Benz'S "Balance Technique": The Era Of Left Hand Funeng And Right Hand Ningde

"Mercedes Benz cooperates with Ningde times to develop series brand EQ new energy vehicles, does it mean that the company has failed to meet the expected target after two years of production verification and is eliminated?"

On August 6, after Mercedes Benz announced that it had reached a deep cooperation with Ningde times, some investors questioned the future of the first Funeng Technology (688567) of the power battery of the science and technology innovation board.

Funeng technology was listed on July 17. The Chinese power battery company previously mainly supplied batteries to local enterprises such as BAIC and great wall, with a low market share. One of the important reasons why Funeng technology can become the first stock of China's science and technology innovation board comes from Mercedes Benz's endorsement. On July 3, this year, Mercedes Benz officially announced its stake in Funeng technology, holding about 3% of its shares.

However, one month after Benz took a stake in Funeng technology, it announced to deepen cooperation with Ningde times, which has become the head supplier of Mercedes Benz's electric vehicle brand Eq. Although Funeng said the project with Mercedes Benz is progressing smoothly, according to the project plan, the mass production time is 2021. However, the news that Mercedes Benz is holding hands with Ningde times will still embarrass the status of Funeng technology and cause investors to worry.

"A car company can't have only a single battery supplier. Such a risk is too high, which is not conducive to cost control and its own progress. It is very normal to choose more than two or three suppliers. " On August 10, a research and development personnel of a domestic battery company told the reporter of the 21st century economic report.

It's no surprise that Mercedes Benz and Ningde era have been cooperating before. The EQC produced by Beijing Benz is equipped with the cell of Ningde era.

As the core component of electric vehicle, power battery has become the key link of electric layout of automobile enterprises. Facing the Chinese market, many multinational automobile groups have begun to choose to cooperate with local battery enterprises in China, and even enter into shares strategically. Even though Daimler is more willing to take a series of measures to resist risks in China's automobile supply chain, Daimler is more willing to choose from a series of measures.

Multinational automobile enterprises choose multiple suppliers in China, which will bring crisis awareness to battery enterprises in the head, and also bring opportunities for enterprises in the second and third echelons to survive. However, the deep purpose behind the manipulation of "balancing technique" by multinational automobile enterprises is to enable them to have more discourse power and bargaining power in the industrial chain.

The art of cooperation

A more important indicator to measure the cost control ability of multinational Battery Companies in China is to choose a better battery supplier. Ningde era, naturally has become the eyes of car companies "sweet cake.".

In addition to domestic OEMs, mainstream multinational automobile groups have basically reached cooperation with Ningde times. They include Volkswagen, Daimler and BMW in Germany, Toyota, Honda and Nissan in Japan, PSA, Hyundai, Hyundai, GM and Tesla in the United States, as well as Land Rover and Volvo

In the power battery industry, has formed an obvious "28 law", a few leading enterprises, occupy a large number of market share. In recent years, the market share of Ningde era in China is more than 40%. With the continuous increase of market share, Ningde era can further share the cost under the scale effect, and has improved its discourse power and higher bargaining power in the process of cooperation with the main engine plant.

However, some experts in the automobile industry said that the excessive right of discourse in the hands of suppliers will also make automobile enterprises worry about being passive in the process of cooperation. Therefore, most automobile manufacturers will choose more than two suppliers. In fact, in 2019, only brilliance BMW and a small number of new forces of car manufacturing have 100% batteries from Ningde era.

The stability of battery supply is very important for multinational automobile groups which are ready to make a big show in China's new energy vehicle market. The relationship between the power battery factory and the main engine plant is not a simple relationship between parts manufacturing and assembly integration. As the core component of new energy vehicles, the power battery is an important part of the oriented development of the main engine plant. It requires enterprises to constantly exchange test and verification data to improve the stability of the battery. In the process of serving the vehicle factory, the power battery enterprises can accumulate a lot of practical data and solutions, and the huge database will provide important support for the follow-up research and development.

Whether Volkswagen or Daimler, the strategic stake in China's second and third tier battery enterprises is to stabilize their own supply chain system, on the other hand, they can have more bargaining chips when cooperating with other battery enterprises.

"Given our huge demand for batteries, we need to have a multi supplier structure and at the same time control the risk of the supply chain." On May 29, Feng Sihan, CEO of Volkswagen China, said in an interview with 21st century economic reporter.

According to VW's plan, by 2025, Volkswagen will add 100GWh of battery capacity in China, which cannot be met by only one battery supplier. First wave is the main supplier of battery for MEB. Among the follow-up products of MEB platform, GuoXuan high tech will also play an important role.

"For Mercedes Benz, which is small in volume and mainly focuses on high-end product lines, the reason why it took a stake in Funeng may be that on the one hand, it really takes a fancy to the technical level of Funeng in Sanyuan soft package; on the other hand, it also hopes to have more bargaining chips in the cooperation with other battery manufacturers." Some people in the automobile industry told the reporter of the 21st century economic report.

Survival of second and third line battery enterprises

After several years of market-oriented competition, the pattern of domestic power battery industry has initially taken shape, "structural overcapacity, but insufficient high-quality capacity". After a round of survival of the fittest, Ningde era and BYD two leading enterprises have taken the lead. However, the living environment of the second and third tier battery enterprises is not optimistic.

For GuoXuan high tech and Funeng, cooperation with multinational giants such as Volkswagen and Daimler is an important way for them to regain market opportunities.

Compared with the high profitability of head battery enterprises, the operation of the second and third echelons is not optimistic. For example, from 2017 to 2019, the revenue of Funeng technology was 1.33 billion yuan, 2.27 billion yuan and 2.44 billion yuan respectively, and the net profit was 18.26 million yuan, - 78.21 million yuan and 130 million yuan respectively, after deducting non-profit, it was 9.3 million yuan, - 198 million yuan and 9.79 million yuan.

At the same time, we have a single customer structure. BAIC group accounted for 24% of the total transaction value, accounting for 27% of the total transaction value of Great Wall Automobile Group, accounting for 27% of the total transaction value of Great Wall Automobile Group, accounting for more than 27% of the total transaction value of Great Wall Automobile Group, accounting for more than 27% of the total transaction value of Great Wall Automobile Group. This year, BAIC SK has established its own subsidiary of Great Wall Automobile Group. All these factors will bring great uncertainty to the future.

From the development trend of the industry, the competition of power battery industry has changed from simple cost competition at the beginning to full competition stage requiring high technology and low cost at the same time.

In fact, a large number of third tier domestic battery enterprises have the problem of over relying on one or two host plants. However, many battery suppliers will have the right to raise their awareness in the battery field.

However, in addition to competing with leading enterprises such as Ningde times and BYD, Japanese and South Korean power battery enterprises, which have entered the Chinese market, will make the living environment of the third tier enterprises more difficult by virtue of their own technical advantages and comprehensive product competitiveness. Actively embracing a powerful host plant may be a better way out for these enterprises.