3Japanese carmakers who inhibit southward

　　The southward trend of Volkswagen has been reported frequently in recent days. Will the three Japanese auto manufacturers still keep silent when Volkswagen hopes to occupy their main car market?

　　Guangdong is headquarters for Dongfeng Nissan. And straight distance between Nanhai District, Foshan and Huadu District, Guangdong (the headquarters of Dongfeng Nissan) is less than 50 km. We can see that when Volkswagen is secretly conducting layout of its south strategy, Dongfeng Nissan decided to broaden its South China market further as soon as possible. The second factory of Dongfeng Nissan was officially found in Huadu, Guangzhou last month.

　　Total investment of this world’s most advanced factory of Dongfeng Nissan is 5 billion yuan and will play an important role in achieving rapid growth in its car sales. Moreover, the factory is a secret mean to respond the southward trend of Volkswagen

　　As a matter of fact, straight distance between Nanhai District, Foshan and Huadu District, Guangdong (the headquarters of Dongfeng Nissan) is less than 50 km. Both Nissan and Volkswagen achieved outstanding performance in 2009, which means that they will do a new round of fierce competition in South China car market.

　　After Toyota faced a global recall crisis last year, Nissan accelerated to occupy Chinese car market. Output and sales of a joint venture owned by Dongfeng Nissan's in 2009 were closely equivalent to total of two joint venture companies of Toyota in China. Besides, output and sales volume of Honda are also much less than Nissan in China.

　　Obviously, after Huadu expansion Dongfeng Nissan will become the largest auto manufacturers in South China. By taking advantage of the new plant, Nissan intends to achieve full suppression of the Honda, and even full overtake of Toyota.

　　After the large-scale expansion, the author found that about a little far in 2012, only Dongfeng Nissan, south and north Volkswagen and a series of joint ventures of Guangzhou Automobile can form new capacity of more than 1 million units in South China. In addition, the expansion also means a corresponding increase in vehicle running. Volkswagen plans to launch 7 new models in China, and then Nissan will launch new models including Nissan March and electric car Leaf.

　　In addition to capacity and models, the author believes that the key factor to competition situation between Volkswagen and Nissan in South China is the competitive strength of system. The competitiveness of this system, which means an auto manufacturers can expand its capacity in a very short time and to meet continuously expanding demands by the means of actual capacity that beyond designed capacity. Once the market demands slump, flexibility changes of the system can adapt to the situation so that avoid large-scale waste of capacity.

　　In terms of this, the competitiveness of Nissan's system seems slightly better than Volkswagen. For example, Dongfeng Nissan achieved more than 520,000 units output last year with a designed capacity of 460,000. However, Nissan is also faced with tough jobs: in the channel, Dongfeng Nissan has to face the joint efforts between FAW - Volkswagen and Shanghai Volkswagen. In products, products system complement of the two Volkswagen is better than products system of Dongfeng Nissan. Faced with upcoming fierce competition from Volkswagen, is Dongfeng Nissan well prepared? (Translator: Qinghua Wade)

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　　http://luoyuauto.blog.sohu.com/154222667.html