Li Chunrong 2011 Evolution: From Radical to Robust

Inside Dongfeng Company, Li Chunrong may be the most down-to-date sales manager. In Dongfeng Nissan, Dongfeng Honda, Dongfeng Yueda Kia and Shenlong Motors, etc., Dongfeng Passenger Vehicle represented by Li Chunrong is the only subsidiary of Dongfeng Motor that failed to complete its sales forecast. Compared with the 60,000 targets in 2010, the achievement rate is still less than half.

"Dongfeng Fengshen's 2010 use of the word 'bow' can be summarized," Li Chunrong recorded in his microblogging. "There is a big gap between the targets and the pressure is very great, and the pressure is 'bow', but it has not been crushed and supported."

Bad start

"Our sales target for 2010 is 60,000 vehicles." December 29, 2009, in the Wuhan assembly plant of Dongfeng Passenger Car Company, Li Chunrong said. On the same day, Dongfeng Fengshen's second model, the H30, went offline. The 60,000 vehicles were split into 48,000 sedan S30s, and the remaining 12,000 were completed by hatchback H30. This goal was interpreted by the general manager of the company, Li Shaozhu, as the break-even point of the company.

The plan to achieve profitability in the second year of sales has seemed to be too radical for Dongfeng Fengshen, which lacks market accumulation, and this is just the starting strategy of its “5510 Project”.

A total of 20 years of "5+5+10" time points have enabled Dongfeng Passenger Vehicles to become a world-renowned company with core indicators such as brand, revenue, scale, and human capital value. The first five years were described by Li Shaozhu as “growth and nucleation”, making Dongfeng Passenger Vehicle's brand value, income, and human capital value the leaders of domestic independent brands. It is followed by “growth and growth” and is at the leading position in terms of brand, revenue, and human capital value. In the last 10 years, “fission development” was formed and Dongfeng Passenger Vehicles became an internationally renowned company.

The unfavorable start made Li Chunrong's ambitions more urgent. “Aeolus 2010 can be summarized by using the word “bow.” First, the retail volume of terminals exceeds 28,000 units, which is more than double the number of the previous year, but the distance from the target is very big and the pressure is very high. The pressure on the 'bow' is too low. "Living." Li Chunrong recorded on his personal microblog. "Second, 'bow' made some breakthrough work, such as conquering the five continents. Third, the 'bow' symbolizes that the road ahead of the Chinese cars is not Fourth, the existing good bow - this year will have its own engine, new models and other arrows. Look forward to Fengshen's power to build up!"

Capacity emptying

In Li Chunrong's view, the failure of Dongfeng Fengshen's sales target is due to the fact that Fengshen's brand awareness is not high enough. Second, consumers are also skeptical about the quality of Fengshen. This will directly bring trouble to Dongfeng Passenger Vehicle's capacity deployment.

The Fengshen production base located at 1969 Dongfeng Avenue, Wuhan Economic and Technological Development Zone, Hubei Province, has an annual production capacity of 80,000 vehicles as early as the first half of 2009. The investment in the four workshops of stamping, welding, painting, and assembly is as much as 18.3. 100 million yuan. Right now, the second phase of the project is just around the corner. In addition to the above four processes, the engine plant will be completed and put into production this year.

"Through March, the second phase of the Wuhan plant will be completed and Dongfeng Fengshen will have a production capacity of 240,000 double shifts," Yu Zhanxi, director of the Wuhan plant, told the Times Weekly reporter. "At that time, there will be 3-4 models to achieve flexibility. Co-production."

In June of last year, Dongfeng Passenger Vehicle's engine factory with an annual output of 300,000 units was started to build, covering an area of ​​72,000 square meters, and the first-phase construction of a land of 32,000 square meters. It is expected that the 1.6L engine will be completed and put into operation in the second half of 2011. When it is put into operation, the annual output will reach 60,000 units, and the first phase production capacity will reach 300,000 units. Li Chunrong said that in terms of power planning, Dongfeng Fengshen will launch 2.0L, 2.4L, and 1.4T turbocharged engines in the future to meet the future demand for different models.

Aeolian Evolution

“2011 is the first year of the Twelfth Five-Year Plan,” Li Shaozhu said at a recent internal management seminar. “In the framework of Dongfeng Motor Company's “Twelfth Five-Year Plan”, the independent brand enterprise has occupied in it. Importantly, this means that the Dongfeng Passenger Vehicle team will undertake more important missions and tasks."

Different from SAIC Motor’s purchase of Rover technology and FAW's direct introduction of Mazda’s mature technology platform to achieve rapid entry into its own projects, it is also different from Chery’s and BYD’s and Geely’s reverse development model. It fully mimics the mature model of foreign brands and uses Dongfeng The idea of ​​the car company is to fully absorb the technical foundation of Dongfeng's joint ventures and strictly follow the positive R&D process for product modeling design, product engineering design and manufacturing. Compared with the former, the Dongfeng Fengshen model can hardly avoid the difficult start of a long product development cycle, but you can accumulate technical strength.

Li Chunrong tried to reverse the predicament by using several product strategies that were put into place by new cars.

The product layout of the “energy gathering and nucleation” stage will be initially formed. The insider of the company told the reporter that this is a huge plan centering on three product platforms for small cars, mid-size cars and high-end cars – successively launching 1.3-1.6 liters and 1.8-liter. l -2.4 liters of 10 new cars loaded on two series of 9 engines.

In addition to the new H30 released on January 17, the crossover versions of the S30 and H30 will be launched in 2011 alone. The new model, tentatively named "S60," will be similar to the Nissan SUV, and will also carry a 2.0-liter engine. In addition, a self-developed 1.6L displacement engine will gradually replace the Citroen engine installed in the Dongfeng Fengshen car.

Including the upcoming new car, Li Chunrong said that he set Dongfeng Fengshen's sales target to 42,000 units this year, an increase of 50%.

This figure is obviously not so radical.