Rebirth 99 to become a car giant
Chapter 935 The curse of 1 million vehicles, who can break it?
"Many parts of our engine are designed and developed according to the products of Nanshan Engine. The problem is that the quality department and the purchasing department did not let the suppliers produce the parts according to the requirements."
"If the supplier cannot provide qualified parts, it is meaningless even if the design is good."
Zhang Wuchao naturally could not admit that it was the fault of the R\u0026D department.
If that happened, he might not be able to keep his position.
I said it earlier, he felt that he was right.
Even if the full set of drawings and data of Nanshan Engine were given to Chery Automobile, the quality would not be as good as that of Nanshan Engine after they finally found suppliers to purchase parts and assembled them.
There are many tricks in this, and it is not so easy to learn, or even surpass.
In the past, Chery Automobile also suffered a lot of losses and invested a lot of resources, and finally achieved relatively good results in engines.
"The suppliers we chose are all very good domestic suppliers, and many of them are also suppliers of Nanshan Engine."
"And when these suppliers were introduced, they were also confirmed by the quality department and the R\u0026D department, and it was believed that their capabilities in all aspects were no problem."
Song Xianming, the director of the purchasing department, naturally had to stand up and speak at this time.
The ball has been kicked over, so he must kick it out.
Otherwise, the blame will be on the purchasing department.
Although purchasing department often takes the blame within the company, he cannot take the blame.
"Parts delivered by our suppliers are only accepted if they meet the quality requirements."
"Each batch of parts has various inspection reports, and all data can be traced and managed."
"If you have any questions about the parts of a supplier, you can also organize various departments to conduct a joint inspection."
The quality department naturally has to stand up and say that there is no problem.
Anyway, no one thinks they are wrong.
Listening to the ministers below arguing there, Yin Chuan's face is very ugly.
"Enough, now is not the time to shirk responsibility."
"What we need to do is how to change the current situation, how to increase our sales, and how to improve the competitiveness of our products."
According to Yin Chuan's original plan, Chery should now be firmly sitting in the first place in the industry sales.
Whether it is Geely, Great Wall, BYD or Changan, their sales in the past were far behind theirs.
After all, Chery is the first company among its own brands to break through 1 million vehicles in annual sales.
However, after enjoying this joy for a short time, it was over soon.
Even this history of 1 million vehicles was partly achieved by reducing inventory.
But in the past August, Chery Automobile's sales just exceeded 60,000 vehicles, and the sales from January to August just exceeded 500,000 vehicles.
In the remaining 4 months, 500,000 vehicles must be sold to maintain the sales of 1 million vehicles.
Given the current situation, it is obviously unlikely.
It is even impossible to do it.
That's why Yin Chuan specially held such a meeting within the company.
The sales of 1 million vehicles is simply a curse.
Shanghai General Motors once reached this number, and now it has disappeared.
Both Shanghai Auto Group and General Motors have given up this joint venture and are discussing the dissolution of the company.
Spring City Volkswagen and Shanghai Volkswagen were once strong contenders for 1 million sales, but after years of shouting, they have not successfully reached 1 million, and even their sales in the past two years have declined.
Other car companies such as Xifeng Nissan and Shanghai Hyundai have also shouted the slogan of annual sales of 1 million.
Now, let alone 1 million, it is difficult to reach 500,000.
If the curse of joint venture car companies is because Nanshan Automobile Group is suppressing them with its own brands, then the performance of Geely, Great Wall, BYD and other car companies that once shouted that they would break through 1 million sales this year undoubtedly shows that the curse is universal.
These car companies do not see any hope of sales exceeding 1 million this year.
Even if sales want to achieve positive growth, it is very difficult.
"Boss Yin, our sales department has analyzed the market situation. In fact, it is not only our sales that are declining."
"The decline rate of Great Wall Motors is not slower than ours. The sales of BYD and Geely are also declining."
"Even companies such as Yangcheng Aion, which are very close to Nanshan Automobile Group, are also declining in sales."
"Among mainstream car companies, that is, Spring City Volkswagen, Shanghai Volkswagen, Dongfeng Peugeot Citroen, Changan Automobile and Nanshan Hongqi, as well as various luxury car companies, are increasing in sales."
"This shows that the situation is not necessarily a problem within our company. Perhaps the overall environment has changed."
