· Shanghai Volkswagen and Shanghai GM renamed or will change

Shanghai Volkswagen and Shanghai GM, which were previously designed to increase the market value of SAIC, may change. The bad result is a miscarriage, and the good result is that the name change is postponed. This is the latest news from the Beijing Morning Post.
Enhancing the market value management of SAIC Group is an important matter that Chen Hong has taken care of and personally asked after the chairman of the new SAIC Group. Previously, SAIC Group has stated that it will rename its two major joint ventures, Shanghai Volkswagen and Shanghai GM, in 2015. The two will be uniformly referred to as “SAIC” and renamed as “SAIC Volkswagen” and “SAIC General Motors”.
Previously, several sources broke the news that this year, SAIC Group's SAIC-based joint venture company, which was named after the word "Shanghai", will be renamed as "SAIC Certain Company". At present, the related name change work mainly involves Shanghai Volkswagen and Shanghai GM. The large joint venture company, after the name change, will become SAIC Volkswagen and SAIC GM. The industrial and commercial registration name change will be launched soon and is expected to be completed in March.
The industry analysts believe that although SAIC's joint ventures Shanghai Volkswagen and Shanghai GM's performance have been rising all the way, ranking the top three in passenger car sales, but did not bring responsive brand improvement and capital market performance to SAIC. . The names of Shanghai Volkswagen and Shanghai GM, in the public's impression, mostly see the two foreign brands "Volkswagen" and "General", and "Shanghai" is more regarded as a regional symbol. Although “Shanghai” and “SAIC” are only one word difference, this subtle difference will help to further build the brand of SAIC Group and build brand recognition, which will help SAIC to obtain more links with the joint venture company in the capital market. Sexuality and interaction.
In fact, after Chen Hong took office as the chairman of SAIC in May 2014, SAIC announced in August last year that it would add a market value management function at the group level to boost SAIC's performance in the capital market. Chen Hong said at the 2014 Group Report that the value of SAIC was seriously underestimated. The group level will increase the company's market value management function and investor relationship maintenance in the office of the board of directors to boost SAIC's performance in the capital market. In mid-August last year, SAIC’s P/E ratio was only 6.4 times, while the price-to-earnings ratios of GAC and FAW Cars were 15.6 times and 17.7 times respectively. “Market value is the brand image of a company in the capital market. In the future, the market value management should be done. The market value of the company is highly correlated with the interests of shareholders. The future reform direction is to further strengthen the medium and long-term incentive mechanism of the company’s management, and to benefit shareholders’ interests and management interests. Fully integrated with the interests of employees." Chen Hong said. In fact, after Chen Hong took over, SAIC's share price rose by 46.86% within half a year.
The Beijing Morning Post reporter learned from several sources that the two main reasons for the change of Shanghai Volkswagen and Shanghai GM were the two reasons. It is understood that Shanghai Volkswagen and Shanghai GM, once renamed, will involve a series of industrial and commercial registration issues, including the production of trademarks, the company's overall VI visual identity system, car tails, the door of hundreds of 4S stores nationwide and the interior logo. In addition, it will involve a series of issues such as contract revision and notarization, which can be said to be a waste of money. Although there has been a precedent for “Guangzhou Honda” to be renamed “Guangqi Honda”, but with Shanghai Volkswagen, which has been developing in China for 31 years, and Shanghai General, 18 years old, Guangzhou Honda’s volume is far less than the previous two. Therefore, the chain reaction brought by the name change is far more than the word difference from "Shanghai" to "SAIC". The name change should be carefully considered. Second, after all, it is a joint venture. The name change must also consider the opinions of the public and the general foreign party. However, SAIC Datong and SAIC passenger cars with their own intellectual property rights have all been renamed SAIC Group. Shanghai Volkswagen and Shanghai GM's name change may be delayed due to abortion or change due to the above two reasons.

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