DeFazio's SUV, pickup prices July 1 overall rise, an average of 5%. As the SUV and pickup trucks, one of the main production enterprises Gio car, in the current car market under pressure circumstances, moving against the market, following last November after the second time raised the banner of rising prices.

       The automobile industry faces dilemma

       June 20, the State Development and Reform Commission on domestic prices of refined oil market adjustment on June 23, Baosteel and the world's leading producers of iron ore - Rio Tinto companies on the 2008 annual PB ore powder, Yang Di powder PB block mining and ore benchmark prices reached a consensus. Rio Tinto's mine PB powder, Yang Di powder and PB block ore mine in 2007 on the basis rose 79.88%, 79.88% and 96.5%. Coupled with the already identified the July 1 implementation of the forthcoming National Ⅲ emission standards, a series of bad news series against the Chinese automotive industry.

       As early as the rising oil prices, motor vehicle manufacturers and dealers in order to meet the standards Ⅲ to clean up the implementation of inventory, particularly in June to enter the traditional off-season sales, inventory, the pressure like a "sword" hanging in factories and Distributor head. Now, not only raw materials prices, oil prices rose further. An own-brand cars rate of the media chiefs, said: "Now the pressure of increasing costs, price cuts or price hikes in the end is the promotion« we are faced with a dilemma of choice. "

       Rising oil prices led to a certain degree of wait-and-see mood, sales are manufacturers of the options is one of raw material prices directly led to rising costs, rising prices appear to be inevitable. This is a paradox, and prices are running counter to the promotion. There are too many people in the current choice, who take the lead in consumer prices has been discarded as well.

       But DeFazio car has claimed that its external SUV, pickup in the July 1 start up implementation of a comprehensive, with an average increase of 5%.

       Must let consumers benefit

       "We chose the price hikes are justified. In fact, the present state, the price hikes are the mainstream voice of the automotive industry, but many companies due to market trends can not just up." DeFazio Miao, chairman of the snow a little excitement He interpreted the topic of rising prices, "prices must be affordable to ordinary people, the price increases is to enhance product quality and value, rather than price hikes have turned into corporate profit growth. From November last year, we adjust prices upwards, we have The monthly average year-over-year sales growth of 40 percent. We have not only increased sales in overseas markets, in the domestic market this year the growth rate of 40 percent or more. "

       Miao Snow said: "accelerate the technological upgrading of products and optimize the product configuration, upgrade product quality and brand their gold content, increase product functional, as they have done our very place, although the price increases, consumers are willing to accept, because consumption Are more cost-effective value, the price increase, of course Maizhang consumers. "

       To enhance the quality brand

       Brand said that their gold content, Miao snow interesting spirits Gio Group recently introduced the brand strategy - "the Chinese leader in the pickup, the world's manufacturing base for pickup." Miao Snow said, is to use our quality brand, "We will implement this strategic objective in the production of each session, with the upgrading of the quality, brand also will upgrade, also a corresponding increase in value-added products. This DeFazio asked in an objective can not go on low-cost strategy, will become an inevitable price hikes. In addition, there are now low-priced cars on the market, but as consumers and raise the living standards on the use of the product requirements increase, low-priced products have been Is not their pursuit of the goal. Only high-quality products in order to price hikes, but also will be recognized after the price hikes, while Gio is to follow the market principle. "

       DeFazio Group Brand Director Chan told reporters: "have the courage to price hikes in three areas protected First 'zero inventory' strategy. Corporation from 2005 introduced the 'zero inventory' management, has been fruitful. Therefore, we have sold the car Is the immediate production of new cars, playing an analogy of our cars are just latest of each fresh goods; Second, we have been in the implementation of 'lean production management', rationalize production and management processes, enhancing production efficiency. These to a certain extent On upgrading the quality of our vehicles, and we always understand the market customer demand, increase the added value of products; Third, we have a strong, rapid-response service system as a security for sale. In addition, our diesel vehicles in similar products in a high - Cost-effective models, mainly manifested as a driving force foot, low fuel consumption, consumers can save considerable cost to use. "

       Many economists have long expounded on this truth: blindly compression corporate profits, the result is that consumers have to face more "one-off" products.

       However, regardless of how to further price hikes on grounds that one is indispensable - prices must be affordable for consumers.