Wang Ze knew that if he continued to fight internally at this time, Yin Chuan would definitely be very unhappy.
So he quickly changed the subject.
Anyway, what he said was the truth. Even if the conclusion he came to was incorrect, he didn't have to worry about saying the wrong thing.
Sure enough, there were smart people present.
After listening to Wang Ze's words, he immediately changed the subject and said, "The increase in luxury car sales has suppressed our sales growth to a certain extent."
"In the past, people thought that luxury cars were only for a small number of consumers and would not have a big impact on the sales of the entire auto market."
"But if we add up the sales of Xingchen Auto, Jaguar Land Rover, BMW, Audi, Mercedes-Benz, Lexus, Volvo, Infiniti and other automakers, we will find that the overall sales of luxury cars are not small at all."
"The sales of luxury cars in one year have exceeded 2 million, and the market share has reached 10%."
"This is already a presence that cannot be ignored."
When Zhang Wuchao said this, everyone present could not help but nod.
This is indeed the truth.
It just does not solve the dilemma of what Chery Automobile will do next.
You can't let Chery Automobile also produce luxury cars, right?
Even if they want to, they have to be recognized by consumers.
"I analyzed the situation of Changan Automobile and Nanshan Hongqi, two domestic auto companies with relatively good sales performance."
"In fact, the paths they took were not exactly the same. Changan Automobile has achieved very good results in cheap models and has gained a large market with low prices."
"Nanshan Hongqi is just the opposite. They have always advertised themselves as mid-range cars and are the closest to joint venture auto companies among domestic brands."
"The various models launched by Nanshan Hongqi are also in line with similar products of Volkswagen and Toyota in terms of performance and price in all aspects."
"In addition, the promotion of two special shareholders, Chuncheng Automobile Group and Nanshan Automobile Group, has led to the current results."
"It can be said that in terms of foundation, their strength is very strong."
"We, Chery Automobile, must also find our own focus to make it have a unique impression in the minds of consumers."
Song Xianming did not shirk responsibility at this time, but actively discussed the next step with everyone.
All those present are considered old men in the automotive industry.
In fact, they are quite clear about many things in the industry.
By brainstorming, everyone can really find some solutions.
Finally, Yin Chuan summarized everyone's opinions and said, "We started our overseas layout relatively early, and now our overseas sales have gradually improved."
"But compared with Nanshan Automobile Group, there is still a huge gap."
"Since everyone thinks that we should take a differentiated path, we should further pay attention to overseas markets and let domestic consumers know our strength by expanding overseas markets."
"Then the company's focus in the next step is to stabilize the domestic market and actively explore overseas markets."
"We want to make the sales in overseas markets equal to the sales in the domestic market. In this way, the annual sales of 1 million vehicles will not be a problem."
To make this decision, there must be a certain degree of determination.
Although the cake of the overseas market is very attractive, it is not so easy to do well.
After all, Toyota, Honda, Hyundai Kia, General Motors, Ford, Fiat and other car companies have been deployed around the world for so many years, and it is not easy for your Chinese independent brands to surpass them.
For example, Fiat Automobile, they are very miserable in China.
It obviously entered the Chinese market very early, but it finally couldn't survive and withdrew.
Even though they have entered the Chinese market in cooperation with Yangcheng Automobile Group, they are not having a good time.
But don’t think that they are having a hard time in China. Their influence in South America is greater than that of most car companies.
Fiat Group actually has a good life every year.
The same situation is actually similar for Peugeot Citroen.
In the future, Peugeot Citroen has no sense of existence in Haihua, but its global performance is booming.
This is because its performance in other overseas markets is very good.
…
Like Chery Automobile, Great Wall Motors is also holding a high-level meeting internally.
For a long time, Great Wall Motors has taken a different path with various SUV models.
Although sales have not exceeded 1 million units, it is about to reach this threshold.
In order to reach the high goal of 1 million units, or even 2 million units in the future, Great Wall Motors has also made relatively large adjustments internally.
On the one hand, it has begun to enter the sedan market and wants to grab a part of the market share from other brands.
On the other hand, they also began to separate Haval into an independent brand, and have established some high-end brands internally to launch more high-end models.
After all, they are a little jealous of the rapid development of the luxury car market.
