Chang'an Automobile combines vertically and horizontally, northwards and eastwards, and has basically formed a “product triangle†dominated by Chang’an, Ford and Suzuki, and a “triangle triangle†strategic pattern dominated by Chongqing, Nanjing and Hebei. The prosperous prosperity of production and sales cannot hide the weakness of the Chinese auto market itself. Riding on the fast-growing chariots of China's economy, foreign automakers and their Chinese partners each year take profits from the national and taxpayers' pockets that are more than 100 times the world average profits. However, the Chinese have not learned the core from foreign companies. Technology. In China, a handful of auto companies are trying to change this situation and hold high the banner of independent brands. Changan Group, which currently ranks among the top three in terms of sales in China, is one of them. In order to achieve scale expansion, Chang’an Automobile has established Hebei Chang’an in the north, established Chang’an in Nanjing in the east, and established Chang’an Ford in cooperation with international industry giants. Currently, Chang’an Automobile has basically formed Chang’an, Ford and Suzuki. "Product triangle" and Chongqing, Nanjing, Hebei, the "regional triangle" strategic pattern. On September 16, the Changan Group’s first self-developed car CM8 with completely independent intellectual property rights was launched. Faced with numerous media and distributors at home and abroad, Yin Jiaxu, president of Chang'an Group, called for more Chinese auto companies to vigorously implement self-development and cultivate their own brands. On September 15th and 16th, our reporter visited Yin Jiaxu. Grasping the destiny of grasping the fate of the “21st Centuryâ€: Why did the Chang’an Group not directly introduce foreign brands like several other big auto companies in the country, so that it would not invest less and achieve quick results? Yin Jiaxu: China has become the world’s fourth-largest automobile producer and the third-largest automobile market. However, due to lack of core technical support, domestic automobile manufacturers basically originate from foreign partners. Unable to grasp the core technologies of automobiles, they cannot grasp the commanding heights of the auto industry and lose their right to speak, which in turn affects the independence and security of the country’s economy. In 2003, more than 30 models of new models were introduced to the market, most of which were exotic or slightly changed models. The cars designed and developed by China were not only small in quantity but also weak in competitiveness. In the short term, the introduction of models and the introduction of technology have less risk and less investment. However, for each car sold, multinational companies must take a certain amount of profits. Overall, there are many investments in the introduction of models and technology. "21st Century": At present, some domestic self-developed models, the sales situation is not very satisfactory, Changan insist on taking the road of independent research and development is not a great risk? Yin Jiaxu: Self-development is a great risk. Our confidence is that through independent research and development, Chang'an has trained a group of talents who have carried out the entire process of R&D together with I.DE.A, the famous Italian car design company. In CM8, our technicians only participated in 20%, but in the following CV9, CV7, CV6, our technical personnel participated in 70% - 80% of the design development. So much so that the designers of the company said that if you develop a few more cars, Chang'an's technicians can operate independently without them. Unlike Chang'an, the independent research and development of other domestic companies is in fact entrusting others to develop and not participating in the whole process. Therefore, cars have problems. They do not know where the problems are, they do not know how to improve them, and they affect the sales of cars. Because Changan has been involved in the development and design of the entire process, it has obtained a set of development procedures and a set of processes so that we can improve the technology at any time. "21st Century": Changan insists on taking the road of independent research and development. Does it have conflicts with Ford and Suzuki? Yin Jiaxu: The development of Chang'an and the company have always insisted on walking on two feet. One is to invite in, and the other is to go out. In the cooperation with foreign companies, we have never given up "autonomy." And the cooperation between Changan and Ford and Suzuki is equal. The two partners have never presented me face to face and are not allowed to develop independently. On the contrary, Chang'an insists on independent brands, independent development, independent production, independent sales, and independent development. The better the Changan Group itself develops, the more people serve it, the more people will respect it, and the better the cooperation with multinational companies, The more you have the right to speak in cooperation. Strong impact on the first camp, "21st Century": Chang'an Group adheres to self-centered, autonomous development and has achieved remarkable results. The goal of recreating a Chang'an in three years will be achieved one year ahead of schedule. What are the strategic goals of Chang'an in the future? Yin Jiaxu: In 1998, the production and sales volume of Changan Automobile was still less than 100,000 units. By 2003, Chang’an’s production and sales volume reached 380,000 units. From the