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The 2008 China “Saving Society and Small-Displacement Vehicle Development Summit Forum†organized by Jiangxi Changhe Automobile Co., Ltd. was held in Nanchang on June 15th. Here Changhe Automotive released the “Declaration of Energy-saving Roads and Manufacture of Premium Cars†brand declaration. This indicates that Changhe Automotive has made major adjustments in its brand strategy.
After the meeting, Sohu Automobile and other media made an exclusive interview with Changhe Automotive Chairman Li Yao, discussing the hot issues such as the strategic positioning, marketing network, product structure, and the influence of higher-level group restructuring. The following is an interview record.
The new brand declaration is to let everyone know what Changhe is
Reporter: Why does Changhe Automotive choose to issue a new brand declaration at this time and what is the consideration?
Li Yao: Today we should say that Changhe Automobile is a brand advocate for “Creating energy-saving vehicles and building high-quality carsâ€. I don’t think this is just my personal consideration. The rest of us may be considering it and we’ll have a longer time. When we discussed this matter, we often said that to give the public a concept for consumers, Changhe car is equal to what? The original idea is this, we have also tried to guess what the BMW car is equal to? What is Mercedes-Benz? What is Toyota's car? Is respect or atmosphere or economical and practical? In turn, Changhe Automobile was asked to think of Changhe Auto immediately after reading the word to the audience.
In fact, we did not compare each other. Some of our middle-level cadres and our team members discussed eight words. They had discussed six times. Originally there were many ideas, but we felt that “taking energy-saving roads to create quality cars†best suited the future of Changhe Automobile. Vision and current situation. The so-called in line with our actual situation, we Changhe Automobile's products in the market fuel consumption is low, it should be said that safety, including comfort, especially energy-saving aspects, I think the market reputation is still relatively good. In the long run, taking energy saving roads, I think it is a vision for our society and the development of our own companies. I don’t need to say about the environment. This is indeed a goal pursued by companies. Why do you make a quality car? In the last sentence spoken in Hangzhou, the public had a misunderstanding that the small-displacement vehicle could not simply be said to be economic. It was considered to give people the concept first. The car was small, the second one was of poor safety, and the third was of poor comfort. It is considered that the indicators of all aspects of small-displacement vehicles are relatively poor and will not form quality products. Then we think in reverse. In the future, if the development direction of China's small-displacement vehicles must be a small-displacement boutique car, if it is simply a small-displacement vehicle, I think that no matter how the publicity in the market, or how do you think about ways to do it? , I think it is difficult to last long. However, the small-displacement boutique car, its market influence and future market potential, I think it will be very good. Is there any possibility that our Changhe Automobile Manufacturing boutique car has? We think we are fully equipped with this condition.
We are now part of Changhe Auto's model in the category of boutique cars in the market. First of all, the market reputation of the Big Dipper is relatively good, and its two prominent features are fuel-efficient and durable. Changhe Automobile has engaged in an activity "Looking for a Durable King" in the previous section. As the 1.6th displacement of Leonardo, it first passed the CNCAP four-level safety four-star collision. From the entire car's architecture, including some cost-effectiveness, I think that similar vehicles in the market are better than it. car. There are also Adair, Freda, etc. From Changhe Auto's R&D strength to manufacturing capabilities and Changhe Auto's perseverance in quality, Changhe Auto can create small-displacement products. car. This is inaccurate, please correct it.
Adhere to the small displacement is one of the clear strategies of Changhe Automotive
Reporter: In addition to meeting the background of this event, is this manifesto not only very clear to Changhe that its main business will be positioned in the small car?
Li Yao: It should be said that Changhe Motors has clearly defined three different points in its development strategy. The first one is to take the path of international cooperation. This is something that I have repeatedly said in the past that I will not repeat. Secondly, we insist on dual branding. The problem we just mentioned is quite right. In the past, we had hoped that Suzuki would integrate into Changhe Automobile and later hoped that Changhe Automobile would integrate into Suzuki. However, now we are looking to stick to the dual-brand strategy. This is one of our strategies. The third very important strategy is the small displacement that has now been set.
This marks the future development of Changhe Auto. Our entire production layout, our technical reserves, and R&D must center on these words and serve around this center. It is to announce to the automotive industry that we are positioned within this category, which is based on considerations from all aspects of the company.
The first one is the judgment of the situation. Whether a small-displacement vehicle has a way out or not, there is no future. At the time in Hangzhou, I remember that I made it very clear. I would like to stop talking about it here. First of all, we are sure that this is definitely a way out. Second, we can do it. Can we do this small-displacement vehicle? This is definitely. Why don’t we say that I’ve done a small displacement and then a middle-class car. I think if you say that as a company, especially a company that is currently in adversity, you have so many ideas that are right, but at least we manage this. The layer will cause a great deal of confusion to our middle-level cadres for employees, thinking that you are an eyebrow and a mustache. We are dedicated to this area, and I think it is most appropriate and appropriate from our own resources and capabilities.
