JB and ZJMY Holding Co (JBZY)

[Stock Farmer]

Looks like Chery is taking Chery Cowin (Kay Wing) back under their wing (pun intended).

Kay Wing is an arm of Chery Holdings, founded in March 2014 as Wuhu Kay Wing Automobile Co., Ltd. It relies on Chery OEM. Kay Wing uses Chery's production platform. Kay Wing just calls the vehicles different names. According to the article, now Wuhu Kay Wing Auto (Kay Wing) will be coming back under Chery's direct control.

The article says the reasons for the return of Kay Wing to Chery "is not clear". I think it is abundantly clear to us. Chery put a lot of investment into the Kay Wing division and their sales are dipping. IMO, Chery is going try to revamp the slumping sales on the Kay Wing line by the partnership/OEM agreement with JB&ZJMY. JB&ZJMY will be(are currently) using Chery as an OEM to provide the V3 bodies and chassis (shells) and probably provide other shells too like the X3 or C3 in the future. Floridany has mentioned Chery will produce buses for JB&ZJMY as well.

I Visited ZJMY and Met President HAN Zhiming
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=133028011

High speed SUV: ZJMY has a contract in place with Chery to produce the V3 SUV by Chery. It is already in production and will be released into the market in August. The Department of Industry and Information published listing of new EV brands every month since January 2017. ZJMY expects getting their listing early August, could be the first Friday of August. The company can sell the SUV now but will not get government subsidies without the listing.

This EV is for the taxi market and mass market as well.
...
Electric buses: This is related to the bus exterior design jobs we found. ZJMY has confirmed that they have contract with Chery in Guiyang, Guilin to produce unknown amount of electric buses. The company will release the details soon.

Critical point in the form of a question from the article below V3 picture.

"Kay wing car and Chery with the platform, just for a shell only, and the price is not much cheaper, why buy it?" A Chery owners told reporters.

Why buy it? It is required by the government (Half taxis need to be EVs by 2020 (estimated 1 million EV taxis needed) and 12% of all cars produced in China need to be new energy vehicles by 2020). With JB&ZJMY using the SUV shell and making it a SU"EV", it fills the government's market demands and requirements for EV taxis and cars. The EVs are more expensive upfront from my research (Chery Tiggo Price starts at 93,900 yuan and ends at 150,900 yuan. Ours is 200,000 yuan after subsidies), but electricity and maintenance is much cheaper in the long term, making the EVs have a lower overall lifetime cost.



Translation provided below:

http://auto.cnfol.com/cheshidongtai/20170721/25040110.shtml

By "crowdsourcing" repairer "return" Chery future is uncertain
2017-07-21 07:41:02 Source: China Economic Net Author: Wang Yueyue I want to share
Online consultation: 

By the "Internet +" east wind, Kay Wing car sang the concept of "crowds"; but in essence, it failed to break away from the Chery system, nor did it come up with real, sincere products, which Perhaps destined for its current outcome. Although the "crowdsourcing" concept of marketing means to get the user's attention, but in the fierce market environment, it is difficult to go it alone, let it return to Chery, to achieve "Baotuan" development, the chance to survive more Big. 

China's economic network car channel today launched the "car rookie sand soldier" series reported the second: see "a Chery" strategy, after the return of the Kay wing car, whether there is the future, too much change worth looking forward to.

With the "Internet +" hot spots of low tide, fantasy "corner overtaking" of the new brand then encounter marginalized, or even out of the crisis. Recently, according to the media broke the news that by virtue of "public package car" model and "popular" Kay wing car, has been incorporated Chery Automobile. As early as the end of last year, Kai-wing car general manager Zheng Zhaorui resignation message was confirmed, there are media reports said, "Kay wing may return to Chery." 

Now, the news has been confirmed, a Chery car insiders told the China Economic Net reporter said, "Kai wing return to Chery has six months time." However, for the reasons for the return of the Kay and the return of the development and other issues, the source said, "is not clear." 

Behind the back, is the embarrassment of a prolonged slump in sales. three years ago, Kay wing car from Jiangbei project started, the "asset light" model started, embarked on a path toward the Internet thinking, "crowdsourcing repairer" of the road. In April 2013, Chery "Jiangbei project" was established, Chery Holdings to provide 2 billion project start-up capital, and from Chery Automobile mobilized nearly 200 employees began to work; but this project has been criticized by the industry as "Chery stripping The product of bad assets ". January 2014, Wuhu Kay Wing Automobile Co., Ltd. incorporated, with "smart Internet" and "public package car" two concepts into the market.

