11
2016
01

Although the twists and turns but still completed the renamed Shanghai Volkswagen

    December 11, Shanghai Volkswagen Automotive Co., Ltd. official website announced that the Company since December 7 this year, officially changed its name to Shanghai Volkswagen Automotive Co., Ltd. (SAIC VOLKSWAGEN AUTOMOTIVE COMPANY LIMITED), referred to as the SAIC-Volkswagen (SAIC VOLKSWAGEN).


    The company said in a statement that the name change is intended to enhance the company's brand influence, later renamed Shanghai Volkswagen Automotive Co., Ltd. The business scope and business relationships remain unchanged.


    Shanghai Volkswagen Automotive Co., was founded in 1985 by China and Germany in accordance with Shanghai Automotive Group Co., Ltd. 50%, the German Volkswagen Group 40 percent and Volkswagen (China) Investment Co., Ltd. 10% stake Construction.


    Since the Spring Festival this year, Shanghai Volkswagen soon changed its name on the news it rampant. But since March this year, the relevant message will interrupt the update.


    Informed sources said that the German Volkswagen Group has quoted the results of a market survey carried out unilaterally, it said its joint venture in China, Shanghai Volkswagen, such as complete name change, will make the corporate brand image losses. In addition, the Group also believes renamed involves unified visual design trademark, business registration and sale of terminals, a move or increase the cost of doing business to a large extent.


    In this case, regarding the declaration of the Shanghai Volkswagen renamed extension at the end of May this year. But at that time, the company's insiders have revealed that SAIC for the name change has been reached inside the high degree of unity, Shanghai Volkswagen renamed just a matter of time.


    The source also exemplified the industry's previous success stories that changed its name does not have a mature brand image have a negative impact, contrary to escape the confines of geographical concept, the "Shanghai Volkswagen" will achieve considerable development.


    SAIC's two joint auto manufacturing company renaming is Chen Hong assume office from May 2014 onwards focus on brewing big move. In his view, the brand name with a geographic point only "Shanghai" words into an obvious business properties "SAIC" SAIC will help enhance the overall impact, in terms of driving under its own brand Roewe and MG's also it has a significant positive effect.


    SAIC Motor relevant person in charge said earlier, SAIC brand's new models, whether in technical or in terms of brand power, has been comparable with joint venture brands, some even better than a joint venture brand.


    In addition, SAIC also reflected in the capital market or will benefit. Prior to that, although the group's two joint ventures Shanghai Volkswagen and Shanghai GM brand sales has topped the industry in the first three, but in the capital market, such a strong sales performance did not bring real benefit to the parent company. In the first half of this year, the group is trading at only 9.13 times, while all A shares over the same period has increased to an average of 28.5 times earnings, 70% of the stock price-earnings ratio motherboard than 50 times.


    Previously, Chen Hong has said SAIC value severely undervalued, and announced additional capitalization at group level management functions to boost SAIC performance in the capital markets.


    July this year, SAIC's other joint venture, Shanghai General Motors Co. announced renamed "General Motors Co., SAIC." During the Guangzhou Auto Show in November this year, SAIC Commercial Vehicle Co., Ltd. has been officially renamed "SAIC Chase."


    After officially renamed Shanghai Volkswagen, SAIC's importance in the joint brand proportion will reach new heights, this change will be to build and enhance the market appeal of a positive effect in terms of the future of brand recognition.


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