However, although there are many actions and several new models have been launched, the final sales volume has not increased at all.
There has even been some decline.
This situation of increasing models but not increasing sales must have made Boss Wei very dissatisfied.
"In the past year, we have launched two new sedans. According to the original plan, the overall sales volume needs to be increased by at least 150,000 units."
"In addition to the two sedans that are still being promoted, our sedan sales will eventually exceed 300,000 units, contributing to the company's impact on 1 million sales."
"But what are the actual results?"
"The combined sales of our two sedans in August just exceeded 1,000 units, not even one-tenth of the planned sales."
"All the development costs and mold costs have gone down the drain."
"The company has always given consumers the image of an SUV, and we cannot give up this important advantage."
"The two sedans that are still being promoted will be stopped indefinitely."
"After the sedans that have been produced have consumed the current inventory of parts and materials, they will also be discontinued."
"In the next three years, the company will focus on SUVs and pickup trucks, and put the sedans aside for now."
Boss Wei's decision made Wang Ying a little embarrassed.
As the general manager of Great Wall Motors, Wang Ying has been accompanying Great Wall Motors step by step in its development.
It can be said that her contribution is still very great.
The decision to enter the sedan market this time was also made by Wang Ying trying her best to persuade Boss Wei.
However, the final result was not ideal, which would definitely affect Wang Ying's prestige.
Although she did not lose her position as general manager directly, it was inevitable that her influence in the company would decline.
Even the degree of trust in Boss Wei's heart would decline to a certain extent.
People would think that you are a little bit arrogant?
"Mr. Wei, although our company's sedan performance is not very good, in the entire automobile market, sedans still account for 50% of the market share."
"Whether it is Nanshan Hongqi, Geely, or BYD, their sedans have made great contributions to the company's sales."
"I think it's a pity to completely give up the sedan market?"
As Wang Ying's direct subordinate, Lian Furong didn't want to go against his boss, but it was obviously inappropriate to say nothing at this time.
After all, Wang Ying hasn't expressed her position yet.
She is probably waiting for the people below to explain for her.
This situation is also very common.
Many leaders will not easily stand up and speak, but wait until everyone's speeches are almost over before expressing their opinions.
"Other car companies are other car companies, and we are Great Wall."
"If we don't have our own unique features, how can we grab market share?"
"Sedans are important, everyone knows this, but not every company can make sedans well."
"Look at Yangcheng Trumpchi, it was also very strong at the beginning and launched many sedans, but so far no sedan has been made well, and finally it still bet on SUVs and MPVs."
"That is, Geely and BYD have their own unique advantages in this regard."
Boss Wei is not so easy to fool.
He also has his own persistence.
If it were ten years ago, he would definitely support entering the sedan market.
But Great Wall Motors has already established the image of SUVs. If you try sedans, you can continue if you succeed.
But now it has failed, so there is no need to continue.
Hurry up and surrender!
The car market is not something you can succeed in just by being stubborn.
"What Mr. Wei said makes sense. We are not yet mature enough to make sedans."
"Let's put the sedan project on hold for a while and wait until the time is right in the future."
Wang Ying, who had been silent all along, did not explain anything and directly chose to support Mr. Wei's decision.
If the sedan project is not successful, there will be twists and turns in the future, which is something she has already expected.
Even Mr. Wei had expressed similar ideas to her before the meeting.
So she didn't say much when she decided to cancel it at this time.
The two big guys have agreed to cancel it, so naturally others won't say much.
However, this change will naturally spread quickly in the industry.
After all, several sedans involve many suppliers, and the suppliers of various OEMs have more or less overlap.
So it is inevitable that the news will spread.
The first to get the news was Autohome.
Yu Yu specially collected some news about major automobile companies, and made an appointment with Mi Ying for an hour to report to Cao Yang.
"Mr. Cao, after entering September, facing the arrival of the golden September and silver October, many car companies have adjusted their strategies."
"Especially those domestic car companies whose sales performance in the past few months is not very ideal, and their actions are not small at all."
Yu Yu is very good at seizing various opportunities to report to Cao Yang.
There are so many companies in the Nanshan system. If Autohome does not create opportunities to report to Cao Yang, then Cao Yang may not listen to Autohome's news for several months.