In accordance with the interpretation of Kai Yi car, "public package car repair" project is a universal repairer. It can gather through the wisdom of the public, to collect more people's views, to convene more talents, to create user demand-oriented automotive products. It is understood that the beginning of 2015, Kai-wing car start the package construction projects; in July that year, released crowdsourcing platform, allowing users to participate in the car through the platform appearance, interior and other aspects of the design; June 2016, the first Production models - Kay Wing X3 officially listed. 

Despite the "Internet +" new ideas, but the Kay Wing car market performance is not as much as they wish. Data show that in 2015, Kay wing car sales of 24,000; 2016, sales of 43,000, failed to reach 62,000 sales target; 2017 years ago 5 months, Kay Wing car sales performance of 2.46 Million, compared to 82,000 sales target throughout the year, the completion rate is only one-third.


Among them, as the Kay wing brand's absolute main and "crowdsourcing" concept of sales to play, Kay Wing X3 performance is difficult to succeed. Data show that in the first five months of this year the cumulative sales of 16,400 in 2016, to achieve sales of 25,000, the average monthly sales of less than 4,000. In contrast, the same name of "Internet repairer" banner, almost at the same time with the Kay Wing X3 listed Roewe RX5, in just one year, the cumulative sales of 200,000. 

In the industry view, Chery side for the Kay wing car market performance is not satisfied. Analysis, although the "crowdsourcing" concept of marketing means to get the user's attention, but in the fierce market environment, it is difficult to go it alone, let it return to Chery, to achieve "Baotuan" development, survive The greater the chance. 

The journey will be unknown, the future will be unknown 

by the "Internet +" Dongfeng, Kai-wing car sang the "crowds" concept; but in essence, its failure to divest from the Chery system, nor did it come up with real Of the sincerity of the product, which may be destined for its current outcome. 

From the staff point of view, Kay wing basically follow the Chery team. It is understood that, in addition to Zheng Zhaorui, the Kay wing was nearly 200 employees from the original Chery Automobile Cowulus Division's Cowin R & D Second Hospital, Cowin sales company, including some of Chery's financial and quality assurance personnel.

In addition, there is no new product of the Kay wing also borrowed some of Chery's technology platform. Among them, in 2014 listed the first product - Kay wing C3, is the original flag cloud division code for the S31, S32 models developed by Chery OEM production; Kay wing X3 and Chery tiger 3 the same platform; V3 is from the mine under the MPV models Kai Rui K50. "Kay wing car and Chery with the platform, just for a shell only, and the price is not much cheaper, why buy it?" A Chery owners told reporters.


Kay Wing X3 and Chery Tiggo 3 [are] the same platform 

Today, Kay wing car return to Chery. Many industry insiders question, since the two brands use the same platform, then, the resulting product homogenization of the problem will not spread the consumer awareness of the two? In addition, 2013 "front line contraction" will be staged again? 

In 2009, has been for 10 consecutive years sit tight in the top spot of its own brand Chery Automobile, opened a multi-brand strategy to build the Chery, Rui Qi, Wei Lin and Kai Rui four sub-brands; but the fact that do not have to operate a number of brands Strength, too many brands and complex product line share the Chery Automobile's energy, resulting in the loss of sales leading position, the amount of loss is increasing year by year. In order to reverse the dilemma, Chery Automobile from 2013 onwards "return to a Chery", the strategic transformation, from 20 balance models to 11-12 models, Ruiqi, Wei Lin two brands have been "frozen." 

Now, Kay Wing was incorporated, Chery Automobile's brand will increase to four (including Kay wing, Chery, view of the cause, Chery Jaguar Land Rover). Although Chery has repeatedly stressed that "this is only in the Chery this big system, the internal integration of resources; Kai-wing is still an independent brand, still maintained independence." However, in the "a Chery" strategy, Chery Automobile may not Repeat the "multi-brand" strategy of the same mistakes; then, Kay wing car's future is very worthy of our expectations. (China Economic Net reporter Wang Yueyue)