FAW, Dongfeng Game "13th Five-Year"

Since the middle of 2015, FAW Group and Dongfeng Group have exchanged leaders, and it has been nearly 1 year. At the Beijing Auto Show held on April 25 this year, FAW Dongfeng each proposed its new strategy and goals.

Xu Ping, who took over FAW Group, tried to enhance competitiveness by refurbishing the entire line of products, and the game was “13th Five-Year”. Dongfeng Group led by Yan Yanfeng gave more grounded gas and more specific short-term goals—4 million vehicles in 2016. .

In fact, this is related to the actual problems that the leaders of both parties have to solve. Xu Ping must first integrate the internal decentralized resources of the FAW Group and concentrate on the dominant segment to achieve overall listing. The Dongfeng Group left by Xu Ping, in terms of product sales, etc. It should be slightly better than FAW Group, so Yan Yanfeng can give clearer annual strategic goals while contemplating long-term planning.

After one year of defense change, the two major auto groups that have gradually adjusted and stabilized have achieved an unprecedented favorable situation in the opening of the “Thirteenth Five-Year Plan”. What are the goals and visions of the two state-owned auto groups in the future and become the focus of attention within and outside the industry.

Xu Ping: Strive priority after <br> <br> in the overall market FAW Group, FAW experienced audit and anti-corruption storm after storm, Xu Ping arrival, is to "safeguard stability" based. According to the insiders of FAW Group, FAW Group is currently stabilizing through various phases of personnel adjustment and power transfer.

According to FAW Group's “Thirteenth Five-Year Plan”, FAW Group will strive to achieve a market share of 15% or more by 2020, a profit target of 8%, an overall sales volume of more than 4 million units, and an independent brand exceeding 2 million vehicles.

The specific layout is that during the “13th Five-Year Plan” period, it is expected to launch 50 products and 18 independent products. It is expected that 19 new energy products will be launched, including 11 models for 5 platforms for passenger cars and 8 models for 5 platforms for commercial vehicles. The goal of FAW Group in the new energy field is that new energy vehicles account for 15% of the national market share and become China's new energy vehicle leader. By 2020, China will enter the first echelon of new energy vehicles.

Industry analysts pointed out that FAW Group, as a traditional state-owned large-scale enterprise in the automotive industry, pursues economic profits while also shouldering a certain political mission. The Chinese government’s belief in the achievements of the new energy market will also boost FAW Group will focus some of its work on the new energy sector. “There are achievements in the new energy field. This is a requirement that multinational automobile companies like Volkswagen can understand and put into practice, and FAW Group naturally needs to do more.”

FAW Group put forward the "1593" revitalization plan for the "13th Five-Year Plan", which is 1 goal (quality and efficiency type enterprise), 5 concepts (innovation, coordination, green, openness and sharing) and 9 major measures (build brand Sexual enterprises, vigorously promote scientific and technological innovation, accelerate the development of new energy vehicles, pay attention to the development of talents, etc.), 3 guarantees (all-round deepening of reforms, comprehensive management of enterprises according to the law, party building, culture, system construction). Its "13th Five-Year Plan" goal for scientific and technological innovation is "three levels and two high levels" - low carbonization, information, intelligence, high quality, and high efficiency. Improve system integration capabilities and support the continuous development of FAW's “Thirteen Five Years” and “Fourteenth Five-Year Plan”.

FAW Group insiders told the Times Weekly reporter that since the arrival of Xu Ping, the objectives of the company departments within FAW Group have become clearer, and the communication and collaboration between them has also been smoother.

The development of self-owned brands is still an important task in the “13th Five-Year Plan” of FAW Group. Among them, FAW Car, which is the main force, will lock two product platforms. The Pentium brand will lay out 8 products covering passenger cars from Grade A to Grade B. Class A0 to Class A SUV and MPV segment.

Although the Hongqi sedan is the classic red memory of the Chinese automobile industry, the performance of the Hongqi sedan has been unsatisfactory since the market operation. However, the FAW Group still cannot abandon the creation of the Hongqi brand.

Xu Xianping, general manager of China FAW Group Corp., told the Times Weekly reporter: “No matter what challenges we face, China FAW will not change its determination to make the Red Flag brand bigger and stronger. The red flag is a 'golden sign' and it must be The market shines."

It is reported that since the establishment of an independent business unit last year, Hongqi will be planning to lay out SUV, B, C, D, and E grades in the future to form a complete product line. Before 2020, it will launch more than 5 models covering most of the high-end markets. Plug-in hybrid, pure electric red flag product layout has been completed.

At this year's Beijing Auto Show, Red Flag said that it will launch at least one new red flag product every year for the next three years. These products will assume their precise positioning and roles. The Hongqi brand will challenge the starting point of success - the market target of 100,000 vehicles.

Some analysts expressed that China has not yet had its own companies successfully create a market-oriented, stable sales of high-end brands, FAW Group's key to success in its own brand area is to see whether the Red Flag brand can gain market recognition. Xu Ping, the first task of the FAW Group, was to revitalize the various segments of the FAW Group and eventually achieve overall listing.

Zhu Yanfeng: optimize resource integration <br> <br> compared with Xu Ping took over FAW Group, Dongfeng Group Zhu Yanfeng took over the work of many to be relatively smooth. It is reported that after Yan Yanfeng took office, using 50 days, personally investigated the situation of its more than 40 subsidiaries, and quickly integrated into the work of Dongfeng Group, which echoed the steady growth of sales of the Dongfeng Group in the first 4 months.

According to Dongfeng's official sales data, from January to April this year, Dongfeng Motor Corporation sold 1,265,100 vehicles, an increase of 1.96% year-on-year. Among them, 1,108,800 passenger cars were sold, an increase of 2.32% year-on-year, and 156,300 commercial vehicles were sold. From January to April, Dongfeng sold 451,800 self-owned brand cars, of which 298,300 were self-use passenger cars, an increase of 4.48% year-on-year, and 153,500 were sold by autonomous commercial vehicles.

Based on the good development status of Dongfeng Group left by Xu Ping, the strategic vision of the “13th Five-Year Plan” of Dongfeng Group is mainly realized in the areas of new energy vehicles, auto finance, independent research and development capabilities, marketing capabilities, internationalization capabilities, and smart interconnection. Key breakthroughs.

Since Dongfeng Motor was initially formed as a joint venture company, this made Dongfeng Motors more open to the outside world than the Air Group in its open and inclusive attitude. A Dongfeng Motor Group insider told the Times Weekly reporter that as the importance of the Chinese market is further enhanced, Dongfeng Motor's communication with its joint venture partners is smoother, and Dongfeng Motor’s dominance in product, brand, design, etc. It has also been strengthened. "What kinds of products and technologies do we need for some brands? Foreign parties will provide them as quickly as possible." The above sources said.

According to the “13th Five-Year Plan” of Dongfeng Motor, by 2020, the company’s production and sales scale will exceed 5 million, including 300,000 new energy vehicles. Dongfeng’s independent plate production and sales volume will reach 3 million by 2020, of which the self-owned brand commercial vehicles will reach 1 million, and Dongfeng’s self-owned passenger car brands will reach 1 million.

In the field of new energy vehicles, Dongfeng Motor strives to achieve a 15%-18% share of the new energy vehicle market by 2020, in line with Dongfeng's position.

Some analysts pointed out that the degree of cooperation between Dongfeng Group and foreign automobile groups is more closely related. In addition to the development model of FAW Group, the development mode that the two choose to adopt is not the same, and ultimately they are all completing their respective tasks and goals. Achieve the vision of a bigger and stronger Chinese auto industry.

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