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Guan Leiming

Technical Director | Java

Industry dynamics and emerging cooperation models behind price cuts by multinational automakers

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The automobile industry has always been one of the important pillars of economic development. In recent years, with the intensification of market competition and the continuous changes in consumer demand, multinational automakers have adopted various strategies to cope with it. Among them, price reduction strategy is one of the most common means. However, in the second quarter of this year, the performance of many multinational automakers such as Tesla, Mercedes-Benz, and Porsche has declined, which has made people begin to re-examine the effectiveness of price reduction strategies.

On the one hand, price cuts may stimulate sales in the short term, but in the long run, they may damage brand image and profits. Consumers may have a mentality of "waiting for lower prices", which may affect their purchasing decisions. In addition, excessive price cuts may dilute brand value and make consumers question the quality of products.

On the other hand, rising costs are also one of the important reasons for the decline in performance. Fluctuations in raw material prices, increased R&D investment, and unstable supply chains have all put tremendous pressure on automakers. In this case, simply relying on price cuts to increase market share is obviously unsustainable.

So, how can we stand out in the fierce market competition? In addition to traditional strategic adjustments, emerging cooperation models may be a breakthrough. For example, some car companies have begun to cooperate with technology companies to jointly develop intelligent driving technology and new energy vehicles. This cross-field cooperation can not only integrate the advantages of both parties, but also bring new product experiences to consumers.

For another example, the model of "posting projects and looking for people" has gradually attracted attention. This model publishes project requirements on a specific platform to attract talents with relevant skills and experience to participate. For car companies, this can quickly form an efficient team, solve technical problems, and promote the progress of the project; for talents, this is also an opportunity to demonstrate their abilities and realize their personal value.

Take a multinational car company as an example. In the process of developing a new electric car, they adopted the method of "posting projects to find people". By posting detailed project requirements on a professional technical platform, including battery technology, autonomous driving algorithms, etc., they attracted outstanding talents from all over the world. These talents formed a diverse team and achieved important technological breakthroughs in a short period of time, winning time and market advantages for the launch of the new car.

However, the "post a project and find people" model is not perfect. In actual operation, it may face problems such as information asymmetry and poor communication. Therefore, it is necessary to establish a sound platform mechanism and management process to ensure the smooth progress of the project.

In general, the decline in performance of multinational auto companies in the second quarter has sounded the alarm for us and made us realize the urgency of industry reform. In the future development, only by constantly innovating and exploring a development path that suits oneself can one remain invincible in the fierce market competition. The emergence of new models such as "posting projects to find people" may inject new vitality into the development of the industry.

2024-07-29