Volkswagen Tuen and Tuen X are both at a 65% discount, while Tuyue is at a 40% discount. Among them, the top Tuyue 330TSI four-wheel drive flagship model, the guidance price of 223800 yuan, the employee naked car price is only 134000 yuan, so the employee purchase price of the whole series of Tuyue models is 10-134000 yuan, the discount is really amazing.

Shanghai Auto Skoda's domestic purchase price discount is even greater, up to 55% discount. Among them, Skoda Speed sent the naked car price to 91700 yuan, the 2.0T model to 100000 yuan, and the comprehensive discount up to 5.5% discount; Skoda Kodiak / Kodiak GT discount is about 40% discount, of which the top 2.0T four-wheel drive version guidance price is 247900 yuan, the final employee price is 140000 yuan.

SAIC-Volkswagen's move to restart employee car purchases at a 40 per cent discount has something to do with its dismal market performance. SAIC reported that SAIC sold 1.0966 million vehicles from January to April, down 45 per cent from a year earlier and exceeding the 31 per cent average decline in the overall car market. SAIC Volkswagen sold only 303000 new cars from January to April, down 50.4 per cent from a year earlier. Such a huge decline is undoubtedly a serious warning signal for SAIC-Volkswagen.

It is worth noting that in the latest "Automobile Dealer inventory" data released by the China Automobile Circulation Association in April 2020, seven brands were named and the dealer inventory level exceeded 2.5 months. Three of them are SAIC brands, including Skoda, Roewe and SAIC Volkswagen.

From this point of view, sales not only continued to decline sharply, dealer inventory is also in the forefront of the industry, SAIC Volkswagen brand, Skoda brand have encountered serious operational problems. As a result, internal employees buy cars at a 40 per cent discount, which is also seen as a means for SAIC-Volkswagen to clean up inventory.

On the other hand, the sense of existence of the Skoda brand is getting lower and lower, and due to market pressure, the Skoda brand took the lead in launching official price reduction measures in April this year, with the product guidance price down by a maximum of 24500 yuan. at the same time, the market positioning of Skoda brand has further declined, which is regarded as an official measure of 'price reduction'.

Gone are the days of SAIC-Volkswagen product price increase in the past. In this highly competitive market environment, SAIC-Volkswagen also relies on preferential efforts to maintain sales, and internally starts to buy cars at a 40% discount to boost performance. After all, a market decline of more than 50% is unacceptable to SAIC-Volkswagen. What happened to SAIC Volkswagen over the past few years? There are some problems in marketing, product strategy and enterprise style, and these problems need to be solved urgently.

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