fourth place in the domestic micro-vehicle industry, it grew to be second only to FAW, SAIC, etc. China's fourth-largest automobile manufacturing group after Dongfeng, and the domestic micro-vehicle industry leader. From January to June this year, Chang'an Group made it to the top three. The goal of recreating a Changan for three years can be realized in advance this year. From this point of view, the goals set by Changan in the "3337" development plan are set a bit lower. (3337 refers to the scale of production capacity of more than 500,000 vehicles from 2002 to 2005, the production capacity of one million vehicles from 2005 to 2010, and the production capacity of Changan Automobile from 2010 to 2020 More than 10,000 vehicles.) In the future, we will adopt a development strategy that combines leapfrog development and fissile development to further speed up the development of Chang'an and enter the first camp as soon as possible. This year, the domestic auto market has begun to slump, and the sales of major manufacturers have been severely declining. Several domestic automakers have stopped production for more than ten days or even one month, and some joint venture factories have started layoffs. At present, Chang'an is still operating at full capacity and sales are rising month by month. Chang'an Ford's Mondeo thrives, and the carnival's sales are steadily rising. Changan Suzuki's antelope and Alto are more popular with home users. We must seize this opportunity to speed up development. "21st Century": CM8 is an MPW car. Does Chang'an's strategy change? Yin Jiaxu: We have already adjusted Changan’s strategy from “based on micro-vehicles†to “micro-vehicle-based, sedan-basedâ€. In the first two days, we added “development of commercial useâ€. The CM8 combines business, home, and leisure with two models, 1.3-liter and 1.6-liter. Changan has clearly and energetically developed the train of thought. In the next year, Changan will launch a self-developed CV9 sedan. CV7 and CV6 are also cars. In the next three years, Changan will launch six new cars with independent intellectual property rights. Its displacement will increase from 1.0 to 2.0 liters. Chang'an Ford Nanjing Base has been started, with a production capacity of 200,000 vehicles, and Changan Ford’s Chongqing plant has increased its production capacity from 150,000 to 200,000. In the second half of next year, Changan Ford's production capacity will reach 200,000 vehicles, resulting in a production of 100,000 vehicles. Ford and Suzuki also gave strong support to Chang'an's development strategy. The Ford Motor Company's models, including Lincoln, Mercury, Mercedes-Benz and Mazda, may enter China as soon as Chinese consumers demand it. Next year, Suzuki will push two cars to China and its production capacity will increase to 120,000. "21st Century": Not long ago, Changan successfully issued 150 million A shares, and it is said that Changan Group hopes to push Changan Logistics to Hong Kong's Growth Enterprise Market. Chang'an Group has any plans for financing? Yin Jiaxu: Changan has been listed on the A-share and B-share markets, but this is not enough. If we say that strategy is rudder, capital is sail. Chang'an will only become even more powerful if it implements capital operations and enters the international market platform. At present, Changan has also considered the overall listing of the group. When the investment bank discusses the listing plan, it also suggests that the group as a whole be listed, or that Changan Automobile will issue H shares. However, the overall listing operation is relatively complicated and the timing is not yet mature. It is not yet convenient to disclose it. It is not Yinguangxia's second "21st Century": At present, some people doubt Chang'an's performance. In the midsummer of 2003, the Chang'an Group experienced seven questions about “snow and skyâ€. How do you view this matter? Yin Jiaxu: At that time, many media came to Chongqing and thought that they had caught the second Lam Tin shares and Yinguang Xia. In fact, Chang'an's performance is real. The sales of 200,000 Changan Stars accounted for one-third of the country's mini vehicle sales, but the year before last year, Changan Star's profits accounted for 75% of the micro-vehicle industry, accounting for 85% last year. From mini vehicles to MPVs, the long-term vehicle product lines from low-end cars, Mondeo and Changan, are considered to be the most representative automotive auto listed companies. Chang'an also ensures Chang'an profits through management. Chang'an cooperated with ORACLE, a well-known international company, and implemented an ERP information system project with a total investment of RMB 123 million. The company's management efficiency and efficiency have been significantly improved. After the implementation of ERP, the working capital turnover days have been shortened from the past 152 days to 50 days, the occupation of reserve funds has changed from 150 million yuan to 0, and the reserve area has changed from 120,000 square meters to zero. After the informationization, the profits of the company are ensured. With the support of a series of information management, the company has laid a foundation for rapid development. Since 2001, the company has entered a phase of recoverable growth. In 2002 and 2003, it achieved rapid growth. By the end of 2003, the company’s production and sales rankings had risen to fourth place. Chang’an’s conservative estimate is that production and sales growth is about 20%. Reporter Tao Chunyu reports from Chongqing
