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"I can very responsibly say that Brilliance has never had any contact with FAW, and the rumor that Faw and Brilliance reorganized is purely groundless." Brilliance Chairman Yumin Yu of Brilliance Motor Co., Ltd. clearly stated in an interview with this reporter on July 15. .
Earlier, some media reported that FAW and Brilliance are in the process of restructuring negotiations and have entered a substantive stage. In this regard, Yu Yumin said that in order to achieve sales volume and overall strength improvement, Brilliance has already done a product plan for the next three years and is unlikely to be merged and restructured.
“I very much agree with the restructuring, but the premise is that restructuring should not be just a quantitative merger, but should be aimed at strengthening and expanding the brand. If any auto plant has the ability to turn our own brand into a world-class brand, I It is also very willing to let Brilliance reorganize, but the problem is that there is no Chinese car manufacturer that has this capability." Yan Yumin said.
According to reports, since the arrival of Yu Yumin, Huachen has invested RMB 3.4 billion in the construction of a new factory, transformation of existing production lines, and research and development of new models. The cumulative sales volume reached 946,000. In addition, Brilliance will also use a two-and-a-half year time to build a C-class luxury car that is positioned in the mid-to-high-end commercial vehicle market, initially named "New China."
Adhere to the "Declaration of Independence"
"I will not engage in small-scale mergers and reorganizations. It will be a big move when it is done, but it is not now." Yan Yumin said.
In his view, the era of large-scale reorganization of Chinese cars has yet to come. "The current problem that China's auto industry needs to solve most is not the sales problem, but the layout problem. Reorganization is one way to solve this problem, but now the industry is too impulsive. Only Look at the number of surfaces superimposed, without considering whether there is enough capacity."
Sui Yumin said that there is currently no enterprise that intends to acquire Brilliance. The starting point is to make the "China" brand a good job. "Especially the kind of reorganization idea that one wants to get from someone else is very wrong. If you want to reorganize Brilliance's business, you have no ability to run a good brand. Why should I reorganize it? It's not better to do it yourself."
The reason why he has this sigh is related to Huachen's frequent setbacks in domestic and foreign markets. After the surge in sales volume in 2007, Brilliance was weak. In 2008, it sold only 98,000 vehicles, a decrease of 22.6% from the same period of last year. At the same time, Brilliance was frequently hit by “crash gates†overseas, and its overseas development pace, especially its advancement. Plans for developed markets in Europe and the United States have also been blocked.
Yan Yumin believes that the brand is the crux of these problems. “The biggest blow I have suffered in the past few years is the brand, but this issue is not limited to Brilliance, and all of China’s own brands have not built the ability to build a world-class brandâ€.
However, he did not abandon the pace of internationalization of Brilliance because of this. “When I first took office, Brilliance’s export department employs only 13 people. Now it has more than 100 people and is distributed in various markets around the world. Whether it is low-end or high-end in the future In overseas markets, we will also insist on entering at the same time, which allows us to find our own gap."
Although Brilliance sold only 7,000 Chinese cars in the German market so far, this is a historic breakthrough for its own brands.
Yan Yumin stated that it is Brilliance's long-term strategy to insist on building Chinese brands in an autonomous manner. The future Brilliance's “Zhonghua†brand will continue to stick to its uniqueness and continue to expand its product line under this brand.
“Hua Chen will definitely not be able to get a new brand out of the room. We will focus on the quality core and insist on doing a good job for the Chinese brand.†Yan Yumin said.
Enrich product line
On July 15th, Brilliance Automotive launched two new models, the Junjie FSV and the New Vision. According to Yan Yumin, the newly upgraded Junjie Junjie will be introduced to the market in the first half of next year, and the planned C-Class will be launched in 2012.
According to the three-year product plan released by Brilliance, “New Chinaâ€, which is positioned in the C-Class, will be the main commercial vehicle market in China and the overseas market. The car will form a Chinese brand together with A-class and B-class vehicles of Brilliance. Product sequence.
"We want to occupy the midfield, and then extend up and down, first down and then on," Yu Yumin explained, occupying the midfield is the B-class car, down is the A-class car, now A-class car is doing almost the same, the lack is up Extend the C-class car, so that the entire Chinese brand's product line can be more full.
"A-class cars are the cars of ordinary people. C-class cars are official vehicles and commercial vehicles. This is my dream." Yan Yumin said. However, for Brilliance, A-class vehicles will still be the foothold for Brilliance’s expansion.
Yan Yumin disclosed that the new A-class plant planned by Huachen will be put into operation in the fourth quarter of next year, with a designed capacity of about 150,000 vehicles, and it can be expanded to 180,000 vehicles in the future.
According to Xing Rufei, President of the Brilliance Automotive Research Institute, Brilliance is currently developing new products within the next two or three years. In addition to the “New China,†the full range of commercial vehicle Haishi platforms and the existing products of the Grace platform will be changed. The model has also been developed. In addition, the fourth model of the A-Class platform FSV is also under development.
It is reported that early in the year, Brilliance formulated an annual sales target of “guarantee 300,000 vehicles and compete for 330,000 vehicles.†In the first half of this year, Brilliance’s sales reached 152,000 units, a year-on-year increase of 21.5%. Yu Yumin expects that with the launch of new cars, Brilliance will also grow 16% this year compared to the same period last year, and the goal of achieving 330,000 vehicles throughout the year will be no problem.
“Brilliance will continue to grow even more than this year next year. At present, Brilliance’s production capacity is not too problematic, but its models are still relatively small, which limits our market growth. However, for the models, we would rather be overwhelmed and strive to be a The car succeeded in a car." Yan Yumin said.
In addition, Brilliance also faces the challenge of securing profits. “This year's structural changes in the auto industry are very prominent. The industry generally does not increase production and income, or even increase production and do not increase revenue, as does Brilliance.†Yan Yumin disclosed that in the first half of this year, Brilliance’s sales growth reached 21.5%, but sales revenue Only 9% increase.
In order to ensure the increase of production and income, Sui Yumin has formulated three major measures: First, to achieve "open source" by increasing sales volume, and to increase efficiency by economies of scale; second, to "throttling" and reduce costs; third, to stabilize and improve product quality. .
"In the first half of the year, we have cumulatively reduced the cost and cost of 400 million yuan. In the second half of the year, the goal is to reduce another 600 million yuan. In the whole year, we will reduce three expenses and accumulate 10 billion yuan in various costs. So I believe that this year's financial The situation will certainly be much better than last year." Yan Yumin said.
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