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After controlling the FAW Group for more than a year, the framework of FAW Group's “autonomy†created by Xu Jianyi has basically been completed.
At the end of 2007, he was appointed as the general manager of FAW Group. Xu Jianyi rarely appeared in public, but his goal of “doing autonomy†for FAW Group was widely known.
With the construction of the FAW Jilin mini vehicle base in early September and Dahongqi’s debut in October, FAW’s “autonomy†integration of “unified resources and unified network†is drawing to a close.
"Autonomy" framework
Industry insiders generally believe that Xu Jianyi’s challenge after taking over FAW is to build his own brand.
The FAW Red Flag with a brand value of more than 5 billion yuan took advantage of Toyota's re-introduction of the luxury line. After launching HQ3, the publicity campaign was huge. However, the sales were still difficult to see improvement and even questioned by "OEM."
Tianjin FAW, another independent brand car base, is still launching new cars after Xiali, but it is difficult to highlight the glory of Xiali. The only satisfactory performance is the mid-range FAW Pentium B70.
After Xu Jianyi took office, he clearly stated that he should take the power of the group and take the construction of self-owned brand as the “main contradiction†to try to revive the national brand's reputation.
At a large-scale internal meeting held six months after he took office, Xu Jianyi determined the long-term and immediate goals of the autonomy of the FAW Group. The long-term goal of FAW's self-development is "to build an internationally competitive "autonomous FAW, FAW, and FAW", and the immediate goal is to "change the concept of two years in three years" - and strive to use three years to make the autonomous front operate. Obvious changes have been made to significantly improve the competitiveness of independent products.
The specific digital goal is to achieve a total sales volume of more than 2 million vehicles and strive to sell more than 1 million vehicles by the end of 2010. In 2012, the total sales volume will exceed 3 million. Strive to sell more than 1.5 million autonomous vehicles, and strive to achieve total sales and autonomous sales in both domestic first.
These goals are not easy to achieve. Xu Jianyi proposed the “Independent Branding and Large-scale Network†to unify the resources and do its own work: to unify resources from R&D, procurement, and marketing, and to centralize FAW's own brands.
The integration of R&D resources is the fastest. Jinxu Long, head of mini vehicle research and development department of FAW Group Technology Center, introduced that FAW Group’s own brands have formed five R&D departments, namely: the truck department and the car department (mainly the Pentium mid-size car series, as well as the future Tianjin Tianjin FAW Xiali Research and Development. More R&D tasks are still undertaken by Tianjin FAW Xiali, Red Flag Department, Micro Vehicle Department, and Bus Department.
The integration of marketing networks is also in progress. Hu Hanjie, the new general manager of FAW Jilin, disclosed that in the future, trucks and buses of FAW will still be sold separately on the Internet. Hongqi and Pentium will be connected to the grid, and Pentium and Charade will be sold on-grid in some regions. In some regions, micro-vehicles and Xiali will be sold online.
Marketing network integration has been planned, and network integration between Red Flag and Pentium began last year. The next plan is to carry out a wider range of integration in the three sales networks of Hongqi, Pentium, and Xiali. The principle is to “comply with strengths and weaknesses, build blank stores, and coexist with the two strong companies.â€
Micro-car status increase
In the recent self-owned brand layout of FAW Group, the most striking is the micro-vehicle strategy.
For a long time, the main business of FAW Group has always been based on trucks and cars. Micro-vehicles have not been taken seriously. However, after large auto groups have developed their own brand plans, micro-vehicles with low thresholds and easy sales have started to become a big group.
SAIC Motors owns SAIC-GM-Wuling, the largest micro-vehicle, and its annual sales volume is considerable; Chang'an Group started from micro-vehicles; Dongfeng Group has established Dongfeng Xiaokang in recent years and has emerged as the fourth micro-vehicle segment. Among the four major domestic groups, FAW is the only car group with a weak vehicle in a weak position.
Whether it is from the expansion of self-owned brand sales or from the promotion of the Group’s overall sales volume, micro-vehicles are very attractive to large groups.
According to sources, prior to FAW and GM's joint venture commercial vehicle, FAW had discussed cooperation with a private capital enterprise and planned to build a mini vehicle base on the basis of FAW Hongta, eventually giving up on the cooperation with GM commercial vehicles.
In order to complete the FAW mini-vehicle short board, at the beginning of this year, FAW set up a micro-vehicle R&D department to develop a micro-vehicle planning and development strategy specifically for FAW Jilin.
According to the plan, FAW's micro-vehicles will be developed in two phases - 200,000 in 2011, and 300,000 in 2013. By 2012, minicars will account for 25% of FAW's own brand share.
In order to achieve this goal, FAW Group and Daihatsu Motors Japan reached an agreement to exclusively own the permanent use rights of the Daihatsu Senya platform previously launched and build FAW's own brand micro-car. At present, the car has been rebranded as an independent brand of FAW, and in the future, FAW will have the right to independently modify and develop new models. Daihatsu promised to continue providing technical and spare parts support.
In order to make FAW Jilin get better development, Xu Jianyi adjusted the entire leadership team of FAW Jilin and personally took the post of chairman himself. Deputy General Manager Jin Yi of FAW served as vice chairman, and transferred from FAW Liberation to Hu Hanjie as general manager and then from FAW Toyota. Tian Qingtian served as deputy general manager in charge of sales.
After the new leadership team was finalized, FAW Jilin has developed a network expansion plan. By the end of this year, the number of first-tier stores will increase from 160 to 220, with 500 secondary outlets; the number of first-tier stores will be reduced to 170 before the end of next year, but outlets will increase. To 1000 homes.
With the micro-vehicle strategy surfaced, FAW's autonomous planning was basically completed, and the three-unified autonomy framework finally came into being.