Interpretation of Chang An Group President Yin Jiaxu's Art of War: Strategy is King
Chang'an Automobile combines vertically and horizontally, northwards and eastwards, and has basically formed a “product triangle†dominated by Chang’an, Ford and Suzuki, and a “triangle triangle†strategic pattern dominated by Chongqing, Nanjing and Hebei. The prosperous prosperity of production and sales cannot hide the weakness of the Chinese auto market itself. Riding on the fast-growing chariots of China's economy, foreign automakers and their Chinese partners each year take profits from the national and taxpayers' pockets that are more than 100 times the world average profits. However, the Chinese have not learned the core from foreign companies. Technology. In China, a handful of auto companies are trying to change this situation and hold high the banner of independent brands. Changan Group, which currently ranks among the top three in terms of sales in China, is one of them. In order to achieve scale expansion, Chang’an Automobile has established Hebei Chang’an in the north, established Chang’an in Nanjing in the east, and established Chang’an Ford in cooperation with international industry giants. Currently, Chang’an Automobile has basically formed Chang’an, Ford and Suzuki. "Product triangle" and Chongqing, Nanjing, Hebei, the "regional triangle" strategic pattern. On September 16, the Changan Group’s first self-developed car CM8 with completely independent intellectual property rights was launched. Faced with numerous media and distributors at home and abroad, Yin Jiaxu, president of Chang'an Group, called for more Chinese auto companies to vigorously implement self-development and cultivate their own brands. On September 15th and 16th, our reporter visited Yin Jiaxu. Grasping the destiny of grasping the fate of the “21st Centuryâ€: Why did the Chang’an Group not directly introduce foreign brands like several other big auto companies in the country, so that it would not invest less and achieve quick results? Yin Jiaxu: China has become the world’s fourth-largest automobile producer and the third-largest automobile market. However, due to lack of core technical support, domestic automobile manufacturers basically originate from foreign partners. Unable to grasp the core technologies of automobiles, they cannot grasp the commanding heights of the auto industry and lose their right to speak, which in turn affects the independence and security of the country’s economy. In 2003, more than 30 models of new models were introduced to the market, most of which were exotic or slightly changed models. The cars designed and developed by China were not only small in quantity but also weak in competitiveness. In the short term, the introduction of models and the introduction of technology have less risk and less investment. However, for each car sold, multinational companies must take a certain amount of profits. Overall, there are many investments in the introduction of models and technology. "21st Century": At present, some domestic self-developed models, the sales situation is not very satisfactory, Changan insist on taking the road of independent research and development is not a great risk? Yin Jiaxu: Self-development is a great risk. Our confidence is that through independent research and development, Chang'an has trained a group of talents who have carried out the entire process of R&D together with I.DE.A, the famous Italian car design company. In CM8, our technicians only participated in 20%, but in the following CV9, CV7, CV6, our technical personnel participated in 70% - 80% of the design development. So much so that the designers of the company said that if you develop a few more cars, Chang'an's technicians can operate independently without them. Unlike Chang'an, the independent research and development of other domestic companies is in fact entrusting others to develop and not participating in the whole process. Therefore, cars have problems. They do not know where the problems are, they do not know how to improve them, and they affect the sales of cars. Because Changan has been involved in the development and design of the entire process, it has obtained a set of development procedures and a set of processes so that we can improve the technology at any time. "21st Century": Changan insists on taking the road of independent research and development. Does it have conflicts with Ford and Suzuki? Yin Jiaxu: The development of Chang'an and the company have always insisted on walking on two feet. One is to invite in, and the other is to go out. In the cooperation with foreign companies, we have never given up "autonomy." And the cooperation between Changan and Ford and Suzuki is equal. The two partners have never presented me face to face and are not allowed to develop independently. On the contrary, Chang'an insists on independent brands, independent development, independent production, independent sales, and independent development. The better the Changan Group itself develops, the more people serve it, the more people will respect it, and the better the cooperation with multinational companies, The more you have the right to speak in cooperation. Strong impact on the first camp, "21st Century": Chang'an Group adheres to self-centered, autonomous development and has achieved remarkable results. The goal of recreating a Chang'an in three years will be achieved one year ahead of schedule. What are the strategic goals of Chang'an in the future? Yin Jiaxu: In 1998, the production and sales volume of Changan Automobile was still less than 100,000 units. By 2003, Chang’an’s production and sales