At most, when listening to the progress of key projects of various companies in the group every month, he will listen to related content by the way.
But at that time, a lot of companies gathered to report in one or two days, and the time left for Autohome was even less than 20 minutes.
There is definitely no way to communicate feelings.
"The overall growth rate of the automobile market has begun to slow down, but the production capacity of various car companies has expanded rapidly, and overall there has been a situation of oversupply."
"Faced with this change, many car companies will definitely be affected."
Nanshan Equipment is the most important equipment manufacturer in China.
The construction of new factories of all domestic car companies has more or less participated in Nanshan Equipment.
Even the construction of new factories of various joint venture car companies cannot completely avoid Nanshan equipment.
So Cao Yang is relatively clear about the capacity expansion actions of various domestic car companies.
Especially in the past two years, various car companies have built new factories and new bases.
Now the national automobile production capacity has long exceeded 30 million vehicles, but the market sales have not even broken through the 25 million mark.
In this way, the market has naturally become more competitive.
"Chery Automobile clarified the next development direction at an internal meeting of the company a few days ago and will continue to increase the expansion of overseas markets."
"It is said that they want to learn from the original development path of Xingchen Automobile, and in turn enhance their brand influence by increasing overseas sales, and then increase domestic sales."
Yu Yu first introduced Chery Automobile to Cao Yang, the former sales champion of independent brands.
Relying on Chery QQ, Chery Automobile's rise was actually quite fast back then.
When other independent brand car companies were not performing well, they had already emerged.
After in-depth cooperation with Nanshan Automobile Group, Chery Automobile has also been developing rapidly for more than ten years.
Nowadays, when talking about independent brand car companies in China, Chery Automobile is a topic that cannot be avoided.
"Are there any other moves from other car companies?"
Cao Yang did not comment on Chery's decision.
This development direction did not appear suddenly. People have actually been walking in this direction many years ago.
It's just that it is more clear now.
"Also, Great Wall Motors has officially given up the plan to develop sedans, and all the sedans that are still being developed have been stopped."
"It is said that the two sedans that have been put on the market will also be officially discontinued."
Great Wall Motors' influence in the Chinese automobile market is not much worse than Chery.
Especially in the SUV field, as long as people want to buy an independent brand SUV, they will definitely compare it with models such as Great Wall H6.
So Yu Yu is also ready to introduce the movements of Great Wall Motors.
"In recent years, everyone's heart has gradually become wild, and the new models launched by each company are more and more, as if if they don't have ten or eight models, they are not considered a big company."
"This path cannot be said to be wrong, but if everyone rushes to do it, it will definitely not succeed."
At the beginning, it was Cao Yang who proposed to let Great Wall Motors focus on SUVs.
At that time, the cooperation between Great Wall Motors and Nanshan Automobile Group was also closer.
Unlike now, everyone's communication has been reduced a lot.
Great Wall not only produces engines by itself, but also produces part of the gearboxes by itself.
The problems encountered by Chery Automobile were also encountered by Great Wall Motors.
In addition, the unfavorable development of sedans naturally led to more actions.
"Yes, our domestic companies like to do things this way."
"In the end, the market was in chaos and no one made money."
Yu Yu definitely agreed with Cao Yang's point of view.
Today's report was originally an information sharing meeting, and Yu Yu did not intend to persuade Cao Yang to accept any new ideas.
"Autohome's advertising revenue has been increasing in recent years. Now that the market has become fierce, have the car companies placed more advertisements?"
Cao Yang has not asked about Autohome's situation for some time.
However, it is not that he does not value Autohome's business, but that all businesses have been put on the right track and he does not need to worry about it.
"Yes, advertising revenue has not only not decreased, but also has a clear upward trend."
"Everyone does not want to be eliminated by the market, and has already started to roll."
This situation is actually what Yu Yu wants to see.
If every car company has already flattened, then Autohome will not be very attractive.
This is not the situation she wants to see.
"Is there any special negative news about Volkswagen that is worth dealing with?"
Cao Yang thought of the sales growth of Spring City Volkswagen and Magic City Volkswagen mentioned in the previous communication with Zeng Tingting, and felt that it was necessary to suppress it.
For the sales of joint venture car companies, it is enough to be stable there, and growth is unacceptable.
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