Going back to the premise just mentioned, if the small-displacement car does not have any outlets in the next five or even 20 years, then we may adjust our thinking, but we argue that we judge it based on the market and we find that this is not the case. Today there is an example of an expert. When he talked about the SUV, he talked about the small displacement. When speaking of a data, the small displacement growth in the first few months of this year was significantly higher than last year. In April, I read the statistics of the corresponding national automobile industry. The mini-cars grew by 13%. Hafei, Dongfeng, Wuling and Changan added us. Our growth rate is still relatively high. We also saw minivans. We call trucks but not Well, this market is down from January to April, down by 8%, but it is a considerable 13.7% growth for minivans. The average growth rate of cars nationwide is about 17.8%, which is not as fast as the SUV. However, it is hard to say how far the SUV can go. Which experts said today, the United States General Motors or which company has already shut down the North American production of two SUV depots, high fuel consumption can not support. However, Americans can do this, and Europeans will do so soon, but it may take two years to transport it across the ocean. Well, this kind of oil price may still have some time for our consumers' mentality and consumer psychology. This effect will still remain for some time.
Reporter: Now that Changhe has established a development strategy for the development of small-displacement vehicles, a lot of manufacturers have seen the development of small-displacement vehicles in this market segment in the past six months. Many brands have put high-quality small-displacement vehicles on the agenda. To enter this market. As Changhe, where is our confidence? Everyone is going to enter this market and the competition will be very intense.
Li Yao: I think this is the case for this matter. Any company must have a basis when it comes to producing products in a certain area. If I venture into it, I think there will be certain risks. Many of our high-end companies, such as GM, now have Wuling. We don’t say that FAW and FAW are now exploring this matter. There is a large displacement of medium-sized cars and small displacement. I think there are still technical thresholds. Some differences, first of all, I think there is one of the most critical core issues is that your technical reserve does not work this is the first. In the past, we have been engaged in some, in particular, some factories in China have cited products from joint venture brands. Therefore, we have a concept for small-displacement vehicles worth understanding.
There is also an independent brand, how do we do our own brand? This just mentioned the technical reserves. Your R&D capability is not good in all aspects. There is one key point that is the heart of the engine car. We have a unique condition for Changhe Automobile. I have a K14B engine. Others may also say that Wuling also says that I have developed an engine and who may introduce it. However, the world's large-displacement automobile engines abound, from Europe to Australia to Australia to Canada, the United States, large displacement engines produced by many factories, but the small displacement engines are basically concentrated in the Suzuki company and the Mitsubishi Corporation. A small car that talks about space design can be changed, but the heart is critical. I think that one of our Changhe cars is the foundation that we have been working on for many years, whether it is personnel foundation or others. Second, we have already mastered the K14B engine, which is a trump card for our production of small-displacement vehicles. Maybe you have to say, Dongan has a small engine, but the Dongan 1.3 engine and 1.0 engine and K14B compared to the technical level difference of five to ten years.
Reporter: We have determined the strategic goal for future development. We are positioning ourselves as a small-displacement light vehicle. What are the layouts and considerations of our products and arrangements for independent and joint venture products in the dual-brand strategy?
Li Yao: In terms of product layout, the current situation is Jingdezhen and Jiujiang as joint venture brands. Hefei is an independent brand. This is an aspect. In addition, according to the sales layout of the product, the two sides are currently quite equal. Last year, a total of nearly 110,000 units of Changhe Automobile were sold. There were 60,000 units in Jingdezhen + Jiujiang and 50,000 units in Hefei. From the perspective of the entire development of this year, Jingdezhen He Jiujiang is slightly higher at about 80,000 units, and Hefei is at 65,000 units to 70,000 units. From the next step, from the next two to three years, I think we may not make big changes in the proportion, but there will be a corresponding increase in sales, because we have to invest in new models in Jiujiang.
At present, we are also developing R&D products for the current models. Such as the Big Dipper is not always such an image, has been the sixth year, and I put forward a slogan, through the reform of the design, the engine is very good, the chassis technology is very mature, through the modified design, so that this product is extended by five Six years of life. This means that the introduction of this product of the Big Dipper will be sold in the Chinese market for 12 to 15 years. The shape can be changed slightly, because of its chassis engine, the original Dongan engine used by the Big Dipper, after K14B changed the concept is not the same, this is the first step of minor surgery, if I feel its nose is like a girl Say that the nose is not high I will put a cushion on my nose, isn't it even more beautiful, because the heart has been exchanged. I think this car should be said to be very strong in vitality. On the basis of langdi, langdi just put in, can not always be a single species, we can also engage in other varieties, this development changhe car should say that there have been six months Now. We now have R&D personnel and more than 200 people. It should be said that there is no Saturday full-time investment in this area.
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