volume reached 380,000 units. From the fourth place in the domestic micro-vehicle industry, it grew to be second only to FAW, SAIC, etc. China's fourth-largest automobile manufacturing group after Dongfeng, and the domestic micro-vehicle industry leader. From January to June this year, Chang'an Group made it to the top three. The goal of recreating a Changan for three years can be realized in advance this year. From this point of view, the goals set by Changan in the "3337" development plan are set a bit lower. (3337 refers to the scale of production capacity of more than 500,000 vehicles from 2002 to 2005, the production capacity of one million vehicles from 2005 to 2010, and the production capacity of Changan Automobile from 2010 to 2020 More than 10,000 vehicles.) In the future, we will adopt a development strategy that combines leapfrog development and fissile development to further speed up the development of Chang'an and enter the first camp as soon as possible. This year, the domestic auto market has begun to slump, and the sales of major manufacturers have been severely declining. Several domestic automakers have stopped production for more than ten days or even one month, and some joint venture factories have started layoffs. At present, Chang'an is still operating at full capacity and sales are rising month by month. Chang'an Ford's Mondeo thrives, and the carnival's sales are steadily rising. Changan Suzuki's antelope and Alto are more popular with home users. We must seize this opportunity to speed up development. "21st Century": CM8 is an MPW car. Does Chang'an's strategy change? Yin Jiaxu: We have already adjusted Changan’s strategy from “based on micro-vehicles†to “micro-vehicle-based, sedan-basedâ€. In the first two days, we added “development of commercial useâ€. The CM8 combines business, home, and leisure with two models, 1.3-liter and 1.6-liter. Changan has clearly and energetically developed the train of thought. In the next year, Changan will launch a self-developed CV9 sedan. CV7 and CV6 are also cars. In the next three years, Changan will launch six new cars with independent intellectual property rights. Its displacement will increase from 1.0 to 2.0 liters. Chang'an Ford Nanjing Base has been started, with a production capacity of 200,000 vehicles, and Changan Ford’s Chongqing plant has increased its production capacity from 150,000 to 200,000. In the second half of next year, Changan Ford's production capacity will reach 200,000 vehicles, resulting in a production of 100,000 vehicles. Ford and Suzuki also gave strong support to Chang'an's development strategy. The Ford Motor Company's models, including Lincoln, Mercury, Mercedes-Benz and Mazda, may enter China as soon as Chinese consumers demand it. Next year, Suzuki will push two cars to China and its production capacity will increase to 120,000. "21st Century": Not long ago, Changan successfully issued 150 million A shares, and it is said that Changan Group hopes to push Changan Logistics to Hong Kong's Growth Enterprise Market. Chang'an Group has any plans for financing? Yin Jiaxu: Changan has been listed on the A-share and B-share markets, but this is not enough. If we say that strategy is rudder, capital is sail. Chang'an will only become even more powerful if it implements capital operations and enters the international market platform. At present, Changan has also considered the overall listing of the group. When the investment bank discusses the listing plan, it also suggests that the group as a whole be listed, or that Changan Automobile will issue H shares. However, the overall listing operation is relatively complicated and the timing is not yet mature. It is not yet convenient to disclose it. It is not Yinguangxia's second "21st Century": At present, some people doubt Chang'an's performance. In the midsummer of 2003, the Chang'an Group experienced seven questions about “snow and skyâ€. How do you view this matter? Yin Jiaxu: At that time, many media came to Chongqing and thought that they had caught the second Lam Tin shares and Yinguang Xia. In fact, Chang'an's performance is real. The sales of 200,000 Changan Stars accounted for one-third of the country's mini vehicle sales, but the year before last year, Changan Star's profits accounted for 75% of the micro-vehicle industry, accounting for 85% last year. From mini vehicles to MPVs, the long-term vehicle product lines from low-end cars, Mondeo and Changan, are considered to be the most representative automotive auto listed companies. Chang'an also ensures Chang'an profits through management. Chang'an cooperated with ORACLE, a well-known international company, and implemented an ERP information system project with a total investment of RMB 123 million. The company's management efficiency and efficiency have been significantly improved. After the implementation of ERP, the working capital turnover days have been shortened from the past 152 days to 50 days, the occupation of reserve funds has changed from 150 million yuan to 0, and the reserve area has changed from 120,000 square meters to zero. After the informationization, the profits of the company are ensured. With the support of a series of information management, the company has laid a foundation for rapid development. Since 2001, the company has entered a phase of recoverable growth. In 2002 and 2003, it achieved rapid growth. By the end of 2003, the company’s production and sales rankings had risen to fourth place. Chang’an’s conservative estimate is that production and sales growth is about 20%. Reporter Tao Chunyu reports from Chongqing